Accor First Half Revenues Down

Consolidated revenues were down 7.8% at June 30, 2003, largely because of
a negative currency effect. Excluding the currency effect and changes in the
scope of consolidation, the decline was limited to 0.4%.
Hotel revenues for the first half declined 1.7% like-for-like. On a reported basis,
they decreased by 5.0% because of a negative 6.8% currency effect. New hotel
openings contributed 4.3% to revenue growth.
In general, the second quarter saw a sharp decline in business, especially in
Upscale and Midscale hotels (down 4.4%) and in Economy Hotels US (down
4.6%). Revenues from Economy Hotels Europe held up better (up 0.5%),
especially in France, where the increase was 3.4%.
First-half revenues from Services increased by 8.9% like-for-like. The reported
decline of 9.2% was due to currency devaluations in Latin America. In the
second quarter, revenues rose by 9.4%, an improvement on the first quarter’s
8.4% increase.
Reported revenues from other Group businesses (travel agencies, casinos,
restaurants and onboard train services) contracted by 15.3% over the period,
mainly due to the sale of a 50% stake in Accor Casinos.
In an unprecedented environment for the tourism industry, Accor demonstrated
its resilience, with like-for-like revenues remaining virtually stable. However,
slow business, particularly in the second quarter, combined with the negative
currency effect during the period will be reflected in the first-half results, to be
published on September 10.
With its balanced portfolio of businesses, a consistent marketing strategy
focused on increasing market share, and a more selective approach to
investments, Accor will be in a good position to take full advantage of the
recovery.
With 150,000 associates in 140 countries, Accor is the European leader and
one of the world`s largest groups in travel, tourism and corporate services, with
two major international activities:
- hotels: nearly 4,000 hotels (450,000 rooms) in 90 countries, casinos, travel
agencies, and restaurants;
- services to corporate clients and public institutions: 13 million people in 32
countries use a broad range of services (food vouchers, people care and
services, incentive, loyalty programs, events) engineered and managed by
Accor.
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