Accor’s pre-tax operating profit was up 18.8% year-on-year from €446 million (US$ 590 million) to €530 million (US$701 million) while revenue increased 2.5% to €6.1 billion (US$8 billion). In the upscale and midscale segment revenue increased by +3.4%, while revenue from economy hotels outside the United States rose 5%

“Performance in 2011 was remarkable and demonstrates the new growth potential of Accor, of its brands and of its operations,” said Denis Hennequin, Accor’s chairman and CEO. “All of our objectives have been met or exceeded. The group is in excellent financial health, which enables us both to continue our growth strategy and to submit to the next annual shareholders meeting a total dividend of €1.15 (US$1.52) per share.”

Earnings before interest and tax rose to 530 million euros ($702 million) from 446 million euros a year earlier.  Accor also reduced net debt by about two-thirds last year while adding a record 38,700 rooms.

“Despite the uncertain economic environment, business is holding firm,” said Hennequin.  He said that the group expects to benefit this year from events including the London Olympics, European football championship in Poland and trade fairs in Germany.

Accor easily exceeded its expansion target of 35,000 new rooms in 2011, and he reiterated an aim to add a further 40,000 rooms this year. The Asia-Pacific region will represent about “45 percent of Accor’s pipeline of development” in 2012, Hennequin said.

Accor will also pursue its brand strategy in 2012, including re-branding the Ibis chain and expanding luxury divisions that include the Pullman and Sofitel brands. Accor plans to double the Pullman network by 2015, Hennequin said.

Highlights of 2011 included:

• Record expansion, with the opening of 38,700 rooms, mainly under franchise and management contracts.
• Sustained, firm business levels in every segment, led by the combined impact of rising demand and higher room rates.
• Sharply improved operating performance, with EBITDAR margin gaining +1.2 pts to 31.5% like-for-like and a 56% flow-through ratio.
• Sustained deployment of the asset management program, with the refinancing of 129 hotels (nearly 15,000 rooms) reducing adjusted net debt by  EUR533 million. Since the beginning of 2012, eight more hotels have been refinanced, with a EUR119-million impact on adjusted net debt.
• Faster transformation of Motel 6, with the disposal of 41 hotels (28 in 2010) and the opening of 55 new franchised units.
• A sound, strengthened financial position.

Group revenue amounted to EUR6,100 million in 2011, an increase of +2.5% as reported and of +5.2% like-for-like compared with 2010. The year saw sustained growth in every segment throughout the period, led by the combined impact of higher room rates and rising demand.

Revenue from Economy Hotels outside the United States rose +5.0% as reported and +6.3% like-for-like. Segment performance was driven by the increase in room rates, which in turn reflected occupancy rates that averaged more than 70%, the highest in the Group. It was also boosted by the faster expansion through franchise and management contacts since 2010, with a sharp increase in franchising fees.

Record expansion in 2011

2011 represented a turning point in the pace of the Group's expansion, with the 38,700 rooms opened during the year (25,000 in 2010) amply exceeding targets. This record performance was the result of an assertive strategy of both organic and acquisitions-led growth, focused on franchise and management contracts. The Mercure brand opened the largest number of rooms (11,000) during the year, thanks in particular to the acquisition of 24 franchised hotels in the United Kingdom in September.

Of the total number of new rooms, 47% were located in Europe and 33% in the Asia-Pacific region. In this way, Accor is consolidating its leadership positions in these geographies. By year-end, the Group's hotel base stood at 531,700 rooms, half of which were operated under franchise and management contracts.

The pipeline comprises 104,000 rooms (609 hotels), of which 45% in the Asia-Pacific region and mainly under franchise and management contracts, in line with the Group's expansion strategy.

For 2012, Accor confirms its objective of opening 40,000 rooms during the year, including the 6,100 rooms integrated through the Mirvac acquisition announced last December.

2012 Trends and Outlook

The trends observed in fourth-quarter 2011 continued into January 2012, with RevPAR figures stable in Europe and strong revenue growth in the emerging markets. The Economy segment in Europe and the United States is continuing to benefit from rising room rates.

Despite the uncertain economic environment, business is holding firm, in line with the growing recovery observed since 2010. Supported by favorable drivers in markets like France, Germany (calendar of fairs), the United Kingdom (Olympic Games), Eastern Europe (European Football Championship), Latin America and the Asia-Pacific region, Accor is confident as it moves into 2012.