Conference call
Q4 and FY 2013 Revenue
January 16, 2014
FY 2013 – Key takeaways
Gross revenue up 2.8% as reported in 2013
Negative Forex effects in 2013
Solid increase in L/L revenue across most key markets
+2.7% L/L revenue increase at Group level in 2013
Strong increase in fee revenue, up 14.7% L/L in 2013 Expansion: 22,637 rooms added over the year
85% under Management and Franchise, 59% in emerging markets
FY 2013 Revenue: €5,536m, up 2,7% L/L
Reported
€(113)m
-2.0%
Like-for-Like
€153m
Like-for-like growth
> Hotels: +2.7%
Owned & leased: +1.5%
Fees: +14.7%*
+2.7%
Expansion
€130m
+2.3% Impact of expansion
> Openings: 22,637 new rooms (170 hotels) in 2013, of which
7,706 rooms in Franchise (34% of openings)
11,651 rooms in Management (51% of openings)
Disposals
€(258)m
-4.6% Impact of disposals
> Asset management: €(221)m
> Other disposals: €(37)m
Currency
€(138)m
-2.4% Currency effect
> AUD: -0.8%, €(47)m
> BRL: -0.8%, €(43)m
> GBP: -0.4%, €(20)m
Expansion in 2013: 22,637 rooms (170 hotels) opened
37%
Europe
13% 9%
Africa Middle East
41%
Asia Pacific
Latin America
Room openings – 2013 by region
Franchise
34%
Leased
12%
Owned 3%
Management
51%
85%
asset-light
Room openings – 2013
by operating mode
Q4 2013 Revenue: €1,402m, up 3.4% L/L
Reported
€(45)m
-3.1%
Like-for-Like
€50m
Like-for-like growth
> Hotels: +3.6%
Owned & leased: +2.8%
Fees: +10.0%
+3.4%
Expansion
+0.6%
€8mImpact of expansion
> Openings: 8,537 new rooms (57 hotels) in Q4, of which
2,458 rooms in Franchise (29% of openings)
5,299 rooms in Management (62% of openings)
Disposals
€(53)m
-3.7% Impact of disposals
> Asset management: €(39)m
> Other disposals: €(14)m
Currency
€(50)m
-3.5% Currency effect
> AUD: -1.4%, €(20)m
> BRL: -0.9%, €(13)m
> GBP: -0.3%, €(5)m
Up & Midscale – Q4 2013 Revenue: €879m, up 3.3% L/L
Q4 12 Q1 13 Q2 13
+0.7%
Owned & Leased
Management & Franchise fees L/L Revenue growth (in %)
+1.3 +10.5
-1.4 +17.8
Strong performance recorded across all geographies, notably in France, Germany, the UK and most Emerging markets
Continued good balance between capital cities and provinces with solid demand from leisure travelers
Fast growth for upscale brands, especially MGallery and Pullman
Q3 13
+3.7%
+2.6 +12.8
Q4 13
+3.6%
+2.4 +14.1 FY 2013: +2.9%
+2.4% +3.3%
+2.4 +9.2
Owned & Leased
Management & Franchise fees L/L Revenue growth (in %)
Economy – Q4 2013 Revenue: €490m, up 4.1% L/L
Q4 12
Q1 13
Q2 13
+0.7 +28.7
-3.0 +19.7
+2.1%
-1.8%
Q3 13+1.6 +18.0
+2.4%
Q4 13
+2.6 +32.0 FY 2013: +2.4%
Strong performance in Europe, including double-digit revenue growth in the UK
Continued improvement in Southern Europe
Success of the distribution strategy with effects on both prices and occupancy
+4.2% +4.1%
+3.5 +13.2
Conclusion
Conclusion
Solid business trends across all segments and geographies
Continued improvement in Europe, lifted by the UK and Germany Strong fee-based income increase
Negative currency effects in H2 offset by favorable environment
Agenda
2013 Results – February 20, 2014
2013 EBIT target revised: around €530m, vs previous objective €510m - €530m
Appendices
Hotels FY 2013 RevPAR by segment – Worldwide
Excl. VAT
Owned & leased Owned & leased
+ managed
Occupancy rate Average Room Rate RevPAR
(in %)
(chg in pts,
rep.)
(chg in
pts, L/L) (in €)
(chg in %, rep.)
(chg in %, L/L)
(in €)
(chg in %, rep.)
(chg in
%, L/L)
(chg in %, reported)
Up & Midscale
(in €)
67.5 +1.9 +1.6 98 -1.9 +0.1 66 +1.0 +2.5 +0.5
Economy
(in €)
70.1 +0.8 +0.8 55 -1.3 +0.6 39 -0.1 +1.9 +0.5
Hotels Q4 2013 RevPAR by segment – Worldwide
Excl. VAT
Owned & leased Owned & leased
+ managed
Occupancy rate Average Room Rate RevPAR
(in %)
(chg in pts,
rep.)
(chg in
pts, L/L) (in €)
(chg in %, rep.)
(chg in %, L/L)
(in €)
(chg in %, rep.)
(chg in
%, L/L)
(chg in %, reported)
Up & Midscale
(in €)
66.2 +1.8 +1.6 99 -2.4 +1.2 65 +0.3 +3.7 -2.2
Economy
(in €)
69.1 +1.5 +1.6 56 -1.2 +1.8 38 +1.0 +4.2 +1.3
Q4 2013 RevPAR & Revenue – Key markets
Up & Midscale
Occupancy* Net ARR* Net RevPAR* Revenue
% D
(L/L, pts)€ D
(L/L, %)€ D
(L/L, %)€m D
(L/L, %)France
64.6 +1.6 117 -2.1 76 +0.5
299 +1.7Germany
70.9 +2.2 95 +3.8 67 +7.3
145 +4.0UK (£)
81.0 +3.9 89 +6.2 72 +11.5
68 +8.9* For owned & leased only
* For owned & leased only
Economy
Occupancy* Net ARR* Net RevPAR* Revenue
% D
(L/L. pts)€ D
(L/L, %)€ D
(L/L, %)€m D
(L/L, %)France
67.7 +0.7 56 -0.4 38 +0.7
167 +1.0Germany
69.6 +0.6 59 +4.3 41 +5.2
69 +3.6UK (£)
80.3 +4.8 52 +7.3 42 +14.1
54 +12.5Up & Midscale Hotels FY 2013 RevPAR by Country
Owned & leased
Owned &
leased + managed
Excl. VAT (in local currency)
Number of rooms
Occupancy Rate Average Room Rate RevPAR
(in %) (chg in
pts, rep.) (in €) (chg in %,
rep.) (in €) (chg in %, rep.)
(chg in %,
L/L) (reported)
France
23,218 66.7 +2.2 117 -2.2 78 +1.2 +2.4 +2.2
Germany
16,441 69.5 +2.7 92 +3.4 64 +7.6 +3.3 +7.5
Netherlands
3,314 68.4 +0.5 88 -0.9 60 -0.2 -1.5 +1.2
Belgium
1,430 76.9 +3.4 99 +1.2 76 +5.9 +5.1 +2.7
Spain
2,283 58.8 +1.1 69 -3.7 41 -2.0 -4.1 +2.3
Italy
3,309 62.0 +2.0 90 -0.4 56 +3.0 +0.8 +1.6
Up & Midscale Hotels Q4 2013 RevPAR by Country
Owned & leased
Owned &
leased + managed
Excl. VAT (in local currency)
Number of rooms
Occupancy Rate Average Room Rate RevPAR
(in %) (chg in
pts, rep.) (in €) (chg in %,
rep.) (in €) (chg in %, rep.)
(chg in %,
L/L) (reported)
France
23,218 64.6 +2.3 117 -3.3 76 +0.2 +0.5 -0.5
Germany
16,441 70.9 +3.3 95 +6.1 67 +11.2 +7.3 +10.8
Netherlands
3,314 65.7 -0.6 89 -2.1 58 -3.0 -4.1 -0.1
Belgium
1,430 77.5 +1.6 102 +1.3 79 +3.5 +3.3 +1.1
Spain
2,283 56.3 +3.3 66 -6.1 37 -0.2 -2.0 +3.1
Italy
3,309 60.1 +1.6 83 -0.8 50 +2.0 +1.1 +0.1
UK (in £)
5,850 81.0 +3.4 89 +5.8 72 +10.5 +11.5 +9.5
Economy Hotels FY 2013 RevPAR by Country
Owned & leased
Owned &
leased + managed
Excl. VAT (in local currency)
Number of rooms
Occupancy Rate Average Room Rate RevPAR
(in %) (chg in
pts, rep.) (in €) (chg in %,
rep.) (in €) (chg in %, rep.)
(chg in %,
L/L) (reported)
France
35,787 70.2 +0.5 55 +0.5 39 +1.2 +0.3 +1.8
Germany
15,708 70.3 -0.2 58 +1.7 41 +1.4 +1.9 +1.7
Netherlands
2,382 76.3 +3.5 71 -2.8 54 +1.9 +2.3 +1.9
Belgium
2,821 77.8 +2.3 64 +1.3 50 +4.3 +4.0 +5.3
Spain
4,973 54.8 +3.1 46 -5.0 25 +0.6 -1.8 +0.8
Italy
1,740 69.6 +2.0 55 -0.6 38 +2.4 +2.4 +0.0
Economy Hotels Q4 2013 RevPAR by Country
Owned & leased
Owned &
leased + managed
Excl. VAT (in local currency)
Number of rooms
Occupancy Rate Average Room Rate RevPAR
(in %) (chg in
pts, rep.) (in €) (chg in %,
rep.) (in €) (chg in %, rep.)
(chg in %,
L/L) (reported)
France
35,787 67.7 +1,0 56 -0.1 38 +1.4 +0.7 +1.4
Germany
15,708 69.6 +0.3 59 +4.0 41 +4.4 +5.2 +4.8
Netherlands
2,382 73.9 +2.7 68 -3.6 50 +0.1 +1.7 +0.1
Belgium
2,821 78.9 +0.8 67 +3.7 53 +4.8 +4.7 +5.7
Spain
4,973 55.7 +7.1 44 -4.5 24 +9.6 +6.2 +10.1
Italy
1,740 65.2 +1.3 54 +2.1 35 +4.2 +4.2 +3.9
UK (in £)
10,219 80.3 +4.3 52 +7.1 42 +13.2 +14.1 +12.6
Reconciliation: FY 2013 L/L RevPAR vs Revenue
Worldwide
RevPAR O&L and Managed
Reported
RevPAR O&L Only Like-for-
like
Like-for-like room revenues
Total Like-for-like
revenues
Up & Midscale +0.5% +2.5% +2.0% +2.9%
Economy +0.5% +1.9% +1.6% +2.4%
Reconciliation: Q4 2013 L/L RevPAR vs Revenue
Worldwide
RevPAR O&L and Managed
Reported
RevPAR O&L Only Like-for-
like
Like-for-like room revenues
Total Like-for-like
revenues
Up & Midscale -2.2% +3.7% +3.5% +3.3%
Economy +1.3% +4.2% +4.0% +4.1%
FY 2013 Exchange Rates
1€ = X foreign currency FY 2012
average rate
FY 2013 average rate
2013 vs. 2012 Change
Australian dollar (AUD) 1.24 1.38 -10.9%
Brazilian real (BRL) 2.51 2.87 -14.2%
Sterling (GBP) 0.81 0.85 -4,7%
Swiss Franc (CHF) 1.21 1.23 -2.1%
US Dollar (USD) 1.29 1.33 -3.2%
Q4 2013 Exchange Rates
1€ = X foreign currency Q4 2012
average rate
Q4 2013 average rate
2013 vs. 2012 Change
Australian dollar (AUD) 1.25 1.47 -17.6%
Brazilian real (BRL) 2.67 3.10 -16.2%
Sterling (GBP) 0.81 0.84 -4.0%
Swiss Franc (CHF) 1.21 1.23 -1.8%
US Dollar (USD) 1.30 1.36 -4.9%
Management & Franchise Fees by Segment
Revenue (in €m)
Q4 2012 Q4 2013
at constant exchange rates Change,Managed Franchised Total Managed Franchised Total Total
Up & Midscale
94.5 28.8
123.3114.6 27.7 142.3
9.2%Economy
10.9 18.6
29.513.7 18.7 32.4
13.2%TOTAL 105.4 47.4 152.8
128.3 46.4 174.7
10.0%Revenue (in €m)
FY 2012 FY 2013
at constant exchange rates * Change,Managed Franchised Total Managed Franchised Total Total
Up & Midscale
309.2 94.1
403.3376.6 99.1 475.7
13.1%Economy
39.8 67.9
107.750.8 76.1 126.9
20.8%TOTAL 349.0 162.0 511.0