YOUR HOTEL EXPERIENCE

Transcription

1 ENHANCING YOUR HOTEL EXPERIENCE 2014 Business review

2 ACCOR, THE WORLD S LEADING HOTEL OPERATOR 01 Corporate Presentation 08 Message from Sébastien Bazin 12 Executive Committee 14 Board of Directors ACCOR, BOLD AND SUCCESSFUL 18 HotelInvest 24 HotelServices 26 Development 32 Digital Hospitality 45 Brand Portfolio ACCOR, COMMITTED AND RESPONSIBLE 76 Corporate Social Responsibility 80 Human Resources 92 Sustainable Development 106 Solidarity Accor PERFORMANCE INDICATORS 110 Record Results 112 Shareholder Relations Results and Financial Flows 116 Condensed Consolidated Financial Statements 120 Contacts

3 ACCOR, A BOLD VISION OF THE HOTEL INDUSTRY The world s leading hotel operator and a market leader in Europe, Latin America, Africa, the Middle East and Asia-Pacific, Accor is constantly evolving to take into account the changing needs and behaviors of its guests. The wide-reaching transformation process initiated in 2014 aims to establish the Group as a bold and innovative hotel operator and as the global benchmark in the hospitality industry. 3,700 HOTELS 480,000 ROOMS 92 COUNTRIES 5,454 million IN REVENUE IN BUSINESS REVIEW ACCOR I 1

4 HOSPITALITY IS OUR BUSINESS Our 180,000 employees (1) make your stay a memorable one (1) Accor-brand employees. 89% of our guests say that they are satisfied with their stay No. 1 hotel school in the world with the Académie Accor 18 training campuses 1 booking every 2 seconds on Accor websites 18 million members of the Le Club Accorhotels loyalty program appreciate the special attention they receive 2 I ACCOR 2014 BUSINESS REVIEW

5 1 Accor hotel open every 2 days 17 brands to meet all your needs 200,000 direct and indirect beneficiaries supported by the Solidarity Accor endowment fund We plant 2,000 trees a day through the Plant for the Planet program 2014 BUSINESS REVIEW ACCOR I 3

6 POWERFUL BRANDS From luxury to economy and in every corner of the globe, Accor s 17 hotel brands meet all the needs of business and leisure travelers seeking comfort, attention and high-quality services. INTERNATIONAL BRANDS REGIONAL BRANDS LIFESTYLE/BOUTIQUE EXTENDED-STAY LUXURY UPSCALE MIDSCALE ECONOMY LOW-COST 4 I ACCOR 2014 BUSINESS REVIEW

7 ALL AROUND THE WORLD With a record number of rooms in the pipeline, Accor continues to grow while remaining ever attentive to the needs and expectations of its customers and partners. 3,700 HOTELS 480,000 ROOMS 156,000 ROOMS IN THE PIPELINE 29% (1) FRANCE 1,562 HOTELS 140,918 ROOMS +5,000 IN THE PIPELINE 10% (1) NORTH AMERICA, LATIN AMERICA AND CARIBBEAN 280 HOTELS 45,971 ROOMS +28,000 IN THE PIPELINE 31% (1) EUROPE Excl. France 1,107 HOTELS 149,216 ROOMS +26,600 IN THE PIPELINE 6% (1) AFRICA AND MIDDLE EAST 147 HOTELS 28,183 ROOMS +15,700 IN THE PIPELINE 24% (1) ASIA-PACIFIC 621 HOTELS 118,008 ROOMS +80,000 IN THE PIPELINE (1) At December 31, 2014, in number of rooms BUSINESS REVIEW ACCOR I 5

8 TWO COMPLEMENTARY BUSINESSES THAT INTERACT By clearly distinguishing its two businesses hotel operator and owner/investor Accor is acquiring the resources to develop its hotel projects with greater efficiency and flexibility, and enhanced profitability. Each unit, with its own expertise, represents a value-creation lever. HotelInvest verse des redevances à HotelServices HotelInvest pays fees to HotelServices MAXIMIZING THE VALUE OF THE ASSET PORTFOLIO OBJECTIVES RESTRUCTURE the portfolio of owned and leased hotels. IMPROVE return on capital employed. INCREASE cash flow generation. OPTIMIZE the resource allocation strategy for renovation and maintenance projects. SUPPORT the development of owned hotels through selective investments. HOTELINVEST HOTEL OWNER AND INVESTOR 1,354 OWNED AND LEASED HOTELS Management contract HotelServices operates 6 I ACCOR 2014 BUSINESS REVIEW

9 FRANCHISEES OWNERS AND INVESTORS Franchise agreement Management contract HotelServices exploite les hôtels HotelInvest HOTELSERVICES HOTEL OPERATOR AND FRANCHISER 3,717 HOTELS OPERATED: 2,211 UNDER MANAGEMENT, INCLUDING 1,354 FOR HOTELINVEST, AND 1,506 UNDER FRANCHISE IMPROVING HOTEL PERFORMANCE OBJECTIVES ACCELERATE development and consolidate market share. STRENGTHEN the brands to make them more attractive. HotelInvest hotels FORGE more ties with customers by strengthening the digital offering at every step in their path. OPTIMIZE our royalty-based business model BUSINESS REVIEW ACCOR I 7

10 MESSAGE FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SÉBASTIEN BAZIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER 8 I ACCOR 2014 BUSINESS REVIEW

11 Dear shareholders, partners, guests and fellow Accor team members, I want to share with you my immense satisfaction with the results and progression of our Group. I have great expectations for Accor; my aim is for us to be the world s best performing, most innovative and most highly valued hotel group. We laid the foundations in 2014, and will now be able to build on them to continue and accelerate our transformation. We successfully carried out the Group s reorganization around its two core businesses HotelServices and HotelInvest. Performances were in line with our expectations, encouraging us to pursue or efforts and maintain the enthusiasm and spirit of conquest that inspire us. One of our priority projects in 2015 will be to develop our culture built around collective intelligence, because this cultural transformation will help establish Accor as an undisputed leader in hospitality and travel. WE CAN BE PROUD OF THE PROGRESS MADE IN 2014 HotelServices, our center of expertise in hotel operations, continued the rapid expansion of its hotel portfolio, with a record 156,000 rooms in the pipeline 84% of which in emerging markets and maintained the high standards that underpin the success of our brands worldwide. HotelInvest, our owner and investor business, was very quick to embark on its roadmap, investing 1 billion to purchase hotel property. Already Europe s leading hotel investor in the economy and midscale segments, it is in the process of becoming the most efficient thanks to substantial restructuring of its asset portfolio. Several transactions illustrate our vigor and boldness over the year. In particular, we strengthened our partnership with Orbis, which now encompasses all of Accor s activities in Central Europe. We also decided to partner with the strong and innovative Mama Shelter brand, acquiring a 37% stake in its capital. Lastly, the signing of a long-term partnership with the Huazhu Group will give fresh impetus to the development of our brands in China, a strategic market for Accor. At the same time, we extensively consolidated our resources, securing nearly 3.7 billion under exceptionally favorable conditions and reducing our borrowing costs. These transactions inspire confidence in the ongoing implementation of our transformation plan. AN ACCOR HOTEL OPENS EVERY TWO DAYS WORLDWIDE Our industry enjoys extraordinary potential, with demand growing by 3% on average every year, in mature and emerging markets alike, creating an ideal environment for Accor. In Europe, a mature region, our growth drivers relate to hotel acquisitions and restructuring. Outside Europe, 90% of our development projects are located in markets enjoying strong growth: China, Indonesia, India, Africa, the Middle East, Brazil, Colombia, Chile, the Philippines and Indonesia. While the pace of expansion of our network remains sustained, with 30,000 rooms opened last year, our approach to development has become more selective, based on a thorough analysis by city, and with higher profitability targets. THE CUSTOMER, THE FOCUS OF OUR ATTENTIONS Customer behavior is changing. The digital revolution has given customers technologies and tools that make them more expert and better informed, and which offer them prompt access to an increasingly wide choice. They are looking for new, different, personalized and emotional experiences. So we constantly need to reinvent ourselves to meet these expectations, attract new customers, surprise our guests and foster their loyalty. These developments are also prompting us to position ourselves, to be more flexible and bolder, in the face of the growing power of actors such as online agencies, search engines and alternative accommodation solutions BUSINESS REVIEW ACCOR I 9

12 MESSAGE FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER I have great expectations for Accor. With the unfailing commitment of our teams around the world, we will build the hospitality of the future around a bold and innovative vision of our businesses. WE ARE REVISITING THE ACCOR EXPERIENCE WITH OUR DIGITAL PLAN The Leading Digital Hospitality strategic plan, in which Accor intends to invest 220 million over the next four years, is a first in the hospitality sector. It draws on a comprehensive diagnosis of the impact of the digital revolution on the travel industry and builds on Accor s hotel excellence to revisit the customer experience from end to end. With this plan, Accor crosses the boundaries of hospitality to provide an ever more intuitive, seamless and efficient experience, before, during and after the stay. Mobility is the backbone of our approach. That is why this year saw us integrate French start-up Wipolo, which has developed a cutting-edge mobile app that centralizes all travel information. Other key focuses of the digital transformation include listening more carefully to our customers and gaining an ever deeper understanding of their needs and expectations so as to better serve and retain them. We can also salute the growth of Le Club Accorhotels from 14 to 18 million members over the year, with an even more generous rewards program. Lastly, digital technology has become a central feature of hotel service thanks to the new check-in system, Welcome by Le Club Accorhotels, which is synonymous with anticipation, simplicity and customization for guests. BRANDS CONSTANTLY REINVENTING THEMSELVES In the digital age, the attractiveness of our brands, which span all segments from luxury to economy and are present around the world, is the source of the Group s strength. They are appealing, and work day in day out to excel in a spirit of service, with each brand tirelessly cultivating its own unique universe. 10 I ACCOR 2014 BUSINESS REVIEW

13 By reorganizing them into three coherent segments, we have strengthened their complementary nature and the synergies between them, to align them even more closely with local markets. Economy hotels continue to grow at a remarkable pace. They represent 50% of Accor s expansion, with one new ibis opening every three days worldwide. The Group also has ambitious goals for the luxury and upscale segment, which accounts for 22% of planned openings. In the midscale segment, Mercure and Novotel teams have done a tremendous job of revitalizing their brand. In 2015, we will actively pursue the strengthening of our brands, focusing on the customer experience, food & beverage and digital technology. WE MUST RETHINK OUR CULTURE AND NURTURE TALENT Accor s global footprint and the variety of our businesses are undeniable assets in recruiting new employees and offering them attractive career prospects. Take the example of Asia, where 10,000 jobs were created this year to keep pace with our sustained growth. Our Group offers a welcoming and inclusive environment, where social mobility is a reality. With our 18 Académie Accor campuses, we are a benchmark in the hospitality sector. We train the men and women who will invent the future of our business. We must constantly adapt our thinking to anticipate and meet the needs of new generations (56% of employees are aged under 34) and take advantage of new technologies. Our aim is to adopt more collaborative work methods and to put increasing emphasis on collective intelligence in order to foster boldness and creativity. In other words, we want to give more freedom to our people and reward their skills so that they can grow professionally. It is by building our culture on agility, spirit of initiative and accountability that we can attract and value talent. IT S NOT ENOUGH TO CREATE VALUE, YOU ALSO HAVE TO SHARE IT A pioneering company, Accor has built its history on a deep dedication to forging ties. As a leader, we have always cared about upholding a high level of commitment to our employees, our guests, our partners and our host communities in more than 90 countries. Through PLANET 21, a unique program in the hotel industry, we are continuing our work on sustainable development in a continuous improvement approach. Today, our corporate social responsibility process is irrigating every aspect of our business, creating not only economic value for the company and its partners, but also social, environmental and societal value for every stakeholder in the Accor ecosystem. It s not enough to create value, you also have to share it. Inspired by our commitments, which were reaffirmed in 2014 in our Ethics and Corporate Social Responsibility Charter, Accor will continue to reinvent itself and enhance its appeal, while driving sustainable growth for the benefit of all our stakeholders. 2015, A YEAR OF ACCELERATION This year will be crucial to accelerating our transformation on the basis of the broad outlines laid down in 2014, with several major projects focused on the continuing restructuring of the HotelInvest asset portfolio, and fast progress on the digital roadmap and the attractiveness of our brands. We also wish to make food & beverage central to our hotels so that our offer becomes a differentiating criterion in the eyes of our customers and a performance driver for our partners. These four objectives will be backed up by a comprehensive reform of our corporate culture, which is already underway was a particularly rich and productive year, with lots of energy harnessed around a bold and innovative vision of the hospitality industry. Above all, I salute the unwavering commitment of our teams worldwide to meeting our strategic objectives, as well as their capacity to question themselves and look for innovative solutions. We have made progress very fast, but we need to go even further to achieve our ambitions, to take Accor ever higher, in a spirit of conquest. It is by maintaining this course that we will build the hospitality industry of the future BUSINESS REVIEW ACCOR I 11

14 EXECUTIVE COMMITTEE (AT DECEMBER 31, 2014) LAURENT PICHERAL CEO HotelServices Germany, Poland, Central Europe 2. MICHAEL ISSENBERG CEO HotelServices Asia-Pacific 3. CHRISTOPHE ALAUX CEO HotelServices France 4. JEAN-JACQUES DESSORS CEO HotelServices Mediterranean, Africa, Middle East 5. ROLAND DE BONADONA CEO HotelServices Americas 6. STEVEN DAINES CEO HotelServices United Kingdom, Ireland, Benelux, Switzerland, Russia 12 I ACCOR 2014 BUSINESS REVIEW

15 JOHN OZINGA Chief Operating Officer HotelInvest 8. SVEN BOINET Deputy Chief Executive Officer Transformation, Human Resources and Legal Affairs 9. SÉBASTIEN BAZIN Chairman and Chief Executive Officer 10. SOPHIE STABILE Chief Financial Officer 11. VIVEK BADRINATH Deputy Chief Executive Officer Marketing, Digital Solutions, Distribution and Information Systems 2014 BUSINESS REVIEW ACCOR I 13

16 BOARD OF DIRECTORS (AT DECEMBER 31, 2014) SÉBASTIEN BAZIN Chairman and Chief Executive Officer. Director since January 9, 2006 and Chairman and Chief Executive Officer since August 27, His term of office as director expires at the close of the Annual Meeting to be called to approve the accounts for the year ending December 31, Previously, he served on the Supervisory Board since May 3, JEAN-PAUL BAILLY Honorary Chairman of the La Poste Group. Independent director since May 13, His term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ended December 31, Jean-Paul Bailly is Member of the Audit and Risks Committee and of the Compensation, Appointments and Corporate Governance Committee. PHILIPPE CITERNE Non-Executive Chairman of Telecom École de Management (Business School). Independent director since January 9, 2006 and Vice Chairman of the Board of Directors and Senior Independent Director since May 13, His term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ended December 31, Previously, he served as permanent representative of Société Générale on the Supervisory Board, since December 22, Philippe Citerne is Chairman of the Audit and Risks Committee and Member of the Commitments Committee. ILIANE DUMAS Project Manager within the Group s Human Resources Department. Director representing employees since May 2, 2014 for a three-year term. Iliane Dumas is also a judge with the Paris Industrial Tribunal. MERCEDES ERRA Executive President of Havas Worldwide. Independent director since February 22, Her term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ended December 31, Mercedes Erra is Member of the Audit and Risks Committee and of the Commitments Committee. SOPHIE GASPERMENT Group General Manager, Financial Communication and Strategic Prospective, L Oréal. Independent director since June 29, Her term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ending December 31, Sophie Gasperment is Member of the Compensation, Appointments and Corporate Governance Committee and of the Commitments Committee. 14 I ACCOR 2014 BUSINESS REVIEW

17 JONATHAN GRUNZWEIG Principal and Chief Investment Officer of Colony Capital. Director since April 29, His term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ending December 31, Jonathan Grunzweig is Member of the Compensation, Appointments and Corporate Governance Committee. IRIS KNOBLOCH Chairman of Warner Bros. Entertainment France. Independent director since April 25, Her term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ending December 31, Iris Knobloch is Member of the Audit and Risks Committee. BERTRAND MEHEUT Chairman of the Groupe Canal+ Management Board. Independent director since May 13, His term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ended December 31, Bertrand Meheut is Chairman of the Compensation, Appointments and Corporate Governance Committee. VIRGINIE MORGON Member of the Executive Board and Deputy CEO of Eurazeo. Director since May 13, Her term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ending December 31, Virginie Morgon is Member of the Audit and Risks Committee. NADRA MOUSSALEM Principal and Co-Head of Colony Capital SAS. Director since April 25, His term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ending December 31, Nadra Moussalem is Member of the Audit and Risks Committee and of the Commitments Committee. PATRICK SAYER Chairman of the Executive Board of Eurazeo. Director since April 27, His term of office expires at the close of the Annual Meeting to be called to approve the accounts for the year ending December 31, Patrick Sayer is Member of the Compensation, Appointments and Corporate Governance Committee and Chairman of the Commitments Committee. As Founding Co-Chairmen of Accor, Paul Dubrule and Gérard Pélisson attend Board meetings in an advisory capacity BUSINESS REVIEW ACCOR I 15

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19 BOLD AND SUCCESSFUL To become the world s best performing, most innovative and most highly valued hotel group, Accor has embarked on a transformation process built around its two businesses, HotelInvest and HotelServices. Based on a clear, agile and efficient organization, the transformation promises a new Accor experience enhanced by digital hospitality BUSINESS REVIEW ACCOR I 17

20 HOTELINVEST HOTEL OWNER AND INVESTOR HotelInvest is the hotel and property business dedicated to the Accor banners. With its portfolio of 1,354 owned and leased hotels, HotelInvest leverages the combined expertise of an investor, a property manager and a developer. Its assets are operated by HotelServices through management contracts. Its business model aims to improve the return on assets and optimize the impact on the balance sheet. OUR FIVE PRIORITIES 1 REDUCE 2 IMPROVE 3 INCREASE 4 OPTIMIZE 5 SUPPORT the percentage of leased hotels in the portfolio. return on capital employed. cash flow generation. the resource allocation strategy for renovation and maintenance projects. the development of owned hotels through selective investments. 18 I ACCOR 2014 BUSINESS REVIEW

21 HOTELINVEST 1,354 OWNED AND LEASED HOTELS NO. 1 hotel investor in Europe 77% OF HOTELS LOCATED IN EUROPE 378 OWNED HOTELS 186,000 ROOMS 976 LEASED HOTELS 6.3 BILLION ESTIMATED HOTELINVEST ASSETS IN billion in revenue 95% OF HOTELS IN THE ECONOMY AND MIDSCALE SEGMENTS 114 ACQUISITIONS 48 RESTRUCTURING OPERATIONS KEY FIGURES AT DECEMBER 31, BUSINESS REVIEW ACCOR I 19

22 HOTELINVEST NO. 1 HOTEL INVESTOR IN EUROPE Through HotelInvest, Accor is strengthening its hotel owner and investor business. Focusing its development in Europe on the Economy and Midscale segments, the property division aims to optimize and streamline Accor s asset portfolio. Suite Novotel Den Haag City Centre, Netherlands HotelInvest was quick to embark on its strategy in 2014, with the aim of becoming the best performing hotel investor in Europe. This will require a thorough restructuring of its asset portfolio and a property management approach aimed at improving return on capital employed and boosting cash flow. A dynamic year HotelInvest s first defining moves were the acquisitions of three hotel portfolios (Moor Park, Axa Real Estate and Tritax) for a total of 980 million. Together, the three portfolios represent 110 hotels (14,072 rooms) previously operated under leases. At the same time, HotelInvest completed the acquisition of four individual ibis hotels in Europe. The stronger partnership with Orbis for the management of the Group s activities in Central and Eastern Europe is consistent with HotelInvest s strategy of refocusing on the Economy and Midscale segments in Europe. Meanwhile, HotelInvest restructured (1) 48 hotels in single deals, mainly in France and Germany, with the aim of stepping up the pace in In openings, HotelInvest financed the development of the Suite Novotel The Hague, the ibis Rotterdam and the ibis budget Zurich Airport, thereby confirming its expansion in owned hotels in strategic markets. HotelInvest acquires three portfolios of hotel properties Tritax: 13 hotels in the United Kingdom, 12 ibis and 1 ibis budget = 1,194 rooms Moor Park: 86 hotels, of which 67 in Germany and 19 in the Netherlands, 29 ibis, 31 ibis budget, 17 Mercure and 9 Novotel = 11,286 rooms Axa Real Estate: 11 hotels in Switzerland, 5 ibis, 2 ibis budget, 3 Novotel and 1 MGallery = 1,592 rooms SUSTAINABLE BUILDINGS The Novotel London Brentford opened in June This 202-room hotel has obtained BREEAM certification with a Very Good rating, a distinction that confirms HotelInvest s demanding sustainability requirements. 20 I ACCOR 2014 BUSINESS REVIEW

23 A transaction that paves the way for 2015 Early 2015 saw the sale and management back of the Zurich MGallery to one of the Group s franchise partners, in a deal valued at 55 million, which includes a commitment to carry out 23 million worth of renovations. Asset rotation, stemming from arbitrage based on the performance of individual hotels, is an important growth driver for HotelInvest. The past twelve months have demonstrated our ability to successfully restructure our asset portfolio. These operations, carried out in the Economy and Midscale segments, are in line with HotelInvest s strategy to become the biggest and best performing hotel investor in Europe. John Ozinga, COO HotelInvest Results that are already visible Barely a year after its creation, HotelInvest recorded a 2-point improvement in its margin to 6.1%. Its 378 owned hotels are already generating 56% of NOI (2) and the aim is to increase this contribution to 75% by These assets generate much better performances than hotels under other operating structures, with an EBIT (3) margin of 12.4%. HotelInvest s assets have been valued by three independent appraisers at 6.3 billion. ibis Rotterdam City Centre, Netherlands Focus on energy performance HotelInvest s aim is for its assets to have a minimal environmental footprint. Going forward, all new construction projects will be required to have environmental certification (BREEAM (4), HQE (5), LEED (6) or DGNB (7) depending on the country). A continuation of the years of effort made by the Group to improve energy performance and reduce water consumption, this approach is factored into all of HotelInvest s asset management valuation models. (1) Primarily through sales with the maintenance of a franchise or management contract. (2) Net operating income, which corresponds to EBITDA less maintenance expenditure. (3) Earnings before interest and tax. (4) BREEAM BRE Environmental Assessment Method. (5) HQE Haute Qualité Environnementale (France s green building standard). (6) LEED Leadership in Energy and Environmental Design. (7) DGNB Deutsche Gesellschaft für Nachhaltiges Bauen (German Sustainable Building Council). IMPROVING ENERGY PERFORMANCE WITH BOOST Developed within the Group, BOOST analyzes the technical operations and energy requirements of hotels operating under Accor brands. The initiative is based on a series of tests and measurements conducted in rooms and on heating, ventilation and air-conditioning systems, as well as on water and electricity distribution networks. Data and machine operations are analyzed and then shared with the hotel technical team to identify areas for savings and define action plans BUSINESS REVIEW ACCOR I 21

24 HOTELINVEST NO. 1 HOTEL INVESTOR IN EUROPE NEW PROJECTS IN 2014 Novotel Canary Wharf in London Located in the Canary Wharf business district on the banks of the Thames to the east of the City, this 124-meter, 39-story architectural feat is currently under construction and is scheduled to open in the first quarter of With a total surface area of 18,600 square meters, the new Novotel will have 322 rooms and suites and will be a reference for the brand in Europe with its indoor pool, high-tech meeting rooms and top-floor panoramic restaurant and bar, which will include a terrace and offer stunning views over London and the City. The building is designed to meet BREEAM Excellent environmental certification standards. Ibis Canning Town Located in the municipality of Newham, in a fast-changing neighborhood close to the Docklands and the 2012 Olympic facilities, this new 6,000-square-meter ibis will have 196 rooms on 10 levels, and is scheduled to open in Naturally, it too will have BREEAM certification. OPENINGS IN 2014 The ibis budget Zurich, an owned hotel with 238 rooms, opened on December 1, 2014 after a construction phase that lasted nineteen months and cost 18 million. Located two tram stops from the airport, this hotel has the distinction of being partially heated using biogas (20%), thereby ensuring significant reductions in CO 2 emissions. Cœur d Orly green business district Accor has signed an agreement with Aéroports de Paris for the extension of the existing ibis and the establishment of two new facilities: an ibis budget and a Novotel, each with more than 150 rooms, both HQE certified and due to open in 2016 and 2017 respectively. HotelInvest is financing the 24,000-squaremeter construction. The operation is part of the Cœur d Orly program developed by Aéroports de Paris, which includes the construction of a 35,000-square-meter hotel complex on the Paris-Orly airport hub. The new green business district will comprise office buildings, shops, hotels and other services. The project will increase the accommodation capacity of Paris-Orly airport by 43%, providing travelers with hotel concepts suitable for families and business travelers alike. Ibis budget Zurich City West, Switzerland 22 I ACCOR 2014 BUSINESS REVIEW

25 RENOVATIONS A new start for the Novotel Abidjan The hotel is to get a new facade, and its 258 rooms and suites will be renovated to meet the standards of Novotel s Next concept, with completely redesigned common areas, bigger meeting rooms and an extended bar. The complete renovation, funded entirely by HotelInvest, is scheduled for completion in mid Novotel Abidjan, Republic of Côte d Ivoire OPENINGS IN 2015 Ibis/Novotel in Munich, Germany In the heart of Munich, in the Arnulfstrasse business district, HotelInvest is developing a combo hotel with nearly 400 rooms, which is due to open in mid The 17,400 square-meter, seven-story building will include a 185-room Novotel and a 204-room ibis. Boasting DGNB Silver certification, the complex will also offer 100 parking spaces on two basement levels. Ibis/Novotel in Sétif, Algeria Ideally located in the city center, this dual-branded hotel covers 15,400 square meters and six levels, with a 118-room Novotel, a 120-room ibis and a conference center with capacity for 300 people. It is scheduled to open in mid Two ibis budget hotels in Spain HotelInvest is building two new ibis budget hotels in Spain, in Valencia-Silla Alcasser (110 rooms) and Zaragoza (95 rooms). They are due to open in the first half of New Mercure in Gdynia, Poland The 294-room hotel, which will be transformed and renovated by Orbis Poland, will open in the second quarter of Two new ibis hotels in Edinburgh As part of the deployment of its brand in the UK and Ireland, the ibis family has unveiled two trendy new addresses in Edinburgh: the ibis budget Edinburgh Park, with 161 rooms, and the ibis Styles Edinburgh St Andrew Square, with 103 rooms. This former bank has been subtly decorated in a Scottish theme to create a unique hotel with rooms that offer breathtaking views over the city. THE COMBO, AN ATTRACTIVE COMBINATION Combo or dual-branded hotels are attractive to owners because they help save on building, fitting and running costs by sharing services. Examples include the hotel complex in Constantine, Algeria s third-largest city, which combines a 117-room Novotel and a 172-room ibis in a single new-generation building. The complex also offers a conference room for up to 400 people and several dining areas, with local flavors at the ibis Sud & Cie restaurant and international cuisine for the Novotel BUSINESS REVIEW ACCOR I 23

26 HOTELSERVICES HOTEL OPERATOR AND BRAND FRANCHISER A hotel operator, HotelServices is dedicated to deploying its powerful, attractive brands with the support of high-performance booking and distribution channels. This expertise is provided to the 3,700 hotels operating under Accor banners, whether owned by HotelInvest or by the partners with whom we have signed franchise or management contracts. In exchange, HotelServices receives royalties. OUR FOUR PRIORITIES 1 ACCELERATE 2 STRENGTHEN 3 FORGE 4 OPTIMIZE development and consolidate market share. the brands to make them more attractive. more ties with customers by strengthening the digital offering at every step in their path. our royalty-based business model. 24 I ACCOR 2014 BUSINESS REVIEW

27 HOTELSERVICES 17 HOTEL BRANDS RANGING FROM LUXURY TO ECONOMY 3,700 HOTELS 170 MILLION GUESTS 6% AFRICA, MIDDLE EAST 24% ASIA-PACIFIC 10% NORTH AMERICA, LATIN AMERICA, CARIBBEAN 1.2 billion in revenue 29% FRANCE 31% EUROPE (EXCL. FRANCE) 11 MILLION VISITS PER MONTH TO ACCORHOTELS.COM 89% OF GUESTS SATISFIED 1 hotel opened every 2 days 480,000 ROOMS FIGURES AT DECEMBER 31, BUSINESS REVIEW ACCOR I 25

28 HOTELSERVICES DEVELOPMENT HIGH-PROFILE OPENINGS So by Sofitel Singapore, Singapore I 2. Sofitel Downton Dubai, United Arab Emirates 3. Pullman Surabaya City Center, Indonesia 26 I ACCOR 2014 BUSINESS REVIEW

29 Novotel London Brentford, United Kingdom I 5. Aparthotel Adagio Premium Doha, Qatar 6. MGallery Molitor Paris, France I 7. ibis Styles Wroclaw Centrum, Poland I 8. Mercure Istanbul Taksim, Turkey 2014 BUSINESS REVIEW ACCOR I 27

30 HOTELSERVICES DEVELOPMENT ACCOR IS EXTENDING ITS GLOBAL LEADERSHIP Accor is not just the world s leading hotel operator. It is also the leading global hotel group by number of rooms in the Europe, Asia-Pacific, Latin America, and Africa Middle East markets. Caesar Park Rio de Janeiro Ipanema, Brazil Sustained openings in 2014, with more than 200 hotels and 30,000 rooms 2014 saw a sharp increase in Accor s hotel openings, with growth of 30% compared with In line with the Group s strategy of growing its asset light portfolio, the vast majority of these openings were managed (60%) or franchised (30%) hotels. The recent strategy of shaping the economy division around the ibis family has boosted Accor s growth in this segment. Accounting for more than 50% of rooms opened in 2014, ibis maintained an impressive pace of one opening every three days. With 12,000 rooms opened last year, the Asia- Pacific region enjoyed record growth of 43%. It now accounts for over 40% of the Group s expansion, led by Indonesia (17 hotels, 3,300 rooms), China (15 hotels, 2,900 rooms) and India (7 hotels, 1,500 rooms). Accor also gained significant footholds in other promising Asian markets including Malaysia, South Korea and Myanmar. Europe came second, with nearly 10,000 rooms opened, including 2,200 rooms (34 hotels) in France and 2,500 rooms (16 hotels) in Germany. Also noteworthy was the robust performance in Latin America, where Accor opened 30 new hotels and 4,500 new rooms, including 25 owned hotels in Brazil. Record signatures in 2014, with 300 hotels and 54,000 rooms The number of new contracts signed by Accor s development teams increased by more than 50% in 2014 compared with 2013, reflecting unparalleled vitality. Signatures of hotels due to open in the next few years broke down as 66% under management, 30% under franchise and fewer than 2,000 owned and leased rooms. Unsurprisingly, the Asia- Pacific region accounted for 52% of signatures, with 28,000 rooms, of which 30% in the Upscale segment, 30% in the Midscale segment and 40% in the Economy segment. As in 2013, more than 100 hotels were located in Europe. However, exceptional performances were also achieved in the Africa Middle East region, with signatures for 6,700 rooms (including 3,000 in Saudi Arabia), and in Latin America, with 6,300 new rooms, mainly in Brazil and more particularly in Rio de Janeiro ahead of the 2016 Olympics. The world s largest pipeline outside the United States, with 840 hotels and 156,000 rooms Year after year, Accor s pipeline keeps getting stronger: it had 20,000 more rooms 200 HOTELS IN BRAZIL In 2014, Accor crossed the threshold of 200 hotels in Brazil, now the Group s third-largest market in the world, with 33,400 rooms operated in 84 cities. With a pipeline of 144 hotels and 22,500 rooms, Accor has consolidated its position as the undisputed leader of the hotel industry in this country. 28 I ACCOR 2014 BUSINESS REVIEW

31 Ibis Yanbu Saudi Arabia, Saudi Arabia 100 HOTELS IN THE MIDDLE EAST Accor is on track to reach the threshold of 100 hotels in the Middle East by 2017, with the opening of 35 hotels and 9,000 rooms under development rounding out the current portfolio of 66 hotels and 16,000 rooms in operation. Saudi Arabia is on the front lines, with the partnership signed with the Alesayi Group. Its goal of 20 hotels and over 5,000 rooms gives Accor strong growth potential, allowing it to consolidate its regional leadership. at the end of 2014 than at the end of 2013 (136,000 rooms), even after a busy year in terms of openings. This development is perfectly in tune with the Group s strategy, as 70% of new rooms are under management contracts and 20% under franchise agreements. The Asia-Pacific region represents the greatest potential, with over 80,000 rooms or 52% of the pipeline, followed by Latin America, where Accor is cementing its leadership position with 28,000 new rooms, of which 22,500 (144 hotels) in Brazil. The Africa Middle East region is also enjoying strong growth, with 10% of the pipeline and nearly 70 hotels and 16,000 rooms already committed. Europe s pipeline is smaller, with 20% of committed rooms, due to the short development cycle based largely on the acquisition of existing hotels under franchise. An extraordinary performance was achieved in Russia (41 hotels, 7,600 rooms), despite the country s economic difficulties, as well as in the United Kingdom (30 hotels, 4,500 rooms) and in Turkey, where business is really taking off (10 hotels, 2,000 rooms). DIVERSIFICATION OF ACCOR IN ASIA In addition to its strong positions in China, Indonesia and India, Accor is enjoying spectacular growth in many other Asian countries. Apart from Thailand, which already boasts 55 hotels backed by a robust pipeline of another 14 hotels and 3,000 rooms, the Group is set to open 25 hotels and 6,000 rooms in Malaysia in the coming years, 15 hotels and 3,500 rooms in Vietnam, 7 hotels and 2,400 rooms in South Korea, and 8 hotels and 1,900 rooms in Myanmar, the latest jewel in the Group s crown. These developments will enable Accor to consolidate its leadership in these countries, which offer great potential for growth among business and leisure guests in a largely regional market BUSINESS REVIEW ACCOR I 29

32 HOTELSERVICES DEVELOPMENT A STRATEGIC PARTNERSHIP This ground-breaking collaboration will leverage the strengths of Accor s global brands with a leading player in Chinese hospitality. Joining Huazhu s unparalleled local expertise with our brands will create a hospitality powerhouse that will deliver unprecedented value to both groups and to our customers. Sébastien Bazin, Chairman and Chief Executive Officer of Accor Qi Ji, founder, Chairman and CEO of Huazhu with Sébastien Bazin, Chairman and CEO of Accor, during a press conference in Paris on December 15, THE ACCOR/HUAZHU PARTNERSHIP IN FIGURES OVER 2,000 HOTELS IN CHINA (OVER 1,900 HUAZHU HOTELS, 144 ACCOR HOTELS) OVER 500 HOTELS IN PLANNING FOR THE TWO GROUPS 47 MILLION MEMBERS OF THE TWO LOYALTY PROGRAMS WILL ENJOY PRIVILEGED ACCESS TO 5,600 HOTELS FOCUS ON CHINA The strategic alliance between Accor and Huazhu has given rise to a key player in the Chinese hospitality market, combining more than 2,000 hotels in a varied portfolio of brands and the industry s biggest pipeline in the country. The partnership will allow Accor to speed up its expansion in the world s biggest travel market. Terms of the alliance Accor becomes a shareholder of Huazhu, with a 10% stake and a seat on the company s Board of Directors, while Accor s Economy and Midscale operations in China become part of Huazhu. Accor has given its Chinese partner an exclusive master franchise for the development and operation of hotels under the Novotel, Mercure, ibis, and Mei Jue (Grand Mercure) banners in China, Taiwan and Mongolia. This exclusive agreement is subject to the achievement of a minimum level of development for Accor brands. Accor continues to operate and develop all of its other Luxury and Upscale brands Sofitel, Pullman, MGallery and The Sebel in China through a company in which Huazhu will hold a 10% minority interest. Huazhu s investment will give Accor privileged access to key partners and investors in the region to speed up its development. Hotels operated by Huazhu under Accor banners will apply the international standards defined by the Group, and will benefit from the global distribution channels and loyalty programs of both entities, as well as from Huazhu s reputation in China. 30 I ACCOR 2014 BUSINESS REVIEW

33 HUAZHU AND ACCOR IN CHINA Huazhu is a leading, fast-growing Chinese hospitality group that ranks 13 th worldwide (1) with a portfolio of more than 1,900 hotels. Its brand portfolio covers the full spectrum of the market from Upscale (Joya, Manxin) to Midscale (JI Hotels, Starway) and Economy (Hanting, Elan and Hi Inn), making the group a perfect match with Accor. Huazhu has the strongest pipeline of any hotel group in China to fuel future growth. Huazhu Hotels Group is part of the China Lodging Group, listed on NASDAQ. Present in China for over thirty years, Accor currently has 144 hotels in the country across eight brands in the Luxury/Upscale (Sofitel, Pullman, MGallery, Grand Mercure), Midscale (Novotel, Mercure) and Economy (ibis, ibis Styles) segments. (1) Source: Annual ranking of the world s biggest hotel companies HOTELS WELCOME TO MAMA SHELTER Accor s acquisition of a 37% stake in Mama Shelter demonstrates the Group s determination to draw inspiration from new, innovative lifestyle concepts. Twenty new Mama establishments are scheduled to open over the next five years. In less than six years, Mama Shelter has successfully created atypical, collaborative, popular and modern living places in Paris, Marseille, Lyon, Istanbul and Bordeaux. Mama establishments are not just hotels. They are more like urban retreats where guests feel at home thanks to the warm and trendy design by Philippe Starck, and the friendly atmosphere that attracts guests of all ages, from all countries, all cultures and all ethnic backgrounds. Mama Shelter is to open in Los Angeles in May 2015, and is already working on opening an address in Lille, a second location in Paris, and other projects in Geneva, Mexico City, Tel Aviv, Barcelona, Hamburg, Sydney and London. By accessing Accor s development and distribution networks, this partnership will allow Mama Shelter to step up the pace of openings and offer its guests new destinations. On the other hand, Mama Shelter will enable Accor to expand its offering and enrich it with original living spaces and complementary expertise. MAMA SHELTER IN BRIEF ROOMS RESTAURANTS 409 EMPLOYEES ibis Chengdu Wenjiang Floraland, China 2014 BUSINESS REVIEW ACCOR I 31

34 Hotelservices DIGITAL HOSPITALITY A NEW CUSTOMER EXPERIENCE IN DIGITAL MODE Unveiled in London on October 30, 2014, the Leading Digital Hospitality plan is a key step in cementing Accor s position in the travel industry. Unique in the hospitality sector, its aim is to optimize the digital experience of customers and employees, and to improve the services available to investor partners. A customer-centric approach Taking its cue from the rapid shift in uses, Accor has rethought the digital aspect and integrated it at every step of the customer experience to achieve greater fluidity, mobility and personalization. Far from dehumanizing customer relations, this new approach to the hotel industry fosters increased friendliness and hospitality. The new approach is embodied by Welcome by Le Club Accorhotels, a digital solution rolled out globally to make hotel check-ins simpler and warmer. On Accorhotels.com, the customization of campaigns has been reinforced through the SMART recommendation engine. Another example is the overhaul of the visual, video and editorial content of the Group s websites and mobile applications, to offer more interactivity and nurture the yearning to travel and get away from it all. An ambitious approach Accor has committed significant resources 225 million between 2014 and 2018 to complete the eight programs contained in the digital plan, the first achievements of which will be effective in Designed to meet the Digital technology gives us the opportunity to transform hospitality, allowing our brands and our employees to offer our customers the promise of an exemplary experience. Vivek Badrinath, Deputy Chief Executive Officer in charge of Marketing, Digital Media, Distribution and IT Systems 32 I ACCOR 2014 BUSINESS REVIEW needs of customers, partners and employees, the plan is structured around priorities including mobility, customer knowledge and recognition, seamlessness and sales efficiency. The various projects will be built on robust IT infrastructure and strong customer data management and operating systems. The new infrastructure will boost the performance of existing tools such as TARS, the Group s booking system, Accorhotels.com, its multi-brand booking portal, and Le Club Accorhotels, its loyalty program. Accor is also devoting more resources to innovation through an open innovation ecosystem and strategic acquisitions. An illustration of the new approach is the Group s integration of French start-up Wipolo, which develops innovative Web and mobile travel management solutions. 1 BILLION PEOPLE HAVE A FACEBOOK PROFILE 2 BILLION PEOPLE HAVE A SMARTPHONE 47% OF TRAVEL SEARCHES ARE DONE ON MOBILE DEVICES

35 THE EIGHT DIGITAL HOSPITALITY PROGRAMS The plan includes four programs aimed at better serving and understanding our customers, to welcome them in the best possible way and more effectively meet their expectations. They will enable Accor to enrich its customer database and promote loyalty. MOBILE FIRST To accompany the migration to mobile devices such as smartphones and tablets: rollout of a single multi-brand mobile application incorporating all Accor services, before, during and after hotel stays. SEAMLESS JOURNEY To ensure a seamless customer experience at every stage of their journey: electronic payment solutions, one-click booking, online check-in and the Le Club Accorhotels virtual loyalty card. CUSTOMER CENTRIC To get to know the customer and offer personalized services: pooling of customer information and feedback on a single platform; development and operation of customer databases to achieve greater personalization and recognition for members of the Le Club Accorhotels loyalty program. MICE AND BTOB To meet the needs of business customers even more effectively: development of innovative digital solutions (virtual presentation of the offer, online booking of meeting rooms, etc.) and increasing integration of BtoB services on the Accorhotels.com booking platform. In addition to customers, the plan includes programs dedicated to the Group s employees and partners. EMPLOYEE FRIENDLY To simplify reception-related tasks through the use of tablets and smartphones, develop online training solutions and encourage experience sharing via AccorLive/AccorLounge, the in-house social network. OWNER & FRANCHISE CENTRIC To make Accor the most efficient and transparent business partner, notably by offering comprehensive dynamic pricing and revenue management solutions, a dedicated portal to access personalized information and services, and an optimized billing process, starting in Lastly, the Group s digital transformation also involves making IT tools and systems even more robust and agile. INFRASTRUCTURE TRANSFORMATION To optimize systems in order to speed up the rollout of new services and keep pace with rising transaction volumes. BUSINESS INTELLIGENCE AND ANALYTICS To ensure that operational decisions are increasingly based on analyses of the large volumes of data collected, particularly from hotels BUSINESS REVIEW ACCOR I 33

36 HOTELSERVICES DIGITAL HOSPITALITY ACCOR HOTEL EXCELLENCE AT EVERY STEP OF THE CUSTOMER EXPERIENCE Dream Be inspired when selecting a destination Browsing through the new Accorhotels.com portal and brand websites allows me to unearth the best holiday ideas, discover the destination that perfectly matches my desires, and share my travel journal. I can be inspired, informed and surprised. Enjoy first choice on Accor private sales 1 Choose Find the best offer With online tourist guides, I can 2efine refine my search and find all the information I need about the destination of my dreams. To make up my mind, I can freely consult customer opinions on Accor hotels directly on Accorhotels.com. Throughout the year, I receive s with attractive and personalized offers that make me want to get away. Book Book anywhere, on any device Using the powerful and intuitive 3ve Accor websites, I can book on the portal of my choice or the single app, wherever and whenever I want, on my computer, my tablet or my mobile. It s simple and convenient. On my smartphone, it takes just two clicks. I immediately receive an summarizing my booking. Use your loyalty points to pay for your stay Subscribe to the Accorhotels.com newsletter to receive offers before anyone else 34 I ACCOR 2014 BUSINESS REVIEW

37 Prepare Optimize the preparation of my stay Accor takes care of everything for me: on the big day, I get an or SMS showing the hotel on a map, with the local weather and a welcome message. As I like to anticipate, I can organize my trip ahead of time. It s easy with the My Trip Planner by Accorhotels application. I can play the video of my destination, select activities and outings that interest me, and plan my schedule. I can even book a concert ticket in advance and share the news with my friends on social networks. Stay Enjoy the benefits associated with the preparation of your journey by opening an account on Accorhotels.com At the hotel, I feel welcomed 5comed and honored My check-in is already saved on my smartphone. Upon arrival, I am recognized and welcomed, and I get my room key directly. I can take full advantage of my stay. In my room, I can use the Wi-Fi and even get my favorite newspaper. At reception, all my questions are answered. When I check out, I simply drop off my key. The bill is sent by . Enjoy even more benefits thanks to the Le Club Accorhotels program: priority check-in, late check-out, access to the Executive Lounge at Sofitel, upgrades and more Share Share my experience with my friends 6e I can share my experience with my friends on Facebook, Twitter and Pinterest, and join the Accor brand communities. From the Accorhotels.com portal and the brand websites, I can find out which of my friends has already stayed in the same hotel as me. I can also rate the hotel, as this is sure to be of help to other customers. Return Share an experience using the Places by Le Club Accorhotels app to earn even more loyalty points Be rewarded and recognized 7zed corho use p As a member of the free Le Club Accorhotels loyalty program, I can earn and use points all over the world without any restrictions in terms of date or availability, and enjoy many valuable services depending on my status. I can use my loyalty points in a wide choice of destinations. When a promotion is posted online, I get the information before anyone else. Use your points to benefit from exclusive opportunities, such as concerts and sports events 2014 BUSINESS REVIEW ACCOR I 35

38 HOTELSERVICES DIGITAL HOSPITALITY THE CUSTOMER IS THE CENTER OF OUR ATTENTION By constantly providing richer, more innovative online content and services, and pursuing an effective customer acquisition and loyalty strategy, Accor improves the customer experience at every step of the way through its direct distribution channels. A single Accor app in 2015 To accompany the migration to mobile devices (smartphones and tablets) and increase its digital presence, Accor is rolling out a single multi-brand application covering the full range of services offered to customers before, during and after their stay. The application is personalized (it recognizes me) and customizable (it s my app). It allows users to consult their booking and check in online. It also provides a home page, a booking trail and a search engine designed for mobile devices. Innovation is at the heart of the mobile application strategy and enables Accor to test new developments such as beacons (microlocation technology), augmented reality, facial recognition and the new Apple Watch. The new Accorhotels.com experience The Group s multi-brand booking portal, available on PCs, tablets and smartphones, comes in 18 languages and 32 versions adapted to different countries. It has a new look with a new homepage and new sections that facilitate and enrich the preparation and organization of customer stays. By putting a fresh gloss on our destinations, the new website is a veritable invitation to travel. It provides virtual guides that allow users to discover, choose, book and pay for activities and outings online, depending on their tastes. It also features an online travel planner, known as My Trip Planner. The new Accorhotels.com magazine assists customers in making their choice through a travel journal with content contributed by bloggers, as well as fun quizzes and videos on different themes. The Super Sales offer discounts of up to 40% on 2,500 hotels worldwide, and members of the loyalty program can also take advantage of the private sales page. Rich, attractive and personalized content helps boost customer retention and enrich our databases. Accorhotels.com generates 11 million visits per month and an average of 45,000 bookings per day thanks to the power of its booking engine. Enhanced acquisition strategy With the purchase of 12 million keywords and investment in paid search campaigns for all its brands, Accor has lifted its presence on search engines, which have become a major component in the booking process. The Group has also increased the visibility of Accorhotels.com on price comparators to 30% OF VISITS TO ACCORHOTELS. COM AND BRAND WEBSITES ARE FROM MOBILE DEVICES 310,000 FANS FOR THE LE CLUB ACCORHOTELS FACEBOOK PAGE 1 ACCOR BOOKING EVERY 2 SECONDS ON WEB ENVIRONMENTS (APP AND WEBSITES) 36 I ACCOR 2014 BUSINESS REVIEW

39 22.4 MILLION VISITS PER MONTH TO ACCOR WEBSITES, OF WHICH 50% TO ACCORHOTELS.COM 14 MILLION WEB BOOKINGS 570 MILLION TARGETED S SENT EACH YEAR match new consumer behavior and optimized the listing of its hotels on TripAdvisor and online travel agencies. The customer acquisition process is complemented by a powerful relational marketing strategy aimed at retaining customers and encouraging them to increase their visits. Its 14,000 campaigns in 16 languages allow the Group to establish a smooth and personalized relationship with customers. Presence on social networks The Places by Le Club Accorhotels page on Facebook, which allows members of the loyalty program to check in to the Group s hotels online, has been revisited. It is now more mobile and more fun. The enhanced version allows users to earn even more points with each stay and to share with their friends on Facebook. For even more satisfaction, Social Care Facebook provides quick answers and solutions to all of the Group s fans and followers. CLOSE-UP ON Powerful brand websites The 13 Accor brand websites account for 50% of direct Web activity, with 11.2 million visits per month. They are attractive websites that serve as both showcases and points of contact for the Group s customers. My Trip Planner, the new travel planning service, allows customers to book stays in 70 destinations worldwide. Users can fill their diary based on their various daily activities, check their itinerary, and share it on social networks. The acquisition of French start-up Wipolo, which has developed a cutting-edge traveling companion mobile app, will help enrich the customer experience by centralizing all travel information (flight and train bookings, etc.) BUSINESS REVIEW ACCOR I 37

40 HOTELSERVICES DIGITAL HOSPITALITY THE CUSTOMER IS THE CENTER OF OUR ATTENTION Welcome by Le Club Accorhotels This digital solution that revisits hotel checkins is already operational in more than 1,000 hotels worldwide. The new service allows customers to enjoy a fast and personalized check-in thanks to the information filled in online and the consultation of their profile and preferences by hotel staff ahead of their arrival. The new-generation check-in is complemented by a fast check-out that enables guests to avoid spending time at reception when departing if all they need to do is drop off the room key. The final payment for the stay is done securely, and the invoice is ed to the customer. This innovative service is reserved for Le Club Accorhotels members and for customers who book on Accorhotels.com, on the Group s brand websites, on the mobile app or directly at the hotel. In just a few months, the number of Welcome by Le Club Accorhotels online check-ins has reached 230,000. By massively rolling out this new digital solution, Accor is keeping up with new customer uses and laying the foundations for the shift in the customer experience, as set out in its digital plan. Unique customer knowledge Improving customer knowledge in order to offer personalized and attractive packages, customizing the welcome and exceeding expectations are Accor s key CRM (1) challenges. Customer information, which is subject to the charter governing the protection of personal data, is stored in a segmented and multi-brand global database containing 45 million customer contacts, allowing us to 54,000 SUBSCRIBERS FOR THE IBIS BUSINESS CARD The ibis Business card, accepted in 1,800 ibis, ibis Styles and ibis budget hotels worldwide, allows business travelers to benefit from a host of advantages, including a 10% discount on rooms and food services. Another popular benefit is the guarantee that a room will be available for bookings made up to two days prior to arrival at the hotel. Since July 2014, ibis Business card holders who are also members of Le Club Accorhotels directly access Gold status, thereby enjoying even more benefits. 38 I ACCOR 2014 BUSINESS REVIEW

41 provide a shared vision of customer profiles to hotels and customer contact centers. All of this information is fed into SMART, the Group s in-house recommendation engine. Using the information collected from the customer profile, visit history, consumption habits and navigation on Accor websites, SMART automatically generates personalized messages and customized commercial offers from Accorhotels.com, the Le Club Accorhotels website or brand websites. With the increased personalization of s and SMS campaigns, SMART keeps an eye on customers before, during and after their hotel stay. 45 MILLION INDIVIDUAL CUSTOMERS IN OUR GLOBAL CUSTOMER DATABASE 7,200 CUSTOMIZED CAMPAIGNS (1) CRM: Customer Relationship Management. More generosity and gratitude for loyal customers Only six years after its creation, Accor s free loyalty program, Le Club Accorhotels, already has over 18 million members. Uniquely flexible, Le Club Accorhotels is the only hotel loyalty program that allows customers to use their points anywhere in the world without any restrictions in terms of date or availability, directly deducting them from the amount of their booking on Accorhotels.com and brand websites. Le Club Accorhotels offers its members benefits at every step: before their stay with exclusive private sales offering discounts of up to 40% or guaranteed availability until two days before their arrival at the hotel, and during their stay with dedicated services and exclusive privileges such as upgrades or access to Executive Lounges at Sofitel and Pullman. The program now offers up to 25% extra points, allowing faster access to rewards. On their account, which they can access via Accorhotels.com and brand websites, members can manage their preferences, check their current bookings, access their points statement, select gifts and take advantage of personalized offers at discounted rates. More than 30 select partners including Air France, Lufthansa, Finnair, Europcar, E-Rewards and Lenôtre enrich the program. Now, 18 million loyal customers can convert their points to support the initiatives undertaken by Solidarity Accor alongside local NGOs in the aftermath of natural disasters and humanitarian crises (2,000 points = 40) or take part in a reforestation project led by Accor and its partner Pur Projet as part of the Plant for the Planet program (2,000 points = 8 trees). CLOSE-UP ON 91% of customers who have used the Welcome by Le Club Accorhotels service say they want to use it again for their next stay. The loyalty program is the third most important criterion in choosing a hotel after location and price. 83% of members of the Le Club Accorhotels program say that membership is a key factor in booking an Accor hotel. Le Club Accorhotels won the Excellence in Management prize at the 2015 Loyalty Awards for its strategy built around the promise, You re at the heart of it BUSINESS REVIEW ACCOR I 39

42 HOTELSERVICES SALES FORCE TOOLS TO ENHANCE SALES EFFICIENCY Accor is positioned as the key player in à la carte business trips, with powerful digital solutions that help enhance the efficiency and effectiveness of its sales force. ANAIS, shared and valued customer knowledge In partnership with Salesforce.com, Accor has created ANAIS (Accor New Application for Integrated Sales), the customer relationship management tool developed for the business sales force, to enhance and optimize sales efficiency. By centralizing the contact data of the Group s 342,000 business accounts and more than 700,000 business travel customers, ANAIS provides access to comprehensive reporting covering all key accounts. It also facilitates collaborative work for the 750 sales representatives in 42 offices worldwide by offering functions that enable them to exchange best practices and share documents. The choice of a cloud-based solution allows users to access the data in just a few clicks from any device, thereby facilitating mobility. Since its launch in 2013, the tool has become increasingly powerful as sales staff progressively enter new customer information, while managing local promotional offers, preparing customer campaigns ( s, trade fairs, events, etc.) or monitoring the business volumes generated. CLOSE-UP ON ANAIS unveiled in hotels Rolled out in 1,500 hotels by June 2015, this version of ANAIS will allow hotels to benefit from the power of the application, the wealth of information available and the ability to work with all members of the Accor business sales force. Leisure groups, a key market for Accor The revenue generated by Accor s 42 international sales offices in this market totaled 301 million in 2014, an increase of 12% compared with I ACCOR 2014 BUSINESS REVIEW

43 Easypitch, an interactive hotel catalogue This digital platform, available in seven languages, gives the Group s business sales force a presentation tool that is both dynamic and customizable. The interactive hotel catalogue allows users to display hotels that meet the needs of each customer, using multiple search criteria: country, city, brand, number of rooms, capacity of meeting rooms, or location (airport, city center, waterfront). More than 3,000 hotel profiles have been created and are updated automatically via a connection with TARS, Accor s central booking system. A fully online solution to simplify leisure group bookings Accor offers its professional tourism partners (travel agencies, tour operators and bus companies) a dedicated digital solution that allows them to book rooms for groups of between 15 and 60 people directly. Highly intuitive and designed like a consumer booking engine, it provides real-time availability information on the different room categories and allows users to automatically access the best rate offered and put a booking option in the hotel system. This solution is accessible from the Professional Solutions page on the Accorhotels.com portal. 500 key hotels for leisure groups are already in the system. It will soon be possible to book additional services, including meals and baggage handling. The solution is part of Accor s response to market trends and changing consumer practices, which demand the fastest possible access to information. 700,000 BUSINESS CUSTOMER CONTACTS 376,000 BUSINESS CUSTOMER ACCOUNTS CARBON OPTIMIZER Accor sales teams now have an online tool allowing their business customers, for whom price and comfort are not the only selection criteria, to assess the carbon footprint of their forthcoming seminars, based on the number of participants, the length of their stay and their eating choices. See page 100 for more information BUSINESS REVIEW ACCOR I 41

44 HOTELSERVICES HOTEL PERFORMANCE UNMATCHED EXPERTISE IN DISTRIBUTION In addition to the power of its distribution platform, Accor stands out for its mastery of management solutions designed to boost the performance of the hotels of the Group and its partners. TARS: up to 38 million availability requests per day TARS (The Accor Reservation System) is the central booking system created and operated by Accor, which markets all of the Group s hotels. This powerful multi-currency and multi-language hotel performance and booking tool now generates 59.5% of the revenue of hotels in the Accor network, with over 79 million overnight stays in Based on modern, reliable technologies, serving as the engine of the Accor websites and mobile apps, and linked to more than 70 online travel agencies and the four major global distribution systems, TARS works for all hotels operating under Accor banners. It also feeds the Group s customer databases and offers an online payment service and an integrated system to manage the remuneration of distributors. Revenue management At Accor, revenue management helps increase the average revenue per available room at owned hotels by up to 8 points. By anticipating booking requests for each type of customer, revenue management optimizes hotel occupancy and room rates, thereby maximizing revenue. The stunning increase in the volume of data available to hotel teams and the enhanced efficiency of players in hotel distribution are challenges that Accor has met through the deployment of technology solutions and the expertise of its revenue managers. Some 1,600 hotels have day-to-day revenue management, and more than 2,500 people have attended the specialized RM PASS training program since In 2014, the focus was placed on enhanced cooperation with franchise and management partners, pricing expertise and management of direct and indirect distribution. REVENUE MANAGEMENT ON DEMAND RM on Demand, Accor s new revenue management offer, provides franchise and management partners with a wide range of services tailored to their needs. Nearly 100 contracts have already been signed with franchised hotels. 42 I ACCOR 2014 BUSINESS REVIEW

45 TARS: A POWERFUL AND EFFICIENT HOTEL BOOKING TOOL 38 MILLION BOOKINGS IN 2014, AN AVERAGE OF 4 PER SECOND 79.1 MILLION OVERNIGHT STAYS IN 2014 ibis SMART Pricing The rollout of ibis SMART Pricing, Accor s dynamic pricing solution, continues. The new system has now been deployed in 650 ibis family hotels across Europe, including 150 franchised hotels. In 2015, ibis SMART Pricing will enter the digital age and become ibis SMART Pricing powered by PriceMatch. This partnership with the French start-up will enable Accor to offer its hotels a Web platform that contains all the data needed to optimize their pricing strategy, as well as new performance improvement applications BUSINESS REVIEW ACCOR I 43

46 HOTELSERVICES HOTEL PERFORMANCE UNMATCHED EXPERTISE IN DISTRIBUTION CONTACT CENTERS THROUGHOUT THE WORLD 11 CONTACT CENTERS 5.3 MILLION CALLS MANAGED IN 18 LANGUAGES Strategic partnerships with the online travel majors Complementing Accorhotels.com, online travel agencies (OTAs) are true partners for Accor. They make it possible to contact customers that cannot be reached via the Group s direct channels. These include US travelers, purchasers of airline and hotel packages, intra-regional customers (people looking for stays in Asia for instance) or international traveler flows (such as an Australian looking for a hotel in France). Working with local partners is a performance criterion for Accor when deploying its distribution strategy. Contact centers: significant leverage for bookings Accor Customer Contact Centers is a team serving customers and hotels. More than 1,000 employees in 11 contact centers provide personalized advice and make bookings. The advisors also manage the Web support lines, making them a key point of contact for customers when booking via the Group s websites. Trained in the characteristics of each brand and hotel, sales staff can also take overflow customer calls to hotels, and make bookings on their behalf. Contact centers also handle Accor Customer Care, a new entity dedicated to the management of customer complaints and requests for assistance. This service, created in 2013, centralizes all requests received by mail, telephone, and through social networks. Requests from Le Club Accorhotels members are also managed exclusively by this service. 44 I ACCOR 2014 BUSINESS REVIEW

47 THE BRAND PORTFOLIO

48 Each stay embodies the Accor spirit Our ambition is to offer each and every guest a unique experience. All our brands, from luxury to economy, combine excellent service with a warm welcome and a multicultural, responsible approach. Welcome to the world of Accor.

49 Luxury and upscale hotels Accor s unique expertise in the luxury and upscale segment is founded on the enchantment inspired by incomparable surroundings, the passion of attentive hotel ambassadors, and a customized welcome and services tailored to the needs of guests in search of excellence and unforgettable experiences. Each stay is an immersion into the heart of a story, a unique experience, a sum of small gestures and big emotions stirred by the contemporary spirit of the place, the invaluable opportunity it offers for ultimate wellbeing and an approach to gastronomy that is at once innovative and refined. The mythical quality of Sofitel Legend hotels, the French elegance of Sofitel, the urban sophistication of So, the vibrant and cosmopolitan style of Pullman and the uniqueness of the MGallery hotels offer a fresh vision of luxury where boldness is at the heart of hospitality. 341 hotels 71,081 rooms 2014 BUSINESS REVIEW ACCOR I 47

50 THE BRAND PORTFOLIO_ LUXURY AND UPSCALE HOTELS Sofitel Legend The Grand Amsterdam, Netherlands I 2. Sofitel Legend People s Grand Hotel Xian, China 3. Sofitel Legend Metropole Hanoi, Vietnam 48 I ACCOR 2014 BUSINESS REVIEW

51 SOFITEL LEGEND Timeless jewels Sofitel Legend offers a collection of legendary locations where myth and reality merge. Its hotels are unique jewels, often set in century-old heritage buildings that have been magnificently renovated by celebrated designers. Sofitel Legend Metropole Hanoi, Sofitel Legend The Grand Amsterdam and Sofitel Legend Old Cataract Aswan are destinations in themselves, inviting guests to experience a world of enchantment and magic. In 2014, the Sofitel Legend The Grand Amsterdam received no fewer than 11 awards and distinctions for the excellence of its service, while the Sofitel Legend Metropole Hanoi was honored 27 times. In particular, it was ranked the No. 1 hotel in Southeast Asia by Condé Nast Traveler readers and also made it onto the magazine s Gold List of the world s finest hotels. The Sofitel Legend Cartagena also featured in Condé Nast s Readers Choice Awards, as one of the best hotels in South America. The Sofitel Legend Panama will be added to the collection in SOFITEL LEGEND PEOPLE S GRAND HOTEL XIAN, THE FIRST SOFITEL LEGEND IN CHINA History and tradition dating back thousands of years infuse this hotel, which has been expertly transformed to meet the luxurious Sofitel Legend standards. French elegance blends with Chinese hospitality and tradition to create a timeless atmosphere in this splendid property standing in the middle of a vast 40,000-squaremeter landscaped garden that once belonged to the Imperial Palace, the tone set by the Art Deco lobby and its lily motif. This sumptuous hotel houses 71 rooms and suites, with a butler service, six restaurants, the top-floor Louis XIII bar, an immense ballroom, a Grand Theater, a private museum and last but not least a pool, a gym and a private spa. A NEW SO SPA ADDRESS AT THE SOFITEL LEGEND THE GRAND AMSTERDAM BY MARISA BERENSON In 2014, the Sofitel Legend The Grand Amsterdam named Best luxury hotel spa in the Netherlands at the World Luxury Hotel Awards announced the launch of Le Soin Sublime by Marisa Berenson. The eternal style icon has developed a range of cosmetics and beauty treatments using her signature Fabulous Oil, made from prickly pear extract, exclusively for Sofitel. So SPA, a collection of 33 addresses, offers a sensory journey blending the expertise of French beauty treatments with the best of local traditions COUNTRIES 5 HOTELS 873 ROOMS sofitel.com 2014 BUSINESS REVIEW ACCOR I 49

52 THE BRAND PORTFOLIO_ LUXURY AND UPSCALE HOTELS LA NUIT BY SOFITEL The new Sofitel concept of signature evenings is a multisensory experience combining music, design and the art of cocktails, created for cosmopolitan travelers and lovers of sophisticated soirées. The events are organized on the sidelines of prestigious international cultural events such as art, design, film and music festivals and fashion weeks. The first edition of La Nuit by Sofitel was held at the Sofitel Marrakech in Morocco to coincide with the Marrakech International Film Festival. SOFITEL WINE DAYS Sofitel launches Sofitel Wine Days, an invitation to discover the world of French wines during the traditional grape harvest in France. This exceptional program of international events showcasing food and wine is jointly organized by Sofitel and some of the world s most legendary wineries. Sofitel hotel guests and wine lovers are able to follow the events via various social media, including Twitter: #Sofitel FrenchWineDays Sofitel Bali Nusa Dua Beach Resort, Indonesia 2. Sofitel Berlin Kurfürstendamm, Germany 3. View from the Sofitel Dubai Downtown, United Arab Emirates 50 I ACCOR 2014 BUSINESS REVIEW

53 1. SOFITEL years of French elegance around the world The Sofitel portfolio features contemporary hotels and resorts tailored to meet the needs of luxury hotel guests in search of maximum comfort, stylishness and excellence. Located in the heart of a major city or nestled in more intimate and sumptuous surroundings, each Sofitel offers a genuine experience of French art de vivre, combined with the best of local refinement. Around the world, Sofitel celebrates design, culture and gourmet dining. To make every Sofitel a unique experience, each destination is enhanced by the work of designers, architects, interior decorators and artists, including such well-known names as Andrée Putman in Paris, Didier Gomez in Morocco and Paris, Jean Nouvel in Vienna, Sybille de Margerie in Amsterdam and Aswan, and Isabelle Miaja in Mumbai and Singapore. Diversity of tastes is also celebrated, creating bridges between local cuisine and France s culinary heritage, paired with the best and most subtly blended wine. Exhibitions, fashion shows, openings and concerts make any stay with Sofitel an unforgettable moment. Life is Magnifique! In 2014, the brand added three prestigious new addresses in key regions and cities, with the opening of the Sofitel Bali Nusa Dua, the Sofitel Berlin Kurfürstendamm and the Sofitel Dubai Downtown. It also pursued an ambitious renovation program that constantly renews the Sofitel experience. Objective: 150 hotels by AWARDS FOR THE SOFITEL BRAND Between awards bestowed by tourism professionals and glowing recommendations from guests and luxury hotel enthusiasts, Sofitel hotels received more than 400 distinctions in 2014, an increase of 35% on COUNTRIES 121 HOTELS 30,941 ROOMS sofitel.com REVEALED: A TRAVELING PHOTO EXHIBITION CURATED BY OLIVIER WIDMAIER PICASSO At Sofitel s initiative, Pablo Picasso s grandson has selected 30 photographs that lift the veil on the intensely private creative world of such great artists as Dali, Soulages, Magritte and Picasso. The opening at the Sofitel New York brought together the biggest names in art and culture. After New York, Washington and Chicago, the exhibition will travel to Montreal and Los Angeles in 2015 and will also be shown in Europe, starting in Paris from February BUSINESS REVIEW ACCOR I 51

54 THE BRAND PORTFOLIO_ LUXURY AND UPSCALE HOTELS SOFITEL SO Pearls of design in tune with the times Sofitel So is the lifestyle hotel label. It personifies an ultra-contemporary, chic and urban style in trendy destinations. The unique personality of each hotel is the work of a renowned architect or a famous name from the international worlds of fashion, art or design, such as Christian Lacroix for the Sofitel So Bangkok, Karl Lagerfeld and Isabelle Miaja for the Sofitel So Singapore, and Kenzo Takada for the Sofitel So Mauritius Bel Ombre. After the glittering opening of the Sofitel So Singapore in 2014, the brand plans to open another hotel in Asia by the end of SOFITEL SO SINGAPORE OPENS XPERIENCE This interactive gourmet restaurant features contemporary cuisine interpreted by chef Anne-Cécile Degenne, with starred chefs invited twice a month to concoct exciting, innovative dishes for a unique and tantalizing dining experience. 1. Sofitel So Singapore, Singapore 2. Sofitel So Bangkok, Thailand 3 COUNTRIES 3 HOTELS 463 ROOMS sofitel.com 52 I ACCOR 2014 BUSINESS REVIEW

55 MGALLERY A collection of unforgettable hotels MGallery is a unique collection of upscale hotels chosen for their distinctive personality and characteristics. The Heritage range combines hotels boasting a rich history; the Signature range reflects the aesthetic universe and style of the celebrity who contributed to the hotel s creation or decoration; and the Serenity range promises a peaceful retreat in a natural or urban setting. All of the Collection s hotels invite guests to experience Memorable Moments. Present in 22 countries, the brand is constantly expanding and embellishing its prestigious Collection through a program of hotel openings and renovations. The most recent additions include Paris Molitor, Hotel Baraquda Pattaya, The Lake Garden Nay Pyi Taw, Balthazar Hôtel & Spa Rennes, Park Hotel Grenoble and The New Inchcolm Hotel & Suites Brisbane. Selecting its hotels carefully, MGallery aims to expand its network to 100 hotels by AN ECO-FRIENDLY SPA FOR THE MOLITOR Following the massive restoration of the iconic Molitor swimming pool in Paris, the Hotel Molitor boasts one of the largest eco-friendly spas in Europe. THE LAKE GARDEN, A SUMPTUOUS NEW HOTEL IN MYANMAR This luxury hotel in the MGallery Serenity range is already considered one of the finest in Nay Pyi Taw for discerning travelers looking for an unforgettable experience. Nestled in a beautifully landscaped garden with a lake, the hotel combines majestic architecture and five-star services and facilities with the refinement of traditional Burmese culture. It also offers three dining concepts, designed to satisfy the most demanding food enthusiasts COUNTRIES 71 HOTELS 7,082 ROOMS 1. The Lake Garden Nay Pyi Taw MGallery Collection, Myanmar 2. Molitor Paris MGallery Collection, France mgallery.com 2014 BUSINESS REVIEW ACCOR I 53

56 THE BRAND PORTFOLIO _ LUXURY AND UPSCALE HOTELS PULLMAN ARTNIGHT To symbolize the brand s Work Hard, Play Hard spirit, Pullman has launched Artnight, a series of signature events devised locally around the brand s values of travel, architecture, design, art and culture. On the heels of Dubai, London and Brussels, the fourth and fifth Artnight took place at the Pullman Jakarta in February and the Pullman São Paulo in October. 1. PRIZE-WINNING PULLMAN In 2014, Pullman received 21 customer satisfaction awards and 12 distinctions for its initiatives in favor of the environment and local communities Pullman Shanghai South, China 2. Business Playground by Pullman, Pullman Paris Tour Eiffel, France 3. Pullman Khao Lak Katiliya Resort and Villas, Thailand 54 I ACCOR 2014 BUSINESS REVIEW

57 2. PULLMAN A vibrant, alluring and cosmopolitan experience Pullman merges business and leisure, offering its connected, cosmopolitan guests the opportunity to mix efficiency with pleasure while traveling for personal or professional reasons. The network s 95 hotels and resorts embody the brand s Work hard, Play hard spirit, offering a new take on upscale hotels. Pullman guests enjoy an innovative and memorable guest experience combining a warm and expert welcome with personalized offers and services. Located in the heart of strategic economic hubs and must-see tourist destinations in Europe, Africa, the Middle East, Asia-Pacific and Latin America, Pullman has 15 hotels in China, the brand s biggest country by number of hotels. A total of 47 new hotels are set to join Pullman s Asian portfolio by 2018, including 38 in China, 2 in India and 4 in Indonesia. With nearly one opening per month in 2014, the brand continues to enter new markets, pressing ahead with expansion that will see its network grow to 150 hotels by PULLMAN OPENS ITS 15 TH HOTEL IN CHINA Located right in the heart of Shanghai s main attractions, the Pullman Shanghai South features the best of the brand s signature services: 338 rooms and suites, a heated indoor pool, eight meeting rooms, four restaurants and bars, optimal connectivity (free high-speed Wi-Fi), the Pullman Co-Meeting service for the organization of professional and private events, Nespresso machines, the Pullman bed, a walk-in rainshower, the Vinoteca by Pullman, and the Fit and Spa Lounge. BUSINESS PLAYGROUND TURNS MEETING CODES UPSIDE DOWN With designer Mathieu Lehanneur, Pullman has invented the Business Playground conference room, a working space that stimulates creativity. The conference table was inspired by poker tables to make it easier for participants to concentrate and exchange ideas. The room also features a Canopy Break, a comfortable, informal meeting space, inspired by nature, and Curiosity Boxes, a contemporary version of the cabinet of curiosities, designed to transport meeting participants to unexpected places through unusual objects, books or ideas. 26 COUNTRIES 93 HOTELS 25,953 ROOMS pullmanhotels.com 2014 BUSINESS REVIEW ACCOR I 55

58 THE BRAND PORTFOLIO_ LUXURY AND UPSCALE HOTELS GRAND MERCURE THALASSA SEA & SPA Asia Middle East Latin America A benchmark in Asia-Pacific Grand Mercure is an upscale brand that targets demanding customers looking for familiar references to their culture and identity and for hotels whose local character is combined with high-quality hospitality services. First established in China, the brand is now expanding in other countries. In each market, Grand Mercure takes on a unique personality suited to the local culture, with Mei Jue in China, Maha Cipta in Indonesia, Manee Pura in Thailand and Alisa in India. Grand Mercure Beijing Dongcheng, China An innovative and effective seawater spa Accor s wellness brand features 14 destinations in exceptional seaside locations. All are devoted exclusively to relaxation, health, beauty and sport, and offer recuperative seawater and spa treatments, healthy, balanced meals and physical activities led by trained coaches. With its network of experts hydrotherapists, dietitians, beauticians, coaches, physiotherapists and doctors Thalassa sea & spa is a promise of serenity. In 2014, the brand extended its reach to Medina, Saudi Arabia and São Paulo in Brazil. Three hotels were opened in Brazil in 2014, in Rio and Brasília, with the objective of opening 20 hotels in Latin America over the next three or four years. In the Middle East, the brand s medium-term goal is to develop a network of around 20 hotels covering the region s main cities. BRAZIL: SUNNY SKIES FOR GRAND MERCURE In Recife, the Venice of Brazil, two new hotels are set to open in 2015 the Grand Mercure Recife Atlante Plaza and the Grand Mercure Summerville Resort. The Sebel Swan Valley The Vines, Australia THE SEBEL Upscale apartments The Sebel is a brand of premium apartments in the Asia-Pacific region. For guests seeking independence, it offers an inspiring accommodation experience in stylish, spacious surroundings, supported by a warm welcome and outstanding, personalized service. HOTEL DES CURES MARINES, A NEW FLAGSHIP SEAWATER SPA IN FRANCE Located on one of Normandy s most beautiful beaches, this MGallery Collection hotel boasts direct access to a signature Thalassa sea & spa thalassotherapy institute, for guests in search of absolute wellness. MGallery, Les Cures Marines, Trouville-sur-Mer, France 43 HOTELS 8,164 ROOMS grandmercure.com ASIA-PACIFIC 21 APARTMENTS 1,309 ROOMS thesebel.com 4 COUNTRIES 14 SEAWATER SPAS 18 HOTELS thalassa.com 56 I ACCOR 2014 BUSINESS REVIEW

59 Midscale hotels A warm welcome and top-quality service Accor has two big assets in the promising mid-range market: Novotel and Mercure. These two hotel brands are as powerful as they are complementary, with one focused on multiservice, the other on authenticity and local content. For international guests eager to consume intelligently, Novotel and Mercure are reinventing themselves to offer a hotel experience combining emotion and efficiency, accessibility and attention. 1,206 hotels 178,065 rooms 2014 BUSINESS REVIEW ACCOR I 57

60 THE BRAND PORTFOLIO_ MIDSCALE HOTELS NEW: THE PLAY INTERACTIVE TABLE This little gem is a touchpad offering a host of educational games for children and adults alike. It will be rolled out throughout the Novotel network in A SUCCESSFUL FIRST YEAR FOR THE NOVOTEL VIRTUAL CONCIERGE Available in the lobbies of Novotel hotels and via a dedicated mobile application, this touchpad available in ten languages enables guests to access weather forecasts and traffic reports, flight times and other practical information, as well as recommendations on local tourist sites and restaurants, and a rundown of the hotel s services. Its undisputed success has been backed up by the e-cards: each month, more than 300,000 digital postcards are sent through the Virtual Concierge. NOVOTEL It s a lot better at Novotel Novotel hotels and resorts are located in the heart of big cosmopolitan cities, in business districts and tourist destinations. Its standardized offer enables Novotel to nurture the wellbeing of business and leisure travelers through a warm, techie atmosphere, spacious, adaptable rooms, balanced meals available 24/7, meeting rooms and fitness centers, and areas designed specifically for children. Already acknowledged throughout the world for their reliable quality, Novotel hotels are now putting the spotlight on technology for their guests. Lobbies now feature a new interactive table, PLAY, keeping kids and adults entertained, while the Novotel Virtual Concierge helps guests organize their stay. The international launch of its YOU Our Mission, Your Satisfaction program cements Novotel s commitment to optimizing the guest experience across its network. With 414 hotels in 61 countries in strategic markets in Asia-Pacific and Europe, Novotel is focusing its development on fast-growing economies. A total of 88 openings are currently planned over the next three years, of which 49% in Asia, 31% in Africa and the Middle East, and 20% in Europe. In 2014, Novotel opened 17 hotels, including the Novotel Abu Dhabi Al Bustan in the United Arab Emirates, the Novotel Basel City in Switzerland and the Novotel Rio de Janeiro Parque Olimpico in Brazil. 61 COUNTRIES 414 HOTELS (302 ISO CERTIFIED HOTELS) 79,220 ROOMS novotel.com COMFORTABLE, RESPONSIBLE BEDDING The new LIVE N DREAM bed concept was created by making comfort and sustainability our key requirements. All features of the bed were studied to maximize wellbeing and to adapt to the new demands of today s guests. The LIVE N DREAM concept takes beds into a new dimension, making them a veritable living space where guests can work, sleep, read and relax, offering guests the best in personalized comfort. LIVE N DREAM also features eco-design from end to end, from the duvet and pillows to the bed base, which is made of eco-friendly wood. 58 I ACCOR 2014 BUSINESS REVIEW

61 SUITE NOVOTEL 1. 2 Another way of hotel living Within the Novotel family, Suite Novotel offers mediumstay guests a welcoming ambience, 30-square-meter suites and innovative services including free massages, the loan of a vehicle and a gourmet shop. Everything is designed to allow business and leisure guests to enjoy complete autonomy and freedom during their stay. Suite Novotel Den Haag City Centre The Hague, Netherlands 1. Novotel Al Bustan Abu Dhabi, United Arab Emirates 2. Novotel London Brentford, United Kingdom 10 COUNTRIES 31 HOTELS 3,854 ROOMS suitenovotel.com 2014 BUSINESS REVIEW ACCOR I 59

62 THE BRAND PORTFOLIO_ MIDSCALE HOTELS MERCURE (Re)discover Mercure and enjoy a myriad of warm, welcoming experiences At Mercure, no two stays are alike. Run by enthusiastic teams, Mercure hotels draw inspiration from their surroundings, so as to be in harmony with places and people. Located in city centers, by the sea or in the mountains, each hotel shares the same uncompromising commitment to quality and provides an authentic experience, for business and leisure guests alike. Present worldwide via 711 hotels in 52 countries, the Mercure network offers a real alternative to standardized or independent hotels, with all the power of an international network. In 2013, the brand made a global commitment to service quality with the Mercure Quality Guarantee, which has already started to pay off. Now rolled out to 90% of the network s hotels, it has helped increase guest satisfaction across the entire network by an average of one point, with improvements of three points in France and Brazil, and four points in Germany. With 711 hotels in more than 50 countries worldwide, Mercure continued its expansion in 2014, confirming its appeal and strengthening its international reach by opening 37 hotels or 3,700 rooms and entering five new markets Latvia, Lithuania, Romania, Argentina and Uruguay. The brand plans to open 31 hotels in 2015, representing 8,500 new rooms, and aims to reach more than 1,000 hotels by MERCURE BUCHAREST CITY CENTER This Mercure, located on the most beautiful avenue of Romania s capital, is a musical address with very deep local roots. Its contemporary design, its atypical character focused entirely on music, and its Symphony Bar & Restaurant will appeal to art, wine and food lovers. The bar, restaurant, lobby and rooms are all vibrant tributes to music, inspired by the city s opera house and the George Enescu Museum. 2. GOLD FOR MERCURE Mercure hotels made an impressive entrance into the 2014 British Travel Awards, taking gold in the Best Worldwide Midscale Hotel Brand category. 52 COUNTRIES 711 HOTELS 89,203 ROOMS mercure.com 60 I ACCOR 2014 BUSINESS REVIEW

63 1. 3. FLAVOURS FROM THE CELLAR A BIG HIT A year and a half after its launch, the new Grands Vins Mercure concept, Flavours from the Cellar, continues to be a success! More than 20 countries, representing 80% of the network, now offer an exceptional wine list showcasing local wines. The latest countries to have taken up the concept are China and Russia. 1. Mercure Kuta Bali, Indonesia I 2. Mercure Jakarta Simatupang, Indonesia 3. Mercure Vienna First, Vienne, Austria 2014 BUSINESS REVIEW ACCOR I 61

64 THE BRAND PORTFOLIO_ MIDSCALE HOTELS 1. Adagio Abu Dhabi Al Bustan, United Arab Emirates 2. Adagio Access Munich City Olympiapark, Germany APARTHOTELS ADAGIO Aparthotels Adagio is a joint venture between Accor and the Pierre & Vacances-Center Parcs Group. Your pied-à-terre in the heart of the city The European leader in aparthotels, the Aparthotels Adagio brand offers ready-to-live apartments with a fully equipped kitchen and hotel services for medium and long stays, with tiered pricing from the fourth night onwards. The chain has three ranges: Adagio, the benchmark aparthotel; Adagio access, the most economical range; and Adagio premium, the upscale aparthotel developed specifically for the Middle East. Currently with 96 aparthotels in 11 countries, Adagio aims to have 132 aparthotels and 15,000 apartments by Priority markets for expansion are Europe, the Middle East, Latin America and Africa. EMBLEMATIC SIGNING IN LONDON The brand continues its expansion in one of the key markets in Europe, the United Kingdom, with successive signings in Edinburgh and London. In 2016, it will open a 217-apartment aparthotel on Whitechapel Road. In 2018, another 137-apartment aparthotel will open in the Stratford district, near the 2012 Olympic facilities. 11 COUNTRIES 96 APARTHOTELS 10,441 APARTMENTS FOCUS ON THE MIDDLE EAST The first Adagio premium has opened in Doha, Qatar, offering 83 oneand two-bedroom apartments ranging from 75 to 90 square meters, among the largest available in Doha, as well as a spa, fitness center and swimming pool was decidedly the year of the Middle East, with openings in Fujairah and Abu Dhabi in the Adagio range, not to mention many ongoing projects in the region, such as the opening of the Dubai Al Barsha Adagio premium (199 apartments) and the signing of contracts for three Adagio aparthotels in Jeddah, Saudi Arabia, for ADAGIO ACCESS: NEW CONCEPT Design is the primary focus of the new Adagio access product. The concept is based on a new look combining quality, comfort and flexibility. The idea was to design an apartment where the entrance, kitchen and living room are clearly delineated through the choice of colors and materials. adagio-city.com 62 I ACCOR 2014 BUSINESS REVIEW

65 Economy hotels The ibis family: the success story continues Over the past three years, the ibis family has disrupted the classic codes of the economy hotel segment, with the modernization of the ibis, ibis Styles and ibis budget hotels. They now offer a new standard in comfort, with new Sweet Bed bedding, decidedly contemporary design, digital services for guests and a new vision of service attitudes. Always keeping one step ahead, the ibis family perfectly meets the demands of new business or leisure guests arriving from emerging countries for their first hotel experience. Accor continues its pioneering revolution in this segment, offering greater comfort, wellbeing and modernity, to consolidate its position as world leader. 2,137 hotels 228,620 rooms 2014 BUSINESS REVIEW ACCOR I 63

66 THE BRAND PORTFOLIO_ ECONOMY HOTELS ibis Hong Kong Central and Sheung Wan, China I 2. ibis Toulouse Centre, France 3. ibis Hamburg, Germany I 4. ibis Milano Fiera, Italy 64 I ACCOR 2014 BUSINESS REVIEW

67 2. 4. IBIS Wellness at the right price! Ibis, the European leader in economy hotels, guarantees absolute relaxation with the innovative Sweet Bed by ibis, a comfortable and perfectly equipped room, modern, beautifully designed reception areas and a modern restaurant concept, the ibis Kitchen. Attentive and efficient, ibis offers the highest quality services in its category, including 24-hour reception, breakfast from 4:00 a.m. to noon, light meals and bar service any time of the day or night. Its unfailing quality, which has earned it ISO 9001 certification, is illustrated by the 15-minute Satisfaction Guarantee. With 1,031 hotels in 59 countries, ibis is Accor s leading economy brand. A total of 40 hotels were opened in 2014 and the network is growing at a sustained pace, with more than one new hotel opening every week. The brand plans to continue its development strategy, with the goal of opening 250 hotels by THE NEW SWEET ROOM BY IBIS This modern, cleverly designed room was created for the wellbeing of guests. It offers shapes and materials inspired by the upscale segment, bedding guaranteeing absolute comfort, warm colors, a relaxing atmosphere, and modular furniture and lighting. 59 COUNTRIES 1,031 HOTELS (793 ISO CERTIFIED HOTELS) 129,009 ROOMS ibis.com IBIS KITCHEN, A CONCEPT TO WHET ANY APPETITE The ibis kitchen challenges conventional restaurant codes with stylish, modular areas designed for sharing and conviviality. It also offers menus featuring local touches, such as the famous i-burger offered in ibis hotels in Poland. Other innovations will be introduced soon, including a revisited breakfast menu and the inclusion of a signature dish on each hotel s menu. 100,000 SWEET BED BY IBIS INSTALLED WORLDWIDE To make ibis hotels the best place to stay, the brand designed its own bedding solution in 2012: Sweet Bed by ibis. A true technological innovation, it proposes comfortable bedding featuring elegant lines. Its success has prompted the brand to launch its own online store, ibistore.com, with more than 200 beds sold each year BUSINESS REVIEW ACCOR I 65

68 THE BRAND PORTFOLIO_ ECONOMY HOTELS IBIS STYLES hotels, 277 Styles Ibis Styles is an international economy hotel brand with a distinct personality that offers guests a multi-style design experience. Each of its hotels has a unique and intensely creative character, and each boasts the all inclusive formula including the room with a Sweet Bed by ibis Styles, breakfast and internet access, allowing the brand to win the loyalty of business and leisure travelers alike. In addition, the offer also includes affordably priced rooms that have been specially designed for families, with many features specifically aimed at children. The ibis Styles network has 277 hotels worldwide and a target of more than 400 hotels by Present in Asia-Pacific, Europe and Latin America, the brand is being launched in new destinations and regions with strong growth potential, such as Brazil, China, Japan, Poland and the Middle East. LAUNCH OF THE HAPPY MOOD MAKERS SERVICE SPIRIT At ibis Styles, the overriding aim is to bring good humor and create a Happy Mood among guests. The teams share their good vibrations, take initiatives and use their imagination to make the guest experience an unforgettable one and confirm the brand s personality. Ibis Styles Happy Mood Makers has received a Worldwide Hospitality Award in the Best Human Resources Initiative category. IBIS STYLES SÃO PAULO ANHEMBI The decoration of this new flagship hotel in Brazil is inspired by the world of aviation. The lobby is like the tarmac of an airport, with flooring reminiscent of a runway, and the bar, where the onboard service is impeccable, is fitted out with aircraft seats. On the upper levels, corridors painted sky-blue lead to 187 rooms featuring Sweet Bed by ibis Styles cloudbeds and inflight instructions for a pleasant night s sleep COUNTRIES 277 HOTELS 25,100 ROOMS ibis.com 66 I ACCOR 2014 BUSINESS REVIEW

69 2. TESTIMONY OF THE BRAND S DESIGN STRATEGY WITH THE CAPTURE IBIS STYLES OPERATION ON INSTAGRAM To publicize ibis Styles resolute focus on design, guests were invited to take pictures and post them on Instagram (Instagram@ captureibisstyles) of the unique objects on display in the hotels, all created by famous or emerging designers. The idea is to symbolize the objects value by giving them a price in likes (1) and ultimately to give them away as prizes. In place in fifteen showcase hotels in six countries, this 100% digital operation caught the eye of a number of journalists and bloggers. (1) Positive feedback posted on social networks ibis Styles Wroclaw Centrum, Poland I 2. ibis Styles Paris Voltaire République, France 3. ibis Styles Liverpool Dale Street, United Kingdom I 4. ibis Styles Walbrzych, Poland 2014 BUSINESS REVIEW ACCOR I 67

70 THE BRAND PORTFOLIO_ ECONOMY HOTELS 1. IBIS BUDGET IBIS BUDGET ZURICH AIRPORT, PILOT HOTEL FOR THE LOW COST IS WONDERFUL BRAND PROJECT After a design phase lasting throughout 2014, the Low Cost is Wonderful project was rolled out at the ibis budget Zurich Airport. This test hotel has its eye out for trends, reflecting the brand s aim of being an observer of new traveler behaviors. Basic comfort at an affordable price Ibis budget is Accor s benchmark brand in the budget segment. Clever and casual, it offers the essentials with simplicity, in a welcoming atmosphere and at affordable prices. Ideal for guests in search of independence, the hotels are accessible 24/7 and offer rooms for one, two or three people, all featuring a Sweet Bed by ibis budget, as well as cozy, laid-back reception areas. On top of that, guests enjoy free Wi-Fi and a gourmet buffet breakfast. After the spectacular modernization of its facilities, ibis budget has gone even further, launching the Low Cost is Wonderful brand project to further enhance the guest experience. With a portfolio of 537 hotels, ibis budget is expanding its network in mature European markets like France, Germany, Spain and the United Kingdom, and adding new countries, such as Brazil, Portugal and Morocco. By 2018, the brand aims to have a network of over 630 hotels worldwide. IBIS BUDGET AMBASSADOR SEOUL DONGDAEMUN Located in the heart of Seoul, the brand s new flagship hotel offers comfortable reception areas in the new Archangel design, and 195 modern, comfortable Cocoon rooms. 1. ibis budget Ambassador Dongdaemun, Seoul, South Korea 2. ibis budget Saint-Pourçain-sur-Sioule, France COUNTRIES 537 HOTELS 51,022 ROOMS ibis.com 68 I ACCOR 2014 BUSINESS REVIEW

71 HOTELF1 1. hotelf1 is turning 30 France s leading chain of low-cost hotels, the brand offers modern rooms for two or three people, as well as breakfast and reception areas. More dynamic and innovative than ever, hotelf1 has established itself as a confident brand that meets the expectations of consumers looking for great prices. To attract young people and workers its target customer base hotelf1 is showcasing its trio room, which costs less than 10 per person when three people are sharing. IT S OUR BIRTHDAY EVERY DAY On June 29, 1985, the first Formule 1 hotel opened in Évry, France, revolutionizing the codes of budget accommodation by promising guests a good night s sleep at the best price. To celebrate its 30th anniversary, hotelf1 has launched a vast digital campaign that can be viewed on the brand s Facebook page. THE CHEAPEST BUFFET BREAKFAST AROUND For only 3.50, hotelf1 guests can enjoy a full breakfast buffet with a wide choice of hot drinks (coffee, tea, chocolate, cappuccino), fruit juice, fresh bread, brioche and cereals an enjoyable way to stock up on energy for the rest of the day. 2. FRANCE 238 HOTELS 17,906 ROOMS 1. and 2. hotelf1 Brive Ussac, France hotelf1.com 2014 BUSINESS REVIEW ACCOR I 69

72 BRAND APPEAL BRANDS THE WORLD IS TALKING ABOUT To assert their personality, get people talking and stand out from the competition, the Group s brands are active in the media, and put their creativity to work in compelling communication strategies. Together, they have devised a veritable anthology of multichannel campaigns and bold marketing initiatives. LE CLUB ACCORHOTELS Two passports for travel One allows you to cross borders, while the other, equally important, allows you to enjoy your stay thanks to the many advantages and attentions provided by the Accor loyalty program. It is embodied by the Le Club Accorhotels card, and relayed via a massive international campaign using billboards, print media and the Web. A new and improved version of the Places by Le Club Accorhotels app More social, more mobile and more fun, the enhanced version of Places by Le Club Accorhotels allows loyalty program members to earn even more points with each stay and to share their Accor experiences with their Facebook friends. The application is now available via Apple Store and Google Play. ACCORHOTELS.COM The new Accorhotels.com experience Accor s multi-brand booking portal is an immersive experience, boasting modern design, an assertive editorial tone and creative style, a collection of revisited destinations, personalized content and easier bookings, all designed to inspire users and make them want to get away. After the launch of the new My Trip Planner service, which enhances the customer s travel organization, Accorhotels.com has launched a magazine featuring bloggers travel journals, videos, quizzes and more. Social networks Accorhotels.com has launched two campaigns on its Facebook page. The idea is to give users the chance to find the destination and hotel of their dreams. The Wish Me Away, operation plunges users into an enchanting experience and recommends a destination for their next trip based on answers to four questions. With Hotel Match, after answering just a few questions, users can discover their traveler profile, find the hotel that best suits them in the destinations of their choice, or choose the perfect dinner in tune with their tastes. And there s a fabulous trip to be won. 70 I ACCOR 2014 BUSINESS REVIEW

73 PULLMAN All eyes are on the Pullman magazine Editorial content dominated by ideas for travel and discovery, a modern creative spirit and a focus on lifestyle and international contributors make the second edition of the Pullman magazine a true inspiration! SOFITEL 2.5 million Facebook fans celebrate Sofitel s 50 th anniversary To mark the brand s 50 th anniversary, fans were asked to give a reason for choosing Sofitel, backed up by a photo. The campaign was relayed on Twitter, Tumblr and Google+, and gave the brand the opportunity to launch Sofitel Global, its official Instagram account. Fifty participants were rewarded with prizes. Sofitel s strong presence on 10 social networking platforms makes it a leader in the luxury hotel sector. The new Pullman Life In the wake of the success of its magazine, the brand has unveiled Pullman Life, its new webzine, offering an even more intense immersion into the Pullman universe. Design your Journey by Pullman The campaign, which highlights the uniqueness of the brand s hotels and resorts, covered Asia-Pacific, Europe, the Middle East and Brazil. It was relayed in major international airports, train stations and several influential magazines. Life is Magnifique! on CNN In partnership with CNN International, Sofitel launched its first TV ad campaign visible across the CNN network in Europe, Africa, Latin America, Asia, the Middle East and the United States. It also sponsored the network s coverage of spring Fashion Week BUSINESS REVIEW ACCOR I 71

74 BRAND APPEAL BRANDS THE WORLD IS TALKING ABOUT MERCURE Mercure depicts magical moments in hospitality Perfectly illustrating its slogan In harmony with people and places, Mercure has unveiled its first brand film, demonstrating its warm and genuine hospitality expertise and featuring unique hotels rooted in their local environments. The Six Friends Theory by Mercure To boost the size of its network and its ability to prompt encounters, the Mercure brand aims to echo the six degrees of separation theory by launching The Six Friends Theory, an innovative digital campaign. The challenge is to connect people who are worlds apart. Casting was done on Facebook worldwide, with users asked to post a video to introduce themselves and explain why they are the best friend in the world. Hundreds of people participated, encouraged by the chance to win a round-theworld trip. NOVOTEL A new offbeat campaign for Novotel in France The brand s aim is to disrupt midscale hotel codes with an ambitious advertising campaign. It is built on humor, using surprising and offbeat visuals on billboards and over the Web, letting us know that It s a lot better at Novotel! THE SIX FRIENDS THEORY IN FIGURES 140,000 NEW FANS ON THE MERCURE FACEBOOK PAGE 10 MILLION VISITORS CONNECTED DURING THE CAMPAIGN 5.5 MILLION VIEWS OF THE PROMOTIONAL VIDEO ON YOUTUBE AND FACEBOOK 72 I ACCOR 2014 BUSINESS REVIEW

75 IBIS ibis Business has big ideas To achieve its goal of having 60,000 ibis Business members by the end of 2015, ibis has undertaken a massive multimedia campaign in France, the UK, Spain, Germany and Italy. A far-reaching operation, it includes presence on social networks, exclusive events in hotels, personalized service and exclusive offers, as well as a Facebook game to keep the online community entertained. The campaign was a huge success, with nearly 30% of all members of the ibis Business program recruited while it ran! A single booking website: ibis.com Since March 2015, ibis has had a single brand website for all ibis, ibis Styles and ibis budget hotels, at The ibis.com ecosystem (the portal and the three brand websites) had already clocked up nearly 68 million visits and 8 million nights booked by the end of December The Rich & Famous are entering the ibis family With their quality of service and level of comfort, ibis family hotels are the best option around. This is the message shown with humor in the brand s latest campaign, which features chic and colorful characters, the Rich & Famous. This new 360-degree communication tool was designed for use in digital mode and to be relayed on social networks. ibis Expedition: the ultimate sleep, an award-winning campaign There can be no doubt that this digital and innovative, immersive and offbeat global campaign wowed the audience. Over 200 articles in more than 30 countries, 2 million unique visitors to the website and no fewer than four awards accompanied the quest for the ultimate night s sleep on Devil s Mountain on ibis-expedition.com. ibis Styles in the beat with Selfeet The Instapietons or Selfeet campaign has been a definite hit on Instagram in France. Guests adopt a laidback pose and photograph their own feet in one of the 270 contemporary, original and unique ibis Styles hotels. The distinctive campaign combines the craze for selfies with the brand s modern and eye-catching spirit. Rich & Famous campaign. IBIS ON FACEBOOK 600,000 FANS 1 GLOBAL PAGE AND 13 LOCAL VERSIONS LAUNCH OF THE BOOK NOW APPLICATION PERMITTING DIRECT ACCESS TO THE IBIS.COM BOOKING CORRIDOR 2014 BUSINESS REVIEW ACCOR I 73

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77 COMMITTED AND RESPONSIBLE Corporate Social Responsibility (CSR) is central to Accor s strategy. Value-creating, driven locally and globally by committed employees, it is placed at the core of the Group s challenges and priorities, and shapes its relationships with each of its stakeholders BUSINESS REVIEW ACCOR I 75

78 CORPORATE SOCIAL RESPONSIBILITY A pioneering company, Accor has built its history on a deep dedication to forging ties. As a leader, we have always cared about upholding a high level of commitment to our employees, our guests, our partners and our host communities in more than 90 countries. This is our duty as a good corporate citizen. Today, our corporate social responsibility process is irrigating every aspect of our business, creating not only economic value for the company and its partners, but also social, environmental and societal value for every stakeholder in the Accor ecosystem. However, it s not enough to create this value, you also have to share it. Inspired by our commitments, which were reaffirmed in 2014 in our Ethics and Corporate Social Responsibility Charter, Accor will continue to reinvent itself and enhance its appeal, while driving sustainable growth for the benefit of all our stakeholders. SÉBASTIEN BAZIN, CHAIRMAN AND CHIEF EXECUTIVE OFFICER CORPORATE SOCIAL RESPONSIBILITY, A PIONEERING COMMITMENT 1985 Creation of the Académie Accor 1994 Creation of an environment department 1997 Introduction of the Accor Hotel Environment Charter to support hotels in deploying their sustainable development initiatives 2001 Signature by Accor of a partnership with ECPAT, the leading international organization in the fight against the sexual exploitation of children 2002 Launch of the Accor Professions Challenge 76 I ACCOR 2014 BUSINESS REVIEW

79 CORPORATE SOCIAL RESPONSIBILITY A LONG-STANDING COMMITMENT Accor s sustainable development commitment dates back to 1994, when it created a department dedicated specifically to the environment. Social and employment-related initiatives have been added over the years to enhance the Group s corporate social responsibility process. In 2012, Accor strengthened its CSR process by launching PLANET 21, its sustainable development program. In 2014, the Group reaffirmed its commitment to stakeholders in the areas of management ethics, integ- rity, compliance with legislation, and social and environmental responsibility through its Ethics and Corporate Social Responsibility Charter. Championed by senior management, the Charter is based on Accor s culture and values, its management principles, and the laws and regulations that comprise its frame of reference. It guides the Group s CSR approach, which is built on three core components: the sustainable development program, human resources policies and the Solidarity Accor endowment fund Creation of the Accor Foundation to lead the outreach commitment of the Group and its employees 2009 Launch of the Accor Plant for the Planet program 2011 Introduction of the Group s International Diversity Charter 2012 Launch of the PLANET 21 program 2013 The Foundation becomes Solidarity Accor, the Group s community endowment fund 2014 Creation of an Ethics and CSR Committee 2014 BUSINESS REVIEW ACCOR I 77

80 CORPORATE SOCIAL RESPONSIBILITY ACCOR AND ITS STAKEHOLDERS: SHARING GROWTH Accor s activity is completely intertwined with that of its stakeholders. The Group s 3,700 hotels each have deep roots in their region, and interact constantly with local businesses and neighboring communities. Mapping has been used to identify stakeholders, to set out the relationships and methods of dialogue that Accor has established with each of them, and to compare their different perspectives on sustainable development challenges. CUSTOMERS For maximum transparency, the Group decided in 2014 to paint a clear picture of how and to what extent it shares the financial value it creates with its key stakeholders, based on the findings of its research. The diagram opposite provides an overview of the key stakeholders identified and the share of value redistributed to each of them. ACCOR S BUSINESS VOLUME 12 BILLION* * Sum of the revenues of the 3,700 hotels operating under Accor banners in ACCOR S ETHICS AND CSR COMMITMENTS TO STAKEHOLDERS CUSTOMERS Compliance with competition law, protection of personal data, promotion of safety, security, food hygiene, etc. SUPPLIERS Transparency and fairness, sustainable relationships, responsible supply chain, fight against illicit labor lending and bargaining, etc. EMPLOYEES Promotion of diversity and workplace health and safety, respect for work-life balance, etc. 78 I ACCOR 2014 BUSINESS REVIEW

81 Share of business volume redistributed to each stakeholder 36% Purchases for operating activities and investments SUPPLIERS 34% Wages and other indirect compensation These figures are based on an extrapolation of accounting data available for the Group s owned and managed hotels. The reconstitution of the income statements of franchised hotels is based on reliable assumptions. 12% Rents and interest 7% Income and other taxes 2% Dividends < 0.5% Philanthropy, donations, partnerships $ EMPLOYEES FINANCIAL PARTNERS GOVERNMENTS AND LOCAL AUTHORITIES SHAREHOLDERS LOCAL COMMUNITIES AND THE ENVIRONMENT 9% of profits are reinvested $ FINANCIAL PARTNERS Fight against bribery of public officials, money laundering, etc. GOVERNMENTS AND LOCAL AUTHORITIES Compliance with laws and international standards. SHAREHOLDERS Transparency, fight against insider trading and fraud, etc. LOCAL COMMUNITIES AND THE ENVIRONMENT Promotion of local development, solidarity, child protection, preservation of natural resources, protection of biodiversity, etc BUSINESS REVIEW ACCOR I 79

82 HUMAN RESOURCES The vitality, energy and appeal of a hospitality group like Accor stems in large part from the professionalism and commitment of its employees. In 2014, to meet the Group s new challenges following its reorganization, Accor recast its ambitions around the values of agility, spirit of initiative and accountability, collective intelligence and collaborative culture. 80 I ACCOR 2014 BUSINESS REVIEW

83 HUMAN RESOURCES 180,000 EMPLOYEES WORKING UNDER ACCOR BANNERS WORLDWIDE 56% of employees are under 34 46% OF EMPLOYEES ARE WOMEN 54% ARE MEN 6.4 MILLION VISITS TO ACCORJOBS.COM 122,000 EMPLOYEES TRAINED BY ACADÉMIE ACCOR 73% OF HOTEL GENERAL MANAGERS WORK IN THEIR HOME COUNTRY Over 100 professions EVERY 7 MINUTES, AN EMPLOYEE IS HIRED 50 SCHOOLS AND UNIVERSITIES WORLDWIDE ARE ACCOR PARTNERS 800 COMMUNITIES ON THE ACCORLOUNGE CORPORATE SOCIAL NETWORK KEY FIGURES AT DECEMBER 31, BUSINESS REVIEW ACCOR I 81

84 HUMAN RESOURCES MANAGEMENT CULTURE DRIVING A COLLECTIVE TRANSFORMATION To support its transformation and meet the new challenges in its industry, Accor has decided to make management culture a real performance booster. Anticipating social trends and meeting the expectations of new generations, whether customers or employees, prompts the Group to rethink its business and management model. A new dynamic based on three management principles To support the Group s values spirit of conquest, imagination, trust, respect and performance and the sense of hospitality and service that underpin Accor s reputation throughout the world, three management principles have been added to the Accor spirit : Agility: enhance teams agility and ability to call themselves into question, both internally, thanks to the constant search for innovation, flexibility and responsiveness, and externally, vis-à-vis competitors, investors and partners. Clarity: demonstrate clarity, by placing the emphasis on simplified practices, streamlined decision-making processes and practical approaches, and by precisely defining everyone s roles and responsibilities. Accountability: encourage employee accountability at every level of the business and give greater freedom and autonomy to teams. A culture of ethics and responsibility At the core of the Group s culture, the Ethics and Corporate Social Responsibility Charter sets out its commitments in terms of management ethics, integrity and good business conduct, as well as social, societal and environmental responsibility. To support the deployment of the Charter, a network of Ethics and CSR correspondents leads various working groups and ensures that best practices and issues requiring attention are reported back to the Ethics and CSR Committee. The Group s International Diversity Charter is based on the fundamental principle that people must be treated solely on the basis of their professional capabilities, regardless of their differences. This tireless and determined approach to diversity is reflected daily by strong initiatives at the very heart of the Group s human resources policies, with the aim of ensuring that they are adopted in all 82 I ACCOR 2014 BUSINESS REVIEW

85 the countries where Accor operates. Testimony to its commitment to diversity, Accor serves on the steering committee of the ILO Global Business and Disability Network, at the International Labour Organization s request. A firm focus on the customer experience Since spirit of service is central to the Group s hospitality business, significant attention is paid to the customer experience to adapt it as closely as possible to new trends, in a competitive environment. What can be done to further simplify and personalize the customer experience in order to attract, surprise and move customers while fostering their loyalty? One of Accor s responses to this question has been to transform its organization and attitudes so that they are increasingly focused on the value that can be added at each stage of the customer journey. / DISABILITY DAY CELEBRATED IN ACCOR HOTELS WORLDWIDE On this significant day, nine countries undertook to organize events at their headquarters or in hotels. Workshops, case studies, testimonials, theater and experience sharing helped employees realize that disability is not an obstacle to working in the hospitality industry. These initiatives also showed our teams determination to facilitate the hiring and integration of disabled people. To mark the occasion, a major, global photo competition was launched on the theme of disability BUSINESS REVIEW ACCOR I 83

86 HUMAN RESOURCES MANAGEMENT CULTURE DRIVING A COLLECTIVE TRANSFORMATION / Welcome by Le Club Accorhotels is a symbolic cultural change that involves all employees, including human resources teams and managers, whose role is to bring it to life and nurture it. This major project, which aims to revisit hotel check-ins, is offered by all Group brands and adapted to each one s service universe, in accordance with its positioning, its clientele and the characteristics of individual hotels. It has been a true collective success, hailed by employees and customers alike, and will have been rolled out in all Accor hotels within two to three years. Collective innovation, a performance driver To foster boldness and creativity, the Group is rethinking its working methods with a view to nurturing discussion and knowledge sharing, promoting interaction between the various professions and departments, and leveraging social networks and new technologies. AccorLive, the Group s new-generation intranet, opens up a wide array of possibilities for exchange and teamwork. It has been designed to save time by making everything easier document sharing, community building, and more and is structured to match individual needs. The emphasis is placed on direct access, especially for news, documents and videos, as well as business applications, which are now grouped in the AccorApps section. The new AccorLive intranet includes a corporate social network, AccorLounge, which provides a forum for discussion dedicated exclusively to employees. It offers users the opportunity to improve their visibility within 84 I ACCOR 2014 BUSINESS REVIEW

87 the Group and identify new colleagues. By creating a profile, employees can interact with each other and work together online, like or comment on an item of news, and contribute to group forums within a community. One of the objectives of AccorLounge is to encourage the sharing of experiences, ideas and best practices. Open Ideas by Accor is a customizable collaborative platform that allows users to post, follow, vote, comment on and share ideas with their colleagues. The contributions shared by employees were used during the Technical Innovation Challenge to identify the Group s finest innovators, whose ideas were voted the best by their colleagues and then selected by a panel of judges. Accor is a partner of the Innovation Factory, France s first campus cluster (1) in digital innovation. This dedicated space is a veritable project incubator for Accor, strengthening its Open Innovation approach and the principle of co-creation with startups, students and businesses. Quarterly open days are also organized at the Innovation Factory to promote interaction with internal teams in the area of innovation. (1) A place where skills and expertise are brought together. ACCOR CHALLENGES THE WEBSCHOOL FACTORY As an extension of its partnership with the Innovation Factory, Accor organizes weekend challenges (known as hackathons ) aimed at putting students trained in digital technology to work on issues relating to the Group s business. After the optimization of the customer path and experience within Accor hotels, and connected objects in the hotel of tomorrow, Accor threw down a third challenge to the Webschool Factory students, on the theme: The must-have services in the mobile application of your dreams for the hospitality industry. Teams had just 36 hours to address the challenge, and then seven minutes to present their ideas before the panel of judges. A number of prototypes involving connected devices are already being developed, including a connected trolley aimed at optimizing the work of housekeeping staff BUSINESS REVIEW ACCOR I 85

88 HUMAN RESOURCES TALENT MANAGEMENT PREPARING THE NEXT GENERATION OF ENTERPRISING INTERNATIONAL MANAGERS Identifying future executives and employees with potential, encouraging and nurturing talent to contribute to everyone s personal and professional growth and fulfillment, and facilitating promotion and internal mobility are key elements of the Group s human resources policies. In this way, Accor gives employees a real opportunity to climb the social ladder. Career management In 2014, as part of its reorganization, Accor decided to strengthen its career management strategy to instill a Groupwide vision in addition to the policies deployed by the brands or in the host countries. The new strategy is designed to give Accor greater agility in foreseeing and embracing the new capabilities and skills that managers need to acquire to meet emerging challenges in the hospitality industry. It also allows freer-flowing career paths, with horizontal as well as vertical mobility. International Hospitality Management Program The Group s International Hospitality Management Program (IHMP) has been helping to create a pool of international managers since IHMP is the result of collaboration between the ESSEC business school s MBA in Hospitality Management program and Académie Accor. Classes are taught in English as part of a curriculum structured around six main areas: business strategy and value creation; human resources management; finance; revenue management; marketing, sales and distribution; and communi cation. A total of 449 people have attended the MBA course since its creation. Validation of acquired experience In France, certification of experience obtained in the workplace allows seasoned employees to transform their skills into qualifications by obtaining a degree, thereby increasing their employability. School of Excellence at Sofitel, Pullman and MGallery Designed for hotel management graduates from the Group s partner schools, the School of Excellence trains and prepares the managers and executives of tomorrow. Originally designed for Sofitel, this operational program has been extended to 300 hotels identified within the Sofitel, Pullman and MGallery networks. Lasting eighteen months, the program has been specially developed to fit the needs of each student in order to develop their TRAINING FUTURE LEADERS Accor won first prize in the Leadership Development section at the 2014 Human Resources Excellence Awards in Singapore. 86 I ACCOR 2014 BUSINESS REVIEW

89 WOMEN AT ACCOR GENERATION The international Women at Accor Generation (WAAG) network uses mentoring, experience sharing, training and networking to promote the access of more women to positions of responsibility. A series of programs and working groups is deployed worldwide and managed locally by nine correspondents in eight regions. The aim is to increase the number of members from 2,500 to 3,000 by the end of potential quickly, while respecting their career goals. Graduates are eligible for positions of responsibility in hotels in one of the three Luxury and Upscale segment brands. International mobility With operations in 92 countries, Accor offers employees a wide range of international career opportunities. Dedicated teams support cross-border mobility by identifying the appropriate profiles, managing paperwork and practical issues, and ensuring compliance with Group mobility guidelines. The international mobility intranet site, available to all employees, provides useful information (formalities, practical information about the country, etc.) and the testimonials of employees who have tested the international experience. East and Asia-Pacific. The 70 finalists competed against each other during practical challenges. The highlight of the twelfth edition was the awards ceremony, where prizes were presented by the event s sponsor, renowned pastry chef Pierre Hermé. The Bernaches awards honor hotel and head-office employees for accomplishments deemed to be exceptional and emblematic of Accor s corporate culture. In 2015, 33 Gold and Silver Bernaches and five Team Bernaches will be handed out to recognize talent and reward the successes achieved in Professions Challenge Recognition of talent Each year, the Professions Challenge attracts Group employees aged between 18 and 25 who excel in bar, kitchen, service or reception work. The 2014 edition attracted 1,000 candidates from 25 countries in Europe, Africa, the Middle 2014 BUSINESS REVIEW ACCOR I 87

90 HUMAN RESOURCES SKILLS DEVELOPMENT PROFESSIONALIZING SKILLS CLUSTERS AND PASSING ON THE SPIRIT OF SERVICE The epitome of a service business, the hotel industry is today undergoing deepseated transformation. The sector must meet the needs of an increasingly international clientele in search of new concepts and innovations, and attentive to environmental and social challenges as well as to their health and wellbeing. Accor, the world s leading hotel school Launched in 1985, Académie Accor now has a network of 18 campuses around the world, offering more than 300 training modules in 20 languages. In addition to offering training in all hospitality-related professions and areas of expertise, it serves as a forum for sharing best practices and disseminating Accor s corporate culture. It is open to all employees of Accor brand hotels, regardless of job family, educational background, position or seniority. In countries without any hotel schools, Académie Accor serves as an effective substitute. The one hundred or so professional teachers at the Académies are supported by more than 700 Accor managers who help to deploy the training courses. A driving force in the Académies, they have been certified according to Accor standards based on the 18 ACADÉMIE ACCOR CAMPUSES COVERING 75 COUNTRIES OVER 300 TRAINING MODULES IN 20 LANGUAGES 170 E-LEARNING MODULES 122,000 EMPLOYEES TRAINED IN I ACCOR 2014 BUSINESS REVIEW

91 Group s skills cluster specifications. Académie Accor also offers online training through an ever expanding range of e-learning modules, virtual classes and mobile apps. Expertise tracks As the Group expands, its skills clusters are diversifying. To address this dual challenge, Accor has expertise tracks designed to enable knowledge to be shared and sharpened in strategic areas. The Sales & Distribution Pass module, for example, enables the sales force to assess their knowledge and hone their skills. This course, followed by 600 employees in four years, is part of an ambitious program designed to increase the professionalism of sales teams. The RM Pass (for revenue management), a certified international training program, aims to develop the skills of revenue managers and teams involved in the optimization of hotel revenue. Since 2007, 2,500 employees have received the RM Pass. The Distribution Excellence (DEX) program is designed primarily to help hotel general managers and revenue managers rise to challenges in the field of distribution and recogni ze the potential offered by its multiple channels. These programs are all designed to support the Group s partners in developing ever more effective strategies for their establishments. Lastly, the Tailored Service experience aims to fashion an unparalleled standard of service and excellence, and to become a way of life for all Sofitel Ambassadors in hotels around the world. AT NOVOTEL, YOU GROW FASTER! Novotel s Move Up human resources program revolves around five stages: the Welcome integration program; the Itineraries skillscertification program; Globe Trotter, a fast-track program for employees who want to become department heads; GM Pass, for those who want to become hotel general managers; and Novotel Service Attitudes, which promotes the brand s spirit of service. Embodying the spirit of the brands Each hotel brand designs its own training modules to strengthen its identity, unite employees around its goals and values, help trainees fully grasp the notions of hospitality and service, and deploy a new collaborative culture. At ibis Styles, for example, Happy Mood Makers share their good vibrations, take initiatives and use their imagination to anticipate customer needs. The Mercure Touch program aims to make the spirit of service a real feature of brand identity and to support the deployment of the Quality Guarantee BUSINESS REVIEW ACCOR I 89

92 HUMAN RESOURCES BENCHMARK EMPLOYER INNOVATING TO ATTRACT THE PROFILES OF THE FUTURE One of the Group s human resources objectives is to attract the best candidates and ensure that they feel at home in the company. By empowering employees, encouraging innovation and promoting excellence, Accor stands out and asserts itself as the most attractive employer in the hotel industry. ACCOR HONORED FOR ITS DIGITAL PERFORMANCE IN HUMAN RESOURCES Accor tops the ranking of CAC 40 companies according to the 2014 IDEA HR report, the new analysis of digital performance in human resources. The report is based on a comparative analysis of the Accorjobs.com website and the various HR pages on social media: Twitter@accorjobs, Facebook AccorJobs and LinkedIn Accor. Pinterest Facebook Twitter Sites Web et mobile YouTube Rubrique RH.com LinkedIn Esteemed employees How to promote experience sharing, showcase employees achievements and encourage internal mobility? Accor has taken many initiatives to foster a collaborative culture and nurture a sense of pride in belonging to the Group. An example is the What s Up! page on the AccorLive human resources intranet, which gives visibility to employees, their ideas, accomplishments, personalities and efforts and their vision of the company. Similarly, the Share Your Ideas section facilitates inhouse challenges on the collaborative Open Ideas platform. On the AccorLounge corporate social network, a dedicated group of 150 people runs the HR News community covering all projects undertaken by employees worldwide. Accor also gives all employees access to its international mobility intranet site, which provides in-depth information about regions with considerable hiring needs. ACCORJOBS KEY FIGURES VERSIONS IN 12 LANGUAGES AND 18 COUNTRIES 18,400 JOB OFFERS POSTED 6.4 MILLION VISITS TO THE ACCORJOBS WEBSITE 325,000 VISITS TO THE ACCORJOBS MOBILE APP 90 I ACCOR 2014 BUSINESS REVIEW

93 A multi-channel digital human resources strategy To entice and attract new talent, a Web and digital HR cluster now manages the entire Accorjobs ecosystem, social networks and the hiring and careers section on Accor.com. The Accorjobs.com recruitment website displays job offers within the Group and showcases the hundred professions practiced within Accor through various portals for specific areas of expertise: HotelServices operations, professions specific to HotelInvest s property-related activities and support functions (marketing, design, finance, etc.). The Accorjobs mobile website, up and running since 2013, has been enriched with many features to make it easier to navigate and use for online applicants. In addition to geolocating job offers, users can now apply via a smartphone or tablet and monitor their application online. In social networking, the Group is already present on Facebook, Twitter, LinkedIn, Pinterest and YouTube and has taken into account the editorial line of each of these channels so as to maximize the impact of its communications. Emphasis has also been placed on the visibility and promotion of the Accor employer brand through such initiatives as the merging of hotel brand pages on LinkedIn and the moderation of communities on social networks. Accor, a school partner To attract future managers and promote hospitality courses, the Group has forged partnerships with more than 50 business schools, hotel management schools and universities in the different countries where it operates. Accor provides curriculum support or facilitates applied masters degrees in revenue management, for example, in partnership with Institut Paul-Bocuse and IAE Savoie Mont-Blanc in France. A partner of the Lausanne hospitality school, Accor recently joined forces with the highly innovative Master of Science in Hospitality launched by the school in conjunction with the University of Houston and the Hong Kong Polytechnic, two renowned schools in the industry. The international nature of these partnerships is a source of wealth for the Group. Switzerland, the United Kingdom, the Netherlands, China, Malaysia, Indonesia and the United States are just some of the countries where Accor has chosen to support local schools, on the basis of hiring needs and the quality of education provided. Lastly, Accor is also turning to art, design and digital schools to recruit new types of profiles. Accor Student Ambassadors On LinkedIn, the Students@Accor group moderates the student community, with nearly 2,600 members in 2014, only one year into its existence. Moderation is partly provided by a team of 15 students who have already tested the Accor experience: the Accor Student Ambassadors. An inaugural seminar has been held at headquarters to enable them to discuss their role as spokespersons and to meet the Group s executives TAKE OFF CHALLENGE Since 2012, this global competition run on the Internet has gathered students contributions on the Group s strategic challenges. In 2014, 400 participants from 68 schools in 18 countries worked on the following question: How can mobile technology change the world of hospitality and the customer experience? The winning team, from Bangkok, has created an all-in-one app adaptable to different hotels that enables guests to control the connected objects in their room, order room service or organize their stay, using a mobile device BUSINESS REVIEW ACCOR I 91

94 SUSTAINABLE DEVELOPMENT From imbalances in natural environments to increasing urbanization and upheavals in society, the world is changing and Accor is attentive to those changes. A pioneer in sustainable development for over twenty years, the Group reaffirmed its commitment to corporate social responsibility in 2012 with the launch of the PLANET 21 program. 92 I ACCOR 2014 BUSINESS REVIEW

95 SUSTAINABLE DEVELOPMENT 3 OUT OF 11 EXECUTIVE COMMITTEE MEMBERS ALSO SIT ON THE ETHICS AND CSR COMMITTEE 1 OUT OF 3 ACCOR HOTEL GENERAL MANAGER IS A WOMAN 33 Olympic swimming pools of water saved since 2011 by reducing water use OVER of fair trade coffee, tea and chocolate purchased in our hotels 500,000 GUESTS STAY IN OUR HOTELS 860 metric tons 30,000 EVERY NIGHT, THE EQUIVALENT OF A CITY LIKE: LYON OR DUBLIN ANNUAL LIGHTING OF 1,845 French homes saved by reducing energy use employees are trained every year in the fight against child sexual exploitation 4,000,000 TREES PLANTED BY ACCOR SINCE 2009, OR 2,400 FOOTBALL STADIUMS No. Accor is the leading hotel chain in Europe in TripAdvisors Greenleaders program 97% OF HOTELS USE ECO-LABELED CLEANING PRODUCTS KEY FIGURES AT DECEMBER 31, BUSINESS REVIEW ACCOR I 93

96 SUSTAINABLE DEVELOPMENT PLANET 21 REINVENTING HOTELS SUSTAINABLY Deeply involved in sustainable development, Accor intends to set the standard and act as the industry leader with its PLANET 21 program. PLANET 21 structures the Group s sustainable development strategy and organizes it into 21 objectives primarily relating to: local sourcing; the effective management of water, energy and waste; health and nutrition; diversity; and responsible procurement. Created and deployed in cooperation with its stakeholders, PLANET 21 federates employees while also involving customers and partners. It is also a tremendous competitive advantage that enables the Group to meet the expectations of travelers who are increasingly sensitive to social and environmental issues. Two flagship programs feature in the PLANET 21 challenges: Plant for the Planet, which aims to regenerate the natural areas neighboring our hotels and to support local people, and WATCH (We Act Together for Children), a campaign to combat sexual tourism involving children. To advance their sustainable development approach, our hotels apply Charter 21. Based on a rating system with four levels, Bronze, Silver, Gold and Platinum, this effective management tool gives hotels a framework of action to enable them to continuously improve their performance in the area of sustainable development. CHARTER 21 LEVELS ACHIEVED BY HOTELS 34% 32% 27% 6% 1% 17% 31% 37% 14% 1% % 28% 37% 21% 3% Percentage of hotels: On track for Bronze Bronze Silver Gold Platinum THE 7 PILLARS OF PLANET 21 (see the results of the 21 commitments, page 118) Health Nature Carbon Innovation Local Employment Dialogue 94 I ACCOR 2014 BUSINESS REVIEW

97 Vegetable garden at the Pullman Paris Tour Eiffel, France I 2. ibis Padang, Indonesia 3. Novotel London Brentford, United Kingdom I 4. ibis Styles Troyes Centre, France 5. Sofitel Dubai The Palm Luxury Apartments, United Arab Emirates 2014 BUSINESS REVIEW ACCOR I 95

98 ACCOR COMBINES PERFORMANCE WITH PROTECTION Through Plant for the Planet, Accor builds on the commitment of its employees and its customers to plant trees. This unique program in the hospitality industry helps reduce the environmental impact of hotels, regenerate fragile ecosystems and support local communities. 13 MILLION IN SAVINGS SINCE THE LAUNCH OF THE PLANT FOR THE PLANET PROGRAM IN % OF THIS AMOUNT, OR 6.5 MILLION, HAS BEEN INVESTED IN REFORESTATION PROJECTS OVER 4 MILLION TREES PLANTED IN SIX YEARS Plant for the Planet, benefits for everyone Wherever they are in the world, hotels have deep roots in their natural, human and cultural environments. It is therefore essential for Accor to give back a share of the wealth created to the communities where its hotels are located. This is the aim of the Plant for the Planet program, based on a simple principle: guests are encouraged to reuse their towels when staying more than one night in a hotel, thereby generating savings on laundry, but also reducing water, energy and detergent consumption; half of these savings are invested in reforestation projects close to hotels. Plant for the Planet also offers employees the opportunity to make a tangible commitment by raising awareness among guests and supporting a number of projects on the ground. A local program Each agroforestry project is designed to address specific local challenges. In Germany, for instance, projects target the regeneration of forests damaged by industrial activity. Accor has opted to invest in agroforestry, a local, responsible method of agricultural production Today, farming is often synonymous with deforestation, intensive monoculture and the use of pesticides. These large-scale farming methods make crops vulnerable to heavy rain, drought and soil erosion. But since these risks are natural, the solution also lies in nature. Trees planted in the middle or on the edge of agricultural plots help retain water and create an environment conducive to biodiversity. This is what is meant by agroforestry. A circular economy program Some agroforestry programs can close the loop. In Thailand, Plant for the Planet has allowed rice farmers to adopt agroforestry practices to produce organic and fair trade rice. In a textbook illustration of the circular economy, Mercure and ibis Styles hotels in Chiang Mai have bought 300 kilos of rice from program beneficiaries in the village of Pha Huoy since the project was launched in REFORESTATION PROJECTS NEAR ACCOR HOTELS IN 21 COUNTRIES 96 I ACCOR 2014 BUSINESS REVIEW

99 CUSTOMERS reuse their towels EMPLOYEES raise customer awareness THE ACCOR HOTEL reinvests half of its laundry savings in reforestation projects PRODUCERS, THE ENVIRONMENT AND LOCAL COMMUNITIES benefit from these reforestation projects BENEFITS FOR THE ECONOMY Trees increase yields of agricultural crops, optimize crop quality, diversify resources for producers and create jobs. FOR THE ENVIRONMENT Trees enrich the soil, purify water, regulate the local climate, capture carbon, limit erosion and contribute to the preservation of biodiversity. FOR LOCAL COMMUNITIES Trees preserve the expertise of local people, contribute to their emancipation, help combat rural desertification, restore landscapes and represent a viable alternative to the development of illegal crops. Sustainable agriculture and diversification of production in the United Kingdom In the United Kingdom, the project consists in planting trees on agricultural plots dedicated to monoculture farming. The trees are a source of additional income for farmers, through fruit harvesting and timber production. This experimental approach, which promotes organic, local and sustainable agricultural practices, won a prize at the Sustainability Awards presented by The Guardian. Preserving biodiversity in Australia Planting carried out in partnership with NGO Greening Australia favors local species and aims to create biodiversity corridors. Australia is widely recognized for its endemic biodiversity, unique in the world. The idea is therefore to preserve the flora and fauna of one of the planet s 34 biodiversity hotspots. Younger generation involved in tree planting in Romania Accor is supporting a tree-planting program dedicated to restoring the rural landscape and raising awareness about reforestation. A total of 60 schools have joined the A forest for each school project, which aims to provide students and volunteers from the surrounding villages with an introduction to ecology. The initiative was awarded first prize for Environmental Protection and first prize for Project Impact at the Civil Society Gala in BUSINESS REVIEW ACCOR I 97

100 ACCOR STEPS UP ITS COMMITMENT TO CHILD PROTECTION As the world s leading hotel operator and a responsible corporate citizen, Accor has a moral and legal obligation to ensure that no form of child abuse takes place in its hotels. As the world s leading hotel operator and a responsible corporate citizen, we have a moral responsibility and a duty to ensure that no form of abuse takes place in our hotels. We need to be certain that our guests stay with us for the right reasons. Sébastien Bazin, Chairman and Chief Executive Officer 30,000 EMPLOYEES ARE TRAINED EVERY YEAR IN CHILD PROTECTION Millions of children victims of sexual exploitation worldwide Child sex tourism (CST) is a multi-faceted global scourge. Today, roughly 2 million children are victims of sexual exploitation around the world. Contrary to popular belief, neither aggressors nor victims fit a typical profile. Doing nothing to fight this problem would make us complicit. Child protection is therefore an integral part of the PLANET 21 objectives: Accor hopes that by the end of 2015, 70% of its hotels will be committed to this cause. In 2014, 48% of them already were. A long-standing commitment Accor s commitment was formalized in 2001 with the signing of a partnership with ECPAT, the leading international organization in the fight to end child prostitution, child pornography and the trafficking of children for sexual purposes. The Group has also structured its action around the Code of Conduct for the Protection of Children developed by ECPAT and the World Tourism Organization. In each host country, initiatives are carried out with ECPAT and local NGOs specializing in child protection. Hotels are also in contact 98 I ACCOR 2014 BUSINESS REVIEW

101 with the police force and child protection agencies in their city. Accor s commitment therefore covers all levels: Group, host countries and hotels. WATCH: instilling a new dynamic In 2014, Accor decided to increase the visibility of its commitment to child protection by calling its program WATCH for We Act Together for Children. This symbolic action was designed to make an impression and rekindle commitment to the cause. To achieve this, WATCH provides hotels with employee training and customer awareness tools, such as videos, training modules and practical guidelines to help them identify and deal with situations of abuse. CLOSE-UP ON ECPAT s Don t look away campaign rewarded in Brazil Accor s hotels actively participated in ECPAT s Don t look away campaign during the 2014 World Cup in Brazil, a country where some 500,000 children are victims of sexual exploitation. The aim was to raise awareness among travelers of the legal consequences of CST and to encourage them to report any incidents they may witness. These efforts earned Accor Brazil first place in the Sustainable Development category of the Caio Awards. Accor s commitment recognized In 2014, Accor was awarded Top Member status by the Code of Conduct for the Protection of Children, offering undeniable recognition of its commitment to the fight against CST. 37 OF ACCOR S HOST COUNTRIES HAD SIGNED THE CODE OF CONDUCT BY THE END OF 2014 THE WATCH PROGRAM IS DEPLOYED IN FIVE STAGES 1DESIGNATE CORRESPONDENTS AND ADVISORS IN HOST COUNTRIES AND HOTELS. (Host countries are also encouraged to sign the Code of Conduct for the Protection of Children). FORMALIZE HOST COUNTRY REPORTING POLICIES AND PROCEDURES AND ESTABLISH CONTACT WITH NGOS AND LOCAL POLICE. TRAIN CORRESPONDENTS AND ADVISORS. TRAIN HOTEL EMPLOYEES. Employee training in the fight against the sexual abuse of children is built around the following three-step process: 5RAISE CUSTOMER AWARENESS. 1. An employee suspects or detects a case of child sex tourism (CST). 2. He or she informs the hotel general manager, who assesses the situation. 3. If the employee s suspicions are justified, the general manager alerts both the police and local child protection NGOs, who take charge of the child involved. Images from the video made to raise awareness among Accor employees BUSINESS REVIEW ACCOR I 99

102 SUSTAINABLE DEVELOPMENT THE 7 PILLARS OF PLANET 21 NATURE To protect the environment, Accor takes action to preserve biodiversity, reduce its water consumption and recycle its waste NEWS / Accor hotels recycle used soap to help the disadvantaged For poor people and those exposed to health risks, a simple piece of soap can improve hygiene and help to significantly reduce susceptibility to disease. Yet every day, travelers leave behind barely used soap in hotels. To stop this soap from being wasted, hotels in many countries including Thailand and the United Arab Emirates have taken action to collect it and distribute it to local associations. As part of the Soap for Hope initiative, women are trained to recycle soap by Diversey, Accor s leading supplier of eco-labeled cleaning products. Transformed into small pieces, disinfected and reconditioned, it is then distributed to the poor, or sold back to Accor, which packages it elegantly and gives it to guests as welcome gifts. MORE THAN 12 KG OF USED SOAP COLLECTED BY EACH HOTEL INVOLVED IN THE SOAP FOR HOPE INITIATIVE CARBON A greenhouse gas caused mainly by the burning of fossil fuels, CO 2 is a major cause of climate change. Accor is committed to reducing its energy consumption and contributing to the development of renewable energy to limit its carbon footprint NEWS / Business customers can use the Carbon Optimizer to reduce the carbon footprint of their meetings and seminars Business customers no longer choose hotels simply on the basis of price and comfort. The establishment s commitment to sustainability is also a criterion. With this in mind, Accor has created the Carbon Optimizer, an online tool for use by sales teams, which calculates the carbon footprint of a seminar based on the number of participants, the length of their stay and their dining choices (buffet or plated service and type of food). Once it has been calculated, the seminar s carbon footprint is given to the customer, along with a chance to participate in an Accor reforestation project under the Plant for the Planet program. For 5, a tree can be planted in Alto Huayabamba, Peru, offsetting the equivalent of 333 kg of CO 2. / An innovative hotel complex at Sydney Olympic Park has opted for solar energy The Pullman, Novotel and ibis hotels at Sydney Olympic Park have been equipped with power generation and water heating systems that use solar energy. The Pullman has installed innovative tube solar collectors, a technology known for its particularly high efficiency in heating water, while the Novotel-ibis complex has nearly 140 solar panels to heat water and 300 photovoltaic solar panels for power generation. 100 I ACCOR 2014 BUSINESS REVIEW

103 INNOVATION By fully integrating sustainable development into its operating procedures and offers, Accor is responding proactively to emerging customer expectations and supporting the development of new business models, making PLANET 21 the crucible for the hospitality industry of the future. Accor strives to reduce the environmental footprint of its products and services right from the design phase, taking into account concerns about public health and the environment. In this eco-design approach, Accor bases its work on life-cycle assessments (LCA), which measure a product s environmental impacts throughout its entire life cycle, from manufacturing and transportation to use and disposal. In 2014, Accor performed several LCAs, one of which was devoted to two staple breakfast products: baguettes and croissants NEWS / Accor has initiated a new partnership with Bridor to reduce the environmental footprint of its baguettes and croissants two iconic symbols of French gastronomy Bridor, leader in the manufacture of French bakery products, has been an Accor hotel supplier for fifteen years. Work over the last three years to improve its production has cut its electricity and water consumption by 10% and 30% respectively. A life-cycle assessment conducted by Accor on croissants and baguettes in 2014 endorsed the environmental benefits of the efficient new manufacturing process. CLOSE-UP ON Meeting 21, a new range of responsible seminar solutions Meetings and seminars are also subject to an eco-design approach. In 2014, Accor defined its criteria for an environmentally responsible seminar offering. They include eco-designed equipment, materials and consumables, an organic and locally sourced food offering and customer awareness initiatives. Sustainable buildings Mercure Kraków City Center will be the first hotel in Poland to achieve BREEAM certification, the European benchmark in sustainable construction. It is scheduled to open in late MILLION CROISSANTS PURCHASED BY ACCOR HOTELS WORLDWIDE 2014 BUSINESS REVIEW ACCOR I 101

104 SUSTAINABLE DEVELOPMENT THE 7 PILLARS OF PLANET 21 HEALTH Determined to provide a healthy environment for its guests and employees, Accor monitors indoor air quality, offers balanced meals in its hotel restaurants and raises awareness about disease prevention. Vegetable garden, Pullman Paris Tour Eiffel, France Mindful of food-related issues, Accor works with chefs and nutritionists to encourage its hotel restaurants to offer balanced dishes. A practical guide providing advice on healthy eating is available to all of the restaurants in the Group s hotels. It recommends choosing low-fat and low-sugar foods, using cooking methods that require little fat, and creating a balance between carbohydrates, fats and proteins NEWS / A Novotel Café concept focused on enjoyable, balanced meals This concept, launched by Novotel in France and Italy, promotes a balanced, tasty and healthy diet, using a wide variety of seasonal products and preparation methods that enhance the ingredients natural flavors. Recipes favor fat-free cooking methods such as grilling to delight the taste buds without tipping the scales, and pictograms make it easy for guests to identify the balanced dishes on the menu. / DE-LIGHT, the Sofitel concept combining health and gastronomy Created in 2013, the DE-LIGHT concept was successfully exported to all Sofitel hotels in Kitchen staff are trained by nutritionists and chefs from the Sofitel Quiberon Thalassa sea & spa, where the concept was first developed. Since its international launch, more than 100,000 tasty, low-fat meals have been served worldwide, reflecting strong demand from consumers for a healthy, balanced food offering made with local ingredients. / A sustainable vegetable garden at the Pullman Paris Tour Eiffel With 650 square meters of vegetables, fruit trees, flowers and herbs, as well as a chicken coop and four bee hives, this is probably the biggest vegetable garden in Paris. In summer, we pick our homegrown ingredients every morning and adapt our menus to our harvest, our dish of the day is often fully sourced from the vegetable garden, says chef Alain Losbar. The whole team has been trained to tend the garden, a daily source of fresh produce and a refuge for biodiversity. Fresh herbs give the bar s cocktails an original twist and fresh eggs are the star ingredient at the weekly Sunday brunch. 97% OF HOTELS WITH RESTAURANTS OFFER BALANCED DISHES 102 I ACCOR 2014 BUSINESS REVIEW

105 LOCAL Firmly rooted in its host communities, Accor contributes directly to economic development for the benefit of all, notably by opting for local supplies wherever possible. The Group is also committed to protecting the natural ecosystems in which its hotels are located NEWS / Each hotel undertakes a local sustainable development initiative every month in Mexico Since 2011, Accor Mexico has encouraged the teams of all hotels in the country to take action locally every month. In 2014 alone, 175 initiatives were carried out. In January, for example, 36 employees from six hotels devoted two days to building houses for poor people in the Alianza Real district of Escobedo. At Christmas, the 80 employees of the Novotel Monterrey Valle organized a collection of gifts for the Padre Severiano orphanage. Pleased with the efforts made by teams in Mexico, Novotel and Sofitel plan to extend the initiative to the United States and Canada. Food drive, Thailand / Uneaten food is redistributed to the poor in Thailand On World Food Day, October 16, eight Bangkok hotels expressed their determination to fight hunger and food waste. As part of the Food for Thought initiative, all uneaten buffet food is collected and delivered to the Good Shepherd Sisters organization, which helps vulnerable women and children living in local slums. Volunteer hotel employees take care of the logistics and a refrigerated Novotel truck ensures that the food stays fresh. 5,400 KG OF FOOD REDISTRIBUTED SINCE THE PROGRAM BEGAN IN 2012, OR 27,000 MEALS, REPRESENTING 2 MEALS PER WEEK FOR 200 CHILDREN Toy drive, Mexico 2014 BUSINESS REVIEW ACCOR I 103

106 SUSTAINABLE DEVELOPMENT THE 7 PILLARS OF PLANET 21 DIALOGUE Accor is firmly committed to ethical and transparent business conduct and involves not only franchised and managed hotels but also its partners, suppliers and customers in its sustainable development strategy NEWS / Encouraging guests to take action alongside Accor at every step of their stay PLANET 21, Accor s sustainable development program, includes a customer awareness component. Instructive signage, specific to brands and hotels, accompanies them throughout their stay, from reception to external areas, as well as in rooms, restaurants and meeting rooms. It offers guests the opportunity to make a positive difference through such simple gestures as reusing a towel, opting for a balanced dish or sorting their waste. This room isn t afraid of the dark. Guests are reminded to turn off the light when leaving a room, just like they would at home! OVER 90% OF ACCOR HOTELS HAVE TAKEN CONCRETE MEASURES TO RAISE AWARENESS AND MOBILIZE THEIR GUESTS AND EMPLOYEES The planet wishes you bon appetit. Accor helps its guests take care of their health. On restaurant menus, pictograms help diners choose balanced dishes made with local, organic or fair trade products. Large mural illustrating Accor s sustainable development approach and how it transforms the guest experience. All we give our gardens is tender loving care. Understanding how the hotel takes concrete action is important and inspiring. 104 I ACCOR 2014 BUSINESS REVIEW

107 EMPLOYMENT / A ten-year commitment to ISO certification By choosing to set its hotels on the path to ISO certification, Accor has demonstrated its determination to structure its sustainable development policy and satisfy its guests increasingly demanding expectations. For over ten years, Accor teams have been identifying best practices and implementing tools and procedures designed to improve hotels environmental performance. Year after year, this commitment has helped Accor build up extensive experience and unrivaled expertise in ISO certification. Within the Group, two brands are pioneers in this commitment: ibis, which was the world s first hotel chain to be certified in 2004, and Novotel, which followed its lead in Certification allows the Group to develop an innovative approach whose multiple benefits have been evident in several studies carried out by independent experts. In addition to improving hotels environmental performance, ISO certification increases guest satisfaction, meets corporate customers tender requirements and generates savings on operating expenses through better environmental management. Accor s robust expansion is underpinned by the extraordinary social, cultural and professional diversity of its 170,000 employees. The Group is committed to helping them expand their skills and responsibilities, with the goal of offering them motivating, rewarding careers and enhancing their employability NEWS / A mentoring program for women members of the Women At Accor Generation (WAAG) network Launched in 2012, Women At Accor Generation is an international network that aims to combat stereotypes and self-censorship by women. The actions taken by the network include a mentoring program, which offers its members career support through a mentor who gives them pragmatic, objective advice and assistance. When asked to describe the benefits of the program, 89% of mentees cited increased confidence and motivation. A further 73% said they had gained a better understanding of the company s codes, helping unlock their career development. The mentors, in turn, face new challenges and help foster the emergence of new talents. In addition, the program helps to increase diversity among management teams, a key performance factor for the Group. First launched in France, Asia-Pacific and Brazil, the mentoring program will be extended to Northern and Southern Europe in From maintenance teams to kitchen and reception staff, all employees contribute daily to reducing water and energy consumption, sorting waste and raising awareness among guests and suppliers. 1,081 ISO CERTIFIED HOTELS AT END-2014 Accor is included in three leading socially responsible investment indexes: 2014 BUSINESS REVIEW ACCOR I 105

108 A natural extension of the Group s businesses and values, Solidarity Accor is committed to linking cultures and providing support for the development of individuals and their integration into local communities. 24 projects in Europe (excl. France) 90 projects in France 41 projects in Asia-Pacific 29 projects in the Americas 24 projects in Africa The countries concerned by Solidarity Accor s support. 106 I ACCOR 2014 BUSINESS REVIEW

109 SOLIDARITY ACCOR 9,500 EMPLOYEES INVOLVED 7 YEARS OF SOLIDARITY 41 COUNTRIES 200,000 DIRECT AND INDIRECT BENEFICIARIES 208 PROJECTS SUPPORTED 150 HOTELS INVOLVED DURING SOLIDARITY WEEK ASSOCIATIONS SUPPORTED DURING SOLIDARITY WEEK BUSINESS REVIEW ACCOR I 107

110 ENDOWMENT FUND SOLIDARITY ACCOR DEMONSTRATING HOSPITALITY OF THE HEART BEYOND BORDERS In 2014, Solidarity Accor supported 29 projects in 18 countries, involving more than 750 employees. These projects benefited more than 11,000 people. The three pillars of Solidarity Accor s work supporting economic development through the promotion of local expertise, facilitating training and insertion for disadvantaged young people, helping populations in great difficulty and assisting the victims of natural disasters amply demonstrate the Group s commitment to solidarity. An endowment fund, Solidarity Accor provides support, notably through fundraising operations, to charities, NGOs and social enterprises in the implementation of projects backed by our staff. The common goal of its actions is to empower disadvantaged people through appropriate training and economically viable initiatives. NEW HORIZONS, NEW PROJECTS Myanmar: support for FXB International The fund supports a training program, initiated by non-profit FXB International, to help 80 young women from the slums of Yangon. Benin: support for Gérès The fund partners with Gérès, an organization that supports three women s cooperatives producing Agonlinmi oil, with the aim of improving their living conditions. Chad: support for Essor The Jeun Action project, launched by NGO Essor, is also helped by Solidarity Accor, with the same goal of professional integration. 108 I ACCOR 2014 BUSINESS REVIEW

111 LE CLUB ACCORHOTELS PARTNERS SOLIDARITY ACCOR Since November 2014, members of the Le Club Accorhotels loyalty program have been able to participate directly in supporting Solidarity Accor. By converting their points into donations of 40, they can help rebuild living areas devastated by the humanitarian or health disasters affecting local communities. This initiative follows Le Club Accorhotels donation of 10,000 to Solidarity Accor in October 2014, a generous gesture from our guests that mirrors the efforts made by our employees and partners. Toy drive at the Sofitel Miami Ninth Solidarity Week This event is dedicated to the solidarity initiatives undertaken by Group employees, alongside local associations. During the ninth edition, which took place from December 8 to 12, 2014, more than 24 countries were represented, with nearly 149 hotels and offices involved, helping more than 104 associations. In the United States, Sofitel organized several initiatives in favor of disadvantaged people, including collecting coats for the One Warm Coat charity at the Sofitel Chicago Water Tower, decorating a Christmas tree and giving gifts to children at the Sofitel Miami, and raising funds for charity at the Sofitel Philadelphia. Employees in the United States have shown exemplary commitment by taking part in an increasingly large number of solidarity initiatives. FOCUS ON BRAZIL Guilherme Sanson, Manager of the ibis Belo Horizonte Savassi and Humbiumbi project sponsor Training young people for careers in hospitality in Brazil Humbiumbi is a Brazilian NGO dedicated to the cultural and educational development of vulnerable young people in the Bello Horizonte region. The partnership between this NGO and Solidarity Accor began in 2013 and continued in 2014, with 60 new beneficiaries and a budget of 25,000. The objective is to introduce teenagers to the hospitality industry, thereby facilitating their entry into the labor market. For the program s second edition, Guilherme Sanson, manager of the ibis Bello Horizonte Savassi, which is behind the Humbiumbi project, organized classes in his hotel, aided by 30 employees and the Humbiumbi teams. This program is a real opportunity for young people, allowing them to discover the world of hospitality and choose a profession of their own. In 2013, the classes were given on Humbiumbi s premises, far away from our hotels. To enhance the professional aspect of the experience and allow the involvement of employees taking part in the project, I suggested that the 2014 classes be held at the ibis Belo Horizonte Savassi BUSINESS REVIEW ACCOR I 109

112 PERFORMANCE INDICATORS RECORD RESULTS IN 2014 Very quick to be operational around its two core businesses, Accor enjoyed robust business growth in 2014, with revenue at constant scope of consolidation and exchange rates (LFL) up 5.5% for HotelServices and 3.0% for HotelInvest, and EBIT up 11.7% (LFL). 110 I ACCOR 2014 BUSINESS REVIEW

113 REVENUE BY REGION 5,454 MILLION 9% Mediterranean, Middle East, Africa 8% Latin America and Caribbean 40% Europe (excluding France/Mediterranean) 11% Asia-Pacific 32% France EBIT BY REGION 602 MILLION (1) 46% Europe (excluding France/ Mediterranean) 31% France 11% Asia-Pacific 8% Latin America and Caribbean 5% Mediterranean, Middle East, Africa (1) Of which 1% for the non-region specific worldwide structures BUSINESS REVIEW ACCOR I 111

114 PERFORMANCE INDICATORS SHAREHOLDER RELATIONS Listed on: Euronext Paris, compartment A ISIN code: FR Included in the following indices: CAC 40, EURONEXT 100, FTSEurofirst 80, DJ Stoxx 600, DJ EuroStoxx, MSCI Europe Sustainable development indices: Euronext, FTSE4Good, Ethibel Sustainability Index, UN Global Compact 100 In addition to the Annual Meeting and the events organized to present the annual results, Accor keeps both individual and institutional shareholders informed of the latest developments on a highly responsive daily basis. This information is tailored to the specific needs of different types of shareholders and financial analysts while constantly complying with the principle of fair access to information. Meetings in 2014 Accor met with 611 representatives from more than 372 financial institutions and organized 23 roadshows in Europe, North America and Asia in These events included hotel visits that enabled investors to talk with line managers and gain a better understanding of management practices and processes. Accor also took part in eight investor conferences during the year, in France, the United Kingdom and the United States. Held on April 28, 2014 at the Novotel Paris Tour Eiffel, the Annual Shareholders Meeting was attended by 298 people and provided many opportunities for exchanging views and opinions. Accor Shareholders Club Created in May 2000, the Accor Shareholders Club had 10,050 members at year-end 2014, each of whom enjoys special advantages. Throughout the year, members receive press releases, webzines and other news, and have the possibility of subscribing to all other corporate publications. They also receive invitations to investor events in which Accor participates, and have the opportunity to discover the Group s businesses in a more personal way through hotel visits. Lastly, members receive a Gold card, which allows them to earn more points in the hotels participating in the Le Club Accorhotels loyalty program. They also benefit from exclusive advantages and other promotional offers on Group products. Working group on the individual shareholder relations process An investor relations working group was created in 2007 to explore ways to encourage exchanges of views and opinions with our individual shareholders and to improve the individual shareholder relations process. Composed of 13 members of the Shareholders Club, the group met twice in 2014: on April 7, at Accor headquarters, to prepare the 2014 Annual Shareholders Meeting and discuss the new strategy defined by Sébastien Bazin, built on the Group s HotelServices and HotelInvest businesses, before lunch at the Sofitel Arc de Triomphe and a tour of the hotel; on November 20, at the MGallery Molitor, for a presentation of the Group s transformation strategy in response to the digital challenge, to discuss the first two issues of the shareholders webzine published in August and December 2014, to examine the replacement of the working group by an advisory committee of shareholders in December 2014 and to look at the revamping of the Shareholders Club in Easily accessible information tailored to shareholder profiles All of the Group s financial news and publications can be accessed in the Finance section of the accor.com website. The site carries live and deferred webcasts of results presentations, Investor Days and Annual Shareholders Meetings. A space dedicated to individual shareholders and members of the Shareholders Club also allows them to check the Accor share price live, as well as the following documents: the Registration Document filed with the AMF (1), the Annual Report, a corporate brochure describing the Group and its values, information memoranda filed with the AMF concerning corporate actions, notices of Shareholders Meetings sent systematically to registered shareholders and on request to members of the Shareholders Club, and the shareholders webzine. All legal documents are on display at the Company s primary business office, Immeuble Odyssey, 110, avenue de France, Paris, France. Since January 20, 2007, when the European Transparency Directive was transposed into French law, Accor has issued its regulatory filings through a professional disclosure service that complies with the criteria set out in the AMF s General Regulations. The filings are also available on the corporate website. (1) Autorité des marchés financiers. 112 I ACCOR 2014 BUSINESS REVIEW

115 ACCOR IN THE STOCK MARKET Share performance In euros 2009* Accor Year-end closing High for the year Low for the year Change for the year 8.90% 25.20% 41.20% 35.30% 27.13% 9.61% Market value ( billions) Net yield (1) 2.70% (2) 1.90% (3) 5.90% (4) 2.85% (5) 2.33% (6) 2.54% (7) CAC 40 Change 22.30% 5,20% 19.0% 15.20% 15.05% 1.08% * Prices prior to 2010 have not been adjusted for the Edenred share. (1) Based on year-end closing. (2) Based on the ordinary dividend of 1.05 per share. (3) Based on the ordinary dividend of 0.62 per share. (4) 3.3% based on the ordinary dividend of 0.65 per share; 5.9% including the special dividend of 0.50 per share. (5) Based on the ordinary dividend of 0.76 recommended for approval at the Annual Shareholders Meeting on April 25, (6) Based on the ordinary dividend of 0.80 recommended for approval at the Annual Shareholders Meeting on April 29, (7) Based on the ordinary dividend of 0.95 recommended for approval at the Annual Shareholders Meeting on April 28, Long-term share performance (1) Accor CAC January Demerger: Edenred initial public offering (July 2, 2010) Paris index (1) Prices prior to the demerger have not been adjusted for the Edenred share. Accor share performance (base 100 at January 2, 2014) Accor +9.61% CAC % January 2014 February 2014 March 2014 April 2014 May 2014 June 2014 July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February BUSINESS REVIEW ACCOR I 113

116 PERFORMANCE INDICATORS RESULTS AND FINANCIAL FLOWS Quarterly change in 2014 revenue, like-for-like and year-on-year 2.1% 3.3% 4.6% 5.1% 3.8% Accor refinanced its debt, generating a saving of 38 million compared with 2013, bringing net profit, Group share to 223 million, an increase of 77%. 5,454 M IN REVENUE 1,772 M IN EBITDAR 32.5% EBITDAR MARGIN 602 M IN EBIT 435 M IN OPERATING PROFIT BEFORE NON-RECURRING ITEMS, NET OF TAX First quarter Second quarter Third quarter Fourth quarter Full year Analysis of the consolidated financial results The in-depth transformation being carried out by Accor started to pay off in The Group posted excellent results in both its businesses HotelServices and HotelInvest. It strengthened its leadership by pursuing expansion in high-growth areas, consolidating its position as Europe s leading hotel investor in Europe with the acquisition of 110 hotels, forging alliances with Huazhu in China and Orbis in Central Europe, and investing in Mama Shelter. Accor also rose to the digital challenge during the year, with some very tangible results expected as early as Its 225 million five-year digital plan has given the Group the means to take fresh action to streamline and further customize its dealings with customers, employees and partners. Earnings before interest and tax (EBIT) amounted to 602 million in 2014, representing year-on-year growth of 11.7% at constant scope of consolidation and exchange rates (like-for-like) and 15.6% as reported. Key features of the results were a 36 million reduction in rental expense following the restructuring of leased hotels, and a 29 million increase in revenue. At the same time, Revenue In 2014, consolidated revenue was up 3.8% year-on-year at constant scope of consolidation and exchange rates. The Group enjoyed very favorable trends in all of its key markets, the Mediterranean, Middle East, Africa (up 9.8%), the Americas (up 7.2%), Europe (excluding France and the Mediterranean, up 4.7%) and Asia-Pacific (up 1.9%). France (up 0.4%) saw its performance improve slightly in the second half, although it was penalized by the increase in the VAT rate. Reported revenue reflects the following factors: development, which added 44 million or 0.8% to reported growth, resulting mainly from the integration of 208 hotels totaling 29,556 new rooms over the year; changes in the scope of consolidation due to asset disposals, which reduced revenue by 162 million or 3.0%; a 62 million or 1.1% negative currency effect, reflecting lower exchange rates against the euro, notably for the Australian dollar and the Brazilian real. EBITDAR Earnings before interest, taxes, depreciation, amortization and rental expense (EBITDAR) is a key financial performance indicator. In 2014, it amounted to 1,772 million, up 3.8% like-for-like and 2.4% as reported year-onyear. The EBITDAR margin represented 32.5% of consolidated revenue in EBIT Earnings before interest and taxes (EBIT) improved by 11.7% like-for-like to 602 million in 2014, from 521 million in HotelServices EBIT amounted to 376 million, reflecting a stable margin of 30.1% (down 0.2 percentage points), despite the initial expenses related to the implementa- 114 I ACCOR 2014 BUSINESS REVIEW

117 tion of the digital plan. HotelServices had an excellent year in terms of operating performance, with growth in the hotel portfolio returning to a brisk pace (208 hotels and 29,556 rooms) and an increase in the pipeline to a record 156,000 rooms. HotelInvest s EBIT climbed 26.9% like-for-like to 292 million, with a 6.1% margin, a yearon-year improvement of 2 percentage points. The increase is chiefly attributable to the restructuring operations carried out since HotelInvest s creation. In 2014, Accor acquired three hotel portfolios that were previously operated by the Group under variable leases. These portfolios (Moor Park, Axa Real Estate and Tritax) were acquired for a total of 980 million. Together, they represent 110 hotels or 14,072 rooms. Also during the year, 48 hotels were restructured, of which 30 hotels under leases and 18 hotels under direct ownership. Net profit, Group share Net profit, Group share stood at 223 million, up from 126 million in Based on the weighted average number of shares outstanding during the period (230,231,848), earnings per share amounted to 0.97 in 2014, compared with 0.55 in Operating profit before non-recurring items, net of tax amounted to 435 million in 2014, or 1.89 per share. At the Annual Meeting on April 28, 2015, shareholders will be asked to approve the payment of a dividend of 0.95 per share (i.e. a payout ratio of 50%), compared with 0.80 in M IN FUNDS FROM OPERATIONS before non-recurring items (cash available to finance investments and dividend payments), up from 703 million in M IN RENOVATION AND MAINTENANCE EXPENDITURE After renovation and maintenance expenditure, free cash flow was 507 million DIVIDEND (1) PER SHARE Up 19% compared with The payout ratio, calculated on operating profit before non-recurring items, net of tax (2), is 50%. (1) Dividend payable entirely in cash, or half in cash and half in stock at a 5% discount, subject to shareholder approval at the Annual Meeting on April 28, (2) Operating profit before non-recurring items, net of tax: operating profit before tax and non-recurring items less operating tax, less non-controlling interests. 159 M IN NET DEBT AT END-2014, COMPARED WITH 226 M AT END M IMPACT OF ASSET MANAGEMENT TRANSACTIONS ON ADJUSTED NET DEBT (1) IN 2014 (1) Taking into account minimum lease payments. 14.6% ROCE Return on capital employed, a measure of how effectively a company uses the money invested in its operations. 34.2% FUNDS FROM OPERATIONS EXCUDING NON-RECURRING TRANSACTIONS/ADJUSTED NET DEBT, UP FROM 31.1% IN 2013 An indicator of the Group s solvency, this ratio is calculated with net debt adjusted for the 7.0% discounting of future minimum lease payments. 3.11% AVERAGE COST OF DEBT, COMPARED WITH 4.28% IN BUSINESS REVIEW ACCOR I 115

118 PERFORMANCE INDICATORS CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Condensed consolidated statements of income In millions of euros Dec restated (1) 2014 Consolidated revenue 5,425 5,454 Operating expense (3,694) (3,682) EBITDAR 1,731 1,772 Rental expense (885) (849) EBITDA Depreciation, amortization and provision expense (325) (321) EBIT Net financial expense (90) (52) Share of profit of associates after tax Operating profit before tax and non-recurring items Restructuring costs (132) (11) Impairment losses (89) (55) Gains and losses on management of hotel properties 68 (11) Gains and losses on management of other assets (33) (82) Operating profit before tax Income tax expense (120) (175) Profit/(loss) from continuing operations Profit/(loss) from discontinued operations 1 (4) Net profit/(loss) Net profit/(loss), Group share Net profit, Minority interests Weighted average number of shares outstanding (in thousands) 227, ,232 Earnings per share from continuing operations (in euros) Ordinary dividend per share (1) Restated for the impact of IFRS 11. Condensed consolidated balance sheets In millions of euros Dec restated (1) Dec ASSETS Goodwill Intangible assets Property and equipment 2,396 3,157 Non-current financial assets Total non-current assets 4,065 4,795 Total current assets 2,877 3,613 Total assets 7,003 8,755 LIABILITIES AND SHAREHOLDERS EQUITY Shareholders equity, Group share 2,538 3,654 Total shareholders equity and minority interests 2,752 3,867 Total non-current liabilities 1,925 2,958 Total current liabilities 2,300 1,910 Total liabilities and shareholders equity 7,003 8,755 (1) Restated for the impact of IFRS I ACCOR 2014 BUSINESS REVIEW

119 Cash flows In millions of euros Dec restated (1) 2014 Funds from operations before non-recurring items Renovation and maintenance expenditure (264) (262) Free cash flow Recurring development expenditure (196) (203) Recurring free cash flow Acquisitions 5 (1,110) ibis megabrand (13) Proceeds from disposals of assets Dividends (187) (137) Hybrid instrument issuance (net of issue expenses) 887 Capital increase/reduction Change in operating working capital Change in non-operating working capital (185) Other (158) (155) Cash flow from discontinued operations 2 1 (Increase)/decrease in net debt 190 (67) (1) Restated for the impact of IFRS REGISTRATION DOCUMENT Detailed financial data are included in the Registration Document filed with the Autorité des Marchés Financiers. Its summarized table of contents is presented below. Contents 1. CORPORATE PRESENTATION 2. CORPORATE RESPONSIBILITY 3. CORPORATE GOVERNANCE REVIEW OF THE YEAR 5. FINANCIAL STATEMENTS 6. CAPITAL AND OWNERSHIP STRUCTURE 7. OTHER INFORMATION The Registration Document can be downloaded from the Group s website, accor.com/finance BUSINESS REVIEW ACCOR I 117

120 PERFORMANCE INDICATORS PLANET 21 7 pillars 21 commitments 1. Ensure healthy interiors. 2. Promote responsible eating. 3. Prevent diseases. 4. Reduce our water use. 5. Expand waste recycling. 6. Protect biodiversity. 7. Reduce our energy use. 8. Reduce our CO 2 emissions. 9. Increase the use of renewable energies. 10. Encourage eco-design. 11. Promote sustainable building. 12. Introduce responsible hotel offers and technologies. 13. Protect children from abuse. 14. Develop responsible procurement practices. 15. Protect ecosystems. 16. Support employee growth and skills. 17. Make diversity an asset. 18. Improve quality of worklife. 19. Conduct our business openly and transparently. 20. Engage our franchised and managed hotels. 21. Share our approach with suppliers. Better Unchanged Worse Objective already met Objective on track to being met by I ACCOR 2014 BUSINESS REVIEW

121 objectives 2014 Results 85% of hotels use eco-labeled products. 97% 80% of hotels with restaurants promote balanced dishes. 97% 95% of hotels organize disease prevention training for employees. 74% 2015 Trend Change vs % reduction in water use between 2011 and 2015 (owned, leased and managed hotels) (1). 5.6% 85% of hotels recycle their waste (in countries with recycling channels). 88% 60% of hotels participate in the Plant for the Planet reforestation program (excluding hotelf1). 10% reduction in energy use between 2011 and 2015 (owned, leased and managed hotels) (1). 10% reduction in CO 2 emissions between 2011 and 2015 (owned, leased and managed hotels) (1). 46% 4.5% 3.8% 10% of hotels use renewable energies. 9% 40% of hotels have at least three eco-designed room components. 40% 21 new or renovated hotels are certified as sustainable buildings. 13 hotels 20% of owned and leased hotels offer green meeting solutions. 70% of hotels have pledged to protect children. 48% 70% of hotels purchase and promote locally sourced products (hotels with a restaurant). 100% of hotels have banned endangered seafood from restaurant menus (hotels with a restaurant). 75% of hotel General Managers are promoted from within (owned, leased and managed hotels). 35% of hotel General Managers are women (owned, leased and managed hotels). 100% of country organizations conduct an employee opinion survey every two years. Accor is included in six internationally recognized socially responsible investment indices or standards. 40% of all non-budget hotels, across all operating structures, are ISO certified. 100% of purchasing contracts are in compliance with our Procurement Charter % 93% 69% 27% 55 countries 3 indices 41% 80% Additional action needed to meet the objective by 2015 Action not yet initiated (1) % change between 2011 and 2014 at comparable scope of reporting BUSINESS REVIEW ACCOR I 119

122 CONTACTS Corporate Headquarters Immeuble Odyssey 110, avenue de France Paris Cedex 13 France Phone: +33 (0) accor.com facebook.com/accor If you re a shareholder The Accor Shareholder Relations teams can be reached at: Phone: +33 (0) [email protected] You can also consult: The 2014 Registration Document and the Annual Financial Report, which are available in the Finance section of accor.com. The interactive version of the 2014 Business Review, which is available in the Group section of accor.com. If you re a journalist For questions about Accor, you can contact the Group Media Relations Department. [email protected] The electronic version of this document complies with Web Content Accessibility Guidelines (WCAG) 2.0 and is certified to ISO standards. It has been ergonomically designed to allow the physically disabled to browse the PDF file with keyboard alternatives. The entire document is also accessible to the visually impaired, with screen reader tags interpretable on any electronic device. Lastly, it has been thoroughly tested and validated by a visually impaired expert. You can also find a list of all media contacts by brand and by region in the Press section of accor.com. For more information about Solidarity Accor Visit the website. 120 I ACCOR 2014 BUSINESS REVIEW

123 The document was written and produced by the Accor Communication and External Relations Department. Design and layout: Photo credits: Aaron Spence Abaca Corporate/Annelore Van Herwijnen/Antoine Huot/Barbara Zonzin/Boris Zuliani/Christian Creutz/Cyril Chauvin/Darren Lennon/Didier Delmas/Jacques-Yves Gucia/ James Jasper/Jérôme Mondière/Jo Hanley/Julien Knaub/Lina Shukauske/Sara Niedzwiecka/Sébastien Jourdan/Stéphane Croizean/Thimothée Franco/Uwe Noelke Abdalrahman Aljabri Agence Blanchet d Istria Agus Darmika Aleksandrs Kendenkovs Alessandra Dosselli Amir Yakdi Andrea Loru Annemiek Veldman Barry Morgan Bergwaldprojekt e.v Bernd Lippert Bernie Phelan Bill Lorenz Christoph Weiss Christoph Weiss Christopher Kewish Clément Jolin Daniel Martins Pinheiro David Dinh Emmanuel Serna Éric Cuvillier Fabrice Rambert Fernando Gomulya Fernando Gomulya Fotobubbles Tech Pvt Ltd Francis Amiand FXB Gabriel Ulung Wicaksono Georges Arif Getty Images Gil Lanzi Gilles Galas Gilles Trillard Glenn Aitken Harry Prasetya Hasan Ayham Hester Chew Jacques Yves Gucia Joël Biletta Jorg Sundermann La Company/Thomas Laisné Laurent Lafon Lukasz Wozniak Mathieu Pecheur Matthieu Lemaire-Courapied Minh Tang Mircea Dragos Miroslaw Stelmach Norbert Grzegorz Kobylarczyk Nyi Nyi Bo Peter Sangster Philippe Wang Pierre-Emmanuel Rastoin Robert Bova Sam Nugroho Sara Niedzwiecka Serge Detalle Vichai Kiatamornvong Wedodata Wisher Enterprise SP 2000 Xavier Ferrand Yunus Ozkazanc Yves Forestier Photothèque Accor DR. Copywriting: Florence Florin et Elsa Boniface We are serious about sustainability! Printed on paper certified by the Forest Stewardship Council, which guarantees that the pulp comes from sustainable, responsibly managed forests.

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