Accor: 2006 Revenue Up 6.6%

Accelerated Growth in the Fourth Quarter: Up 7.8%

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. October 14, 2008

JANUARY 18, 2007. Accor's consolidated revenue rose by 6.6% to EUR7,607 million for the year ended December 31, 2006. At constant scope of consolidation and exchange rates, the like-for-like increase was 6.7%.

The stepped-up pace of growth in the fourth quarter resulted in a 7.8% like-for-like increase for the period, compared with increases of 6.8% in the third quarter and 6.0% in the first half. This very sharp increase reflected accelerated growth in the Hotels business in France and the confirmation of a sustained favorable trend since the beginning of the year in Northern Europe, especially in Germany.

The Services business posted very solid overall gains. Business expansion accounted for 3.1% of fourth-quarter revenue growth while asset disposals, mainly in the Hotels business, had a negative impact of 3.8%. The currency effect had a negative 1.8% impact on fourth-quarter revenue growth due to the decline of the US dollar and the Brazilian real against the euro. On a reported basis, fourth-quarter revenue rose by 5.3%.

Services:

--For the year, revenue in the Services business was up 20.5% as reported and 15.5% like-for-like. The sharp increase was at the upper end of the revenue growth target over the medium term of 8% to 16% for the full-year.

--Fourth-quarter growth, which came to 14.7% like-for-like, was in line with the trend observed over the first nine months of the year.

--In Europe, the expanded product range and higher penetration rates resulted in a very good 16.4% like-for-like increase.

--The first nine-month growth trend in Latin America slackened slightly in the fourth quarter, with like-for-like revenue rising 11.8%, due to a decline in financial income growth and intense competition in the Brazilian market.

Hotels:

Upscale and Midscale Hotels:

--or the year, upscale and midscale hotel revenue increased 6.8% like-for-like. Revenue growth in the fourth quarter came to 8.2% like-for-like, compared with increases of 7.4% in the third quarter and 5.7% in the first half.

--In France, growth continued to gain momentum, resulting in a 6.6% increase in revenue for the fourth quarter, compared with a 2.8% rise over the first nine months of the year.

--The sharp increase in RevPAR resulted from improvements in both the occupancy rate (up 3.1 points) and the average room rate (up 4.6%), reflecting the Group's dynamic pricing policy.

--In Northern Europe, the highly favorable nine-month trend continued into the fourth quarter, notably in the United Kingdom and Germany, where like-for-like revenue rose 7.3% and 6.4% respectively.

--Economy Hotels outside the United States. Full-year revenue from economy hotels in Europe rose by 5.9% like-for-like. In the fourth quarter alone, the like-for-like increase was 8.0%.

Economy Hotels in the United States:

--Like-for-like revenue from economy hotels in the United States was up 4.5% for the year, with the Motel 6 and Red Roof Inn chains posting increases of 4.5% and 4.0% respectively.

--Like-for-like growth slowed slightly in the fourth quarter to 2.7%. Excluding the additional business generated by the hurricanes in late 2005, revenue from economy hotels in the United States rose by 4.9% in the fourth quarter, in line with the first nine months of the year.

--In light of the higher-than-expected fourth-quarter revenue performance, Accor is raising its objective for full-year operating profit before tax and non-recurring items to EUR700-720 million.

With 160,000 associates in nearly 100 countries, Accor is the European leader in hotels and tourism and the global leader in corporate services. To provide private and business clients with superior service, it leverages nearly 40 years of expertise in its two core activities:

1) Hotels, with the Sofitel, Novotel, Mercure, Suitehotel, Ibis, Red Roof Inn, Etap Hotel, Formule 1 and Motel 6 brands, representing more than 4,000 hotels and 475,000 rooms in 90 countries, as well as strategically related activities, notably Lenotre.

2) Services to corporate clients and public institutions through Accor Services. A total of 21 million people in 35 countries benefit from our broad portfolio, which includes food vouchers, people care, incentives and loyalty programs.