Accor Annual Report 2011 131c60

New frontiers in Hospitality

2011 ANNUAL REPORT

Over 4,400 hotels

530,000

No.1 hotel

in 92 countries

rooms

operator worldwide

17 Accor Academies

employees(1)

The world’s leading hotel school

1,000th

Over

franchised hotel in Europe

Le Club Accorhotels every day

meals served per year

11,600

183 million visits

conference rooms with total capacity of 1 million people

a year to Accor booking sites

1 booking every 3 seconds

Over

180,000

working in Accor brand hotels

6,000 new

Over

130 million

worldwide via the Accor websites

Accor’s broad portfolio of hotel brands – Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, Adagio, ibis, all seasons/ibis Styles, Etap Hotel/Formule 1/ ibis budget, hotelF1 and Motel 6 – provide an extensive offer from luxury to budget. With more than 180,000 employees(1) in Accor brand hotels worldwide, the Group offers its clients and partners nearly 45 years of know-how and expertise.

(1) Including 145,000 employees (corresponding to the scope of reporting of this document) in owned, leased and managed hotels.

Contents Message from Denis Hennequin p. 3 / Governance structures p. 6 / Board of Directors p. 8 / Executive Committee p. 10 / 2011, a year of great intensity p. 12 / Performance indicators p. 86

2011 ACCOR ANNUAL REPORT/1

2/MESSAGE

MESSAGE from Denis Hennequin Dear shareholders, partners, customers and fellow Accor team ,

After an intense first year as Chairman and Chief Executive Officer, I am proud to address you directly to present you with our results and successes and lay out for you the challenging goals we have set with the Executive Committee. In many respects, 2011 was an exceptional year for Accor. A new era of assertive expansion has begun for our Group, which is driven by a commitment to becoming the global benchmark in the hospitality industry. We met, or exceeded, our main objectives for the year in of development, operating performance and financial management. With the opening of nearly 39,000 rooms worldwide, of which 89% through franchise agreements and management contracts, 2011 was a year of record development for the Group. Led by faster growth in emerging markets, we sured our objective of 35,000 rooms, thereby demonstrating the effectiveness of our asset-light development strategy. A major project was launched for our economy brands, in partnership with our franchisees. Its purpose is to modernize and clarify our offer and make ibis the uncontested world leader in the economy segment. This dynamic of change and innovation has also impacted our midscale and upscale brands, which are exploring ways of remaining or once again becoming the most attractive brands in their respective segments. We also continued to rework our distribution system, an indispensable driver of virtuous growth. The goal is to make it more digital and more powerful to ensure direct relations with our customers. We obtained these results and deployed these projects while continuing to transform our business model and implement a very active property management strategy. In 2011, we resolutely refocused on our pioneering spirit and ability to innovate. This new dynamic is expressed in our tag-

line – Open New Frontiers in Hospitality® – which expresses our confidence, outreach, global ambitions, capacity for innovation, and above all a ion for our profession. Without this ion, nothing would be possible. Every day I measure its power in my meetings with team around the world. This ion is also reflected in our new PLANET 21 sustainable development program, which expresses our commitment to reinventing the hotel business sustainably by promoting growth that is more respectful of people and ecosystems. A solid financial performance In 2011, we reaffirmed the clear rebound in our business despite a difficult economic environment, especially in Europe. Our revenue increased by 5.2% to €6,100 million, led by sustained growth in all market segments and the combined impact of higher prices and increased demand. This improvement was also apparent in our EBIT, which rose by 32.6% to €530 million. The increase reflects our momentum, especially in the economy segment, and the transformation of our business model, which favors asset-light hotel operating structures, mainly franchise agreements and management contracts. Lastly, our EBITDAR margin, a key profitability indicator, rose by 1.2 points to 31.5% of revenue. This clear improvement in particular reflects the efficiency of our shift to asset-light operations, our ability to control costs and the growing effectiveness of our central booking system. The sharp rise in online sales shows that the Group and its brands have turned a corner and are responding to emerging habits among customers, who are more connected and constantly interacting. We need to pursue these efforts because the digital revolution is well underway.

2011 ACCOR ANNUAL REPORT/3

MESSAGE from Denis Hennequin

Development: an all-time record

Strong, powerful brands at the heart of our strategy With the of the entire Executive Committee, I wanted to refocus our strategy on the brands. I firmly believe that in today’s highly competitive, global environment, our leadership is underpinned by powerful, attractive brands that create preference among our customers and partners. To provide them with an outstanding hotel experience, we need to develop even more innovative concepts that make our hotels alluring. This is true for all segments, from luxury to economy. In 2011, we focused mainly on the economy segment, which contributes the most to our bottom line, by creating the ibis megabrand. This new brand architecture brings together in one family the ibis, ibis Styles (formerly all seasons) and ibis budget (formerly Etap Hotel) banners. The project involves not only positioning each of the three brands but also reworking the offering – including public areas and bedding – to provide superior customer comfort and make the brands more modern. This is a project of unprecedented scope that is being assertively deployed by our teams around the world. Between May and September 2012 – scarcely a year after the project’s launch – the new ibis family identity will be deployed in 70% of the network,with up to 50 hotels making the changeover every week. This need to reinvent ourselves in order to maintain our leadership extends across all the brands. One success story in this area is Sofitel, which is now fully repositioned in the luxury segment and has enhanced its network with such prestigious hotels as the Sofitel So Bangkok and the Sofitel Legend Old Cataract in Aswan. In the upscale segment, Accor now has a multi-brand offering with Pullman and MGallery. Pullman, our brand for cosmopolitan travelers, will spearhead

A strategic focus on our brands

4/MESSAGE

our development in the Asia-Pacific region, while MGallery – no longer a label but a true collection of boutique hotels – offers an attractive alternative for hotels with a very strong personality like St. Ermin’s in London, which ed the Collection in 2011. In the midscale segment, Mercure derives its strength from its diversity and strong local presence. As for Novotel, the brand is changing rapidly. In 2011, Novotel made a clean break with traditional hotel offerings by unveiling 3120, the room of the future, in partnership with Microsoft. Our focus on each brand’s essentials should enable them to become more flexible and adapt to each of our local markets. That is because while Accor was born in , it is made and re-made in Europe, Asia-Pacific and Latin America. In this respect, the creation of the Mei Jue brand – a variant of Grand Mercure for the upscale segment in China – reflects our ability to rethink the offering to meet the specific expectations of local customers. A year shaped by our operating performance With more powerful brands and the expertise acquired through more than 40 years of experience as a hotel operator, we will be a key player in all our market segments worldwide. In 2011, we strengthened our performance in of operating excellence and hotel distribution. Our loyalty program, renamed Le Club Accorhotels, now has 8.3 million around the world, including more than 2 million in Asia. We understand our ’ expectations and reward them every time they stay in one of our hotels. Moreover, our central booking systems for 60% of our sales, a figure that is constantly on the rise. I think this is a critical development as it enables us to maintain a direct relationship with our customers. In this way, we can more effectively target our offers and create differentiation and preference for our brands. Our ability to grow and develop is closely linked to our ability to guarantee occupancy rates and generate income for our franchised and managed partners.

An ambitious goal: become the global benchmark in the hospitality industry Development: a record year With the opening of 38,700 rooms, we not only rose to the challenge, but sured our objectives and set an all-time record. This achievement illustrates the appeal of our brands and our outstanding expertise in every phase of hotel operations. These advantages are vitally important since they enable us to build long-term partnerships that are crucial if we are to meet our development target of 40,000 new rooms a year between now and 2015. These operations will be carried out mainly in emerging countries, especially in the Asia-Pacific region, which ed for 33% of our room openings in 2011. During the year, Accor also renewed its targeted acquisition strategy. This was the case in the United Kingdom, with the franchising-in of 24 hotels that have been converted to the Mercure brand, and in the Pacific with the acquisition of Mirvac’s hotel operations, which in 2012 will provide us with an additional 48 hotels totaling 6,100 rooms in Australia and New Zealand. At the same time, we pursued our asset-disposal strategy, in particular with the sale of the Sofitel Arc de Triomphe and the Pullman Paris Bercy. In all, 129 hotels were sold, impacting our adjusted net debt by €533 million. Representing half of our hotel divestment program for the 2010-2012 period, the transactions have enhanced the Group’s sound financial position and heightened investor interest in our hotel assets. Commitments to employees and to the world around us As the world’s leading hotel operator, Accor has acquired unique experience in human resources management. Thanks to our network of 17 Academies around the world and a training portfolio with 150 modules, we are today the world’s leading hotel school.This standing provides us with a key advantage for attracting and retaining talented people to our international development. Today, I would like to go even further in that direction. One of our top priorities is to increase the number of job tracks within the organization in order to further enhance our employees’ capabilities. The main focus of our human resource policy is to develop their skills for life so that they can continue to grow and develop within their

Open New Frontiers in Hospitality®

brand and within the Group. Respecting the diversity of each person is another long-term commitment that is inherent in Accor’s genetic code. Our corporate foundation, which I have the honor of chairing, is also committed to pursuing this path by targeting people who are outside mainstream society. Since its creation three years ago, 5,000 employees have initiated and ed 100 projects through the Accor Foundation in 33 countries. In this way, they are enabling us to deploy a policy of caring hospitality that extends across national borders. Reinventing hotels sustainably Accor has always been a pioneer in integrating social and environmental issues into day-to-day operations, and I want to further extend our advantage in this area. We are doing so not just for ethical reasons but also because we firmly believe that sustainable development represents an economic imperative for the future. At a time when customers are increasingly sensitive and committed to these issues, our brands can and must stand apart. With its 21 tangible commitments and quantifiable objectives for 2015, our new PLANET 21 program positions us to become the benchmark and the industry leader in this allimportant area. Sustainable hospitality is the focus of our strategic vision, our development and our innovation processes. As you can see, 2011 was a record-breaking year. It was also a watershed year shaped by the launch of major projects, in particular the revitalization of our economy segment with the ibis mega-brand. Thanks to our financial position and new growth dynamic, I can look to the future with enthusiasm and ambition. Despite an uncertain macroeconomic environment, I continue to be confident for 2012. We can count on a stable hotel offering as well as demand-boosting events in Europe, such as the Olympic Games in London and trade shows in . Business remains very buoyant in Asia and Latin America, where we are pursuing our development at a faster pace. In all respects, 2012 is a year that will be shaped by the opening of new frontiers in hospitality. Thank you for your ongoing confidence.

2011 ACCOR ANNUAL REPORT/5

GOVERNANCE STRUCTURES The Company is governed by a Board of Directors, which determines the Company’s strategy, oversees its implementation, examines any and all issues concerning the efficient running of the business, and makes decisions on all matters concerning the Company.

6/GOVERNANCE STRUCTURES

In accordance with the law and the

The Bylaws stipulate that each Board

Company’s Bylaws, the Chairman and

member is required to hold at least

Chief Executive Officer chairs Board

500 Accor shares. To promote high

meetings, organizes and leads the work

attendance rates at Board meetings, 50%

of the Board and its meetings, ensures

of the total fees awarded to

that the Company’s corporate governance

of the Board of Directors are allocated

structures function effectively, and

based on their attendance record.

obtains assurance that directors are in

Accor complies with the AFEP/MEDEF

a position to fulfill their responsibilities.

Corporate Governance Code for listed

The Chairman and Chief Executive Officer

companies except with regard to

represents the Company in its dealings

the matters described on page 76

with third parties and has the broadest

of the 2011 Registration Document.

powers to act on behalf of the Company

The Board of Directors assesses

in all circumstances.

the independence of its .

The situations where the exercise of

For the purpose of this assessment,

the powers of the Chairman and Chief

the Board applies the criteria set

Executive Officer and President and

out in the above-mentioned AFEP/MEDEF

Chief Operating Officer is subject

Corporate Governance Code which

to the prior approval of the Board

state that a member of the Board of

of Directors are detailed in the report

Directors of a corporation cannot be

of the Chairman of the Board of Directors

qualified as independent if he or she:

prepared pursuant to article L. 225-37

is – or has been at any time in the last

of the French Commercial Code.

five years – an employee or an executive

director of the corporation, or an employee or director of its parent or a company that it consolidates;

Based on the above criteria, the Board of Directors deems the following directors to be independent: Mercedes

is an executive director in a company

Erra, Sophie Gasperment, Jean-Paul Bailly,

in which the corporation directly or

Philippe Citerne, Bertrand Meheut and

indirectly holds a directorship, or in which

Franck Riboud.

an employee appointed as such or an executive director of the corporation (current or in the past five years) holds a directorship;

In accordance with the Company and Directors Bylaws, Paul Dubrule and Gérard Pélisson, Founding Co-Chairmen, attend Board Meetings in a consultative

is a customer, supplier, investment

capacity, and may be invited to attend

banker or commercial banker:

meetings of the Board Committees.

• that is material for the corporation

Since February 2009, the Board of

or its group or, • for which the corporation or its group

Directors has been assisted in preparing its decisions by the following three

represents a material proportion

Board Committees:

defines the scope of the directors’ duty

of the entity’s activity;

the Audit and Risks Committee,

of diligence, discretion and confidentiality,

has close family ties to

comprising three , including

and sets out the rules applicable to

a corporate officer;

two independent :

trading in the Company’s securities.

has been an auditor of the

Philippe Citerne (Committee Chairman),

Lastly, with a view to preventing any

corporation in the last five years;

Virginie Morgon and Jean-Paul Bailly;

potential conflict of interests,

has been a director of the

the Commitments Committee,

of the Board are required to complete

corporation for more than twelve years.

comprising five , including

a statement every year disclosing any

three independent :

and all direct or indirect ties they have

Sébastien Bazin (Committee Chairman),

with the Company.

Sophie Gasperment, Mercedes Erra,

The procedures for organizing and

Philippe Citerne and Patrick Sayer;

preparing the work of the Board during

may be considered as independent

the Compensation, Appointments

2011 are described in the report of the

provided that they do not take part

and Corporate Governance Committee,

Chairman and Chief Executive Officer

in the control of the corporation.

comprising five , including

drawn up pursuant to article L. 225-37

If the shareholder owns 10% or more

three independent :

of the French Commercial Code.

of the Company’s capital or voting rights,

Bertrand Meheut (Committee Chairman),

In April and May 2011, the Board of

the Board of Directors should

Jean-Paul Bailly, Thomas Barrack,

Directors formally assessed its own

systematically review whether that

Franck Riboud and Patrick Sayer.

performance.

shareholder’s representative may

The organizational and operational

The results of this process, which

be qualified as independent, based

framework applicable to the Board

involved one-on-one meetings with each

on a report issued by the Compensation,

of Directors and the Board Committees

director, were presented to the Board

Appointments and Corporate Governance

is described in the Company’s Bylaws

of Directors, which discussed the matter

Committee and taking into

and in the Directors Bylaws(1). In addition,

at one of its meetings.

the Company’s capital structure and any

of the Board adhere to the

potential conflicts of interest.

Directors Code of Conduct(1), which

The AFEP/MEDEF Corporate Governance Code also states that directors who represent major shareholders of a corporation or its parent

(1) See 2011 Registration Document.

2011 ACCOR ANNUAL REPORT/7

BOARD OF DIRECTORS Under the Bylaws, as Founding Co-Chairmen of Accor, Paul Dubrule and Gérard Pélisson attend Board meetings in an advisory capacity.

Denis Hennequin

Philippe Citerne(1)

Chairman and Chief Executive Officer

Director and Vice-Chairman

Denis Hennequin ed Accor as

of Accor since January 9, 2006 and

a director on May 13, 2009. He became

a director and Vice-Chairman of the Board

Chief Executive Officer on December 1,

since May 13, 2009. His term of office

2010 and was appointed Chairman and

expires at the close of the Annual Meeting

Chief Executive Officer on January 15,

to be called to approve the s for

2011. His term of office expires at the

the year ending December 31, 2011. He

close of the Annual Meeting to be called

was previously permanent representative

to approve the s for the year

of Société Générale on the Supervisory

ending December 31, 2013.

Board, as from December 22, 2003.

Philippe Citerne has been a director

Mr. Citerne was Chief Operating Officer of Société Générale from 1997 until April 2009 and is now non-executive Chairman of Telecom & Management SudParis. He is also a director of Sopra Group, Edenred and Rexecode, a private economic research center.

8/BOARD OF DIRECTORS

Jean-Paul Bailly(1)

Mercedes Erra(1)

Jean-Paul Bailly has been a director

Mercedes Erra has been a director

of Accor since May 13, 2009.

of Accor since February 22, 2011.

His term of office expires at the close

Her term of office expires at the close

of the Annual Meeting to be called

of the Annual Meeting to be called

to approve the s for the year

to approve the s for the year

ending December 31, 2011. Chairman

ending December 31, 2011.

and Chief Executive Officer of

Ms. Erra is Executive Co-Chairman

the French Post Office (La Poste Group)

of Euro RSCG Worldwide and

since 2002, Mr. Bailly has also been

Chief Executive Officer of Havas.

Chairman of the Supervisory Board of La Banque Postale since 2006.

Sophie Gasperment(1)

Mr. Bailly also represents the French

Sophie Gasperment has been a

State on the Board of GDF Suez,

director of Accor since June 29, 2010

and is a director of CNP Assurances

and her term of office expires at

and Soure.

the close of the Annual Meeting to be called to approve the s

Franck Riboud(1) Franck Riboud has been a director

Thomas J. Barrack

for the year ending December 31, 2012

Thomas J. Barrack has been a director

Ms. Gasperment is Chief Executive

of Accor since January 9, 2006 and

his term of office expires at the close

Officer of The Body Shop International

his term of office expires at the close

of the Annual Meeting to be called

and was appointed as French Foreign

of the Annual Meeting to be called

to approve the s for the year

Trade Advisor in 2005.

ending December 31, 2013. He was

to approve the s for the year ending December 31, 2012. He was previously a member of Accor’s

Bertrand Meheut(1)

of Accor since January 9, 2006 and

previously a member of the Supervisory Board, as from July 3, 2001.

Bertrand Meheut has been a director

Mr. Riboud is Chairman and Chief

of Accor since May 13, 2009. His term

Executive Officer of Danone.

Mr. Barrack is Founder, Chairman

of office expires at the close of

and Chief Executive Officer of Colony

He is also Chairman of the Board

the Annual Meeting to be called to

Capital, LLC.

of Trustees of Danone Communities

approve the s for the year

and director of Lacoste.

Supervisory Board, from May 3, 2005.

ending December 31, 2011. Mr. Meheut

Sébastien Bazin

is Chairman of the Groupe Canal+

Sébastien Bazin has been a director

Management Board.

of Accor since January 9, 2006

He is also a member of Vivendi

and his term of office expires at the

since August 27, 2008. His term of office

Management Board and a director

close of the Annual Meeting to be

expires at the close of the Annual Meeting

of Aquarelle.

to be called to approve the s for

called to approve the s for

Patrick Sayer Patrick Sayer has been a director of Accor

the year ending December 31, 2012.

the year ending December 31, 2013.

Virginie Morgon

Mr. Sayer is Chairman of the Executive

He was previously a member of Accor’s

Virginie Morgon has been a director

Board of Eurazeo.

Supervisory Board, from May 3, 2005.

of Accor since May 13, 2009. Her

He is also Chairman of the Board of

Mr. Bazin is Principal, Managing Director

term of office expires at the close

Directors of Europcar Group and a director

Europe and Chief Executive Officer

of the Annual Meeting to be called

of Holdelis, Gruppo Banca Leonardo and

of Colony Capital SAS. He is also Chairman

to approve the s for the year

Colyzeo Investment Advisors.

and Chief Executive Officer of Société

ending December 31, 2013.

d’Exploitation Sports & Événements

Ms. Morgon is a member of

and Holding Sports & Événements.

the Executive Board of Eurazeo.

(1) Independent directors.

2011 ACCOR ANNUAL REPORT/9

EXECUTIVE COMMITTEE at December 31, 2011

Pascal Quint

Antoine Recher

Dominique Esnault

Marc Vieilledent

Corporate Secretary

Global Chief Human Resources Officer

Global Chief Operations

Group organization, Transformation, Sustainable development

Development, Franchising, Procurement, Technical services and Design management

Global Executive Vice-President Asset management

Legal affairs, Insurance, Risk management, Audit department, Secretary of the Board of Directors

10/EXECUTIVE COMMITTEE

Asset management and strategy, Mergers and acquisitions

Grégoire Champetier

Sophie Stabile

Yann Caillère

Denis Hennequin

Global Chief Marketing Officer

Global Chief Financial Officer

President and Chief Operating Officer

Chairman and CEO

Brand strategy, Design strategy, Marketing, Distribution

Finances, Group information systems

2011 ACCOR ANNUAL REPORT/11

2011: A YEAR OF GREAT INTENSITY ACCOR PURSUED ITS TRANSFORMATION AND LAID THE FOUNDATIONS FOR FUTURE GROWTH WITH THE GOAL OF BECOMING THE HOSPITALITY INDUSTRY’S GLOBAL BENCHMARK AND PROVIDING CUSTOMERS WITH A UNIQUE, CONSTANTLY RENEWED HOTEL EXPERIENCE. A road map with five components…

12

Powerful brands that are reinventing themselves/ p. 14 In response to rapidly changing consumer habits, the brands are also evolving at a faster pace to create emotional ties with customers and to provide them with stylish, contemporary interiors. The most telling demonstration of this change is the major project to revitalize the Group’s economy hotels.

Hotel distribution and engineering: Accor makes all the difference/ p. 42 Every day, Accor must meet the challenges of strengthening special relationships with customers, guaranteeing occupancy rates, and effectively managing hotels to increase market share and revenue.

Development: a record year/ p. 52 This dynamic expansion confirms the Group’s commitment to consolidating its leadership in Europe, currently its largest market, and to holding forefront positions in Asia-Pacific and Latin America.

PLANET 21: reinvent hotels sustainably/ p. 62 With PLANET 21, Accor has made 21 commitments in favor of sustainable development. Health, nature, carbon, innovation, local development, employment and dialogue: 21 commitments for the well-being of our world.

Our employees make us excellent/ p. 74 Because the hotel industry is a service business, employees are the leading drivers of our success. In 92 countries, they display the same enthusiasm, a real sense of hospitality and a high degree of professionalism.

2011 ACCOR ANNUAL REPORT/13

Sofitel Marseille Vieux Port –

14

Powerful brands that are reinventing themselves With a brand portfolio covering all segments from economy to luxury, Accor can provide hotel offerings that meet all budgets, all desires and the needs of everyone around the world. In response to rapidly changing consumer habits, the brands are also evolving at a faster pace to create emotional ties with customers and to provide them with stylish, contemporary interiors. The most telling demonstration of this change is the major project to revitalize the Group’s economy hotels. Every day, each brand is innovating to forge a special relationship with its customers and integrate their new habits.

2011 ACCOR ANNUAL REPORT/15

What are today’s guests looking for?

They want responsive brands that listen to their needs and are open to interaction. They are looking for brands capable of understanding the diversity and complexity of their identities. They want an experience: something beautiful, sensual and emotional. They are increasingly concerned with their health and well-being. They are more experienced, highly sophisticated and better informed in their consumer choices. Always connected, they use the Internet and social media to compare, buy, exchange opinions and share their experiences. They are also more committed and sensitive to environmental and social issues.

16/POWERFUL BRANDS THAT ARE REINVENTING THEMSELVES

AS CUSTOMERS CHANGE, ACCOR AND ITS BRANDS ARE EVOLVING The faster pace and greater scope of change in guests’ consumer habits and communication patterns are reshaping the environment in which large services companies operate. That’s why Accor and its brands have stepped up their own transformation process.

When customers set the tempo

economy brands must find increasingly

(“New Frontiers”) and pursuing its

The digital revolution has transformed

imaginative ways to satisfy them.

business with ion by reinventing

guests’ habits and behavior. Above all,

That is the key to creating differentiation

its relations with customers and

it has changed their relations with the

and customer preference. Being

employees alike (“Hospitality”).

brands. Always connected, customers

the leader is no longer enough. Today,

Since the Accor brand addresses a wide

today are better informed of hotel

a company must also be perceived

range of people and involves many

offerings and want more interaction

as having the best, most innovative

stakeholders, it now plays a larger role as:

with the brands. On the lookout for

products and services.

responsive brands that understand them, they want much more than just

The Accor solution

a corporate brand that expresses the company’s message in such areas as human resources, sustainable

satisfaction of their functional needs.

To respond to these deep-seated

Sensitive to aesthetic questions and

changes in consumer habits and patterns,

in search of an emotional experience,

the Accor brand increased its visibility

they are also concerned with their

in 2011, with the goal of making Accor

health and well-being and attentive to the

the benchmark hotel group worldwide.

social and environmental commitments

This objective is expressed in the Group’s

of the brands they use. From luxury to

new corporate tagline – Open New

economy, guests always want the best.

Frontiers in Hospitality® – which

an endorsement brand for the individual

embodies Accor’s ambition of developing

hotel brands that strengthens their

through outreach and cultural diversity

credibility, the trust they inspire and

(“Open”), committing to continuous

the ties that link them with Accor.

Today’s customers, whether well-off or not, may stay in any category of hotel, from economy to upscale. As a result,

development and financial performance; a sales and marketing brand for the Group’s cross-cutting offers that denotes a shared identity for the Accorhotels.com booking portal and A|Club loyalty program, renamed Le Club Accorhotels;

innovation, accelerating its expansion

2011 ACCOR ANNUAL REPORT/17

THE ECONOMY SEGMENT: THE CREATION OF THE IBIS FAMILY In 2011, Accor launched a major project to revitalize the economy hotel segment with the creation of the ibis mega-brand, an event that represents a turning point for the Group.

of scale in, for example, room renovation

which is synonymous with comfort and

projects. In this respect, franchisee

well-being – while each brand conserves

partners have been involved in creating

its traditional color: red for ibis, green

the ibis mega-brand since the start

for ibis Styles and blue for ibis budget.

and have regularly been consulted

This new identity will be deployed

in every phase of the project.

in 70% of the 1,600 hotels in autumn 2012, just one year after the launch of

A new brand architecture

the ibis mega-brand project.

Widely recognized with an extensive network and a powerful image, ibis

A reworked product offering

is the cornerstone of this new brand

The creation of the ibis family has led

architecture, which is based on

to considerable discussions about the

three complementary products whose

economy hotel experience. That’s because

At Accor, 2011 will be ed

very explicit names make them easy

even though customers move from one

as the launch year of the ibis mega-brand,

to understand:

segment to another – from luxury to

which in addition to ibis now includes

• ibis, which remains the economy

economy – they expect the best service

ibis Styles (formerly all seasons) and

brand and offers the most highly

everywhere. To guarantee superior

ibis budget (formerly Etap Hotel).

developed service spirit and level of

comfort for all its guests, Accor will:

All three share the same values of

comfort in the segment. It has a friendly,

• provide guests with a bed that gives

simplicity, modernity and well-being.

attentive, resourceful personality

them the most outstanding sleep

With this far-reaching project, the Group

that will continue to be enhanced;

experience to be found in the economy

is looking to attain three objectives:

• ibis Styles, (formerly all seasons),

capitalize on the market segment

a fun, energetic brand. Upbeat and

that makes the greatest contribution

stylish, its non-standardized hotels put

to the Group’s results by leveraging

the emphasis on enjoyment, modernity

ibis, an international brand that is

and design yet remain affordable;

the leader in 12 countries;

• ibis budget, (formerly Etap Hotel).

segment. The Group has launched a major program to improve the beds in the three ibis brands, beginning in 2012; • renovate common areas in most ibis budget and ibis hotels, making them more spacious, lively and

revitalize the economy brands

Convenient and casual, the brand

contemporary. The renovation will lead

in of comfort and contemporary

offers basic comfort at the right

to in-depth discussions about how

styling, as with the brand’s ambitious

price and simplicity for customers

guests will be welcomed in the hotel

project to install new bedding;

looking for independence and an

of the future, with a shift from reception

conform more closely to customer

easily accessible hotel experience.

areas to social areas.

expectations.

The ibis mega-brand project is also

This represents a major challenge in

A new visual identity

accelerating its renovation project. The

that it involves increasing occupancy rates

To the name change and the

goal is to deploy the Coquelicot room in

and revenue per room, accelerating the

new segmentation, the three brands are

78% of owned and leased ibis hotels and

brand’s development by addressing local

introducing new logos. Their visual identity

the Cocoon concept in 95% of owned and

specificities and the needs of investor

is based on a powerful, common symbol

leased ibis budget hotels by year-end 2012.

partners, and generating economies

to express this family spirit – a pillow,

18/POWERFUL BRANDS THAT ARE REINVENTING THEMSELVES

MODERN, CREATIVE BRANDS All the brands are reaffirming their personalities in order to stand apart from the competition and create guest affinity and preference based on more than price alone.

Brands on the move

Three examples are Novotel with

Guests’ constantly changing behavior

Next Up, Motel 6 with Phoenix and Sofitel

has a direct impact on hotel offering,

with Be Magnifique. These projects

requiring the brands to question their

create a framework that aligns all a brand’s

assumptions and reinvent themselves.

actions and relations with employees

This flexibility is crucial for their

and job applicants, with customers in

development and ability to take into

of services, distribution,

specific guest expectations

communication and design, and with all

positioning and Collection of

depending on hotel location. Although

stakeholders in the area of environmental

hotels that invite guests to experience

customers travel from one continent to

commitments. In this way, each brand

memorable moments;

another, domestic markets have their own

expresses its own image universe

particular features. The brands need to

intended to create desire and affinity.

the leisure segment, as evidenced

integrate local cultural differences with

This is the case, for example, at:

by the March 2012 opening of the

regard to styles, dining and the use of

• Mercure, with its deep local roots and

Pullman Marrakech Palmeraie in

space. To address this issue, Accor has

hotels that are all different yet comply

made a number of adjustments with:

with the same quality standards;

Mei Jue, a version of Grand Mercure purpose-designed to meet the

• Novotel, with its high-tech DNA for families and business travelers;

Mei Jue Jinan Sunshine – China

• MGallery, with its boutique hotel

• Pullman, which is expanding in

Morocco, the brand’s ninth resort hotel; • Sofitel, which symbolizes French-style elegance while maintaining a link with – and a respect for – local culture.

expectations of Chinese customers in the upscale segment. Guests are greeted by staff wearing traditional attire, family events are organized, and special dishes are offered in the brand’s restaurants;

Mercure Danang – Vietnam

ibis Styles Fontenay –

Novotel, whose standard 24.5-sq.m. room can now be made smaller in downtown locations where space is scarce or larger in Asia to satisfy local demand.

Brands with powerful identities While the brands are becoming more flexible and responsive, they are also asserting their differentiating characteristics through projects that reaffirm their identities and create preference in their respective markets. Novotel Évry Courcouronnes –

2011 ACCOR ANNUAL REPORT/19

DINING, WORKING, RELAXING… Combining ingenuity and expertise to provide their guests with unique, widely recognized offers that extend the hotel experience to include more than just lodging. Novotel Thalassa Dinard –

Restaurants that enhance the hotel experience

The Scribe is the second Sofitel restaurant to receive a star, after Les Trois Dômes

An outstanding seawater therapy offering

With 130 million meals served in

at the Sofitel Lyon Bellecour, also in ;

Today, more and more customers are

its hotels every year, Accor is a key player

ibis which has created around 20 hotel-

concerned about their well-being and

in the restaurant industry. The Accor

restaurant concepts. With L’Estaminet,

willing to pay more to satisfy their needs.

brands have developed varied, balanced

Wok and Co, and Oopen Pasta & Grill,

With Thalassa sea & spa, Accor has an

food service offerings that are adapted

for example, guests can choose between

extensive offering of hotels in 16 seaside

to market segments and specific local

innovative or traditional cuisine in either

destinations in , Italy, Morocco

features. Examples include:

a calm or lively atmosphere.

and Bahrain. A leader in seawater therapy and spa services, Accor has wellness

Sofitel, which organizes Gastronomic

Meetings that mix business and pleasure

solutions for every budget in exceptionally

traditional French cuisines. In early 2012,

A total of 1,900 Group hotels can

Pullman, Novotel, Mercure, and ibis

head chef Sébastien Crison at Hôtel

host up to one million people a day in

hotels. Leveraging its expert skills,

Scribe in Paris was awarded his first star

11,600 conference rooms. In 2011, Accor

the brand offers short-stay to one-week

by the world-famous Michelin guide;

introduced its first Meetings & Events

packages that combine spa services,

e-brochure with an interactive conference

sports and balanced meals. For corporate

room search engine. The brands guarantee

customers, Thalassa sea & spa has

excellent working conditions combined

innovative with “lasting benefit” seminars

with dedicated lodging and food service

featuring work and relaxation sessions,

offerings, depending on their market

fun-filled activities and personalized

segment, such as:

seawater treatment programs.

Pullman whose Co-Meeting offering

In 2011, Thalassa sea & spa reopened

includes upscale services, innovative

its flagship establishment: the Sofitel

technologies and customized conferences

Quiberon in Brittany (). More

for companies and event organizers.

than ever a benchmark in the segment,

The service also includes a dedicated

the hotel offers outstanding hospitality

Event Manager, ed by an

services with the best in seawater therapy

IT Solutions Manager to handle technical

and spa treatment for an incomparable

aspects. In 2011, Pullman introduced

experience and long-lasting benefits.

Meeting Matrix, an online tool for setting

In March 2012, Thalassa sea & spa pursued

up business meetings;

its international development with

Novotel, with its original Small Meeting

the opening of a new wellness center at

concept in , which offers fully

the Sofitel Agadir Thalassa sea & spa.

Weeks, offering guests a true experience that enables them to discover and enjoy

beautiful locations in its Sofitel, MGallery,

modular, flexible spaces for all meeting configurations, ergonomic installations to ensure comfort and a full-range of easily accessible technological solutions.

20/POWERFUL BRANDS THAT ARE REINVENTING THEMSELVES

The Brand Portfolio Covering every segment from luxury to economy around the world, Accor’s hotel brands meet the needs of business and leisure travelers looking for comfortable accommodations, attentive staff and a full range of services.

INTERNATIONAL BRANDS

REGIONAL BRANDS

LUXURY

UPSCALE

MIDSCALE

ECONOMY

THE GLOBAL NETWORK: At December 31, 2011 (* based on number of rooms)

26% of the hotel portfolio* 136,387 rooms 1,489 hotels

NORTH AMERICA 21% of the hotel portfolio* 111,718 rooms 1,111 hotels

REST OF EUROPE 25% of the hotel portfolio* 135,414 rooms 1,001 hotels

LATIN AMERICA AND CARIBBEAN 6% of the hotel portfolio* 30,182 rooms 194 hotels

AFRICA AND MIDDLE EAST 5% of the hotel portfolio* 25,992 rooms 154 hotels ASIA-PACIFIC 17% of the hotel portfolio* 92,021 rooms 477 hotels

2011 ACCOR ANNUAL REPORT/21

Sofitel

Sofitel Paris Le Faubourg –

Sofitel So Mauritius Mumbai, IndeBel Ombre – Mauritius

2011 EVENTS Sofitel opened 9 hotels including two flagship establishments: the Sofitel So Mauritius, in cooperation with Kenzo Takada, and the Sofitel Vienna Stephansdom, in Austria, with leading French architect Jean Nouvel. In addition, the outstanding Sofitel Legend Old Cataract in Egypt reopened following a thorough overhaul by interior decorator Sybille de Margerie, a specialist in luxury hotel renovation. In early 2012, Sofitel inaugurated its first hotel in India, in Mumbai, an opening that symbolizes the start of a promising adventure for the brand in that country. By 2015, Sofitel will have a network of 150 hotels. Repositioned in the luxury segment after several years and €400 million invested in renovating the network, Sofitel is now unanimously acclaimed by other market players and guests. In 2011 alone, the brand received 190 international awards. In addition, 90% of guests said they were satisfied with their stay, with 66% expressing total satisfaction.

Sofitel Mumbai BKC – India

Sofitel Legend Old Cataract Aswan – Egypt

22/THE BRAND PORTFOLIO

Sofitel, French elegance adapted around the world The Sofitel and its Ambassadors link the world with French elegance across a collection of unique addresses offering their guests and partners a cousu main service enriched with emotion, performance and a ion for excellence. The brand’s three values: Spirit of openness, ion for excellence and essence of pleasure.

sofitel.com

37 countries 120 hotels 30,837 rooms 59% business customers 41% leisure customers Sofitel Essaouira Mogador Golf and Spa – Morocco

CLOSE-UP ON… Sofitel Legend and So Sofitell Sofitel Legend is a collection of timeless hotels, often historic landmarks over one hundred years old. Legendary establishments marked by history, they are themselves full-fledged destinations in their city or country. The first hotel to the collection was the Sofitel Legend Metropole Hanoi in July 2009, followed by the Grand Hotel in Amsterdam. In 2011, the Old Cataract in Aswan, Egypt reopened its doors after a gigantic two-year renovation project. A preferred destination of Agatha Christie and Winston Churchill, this legendary hotel enjoys a superb view of the Nile. Sofitel So is a collection of stylish boutique hotels, each with its own unique personality. They offer urban, chic décor that is naturally different from the style found in Sofitel Luxury Hotels. Designed by a renowned architect, each Sofitel So has its own personality. For the first two hotels in the collection, the distinctive French touch was provided by designers Kenzo Takada for the Sofitel So Mauritius and Monsieur Christian Lacroix for the Sofitel So Bangkok. Two more openings are scheduled between now and 2015, in Singapore and Mumbai.

2011 ACCOR ANNUAL REPORT/23

Pullman

Pullman São Paulo Ibirapuera – Brazil

2011 EVENTS In 2011, Pullman introduced its innovative Vinoteca service, which offers wine by the glass from a broad, international selection of vintages. Vinoteca features new wines alongside traditional classics so that guests can discover the world’s new wine-producing regions. In , the wine list was created by Olivier Poussier, who was designated the world’s best sommelier in 2000. In 2011, Pullman hotels also received a number of prestigious awards around the world. In Italy, the Pullman Timi Ama was named the World’s Leading Island Resort for the second year in a row. In China, the Pullman Sanya Yalong Bay Resort & Spa was not only on the list of the Top 10 Best Vacation Hotels but was also chosen as the country’s best resort hotel by National Geographic Traveler magazine. The Pullman Dubai Mall of the Emirates was named the Middle East hotel of the year.

Pullman Barcelona Skipper – Spain

Pullman, New attitude hotels by Accor

pullmanhotels.com

Pullman provides cosmopolitan travelers with upscale hotels and resorts that are designed for work and relaxation and located in leading regional and international urban destinations. Pullman hotels deliver a wide range of exclusive services, innovative technologies and a new customized approach to organizing meetings and seminars with the Co-Meeting offer. Pullman Dubai Mall of Emirates United Arab Emirates

24/THE BRAND PORTFOLIO

CLOSE-UP ON… The brand has ambitious development objectives. It is the French leader in its market segment, following the takeover of the Pullman Montparnasse (formerly Méridien), one of the largest hotels in Europe with nearly 1,000 rooms. The brand is pursuing its expansion with the opening of more than 15 new hotels worldwide in 2012. Pullman has embarked on an era of assertive growth in 2011 and 2012, with hotel openings in such new countries as India, Brazil, the Netherlands, New Zealand and Indonesia. The objective for 2015 is to have a network of 150 hotels and resorts worldwide. Pullman Jakarta Central Park – Indonesia

Pullman at Sydney Olympic Park – Australia

20 countries 50 hotels and 10 resorts 17,685 rooms 70% business customers 30% leisure customers 30,000 events a year 60% international guests

2011 ACCOR ANNUAL REPORT/25

MGallery 2011 EVENTS The year was intense for MGallery, shaped by “memorable” development of the network, which expanded by 45% with the opening of 15 hotels. The brand opened the Collection’s first hotel in the United Kingdom – the St. Ermins in London – as well as the Opéra in Hanoi, Vietnam. These two high-profile inaugurations were attended by Kristin Scott Thomas, MGallery’s ambassador. Also in Vietnam – in Hue – the Résidence Hôtel and Spa was designated as one of Asia’s 20 best resorts in the Condé Nast Traveler Readers’ Choice awards. To more fully express the Collection’s upscale positioning, MGallery embraced a new visual identity and reworked its website in 2011.

“MGallery, a Collection of unique hotels where every stay is filled with emotion and discovery.”

Le Grand Hôtel Cabourg –

MGallery, Memorable hotels by Accor MGallery is a Collection of high-end hotels all around the world. Each hotel of the Collection stages with talent a unique personality and story, experienced by guests through its architecture, interior design and services. Each hotel is inspired by one of the three typical atmospheres of the Collection. Some hotels present Heritage origins, places filled with history; others reflect an aesthetic universe, a style, the Signature of a personality that contributed to their creation or decoration; still others promise a relaxing time, Serenity, in a natural or urban retreat. All hotels of the Collection invite guests to experience memorable moments. Kristin Scott Thomas

26/THE BRAND PORTFOLIO

20 countries 48 hotels 5,553 rooms 15 openings 50% business customers 50% leisure customers

Mei Jue

CLOSE-UP ON… The 2012 Guide to the Collection. Featuring a new design and available in French, English and Italian, the 2012 Guide includes all the hotels in the MGallery Collection. Offered to all customers, it reflects the personality and reveals the secret history behind each hotel. The guide is designed like a jewel box and serves as an invitation to discovery and a change of scene. Embellished with Kristin Scott Thomas’s travel diary, it takes readers to the land of the unexpected, where each venue and each stay offers an incomparable travel experience.

An upscale hotel brand created specially for Chinese travelers Accor has adapted its Grand Mercure brand to the special needs of Chinese customers. The new brand features the “Discover a New Authentic” concept that aligns each hotel with its setting and is reflected in reception services, relations with local art and walkways that enable guests to discover the hotel’s environment. The Grand Mercure Shanghai Zhongya – the first Mei Jue hotel – was inaugurated in late February 2012. Customers are greeted by employees wearing a qipao, a traditional elegant dress, and can relax mind and body in daily tai-chi classes. They can also enjoy a bowl of congee – a rice-based porridge – anytime around the clock. Accor plans to open 65 Mei Jue hotels by 2015.

mgallery.com Hostal Nicolas de Ovando Santo Domingo Dominican Republic

China 9 hotels 2,903 rooms Figures included in Mercure at December 31, 2011

2011 ACCOR ANNUAL REPORT/27

58 countries 394 hotels 74,117 rooms 61% business customers 39% leisure customers

Novotel 2011 EVENTS It was a year of innovation for Novotel, as evidenced by the brand’s room of the future (see page 29). During the year, public areas in more than 50 hotels were fitted with Novotel Kinect Expérience terminals, a YouTube Novotel channel was created, and a Shopping Cart was added to the novotel.com website to enable customers to book more services online. An expert in services for families with its Family&Novotel offering, the brand launched the Kid’s Square Menu in Belgium and Luxembourg. The items on the menu were selected by a sample group of around 40 children age 6 to 12 and approved by nutritionists. During the summer, Novotel also signed a major partnership agreement with Disney timed to coincide with the release of the movie Cars 2. The agreement included special activities in the hotels for young guests.

Novotel Bucharest City Centre – Romania

Novotel’s midscale hotels are located in the world’s major city centers, business districts and tourist destinations. Novotel’s consistently high standard of service contributes to the wellbeing of both business and leisure travelers.

novotel.com

Novotel Marseille Vieux Port –

28/THE BRAND PORTFOLIO

Novotel London Tower Bridge – United Kingdom

CLOSE-UP ON… 3120: the room of the future. For four months – 120 nights – a unique room that represented a complete break with traditional hotel offerings was available to guests at the Novotel Paris Vaugirard. Designed in partnership with Microsoft, the room combined contemporary design and digital technologies to create a totally new guest experience with a decompression chamber leading into two separate areas – one for grown-ups and the other for children – featuring giant screens equipped with the Xbox 360 Kinect game console. Guests were also able to test two interactive mirrors, a touchscreencontrolled surface multimedia table and many other surprises. With this hyper-connected room and reworked space, Novotel has demonstrated its ability to innovate, with the goal of offering guests a unique hotel experience. The new Gen 2 suite concept

Suite Novotel, offers a range of midscale hotels located principally in city centers. It is an off-beat, avant-garde approach that invites medium-stay guests to enjoy a different way of experiencing hotel living. The 30 sq.m. suites are flexible spaces with innovative services to meet guests’ needs around the clock. Special offers include free massages on Thursday evenings, the free use of a Smart car, the Boutique Gourmande snack offering and the Suite Box package of online services.

Suite Novotel Paris Issy-les-Moulineaux –

suitenovotel.com

2011 EVENTS The Suite Novotel network welcomed two new addresses: the Paris-Issy-les-Moulineaux and the Malaga in Spain – both of which feature the brand’s new Gen 2 suite concept. The year also saw a reworking of the price policy with the introduction of new medium-stay rates more in line with customer practices. Suite Novotel also continued to integrate Novotel features, such as the Webcorner on a Mac and the In Balance by Novotel fitness offering, as well as the City Breaks and Early Breaks special deals to strengthen the brand’s visibility and international recognition.

29 hotels 3,620 suites 8 countries 63% business customers 37% leisure customers

2011 ACCOR ANNUAL REPORT/29

Mercure

Mercure Paris Ivry Quai de Seine –

2011 EVENTS The Mercure brand was developed extensively in 2011, with 77 hotels opened during the year. In the United Kingdom, the brand made enormous strides, doubling the size of its network with 39 openings. In addition, Mercure launched operations in two new countries: Chile and the Czech Republic. The year was also shaped by the brand’s new international advertising campaign – “Let Good Things Happen” – that was deployed in 20 countries in Europe as well as in Australia, Brazil, Asia and Africa. The campaign was intended to strengthen awareness of Mercure worldwide while asserting its global leadership in the midscale hotel segment and showcasing the diversity of the network. As part of the upgrade program, Mercure tested Dédicaces, its new customizable, innovative and efficient room renovation concept, in Paris, Lyon and Marseille. To the broad deployment of the concept in 2012, hotels will be provided with a unique application. Called the e-design configurator, it allows them to create their own combination of equipment and decorative features in 3D so that rooms can be differentiated and aligned with the hotel’s style. Mercure Danang – Vietnam

Mercure Paris Centre Tour Eiffel – Mercure Stuttgart Sindelfingen An der Messe –

Mercure, a genuine experience guaranteed by a strong brand

mercure.com

30/THE BRAND PORTFOLIO

Mercure is the only midscale hotel brand that combines the strength of an international network with guaranteed quality standards, and the genuine experience of hotels, all different, rooted in their local community and managed by enthusiastic hoteliers. Located in city centers, by the sea or in the mountains, the Mercure network welcomes business and leisure travelers across the world.

49 countries 725 hotels 89,260 rooms 77 openings 66% business customers 34% leisure customers

CLOSE-UP ON… The Mercure.com website Now offered in nine languages, with the addition of Spanish, Portuguese/Brazilian and Polish, the Mercure.com website is available in 27 geolocated versions. In this way, messages can be adapted depending on visitors’ address so that they provide the most appropriate solution to the ’s needs. Content has been enhanced with new hotel fact sheets that function as mini-sites. Visitors also have access to pages organized by theme, such as business trips, meetings and seminars, weekends and vacation stay. Another new feature is a travel idea engine to refine hotel searches with 12 families of offers, including seaside locations and wellness offerings. In 2011, Mercure. com received 15.5 million visits and sales volumes rose by 14%. Mercure Marine Hotel Cherbourg Plaisance –

2011 ACCOR ANNUAL REPORT/31

Adagio Access Nantes Viarme –

The city at your own pace Adagio City Aparthotel, the European leader in urban tourism residences, offers an innovative accommodation concept with two product ranges: Adagio, the mid to upscale range of apartments located in the center of Europe’s major cities and Adagio Access, the economy range of apartments located in town centers throughout and close to Europe’s main cities. Targeting both business and leisure customers, Adagio City Aparthotel offers studio to three-room apartments for stays ranging from a few days to several weeks, with optional services that enable guests to live at their own pace.

Adagio City Aparthotel Adagio Access Caen Centre –

adagio-city.com

2011 EVENTS For Adagio, 2011 will be ed as a watershed year. With the acquisition of Citéa and its network of 49 aparthotels, Adagio City Aparthotel became the European leader in the very fast-growing short-term urban rental segment. The transaction has enabled the creation of Adagio Access, a new network that deepens the offering while expanding it geographically. By 2016, the brand aims to operate a network of 150 aparthotels in 13 countries. A franchise contract was recently signed to set up 40 establishments in Brazil by 2015.

Adagio Access Paris Asnières –

32/THE BRAND PORTFOLIO

7 countries 88 aparthotels 9,710 apartments 7 openings 60% business customers 40% leisure customers 80% of stays are for more than four nights Adagio is a t venture between Accor and the Pierre & Vacances-Center Parcs Group.

Adagio Brussels Centre Monnaie Belgium

The ibis family To respond more effectively to changing lifestyles and consumer patterns, Accor has radically reorganized its economy brand portfolio around the ibis brand, which is known and recognized worldwide. In 2011, ibis, all seasons and Etap Hotel evolved into a family of three powerful, innovative, rejuvenated brands:

ibis has reinvented itself

all seasons has become ibis Styles

Etap Hotel has become ibis budget

The creation of this family will increase the clarity, consistency and strength of the three brands, with the goal of bringing a new level of comfort and a new sense of wellness to the economy segment. ibis, ibis Styles and ibis budget share the same genetic code based on three key notions – simplicity, modernity and well-being – while each maintains its own distinctive personality.

ibis.com

2011 ACCOR ANNUAL REPORT/33

ibis

ibis Delémont – Switzerland

2011 EVENTS The past year will be ed as a turning point in the history of ibis, with the creation of the ibis family and its three brands. The year was also shaped by innovation. At December 31, the Coquelicot room had been deployed in 60% of the network and ibis Web Corners in 75%. The Web Corners provide free and easy access to the Internet in common areas. The brand is also updating its En-cas 24/24 offering, the only snack service available in all hotels. With its focus on convenience, health and taste, this informal service provides customers with delicious treats whenever they like, at the bar or in their rooms. In 2011, 24% of hotel nights were booked via the ibishotels. com and accorhotels.com websites. This represents a major breakthrough for the brand, which also has its own Facebook page that after four months already has nearly 23,000 friends.

34/THE BRAND PORTFOLIO

ibis Paris Berthier Porte de Clichy –

ibis Kayseri – Turkey

53 countries 933 hotels 113,077 rooms 37 openings 58% business customers 42% leisure customers 26 million hotel nights sold worldwide in 2011

ibis Tangiers City Center – Morocco

CLOSE-UP ON… Opening of the 900th ibis, in Tangiers. The opening of the ibis Tangiers City Center reflects the speed and scope of the brand’s development, as 37 hotels opened in 2011 alone. For the occasion, a major communication campaign was organized and a memorable event was held, with 70 journalists from around the world invited to Tangiers on January 31, 2011. What’s more, ibis has no intention of stopping there, as the brand expects to open more than 300 hotels by 2015 and launch operations in around 15 new countries.

ibis, well-being at the best price ibis, the global benchmark in economy lodging, with a warm, caring and efficient personality is offering 24/7 availability service and the most advanced level of comfort in its segment. The brand is reinventing itself and offers its clients a modern, linked-up and quiet room with completely redesigned bedding. ibis also offers the assurance of the highest level of service: a generous breakfast from 4 a.m. to noon, light meals served round the clock, a variety of dining options, free Web Corner stations… ibis is the first hotel chain to obtain the ISO 9001 certification for its professionalism and reliability since 1997. The commitment of the brand in sustainable development is awarded by the certification ISO 14001 since 2004.

ibis Leiden – Netherlands

ibishotel.com

2011 ACCOR ANNUAL REPORT/35

ibis Styles Linz – Austria

ibis Styles

ibis Styles Leipzig

ibis Styles, comfort, unique designs, all-inclusive

ibisstyles.com

36/THE BRAND PORTFOLIO

A non-standardized economy brand that is focused on design and developed mainly through franchising, ibis Styles (formerly all seasons) targets business and leisure customers traveling alone or with the family. The brand features a customer-friendly offering with an all-inclusive price covering the room, breakfast, Internet access and a host of extra amenities. Located in downtown areas and business centers, each hotel has its own distinctive personality and style while all share the same taste for color, light and vitality, always with a touch of humor.

ibis Styles Peronne Assevillers –

2011 EVENTS

14 countries 149 hotels 13,110 rooms 33 openings 58% business customers 42% leisure customers

ibis Styles Toulon Cité de l’Espace –

ibis Styles is the new name given to the all seasons network in 2011, one of three brands in the ibis family. To make the changeover real, a number of units very quickly deployed the brand’s new visual identity, including hotels in Paris-Montmartre, Ba l i Be n o a a n d Le i p z i g . W i t h 33 hotels representing more than 2,800 rooms opened during the year, ibis Styles has made a significant impact for a young brand with a network that already comprises 149 units. The brand also opened new frontiers with its first hotels in Austria, the Netherlands, Sweden and Switzerland, while deepening the network in countries in which it already operates.

CLOSE-UP ON… The new Meeting offer. Well established with leisure customers thanks to its all-inclusive and family offers, ibis Styles is also targeting business customers. To make event organization easier, the brand has designed and introduced two all-inclusive meeting packages that provide simple solutions at the right price. With 87 hotels equipped with at least a conference room and located in a city center, ibis Styles can deliver the benefits that customers in this market segment need.

ibis Styles Yogyakarta – Indonesia

ibis Styles Évry Cathédrale –

2011 ACCOR ANNUAL REPORT/37

ibis budget Tangiers – Morocco

ibis budget ibis Aalst Centrum - Belgique

ibis budget Paris Porte de Vincennes –

2011 EVENTS 2011 saw the transformation of Etap Hotel into ibis budget and the start-up of the ambitious rebranding project with a new visual identity and a reworked communication kit to prepare the first ibis budget openings in 2011 and the deployment of the new banner beginning in April 2012. The brand’s business model is being rethought with the goal of driving market share gains and further improving margins. ibis budget also crossed the threshold of 300 hotels in and 70 in , while launching operations in two new countries: New Zealand and Morocco. The objective is to have a network of 600 hotels by 2015.

ibis budget Tangiers – Morocco

CLOSE-UP ON… The first hotel under the ibis budget banner. In November 2011, Accor opened the first ibis budget in Tangiers, Morocco. The opening marked the initial deployment of new banners in the ibis family of hotels. Located in the Tangiers Free Zone near the international airport, the hotel has 121 rooms that can accommodate one to three people. All rooms feature the cocoon and design concept that provides flexibility, flow and well-being. The atmosphere is cozy with soft colors and varied light sources that create a warm, restful environment.

38/THE BRAND PORTFOLIO

ibis budget, essential comfort at a budget price ibis budget is the Accor Group’s sassy, no-fuss brand. ibis budget offers a smart, modern and very economical solution. The hotels are being renovated with several types of cocoon and design rooms offering a plump duvet, an XL shower, a flat-screen TV, Wi-Fi and a media hub. Snacks available at any time and a generous buffet breakfast! Located near major roads and airports – and increasingly in cities – the ibis budget hotels deliver highly competitive value for money. With 450 hotels in ten European countries, ibis budget is pursuing an international expansion strategy. Outside Europe, Formule 1 is branded ibis budget.

ibisbudget.com

ibis budget Tangiers – Morocco

ibis budget Tangiers – Morocco

18 countries 522 hotels 46,464 rooms Formule 1 (outside Europe) 20 openings 60% business customers 40% leisure customers ibis budget Paris Porte de Vincennes –

2011 ACCOR ANNUAL REPORT/39

hotelF1 is the leading low cost hotel chain in . It offers fully renovated, contemporary double and triple rooms and new reception and breakfast areas. hotelF1 is now more dynamic than ever and is asserting itself as a straight forward brand that meets the needs of smart consumers.

hotelF1 hotelF1 Poitiers Sud –

2011 EVENTS With all rooms totally renovated in 2011 and more and more hotels earning their first star, hotelF1 was very active on the marketing front. To win over its target of young people and workers, the brand launched a large number of offbeat campaigns featuring amusing posters and viral videos as well as an especially sassy Make Noise application. Overall, 2011 was a good year, shaped by a more than 20% increase in online sales and higher occupancy rates.

hotelF1 Évry A6 –

1 country hotelF1.com

243 hotels in 18,213 rooms 60% business customers 40% leisure customers

CLOSE-UP ON… 9,999 rooms at €9.99 From December 15, 2011 to January 15, 2012, hotelF1 launched a hard-hitting promotional campaign offering 9,999 rooms for €9.99 each. Offered first to friends on its Facebook page then relayed by a Web campaign that featured catchy slogans, the operation was a big success with 6,800 rooms sold in just two weeks.

hotelF1 Évry A6 –

40/THE BRAND PORTFOLIO

2011 EVENTS

Motel 6

In 2011, Motel 6 stepped up the transformation of its network by aggressively growing its franchise operations and divesting a number of hotels. The brand received further recognition for its environmental commitment as all hotels have been certified according to the Green Key Eco-Rating program. The Motel 6 distribution system has also been enhanced with the launch of applications for iPhone ®, iTouch® and Android™.

We’ll leave the light on for you®

2 countries 1,028 hotels 99,438 rooms 30% business customers 70% leisure customers

motel6.com

The leading chain of economy motels in North America (United States and Canada), Motel 6, is known for its comfortable, hospitable rooms at the lowest price in the market. With a new room and building design, Motel 6 is revolutionizing the standard of economy lodging in North America. Rooms are equipped with an 80-cm flat-screen TV, a media where guests can plug in DVD players, MP3 players and video games, and a space for eating and/or working with full TV visibility. Motel 6 East Brunswick New Jersey United States

Motel 6 Galveston, Texas United States

2 countries 66 hotels 7,282 rooms 65% business customers 25% leisure customers 10% residents Studio 6 Seattle, Mountlake Terrace – United States

Studio 6 Extend your stay not your budget

staystudio6.com

Studio 6 is positioned as the right choice in the extended-stay budget segment in North America (United States and Canada). Studio 6 combines the comfort of a furnished studio with all the advantages of hotel services at preferential weekly rates. In the United States and Canada, Studio 6 hotels are ideally located in commercial and business areas, with easy access to shopping malls, entertainment and leisure facilities, and restaurants.

2011 ACCOR ANNUAL REPORT/41

Sofitel Guangzhou Sunrich – China

42

Hotel distribution and engineering: Accor makes all the difference Every day, Accor must meet the challenges of strengthening special relationships with customers, guaranteeing occupancy rates, and effectively managing hotels to increase market share and revenue.

2011 ACCOR ANNUAL REPORT/43

Adapting to new consumer habits and needs

26% of sales generated online, representing €2 billion in revenue Today’s customers are increasingly connected. Online, they can compare hotels, book a room from a smartphone (which in the future could also be used to open the hotel room door) and give their opinion on TripAdvisor. With the increase in online sales, hotel distribution is being completely transformed. The sector is being impacted by the growing number – and influence – of regional and international online agencies, search engines, comparison shopping sites, social networks and other intermediaries. The digital revolution is reshaping relationships between industry players as well consumer patterns by enabling the creation of direct, lasting ties with each customer. In response, Accor is investing heavily in information systems and technologies to become a major player in the digital hotel industry and establish regular, more meaningful interaction with customers through its websites and mobile phone platform.

1 booking every 3 seconds via the Accor websites

8 million visits a month to Accorhotels.com

8.3 million 44/HOTEL DISTRIBUTION AND ENGINEERING: ACCOR MAKES ALL THE DIFFERENCE

850,000 s of the Accorhotels.com iPhone application

AN AMBITIOUS DIGITAL STRATEGY Digital hospitality is Accor’s strategic response to the explosion in new technologies and the resulting changes in customer lifestyles.

200 million unique visitors to the 13 Accor brand sites in 2011.

A continuous increase in online sales

network of professionals. Another

loyalty card. eCheck-in and eCheck-out

goal is to encourage them to come back

are just the first in a series of dedicated

In 2011, online sales rose to 26% of

by targeting them with offers that

electronic services for customers who

the total. The increase reflects the

anticipate their needs.

book their rooms via Accor websites.

profound changes in e-commerce, and

From opening a customer

more specifically in the travel market,

to paying the bill, it will be possible

brought about by the rapid development

to manage every step of the hotel

of cellphones – including smartphones –

customer process from a laptop

The Accor websites offer an increasingly

and social networks. These developments

computer or smartphone. That’s what

wide range of functions. With more

have totally transformed the relationships

Accor means by “Digital Hospitality.”

than 200 million unique visitors to the

An effective, efficient online presence

13 brand sites and the Accorhotel.com

between customers and the hotel

portal in 2011, Accor ranks among

to focus its distribution strategy on

Revolutionary change in hotel check-in(1) and check-out(2) procedures

the Web, mobile applications and social

In 2011, Accor conducted innovative

new Mercure website and a revamped

networks. The goal is to be able to

tests of a system that enables customer

ibis budget site. In addition, Accor

offer guests greater simplicity, fluidity

to book online and check in via their

enhanced its websites for travel specialists

and recognition at every stage of

computer or cellphone. Guests who

with the Accorhotels.com Professional

the customer experience:

opt for this method receive a welcome

solutions offering for travel agents, small

• when they reserve a room,

e-mail the day of their arrival indicating

and mid-size businesses and corporate

by providing them with one-click

their room number and a code for

event and meeting organizers.

booking in their customary

obtaining their key from a self-service

destinations as well as targeted

check-in terminal in the hotel. With

offers aligned with their preferences;

the service, guests can choose certain

industry, from initial booking to post-stay follow-up. As a result, Accor has decided

• when they arrive at the hotel, by having their details on hand and speeding the check-in process; • during their stay, by offering them

room options (near or far from the elevator, smoking or non-smoking, upper or lower floor, etc.) and guarantee their reservation regardless of their arrival time. On their last day, they check-out from

solutions that make life easier and save

their cell phone by validating the bill

time, such as the eCheck-out service;

sent by the hotel, thereby saving a

• after their stay, by maintaining

considerable amount of time. In the long

with them so that they share their

run, the service will enable guests to

experience with friends and take

access their rooms directly using their

advantage of advice from the Group’s

smartphone or Le Club Accorhotels

the hotel industry’s online leaders. The past year also saw the launch of the

Rapid growth in mobile phone applications Today, no one doubts the importance – either now or in the future – of sales made via mobile phones. With 700,000 monthly visitors, mobile solutions already for more than 1% direct online sales. The iPhone application was ed 845,000 times in 2011 and Accor’s offer now includes a Blackberry solution allowing Web s to book at their professional rates. In the years ahead, Accor plans to invest heavily to make this solution the main hotel booking channel and the preferred way for customers to interact with the Group.

(1) Check-in: upon arrival, guests are given a room and an is opened enabling them to use the hotel’s pay services. (2) Check-out: when leaving the hotel, guests pay for their stay in full.

2011 ACCOR ANNUAL REPORT/45

6,000 new every day for Le Club Accorhotels

Accor has introduced Meetings & Events,

In 2011, a number of brand launched their

its first e-brochure that enables business

Facebook page, including:

customers to organize corporate events

• ibis, with 22,500 fans and more

and book the most appropriate offer

than 4,600 visitors a week. The page

in of geographic location, number

is available in four languages;

of participants and rooms, and the total area of conference rooms. The brochure lists some 1,700 hotels in more than 80 countries.

• ibis budget which already has 24,000 fans; • Sofitel with more than 42,000 fans on its Facebook page at year-end 2011, after

Social media: a powerful tool for increasing brand affinity and diffusing Accor’s offerings

the launch of its online contest “Around

Highly responsive, social networks

novel by Jules Verne and spotlights

like Facebook, Twitter, TripAdvisor and

the network’s 120 hotels.

YouTube can be used to showcase offers, generate buzz and create preference for the Accor brands. Serving

the World with Sofitel: 80 Magnifique Nights” that was inspired by the famous

Ramping up the Le Club Accorhotels loyalty program

Spearheading Accor’s online strategy Offered in 12 languages and 28 versions tailored to specific local needs, Accorhotels.com is the leading hotel booking site in and a forefront player in Europe. With 8 million visits a month worldwide, the portal s for 35% of the Group’s online sales. Featuring a wealth of content and services, including an interactive map, hundreds of hotel videos and tourist information, the site was reworked in 2011 with a new graphic interface and additional functions. The customer space – now called My Accorhotels.com – has been revamped to make online booking easier and enable s to access information about the Le Club Accorhotels loyalty card. During the year, the portal was awarded 1st prize in customer relationship management from BearingPoint and TNS Sofres following a survey of some 4,000 customers in .

as invaluable communication vectors,

The Accor loyalty program is developing

these networks enable the Group

at a sustained pace. Renamed

to forge special relations with customer-

Le Club Accorhotels in March 2012, it

fans who become specifiers for others

benefits from high public awareness of

in their circle of friends. In this area,

the Accor brand and welcomes 6,000 new

Accor has made major breakthroughs,

every day. First launched in

establishing its brands and the

September 2008, the program has easily

Accorhotels.com site on Facebook

exceeded its targets with 8.3 million

and Twitter and creating an innovative

at year-end 2011, including

partnership with TripAdvisor. Some

2 million in Asia. Free of charge and

Le Club Accorhotels also ensures

2,500 Accor hotels are now rated with

entirely online, this worldwide program

customers of a personalized welcome,

customer opinions posted freely and

is deployed in 2,300 hotels operating

targeted offers and dedicated promotions.

transparently at Accorhotels.com.

under nine different brands (Sofitel,

For Accor, the program serves as

Pullman, MGallery, Novotel, Suite Novotel,

an important lever for retaining and

Mercure, Adagio, ibis and ibis Styles).

communicating directly with guests or for

For each euro spent in an Accor hotel,

holding online contests like Jackpot Days,

Le Club Accorhotels earn points

with thousands of points to be won.

that can be used in the network or

Above all, it provides a way for better

converted into miles with airline partners

understanding guests’ needs and

like SkyTeam and Star Alliance.

providing them with customized offers.

In early 2012, Accor introduced Le Club Places, a Facebook application that enables Le Club Accorhotels to earn additional points when they use global positioning services during their stay.

46/HOTEL DISTRIBUTION AND ENGINEERING: ACCOR MAKES ALL THE DIFFERENCE

Novotel Paris Gare Montparnasse –

A POWERFUL SALES AND MARKETING ORGANIZATION Sales are all important. To meet this day-to-day challenge, Accor has fully engaged professional teams around the world and an array of multichannel tools that they provide to hotel operators. The brands are also especially active via extensive promotional campaigns that they conduct throughout the year.

A new record for TARS TARS(1),

the Accor central booking

A constant commitment from global sales teams

system, had a record year in 2011, when

A total of 34 sales offices are in operation

it ed for nearly 46% of total sales,

around the world, with 700 sales

compared with 43% in the previous year.

professionals managing 65,000 large

Within the Group, the system is

s and 600 strategic s, which

connected to all distribution channels:

include leading airlines, major companies

direct sales, which involve: • its websites and traditional distribution channels (Accorhotels.com and the brand sites); • its nine call centers, which generate substantial revenue and handle 3.3 million calls a year in 14 languages. In 2011, they processed more than 300,000 e-mail messages and faxes. indirect sales, which concern:

and wholesalers. Global sales teams

In 2011, a contract was signed

generate annual revenue of over €3 billion.

with Connect Worldwide to

Accor has also deployed a dynamic

and strengthen Accor sales teams in India

partnership strategy with major players

and South Korea. Building connections

in online bookings, both international,

between the Group’s booking system

such as Expedia, Travelocity and Orbitz,

and those of leading distributors, like

and regional like Wotif in the Pacific.

Hanatour in South Korea, Ctrip in China

The Group has reinforced its presence and

and Saltours in India, will enable Accor

commercial ties in all major emerging

to mine these fast-growing markets

markets, which are increasingly important

for customers to fill its Asian, European

generators of hotel nights.

and South American networks.

• 21,000 traditional or online travel agencies; • wholesalers and tour operators; • time-honored distributor partners like American Express and

2011 revenue by distribution channel

Carlson Wagonlit Voyages.

60%

TARS is a powerful driver of bookings and performance for the hotels. As Accor steps up its transformation,

and travel agencies

with a hotel base that is 50% operated

Indirect Web

under franchise or management contracts,

Call centers and

TARS’s power is demonstrating the

Central distribution

Distributor partners

16% 14%

e-mail/fax bookings

Group’s ability to deliver revenue growth

Direct web

for franchisees and investors.

AlClub loyalty program

14%

without TARS

Hotel PMS(1) (direct booking) (1) Property Management System.

9%

40% 7%

(1) Travel Accor Reservation System.

2011 ACCOR ANNUAL REPORT/47

Especially active brands

easy to use (managing multi-rate systems

Around the world, the hotel brands rolled

and travel agency commissions) and

out a large number of programs and

reliable (securing data, providing

campaigns on their website or Facebook

comprehensive reporting, and constantly

page to address the needs of different

updated by the TARS database).

business and leisure traveler segments

With the same focus on streamlined

and appeal to consumers looking for value

processes, Data Web enables real-time

added and good deals, especially during

online postings of all hotel information,

seasonal promotions. Examples include:

including photographs, descriptions,

• Mercure’s Key Moments offer;

rates, room availability and revenue

• the ibis campaign proclaiming that “This summer at ibis hotels, we’ve cut the price, not the service,” which was

management recommendations. With this application, hotel data can be updated in just a few clicks.

deployed by 600 hotels in 27 European countries; • ibis budget’s “Frozen Prices” promotion; • the ibis Styles summer campaign that tripled the number of hotel nights booked compared with the previous-year period.

Tools to boost our partners’ performance To maximize hotel occupancy and manage its business more closely, Accor designs and develops practical tools for use by frontline staff to manage hotels on a day-to-day basis. One example is Resa Web, an easy-to-use booking management system. This highly intuitive Web portal was developed to make life less complicated for hotel managers and provide them with access to the full range of Accor distribution tools. Used by call centers and hotels, Resa Web is a hotel performance booster (handling inter-hotel bookings, optimizing rates, providing additional customer services),

48/HOTEL DISTRIBUTION AND ENGINEERING: ACCOR MAKES ALL THE DIFFERENCE

UNIQUE EXPERTISE TO PARTNERS

A Mercure Dédicaces room

Accor provides its franchised and managed partners with its hotel engineering expertise to help them improve their hotel’s performance and create differentiation.

Helping hotel operators and partners in their day-to-day management

accommodations, restaurants, conference facilities, relaxation and fitness areas

Expertise for successfully building, renovating and outfitting hotels

Because of its history and experience

as well as relations with customers

Since the beginning, Accor has always

and human resources.

designed, built, outfitted and renovated its

as the world’s leading hotel operator,

To be the best in all these areas,

hotels, thereby developing unique skills

Accor has developed a wide range of skills

Accor designs and develops easy-to-use

that are an invaluable asset for its

and solutions that have earned it a name

tools for frontline staff that manage

partners. Some 300 employees in over

in the hotel industry. These high value-

hotels on a day-to-day basis and provides

22 countries the brands with

added capabilities cover all aspects of

training to enhance their skills and

specialized skills in deg high-

hotel management and development,

enable marketing, purchasing, technical,

performance, innovative, sustainable

including construction, design, renovation,

design and distribution teams to better

hotels. Depending on their needs,

purchasing, finance, management, new

serve hotel operators. At a time when the

partners can take advantage of a full array

technologies, marketing, sustainable

Group is transforming, with 50% of the

of solutions that enable them to optimize

development and, as demonstrated

portfolio now operated through franchise

hotel design and renovation projects, as

by the Academies, human resources.

agreements or management contracts,

well as investment costs, and to reduce

Accor’s operating excellence is also

this expertise in hotel engineering

water and energy use. They also receive

reflected in its ability to manage day-to-

represents a considerable advantage for

in ensuring that their hotel

day hotel operations, at every moment

persuading and ing partners.

delivers the brand’s product promise,

and all levels. This involves managing

is innovative in of design and technology, and provides guests with a safe, comfortable stay. One original example is the Mercure brand’s Dédicaces program in , which offers a unique approach to large-scale room renovation projects in non-standardized hotels. Hotel equipment. Working with Purchasing experts, the Hotel Equipment Services (HES) teams are in charge of supplying hotels that are being built or renovated with decorative features, bedding, lighting and kitchen equipment. Their area of intervention extends from preliminary studies and needs identification to hotel operations and equipment installation. These experts also offer consulting and assistance services to provide franchised and managed partners with the solution best adapted to their needs.

2011 ACCOR ANNUAL REPORT/49

600 revenue management experts

200 buyers Skills to maximize revenue and improve profitability

is the marketplace strategy, which

To win the battle for revenue, Accor

a large number of different brand hotels

provides its partners with powerful

that are impacted by the same flows,

distribution and management tools

events and economic environment.

(see page 47) and develops new job

The goal is to optimize revenue per hotel.

tracks and highly advanced techniques.

Purchasing the right product and

Revenue management to improve

service at the right price. A strategic

the top line and optimize revenue per

business for Accor, the Purchasing

room depending on the hotel’s location,

function is comprised of 200 expert

market segment and current situation.

buyers in more than 20 countries. Their

Accor has 600 revenue management

mission is to identify, evaluate and select

experts specialized in pricing and

innovative, competitively priced products

in analyzing reservation data used

and services that comply with each

to produce forecasts. The Group also

brand’s standards, as well as with

trains a large number of team

regulatory requirements and sustainable

in these techniques (see page 79).

development criteria, and negotiate

Another example of this approach

their purchase with suppliers. Working

is deployed in regions where Accor has

in more than 20 countries

in project teams comprised of frontline, technical, marketing, IT and finance teams, they buy products at the lowest total cost, meaning not just the purchase price but also integrating installation, maintenance and recycling costs. Around the world, they certify thousands of products and services, which are divided into 100 families in a database that is shared with partners.

Expertise to make Accor more attractive The Group deploys its skills and capabilities in marketing, human resources and sustainable development to create preference among customers, employees and other stakeholders.

Winning over customers In the area of design and fixtures, Accor can rely on in-house teams capable of cost-effectively outfitting public and private areas in hotels to make operations more efficient and economical while enhancing guest comfort and well-being. Working closely with architectural firms, these teams integrate the latest trends in materials, space installation and modularity, comfort and technologies. They help to reinvent the customer’s experience of the hotel room by breaking with traditional hospitality industry practices and combining the worlds of design and digital technologies.

50/HOTEL DISTRIBUTION AND ENGINEERING: ACCOR MAKES ALL THE DIFFERENCE

the Market Research Consumer

Attracting talented people and enhancing their skills

Intelligence Department, which identifies

As the world’s number one hotel

and analyzes consumer trends so that

operator, Accor has developed expert

new customer patterns and expectations

skills in managing people and training

can be taken into .

them in hotel industry professions.

Powerful innovation and marketing

With its network of 17 Academies,

resources. The brands also have an

the Group is also the world’s leading hotel

important role to play in attracting and

school. To its development and

reassuring customers and enabling them

the transformation of its business model,

to fulfill their dreams. Accor is investing

Accor is pursuing a job track strategy

to strengthen awareness of its brands

by developing talent pools of revenue

among consumers and specifiers

managers, sales managers and other

through broad-based multi-brand, multi-

process experts. As for the brands, they

regional campaigns like Crazy Sales

deploy special human resources policies

and Super Sales. Each brand also

adapted to their positioning and

communicates individually via powerful,

development needs. Examples include

Accor has made sustainable development

innovative mass media and below-the-line

ibis’s program that enables employees

a cornerstone of its strategy with the

campaigns. In addition, they are active

to certify acquired experience and

goal of developing it into a competitive

in sponsorship initiatives and high value-

Novotel’s mobility opportunities.

advantage. The Group designs and

added partnerships with other leading

For the external public, Accor has an

develops innovative solutions that

companies or banners.

extensive program to present the Group

the development of local communities,

and hotel industry professions to young

reduce water and energy consumption

people. These include partnerships

and lessen the environmental impact

forged with a large number of schools

of its hotels. One example is the Plant

and high-performance online tools

for the Planet program, which invites

deployed on social networks and

customers to reuse bath towels. A portion

the AccorJobs.com website.

of the savings on laundry bills is then

Design teams are ed by

Identifying and reducing the environment impact of operations

donated to reforestation programs. In 2011, Accor announced the launch of a platform for sharing knowledge on social and environmental issues relating to the hospitality industry. To its development ambitions, Accor introduced the PLANET 21 program, based on 21 commitments and quantifiable objectives for 2015, which is intended to help the Group meet its goal of reinventing hotels sustainably.

2011 ACCOR ANNUAL REPORT/51

Sofitel Guangzhou Sunrich – China

52

Development: a record year With 38,700 rooms opened in 2011, Accor sured its ambitious objectives and broke a ten-year-old record. This dynamic expansion confirms the Group’s commitment to consolidating its leadership in Europe, currently its largest market, and to holding forefront positions in Asia-Pacific and Latin America. Above all, it rewards the Group’s outstanding skills and attractive brands. With franchise agreements and management contracts ing for nearly 90% of development, Accor continued to divest its non-strategic property assets at a sustained pace.

2011 ACCOR ANNUAL REPORT/53

SELECTED HIGH-PROFILE OPENINGS IN 2011 1

1. Sofitel Mumbai BKC (India) With 302 rooms and suites, 5 restaurants, 9 conference and event rooms and a So Spa, the hotel symbolizes the brand’s entry into the Indian market. 2. Mercure Sydney Potts Point (Australia) 227 rooms in the heart of the Potts Point entertainment district. 3. Mei Jue Jinan Sunshine (China) With 333 rooms blending elements of French and Chinese culture and design, this upscale hotel represents the successful deployment of a brand created for Chinese customers. 4. St. Ermin’s Hotel in London (United Kingdom), MGallery Collection With 331 rooms and the innovative styling of architect Dayna Lee, the hotel is the United Kingdom’s first addition to the MGallery Collection. 5. Suite Novotel in Issy-les-Moulineaux () The hotel is the Group’s most advanced in of environmental building standards. 6. ibis Kiev (Ukraine) With 212 rooms, the hotel is the brand’s first in Ukraine. 7. ibis budget in Tangiers (Morocco) With 121 cocoon and design rooms, this is the world’s first ibis budget hotel and the first in the vast project, launched in September 2011, to revitalize the economy segment with the ibis mega-brand.

54/DEVELOPMENT: A RECORD YEAR

2

3

5

4

6

7

Pullman Paris Montparnasse () The hotel is one of the largest in Europe, with nearly 1,000 rooms.

2011 ACCOR ANNUAL REPORT/55

A SHARPLY FASTER PACE OF DEVELOPMENT The Group’s development strategy is organized around two key priorities: strengthening its leadership in Europe and ramping up its operations in emerging markets, especially in Brazil, India and China where Accor has already established solid positions.

Adapting to local markets and carrying out acquisitions

local brand for the Chinese domestic

By choosing Accor, investors and

market. Adjusting standards, as was done

franchisees know they can count on the

To maintain this pace of openings,

with Novotel, will also broaden the range

Group, which is backed by:

the Group can rely on two advantages

of opportunities that can be pursued;

the strength of its brands and their

that make all the difference: its flexibility

forces with major real estate

international networks, and the power and

and its responsiveness. In 2011, Accor

players to carry our strategic transactions.

quality of its distribution and purchasing

demonstrated its ability to:

In 2011, Accor, with its partner Unibail

systems;

adapt its brands to local markets

Rodamco, acquired the Pullman

its operational excellence in providing

or make them more flexible. One example

Montparnasse (formerly the Méridien

lodging and restaurant services, managing

was the creation of Mei Jue, an upscale

Montparnasse) in Paris, one of Europe’s

hotels on a day-to-day base, and tracking

largest hotels with nearly 1,000 rooms;

and satisfying customers;

step up its development through

its capacity for innovation

franchising. Accor successfully pursued

in marketing, restaurant and service

this strategy in the Midscale and Economy

offerings, distribution, design and

segments for its Mercure brand in the

sustainable development.

United Kingdom; make key acquisitions. One example was Mirvac in Australia and New Zealand, where Accor strengthened its leadership in the region through a transaction that will become a reality in 2012 (see opposite).

Forging lasting partnerships Thanks to its frontline teams and their intimate understanding of each markets, Accor has the assets needed to develop solid, long-term partnerships. As the Mercure London Kensington – United Kingdom

world’s number one hotel operator, the Group has been creating and developing

Novotel Auckland Airport – New Zealand

high value-added hotel solutions and expertise for nearly forty-five years. The goal is to make life easier for its partners, guarantee the success of their projects and ensure them a return on investment. This expertise plays a determining role in winning the battle for revenue, improving margins and satisfying customers.

56/DEVELOPMENT: A RECORD YEAR

Mirvac, a key acquisition In late 2011, Accor signed an agreement to acquire Mirvac group’s hotel management operations for €195 million. As a result, 48 hotels will Accor’s Australian and New Zealand network in 2012, mainly in the midscale, upscale and luxury segments. In all, 65% of the properties are located in Australia’s four largest cities. The acquisition represents a major step Accor in the two countries where it is the market leader and has had operations for twenty years.

In 2011

MISSION ACCOMPLISHED IN 2011

318

new hotels

38,700

With the opening of nearly 39,000 rooms in 2011 (compared with 25,000 in 2010), Accor has responded to a significant challenge, suring its ambitious development objective and setting an all-time record. Worldwide, 318 new hotels (versus 214 in 2010) were opened during the year.

Outstanding results for the brands

years. The Group has a backlog of

Mercure, with 77 openings and more

already committed and more than

than 9,000 new rooms that ed

200 hotels with 30,000 rooms in an

for over 25% of new hotels;

advanced state of negotiations. However,

Adagio, with 56 openings, of which 49 through the acquisition of Citéa; Motel 6 and Studio 6, with 55 new hotels representing more than 4,100 rooms; ibis Styles (formerly all seasons), with the inauguration of 33 hotels representing over 2.800 rooms,

500 hotels representing 80,000 rooms

since franchised hotels, which are increasingly numerous, can be brought to market very quickly and so are not all included in those figures. In 2011, development(1) projects were as follows: • 47% in Europe; • 33% in Asia-Pacific;

a young brand whose network already

• 50% in the economy and budget

This excellent year in 2011 bodes well for the future as Accor’s goal is to open 40,000 rooms a year over the next three

Mercure Arbat Moscow – Russia

the pipeline is certainly larger than that

an impressive breakthrough for comprises 149 hotels.

rooms opened

segments; • 89% under asset-light structures (management and franchise contracts). (1) Based on number of rooms.

2011 Openings

1,654 rooms

12,772 Africa and Middle East Latin America

rooms

67 hotels

10 hotels

2,094 rooms

13 hotels

4,117 rooms

55 hotels

North America Rest of Europe Asia-Pacific

8,938 rooms

9,086

rooms

89 hotels

84 hotels

2011 ACCOR ANNUAL REPORT/57

DEVELOPMENT DRIVERS The Asia-Pacific reaffirmed its powerful momentum and potential in 2011. Clearly, it’s a market in which companies must invest today if they want to reap the benefits tomorrow. As for Europe, the Group’s historic market and the cornerstone of its operations, it remains the world’s largest hotel market.

Asia-Pacific

1,000 rooms, reflecting the efforts

In this highly competitive market, the Group

undertaken in recent years. Accor also has

enjoyed the strongest growth in its history

over 40 hotels in construction in the

in 2011, inaugurating 67 hotels representing

country, covering all market segments;

12,772 rooms in 11 countries. The region

opened new hotels in several other

ed for 33% of Accor’s development,

countries in the region, in particular South

even excluding the acquisition of the Mirvac

Korea, Indonesia, Thailand and Vietnam.

network (see page 56). Among its 2011

Mei Jue: creating a local brand In response to strong demand from Chinese customers, Accor has launched the Mei Jue brand. The goal is to meet the needs of Chinese people traveling in their own country with an offering of upscale leisure hotels that satisfy customer expectations.

by 2015. Moreover, they demonstrated

achievements, Accor:

Europe

turned in a fine performance in

In 2011, Accor strengthened its leadership

of the Group’s franchising teams. Overall,

China, where over 4,000 rooms opened;

by deploying a dynamic growth strategy,

Accor opened 41 hotels, representing

especially in the economy segment where

more than 4,200 rooms, in the country

the hotel chain penetration rate remains

during the year;

low in many countries. In all, 173 hotels

, with 89 new hotels and

got its operations off the ground in India with the opening of more than

were opened, representing more than ibis Larco Miraflores, Lima – Peru

18,000 new rooms.

the responsiveness and creativity

8,938 rooms opened in 2011, continued to underpin the Group’s development

Europe alone ed for nearly 50%

in Europe. This represented more than

of the Group’s development during the

half of Accor’s development in Europe and

year. In of volume, it doubled

23% of total room openings worldwide.

its 2010 development performance. This

Mei Jue Shanghai Zhongya – China

excellent result, achieved mainly through

Latin America

franchise agreements, was partially due

Latin America is the Group’s third largest

to the acquisition of Citéa, a network

market, where expansion is being driven

of 49 short-term urban rental apartments

by Brazil. Overall, 13 hotels were opened

with 4,700 rooms. Two countries posted

during the year, of which nine in Brazil

especially impressive results:

which is preparing to host the FIFA World

The United Kingdom, with the g

Cup in 2014 in 12 cities, as well as the

of two franchise contracts: one early

Summer Olympic Games in 2016.

in the year with Focus Hotels concerning

Accor is gearing up with 80 hotels and

ten hotels and the other in late September

11,000 rooms in the pipeline, mainly

with Jupiter Hotels Ltd for 24 units

in the Economy segment and to be

formerly operated under the Ramada

managed through franchise agreements.

banner. These two outstanding

In November 2011, Accor signed three major

transactions are in line with the strategy

contracts with several partners to build

pursued by Mercure, which is aiming

25 hotels to be operated via franchise

for a network of 150 hotels in the country

agreements under the ibis budget brand.

58/DEVELOPMENT: A RECORD YEAR

open R ed in ooms 201 1

Chin a India Indo n Thai esia la Aus nd tr New alia and Z Othe ealand r cou ntrie s

3,98 0 1 , 00 7 1 , 20 2 1,61 1 3,67 2 1,30 0

CLOSE-U P

ON ASIA-PACIFIC Accor in Asia-Pacific: • A portfolio of 477 hotels and more than 92,000 rooms. • Operations in 20 countries. • 67 hotel openings representing 12,772 rooms in 2011.

• 200 hotels and 45,000 rooms in the pipeline. • 30 developers based in Sydney, Shanghai, Seoul, Tokyo, Singapore, Jakarta, Bangkok, Ho Chi Minh City and New Delhi. • No. 1 in Australia and New Zealand.

A booming market A highly competitive market, the Asia-Pacific region is also very diverse, with mature hotel markets in Australia, New Zealand and Japan as well as up-and-coming markets like India and China. Accor already has 477 hotels and over 92,000 rooms in the region, which is home to a rapidly expanding regional market whose growth is being driven by the emergence of an enormous middle class that every year adds tens of millions of new households to its ranks. This middle class today has both the desire and the financial means to pursue leisure activities. In particular, more and more Chinese and Indians are traveling both inside and outside their home countries.

2011 ACCOR ANNUAL REPORT/59

Pullman Paris Bercy –

A VALUE-CREATING PROPERTY STRATEGY In 2011, the combined success of the asset-light strategy (ing for nearly 90% of hotel openings during the year) and the asset management program (with 129 hotels sold) speeded Accor’s transformation.

Pursuing the asset management strategy

Property asset management: a dynamic year in 2011

In 2005, the Group embarked on an

In 2011, Accor successfully completed

which is now the European leader in the

extensive asset management program

several major property asset disposals

short-term urban rental segment

designed to:

involving:

with 10,000 apartments;

• in , Citéa (49 hotels representing 4,700 rooms) was acquired by Adagio,

optimize the property portfolio

Sale & Management-Back

• in Australia and New Zealand,

and structurally improve its profitability

contracts, under which Accor sells

Mirvac’s hotel operations (48 units)

by adapting hotel operating structures

hotels but continues to operate

were acquired in a transaction that

(owned, leased under variable rent

them under long-term management

will be completed in 2012.

contracts, franchised or managed)

contracts. Examples during the year

depending on their location and

included the Sofitel Arc de Triomphe

market segment;

for €69 million and the Pullman Paris

focusing on its hotel business to

Bercy for €195 million;

develop the brands and its operational

Sale & Franchise-Back contracts,

excellence for the benefit of partners;

whereby Accor sells hotels that

paying down debt to finance

are then operated through franchise

development and possible acquisitions.

agreements. This was the case in 2011

At year-end 2011, more than half of

for 24 Motel 6 hotels in North America;

the program to dispose of 450 hotels

Sale & Variable Leaseback contracts,

in the 2010-2013 period had already been

under which Accor sells hotels that are

completed. In early 2011, the Group

then operated through variable-rent

announced it was stepping up the

leases(1). This arrangement was used

program with a new plan until 2015

to divest seven Suite Novotel properties

that is intended to have a €2.2 billion

in , for a total of €77 million.

impact on adjusted net debt for

The Outright Sale of the Mercure

the 2011-2015 period. Unlike its American

Chopin in Warsaw (Poland) (250 rooms)

and British competitors, Accor does not

in 2011 for €31 million.

intend to become exclusively a franchiser. The Group is leveraging its operational

New acquisitions

excellence to remain a hotel operator,

Hotel disposals reduce debt and thus

including in the Upscale and Midscale

provide the Group with the financial

segments, which are especially

flexibility needed to take advantage of

concerned by property asset disposals.

possible external growth opportunities.

A less capital-intensive approach to development Network development is directly concerned by the program asset management strategy, which acts as a lever in two ways: • the sale of hotels in the upscale and luxury segments helps to finance the development of the economy and midscale segments while strengthening brand awareness and the Group’s distribution systems; • more powerful brands and distribution channels the development of the network through franchising agreements, especially in Europe, and through management contracts, particularly in the Asia-Pacific region. In 2011, Accor opened 50% of its new hotels under management contracts, notably in Europe and Asia-Pacific, and 39% through franchise agreement, mainly in Europe, North America and Australia.

This strategy was pursued in 2011 with the successful acquisition of integrated hotel networks:

(1) Accor leases the building from a investor, paying rent that varies according to the amount of revenue generated.

60/DEVELOPMENT: A RECORD YEAR

In 2011

FRANCHISING TAKES OFF IN EUROPE

806

More than 1,000 Accor hotels are managed under franchise agreements in Europe. In 2011, this operating structure ed for two-thirds of the Group’s development in this region.

in were managed through franchise agreements

hotels out of

1,489

Substantial development potential

due to major technological developments.

who are regularly consulted and included

The complexity and rising costs of

in the Group’s projects. This was the case

Accor sured its franchising

distribution are inciting independent hotel

in 2011 with the new IPMS integrated

development objectives for Europe with

operators to structured networks.

management and booking system

the opening of 94 hotels overall, of which

With Accor, they can take advantage of

integrated into hotels and with

40 in the United Kingdom and 29 in .

TARS, the Group’s powerful central

the launch of the ibis mega-brand project.

However, franchising still has considerable potential given that chains for only 25% of hotels in Europe, compared with 70% in the United States. The Italian market, for example, is still largely dominated by independent hotel operators. That is why brands like Mercure, ibis, ibis budget and ibis Styles can look forward to a bright future. In 2011, Accor completed two important transactions in the United Kingdom, g two major franchise agreements covering a total of 34 hotels. While the penetration rate for hotel chains remains low, the trend is gaining momentum. Today, independent hotel operators are faced with both the recession and a distribution system that is becoming more industrialized

booking system that generates nearly 50% of hotel revenue. They also benefit

ing the Group’s partners

directly from Accor’s innovative products,

Because of the commitment and strong

marketing campaigns and expert skills as

fit between development, operational

the world’s number one hotel operator.

and function teams, Accor can rapidly and successfully transform

Customized solutions and reinforced teams To this deep-seated trend, Accor has reworked its organization and developed a toolbox designed to lead the network of franchisees and help them optimize their performance. This is the case in , Accor’s leading franchise market with 806 out of 1,489 hotels managed through franchise agreements. Resources include: dedicated franchising units integrated into both brand operational management and development teams;

ibis Styles Nantes Sud Rezé –

regular hotel inspections carried out by 16 franchise directors; a partnership charter that presents the keys to a win-win relationship; meetings between the Group and franchisee associations as well as major events organized with and for franchisees. In November 2011, the Franchising Convention held in Rabat, Morocco

development projects into hotel openings. The franchise director plays a key role in this process, organizing the initial between franchises and Accor specialists. Everyone is involved in ensuring that the hotel and its teams are perfectly operational for opening day and that the brand promise is kept. This for franchisees includes: welcoming them into the Accor family with, for example, the “Welcome to ibis Styles” module in ; involving the Program Committee in introducing and monitoring the brand’s standards; training the partner’s employees and providing them with skills in hotel excellence (quality, purchasing, sustainable development, etc.) through the Accor Academy network; implementing management and distribution tools to optimize revenue.

was attended by 250 franchisee partners,

2011 ACCOR ANNUAL REPORT/61

Sofitel Essaouira Mogador Golf and Spa – Morroco

62

PLANET 21 reinvent hotels sustainably With PLANET 21, Accor has made 21 commitments in favor of sustainable development. Health, nature, carbon, innovation, local development, employment and dialogue: 21 commitments for the well-being of our world. In all our hotels, we work with employees, guests and partners to reinvent hotels – sustainably. Care for the planet? Please, step in.

2011 ACCOR ANNUAL REPORT/63

A NEW ERA OF AMBITIOUS EXPANSION Accor’s new sustainable development strategy is called PLANET 21. The program launches a new era in a commitment that dates back to 1994.

Reconciling hospitality and sustainable development

sustainable development practices into

The program is structured around

its hotel operations.

21 commitments backed by quantifiable

For Accor, sustainable development is both

The period was shaped by a number

a way of doing business and a practical

of significant events:

approach that relies heavily on innovative

created in 1998, the Hotel Environment

solutions. Reconciling hospitality with social and environmental responsibility requires the active involvement of employees and customers alike.

Charter has enabled hotels to continuously improve their performance as measured

in 2005. A unique, upgradable tool, it helps to measure, manage and report

that have since become standards for

the Group’s sustainable development

the Group and examples for the industry

performance. To include a carbon module

as a whole. Between 1994 and 2006

beginning in 2012, OPEN is used in

– from the creation of the Environment

all hotels and improves the monitoring

department to the founding of the

of water and energy use and waste

Earth Guest program with its focus

management.

on people and the environment – Accor

Launching a new strategy Reinventing hotels sustainably is Accor’s stated goal with its new PLANET 21 program. As the Group enters a new phase of sustained expansion, it is reaffirming its approach to responsible development, which generates value shared by everyone. PLANET 21 accelerates and intensifies Accor’s sustainable development commitment, transforming it into a decisive competitive advantage for the Group, its brands and its partners, in the eyes of customers

64/PLANET 21: REINVENT HOTELS SUSTAINABLY

is making sustainable hospitality the focus of its strategic vision, as well as its development and innovation processes.

the OPEN application was launched

to introduce more responsible practices

PLANET 21, Intrinsically linked to sustainable development, the name PLANET 21 refers to Agenda 21, the action plan adopted by 173 Heads of State at the 1992 Earth Summit in Rio de Janeiro. It also echoes the urgent need to focus efforts in the 21st century to change our production and consumption patterns with the goal of protecting our planet, its people and their environment.

to meet by 2015. With PLANET 21, Accor

against a 65-point checklist;

Nearly 20 years ago, Accor hotels began

made considerable headway in integrating

objectives that all hotels are expected

who are increasingly sensitive to social and environmental issues.

Innovating with PLANET 21 Research In 2011, Accor launched a shared knowledge platform – that is both free and open to all – to promote the emergence of more sustainable hotel industry practices. This information has already been broadly disseminated in Accor’s two initial studies: 1. The first international tracking study on hotel guest expectations regarding sustainable development, conducted with IFOP surveying a representative sample of 7,000 hotel customers in six countries. 2. A comprehensive study of the Group’s environmental footprint carried out with PriceWaterhouseCoopers Advisory. This is the first worldwide study of an international hotel group’s environmental impact based on a life cycle analysis of its operations. 11 areas of operations were assessed according to five criteria: energy and water use, waste production, carbon emissions and water pollution. The two studies were used when developing the PLANET 21 strategy so that commitments could be based on factual, solid, scientific data.

7 pillars, 21 commitments and quantifiable objectives for 2015

7 PILLARS

21 COMMITMENTS

2015 TARGETS

1. Ensure healthy interiors.

85% of hotels use eco-labeled products.

2. Promote responsible eating.

80% of hotels promote balanced dishes.

3. Prevent diseases.

95% of hotels organize disease prevention training for employees.

4. Reduce our water use.

15% reduction in water use between 2011 and 2015 (owned/leased hotels).

5. Expand waste recycling.

85% of hotels recycle their waste.

6. Protect biodiversity.

60% of hotels participate in the Plant for the Planet reforestation project.

7. Reduce our energy use.

10% reduction in energy use between 2011 and 2015 (owned/leased hotels).

8. Reduce our CO2 emissions.

10% reduction in CO2 emissions between 2011 and 2015 (owned/leased hotels).

9. Increase the use of renewable energy.

10% of hotels use renewable energy.

10. Encourage eco-design.

40% of hotels have at least three eco-designed room components.

11. Promote sustainable building.

21 new or renovated hotels are certified as sustainable buildings.

12. Introduce sustainable offers and technologies.

20% of owned and leased hotels offer green meeting solutions.

13. Protect children from abuse.

70% of hotels have committed to protecting children.

14. responsible purchasing practices.

70% of hotels purchase and promote products originating in their host country.

15. Protect ecosystems.

100% of hotels ban endangered seafood species from restaurant menus.

16. employee growth and skills.

75% of hotel managers are promoted from internal mobility.

17. Make diversity an asset.

Women for 35% of hotel managers(1).

18. Improve quality of worklife.

100% of host countries organize an employee opinion survey every two years.

19. Conduct our business openly and transparently.

Accor is included in 6 internationally-recognized socially responsible investment indices or standards.

20. Engage our franchised and managed hotels.

40% of all hotels are ISO 14001 or EarthCheck-certified(2).

21. Share our commitment with suppliers.

100% of purchasing contracts are in compliance with our Procurement Charter 21.

page 66

page 67

page 69

page 70

page 71

page 72

page 73 (1) Outside Motel 6/Studio 6. (2) Excl. economy segment.

2011 ACCOR ANNUAL REPORT/65

WELCOMING GUESTS WITH A GUARANTEE In today’s uncertain world, we provide guests and employees with a healthy environment that reassures them with regard to food-related, hygiene and environmental risks.

1 ENSURE HEALTHY INTERIORS

Accor seeks to make its hotels more comfortable and attractive as well as more environmentally friendly, for the benefit of customers and employees. At year-end 2011: 68% of Accor hotels used eco-labeled products, including cleaning products (51% of hotels), wall paint (23%) and floor coverings (10%). By 2015 85% of hotels will use eco-labeled products. 2 PROMOTE RESPONSIBLE EATING

Obesity and poor eating habits are afflictions that affect an ever-greater number of people. They are responsible for such health problems as hypertension,

Health

cardiovascular disease and diabetes. With more than 130 million meals a year served in its hotels, the Group clearly has a responsibility with regard to nutritional issues.

3 PREVENT DISEASES

Epidemics are not a thing of the past. Globalization is spreading them at a faster rate, and at the same time

At year-end 2011: 62% of hotels

diabetes, cancer, cardiovascular illness

offered balanced dishes to their

and other chronic diseases are also

customers:

developing rapidly. These diseases are

• in Portugal, several Novotel units

leading causes of mortality, ing

provide customers with information

for 60% of all deaths worldwide.

about allergenic items on menus;

Since 2002, Accor has been engaged

• in , Accor Academy has

in combating HIV/AIDS through

developed a “well-being and

programs to train employees, raise

vitality” offering in cooperation

awareness among guests and actively

with a nutritionist.

involve the tourist industry. With

At year-end 2011: • 77% of hotels had organized prevention training sessions for the health and well-being of employees. These mainly involved first aid, workplace ergonomics, prevention of HIV/AIDS and chronic diseases, and psychosocial risks; • 1,768 hotels were equipped with condom vending machines; • in , 8,629 ergonomic beds were installed in 168 hotels to reduce risks due to repeated movements by housekeepers; • 1,238 hotels – of which more

By 2015

PLANET 21, the Group has expanded

80% of hotels will promote balanced dishes.

its approach for combatting chronic

than 1,000 in – were

diseases and epidemics by adjusting

equipped with defibrillators.

to local health care needs.

By 2015 95% of hotels will organize disease prevention training for employees(1). (1) See page 76 in the Human Resources section.

66/PLANET 21: REINVENT HOTELS SUSTAINABLY

PRESERVING, RECYCLING AND REPLANTING To protect our environment, we are reducing our water consumption and recycling our waste. Accor has already planted two million trees as part of a global reforestation project ed by the United Nations.

4 REDUCE OUR WATER USE

5 EXPAND WASTE RECYCLING

Access to water – an essential

In the past 20 years, total waste

resource – varies widely from one

production has increased by 50%

region of the world to another. A source

worldwide while only 10% of that

of political and social tension, access

waste is recycled.

to water represents a major challenge.

Every year, Accor generates 2.3 million

An Accor hotel consumes approximately

tonnes of waste of which 70% from

15,000 cu.m of water per year. The

construction and renovation work.

Group’s environmental footprint showed

In 2011, the Group strengthened and

that 86% of water consumed came

further extended the waste module

from the food served in its hotels. Accor

in its sustainable development

is currently defining a work plan to find

management application. The goal

innovative restaurant solutions that

is to win the of all hotels

reduce the impact of upstream farming

and provide them with the means

on its water consumption.

to measure their waste volumes as well

At year-end 2011:

as their collection and sorting costs.

• 93% of hotels monitored and

At year-end 2011: 64% of hotels

analyzed their water consumption

recycled their waste and in particular:

on a monthly basis;

• 91% of hotels sorted and

• 88% of hotels had installed flow regulators on showers and faucets; • 161 hotels were equipped with rainwater recovery systems. By 2015 Accor will reduce water consumption in owned and leased hotels by 15%.

recycled batteries; • 91% of hotels sorted and recycled

Nature

fluorescent lamps and tubes; • 73% of hotels sorted and recycled paper and cardboard. By 2015 85% of hotels will recycle their waste.

Accor’s environmental footprint Water consumption impact

2% 1%

Waste impact

11%

Contribution from different activities:

Contribution from different activities:

Food & Beverage On-site water On-site energy Other

5%

1%

26%

Construction and renovation On-site energy Operating waste Other

68%

86%

Source: PLANET 21 research study 2011.

2011 ACCOR ANNUAL REPORT/67

6 PROTECT BIODIVERSITY

Biodiversity is essential to our planet’s equilibrium. Nonetheless, plant and animals species disappear every year. With Plant for the Planet, Accor is engaged in a unique reforestation project. The basic principle is to offer guests the option of reusing their towels, with half of the savings on laundry bills then allocated for tree planting projects. The formula is “5 towels reused = 1 tree planted.”

At year-end 2011: • More than 2 million trees had been funded and nearly 1,400 hotels were taking part in Plant for the Planet; • 82% of hotels used locally adapted plants; • 77% of hotels used certified paper for printing; • 53% used eco-friendly gardening products. By 2015 60% of hotels will participate in the Plant for the Planet reforestation project.

Plant for the Planet : Accor goes even further Accor has forged a partnership with Pur Projet, an organization created by Tristan Lecomte dedicated to combatting climate change through reforestation and forest conservation projects carried out by local communities. Tristan Lecomte is also the founder of Alter Eco, an organization that has helped to extend the use of fair trade products. Interview.

What approach does Pur Projet take? Tristan Lecomte : Our approach is unique in that it integrates mechanisms for reducing CO2 emissions into our partners’ operations. The result is tangible reforestation initiatives that create a direct link between the company’s operations and its natural environment. Our approach also enhances the perception of employees and consumers. In Thailand, for example, we focus on persuading producers to plants trees in order to fertilize their land, protect biodiversity, retain water and

68/PLANET 21: REINVENT HOTELS SUSTAINABLY

help combat climate change. It’s an open, collaborative, positive approach that helps to restore ecosystems while providing additional revenue for farming cooperatives and small producers who often live in precarious conditions.

Why work with Accor? Tristan Lecomte : With Plant for the Planet, Accor has emerged as a pioneering company involved in reforestation projects at the global level. In addition to its very significant results, Plant for the Planet corresponds perfectly to the Pur Projet approach because the hotels contribute

directly and locally to protecting their environment. In this way, Accor is inventing the hotels of the future – a hotel industry that is open to the world, caring and involved in tangible projects on the frontline. My goal is to the development of Plant for the Planet by integrating it more fully into the Group’s mission and businesses and enabling it to play an even more active local role. The objective is to increase the number of reforestation projects from 7 to 21 in 2013 and to have a project in each of Accor’s host countries by 2015.

REDUCING AND OPTIMIZING

Carbon

Hotel energy consumption is the area of operations that has the greatest environmental impact and also our most important way of taking action. We are committed to broadly and systematically deploying energy savings measures and to using renewable energies.

7 REDUCE OUR ENERGY USE

8 REDUCE OUR CO EMISSIONS 2

9 INCREASE THE USE OF RENEWABLE ENERGY

Ever more scarce and costly, fossil

Despite the large number of climate

energies are a major challenge for our

summit conferences and strict regulations,

Energy solutions abound, ranging from

increasingly energy-intensive society.

CO2 emissions continue to rise. The Group’s

thermal and photovoltaic solar s

Along with technological innovations,

environmental impact study showed that

to geothermal and biomass energy.

energy savings represent a solution

66% of its greenhouse gas emissions

However, before these solutions can be

to this problem.

come from fuel burned in the hotels,

broadly deployed, they must be tested

Overall, 75% of the energy consumed

while 15% was agriculture-related, mainly

and adapted to specific hotel features.

by Accor is in its hotels, the vast majority

for livestock feed and food transport.

Accor has already equipped a large

of which have been equipped with

It addition to its efforts to reduce energy

number of hotels with solar s

energy-efficient light bulbs. Maintenance

use, Accor has launched a project to

to produce domestic hot water and

programs to optimize its facilities’

reduce the carbon impact of its food

is carrying out a range of experiments

operations have also been strengthened.

services offering. Beginning in 2012, each

involving new technologies. In Cambodia,

Accor has developed a methodology

hotel can also determine its own carbon

for example, the Sofitel Angkor

called BOOST, which is based on an

footprint – either overall, for a seminar,

Phokeethra is pursuing an original

analysis of technical installations in its

or for a single hotel night.

initiative. Organic waste is “methanized”

hotels. It has helped to significantly

At year-end 2011:

reduce water and energy consumption

• 76% of hotels had ensured that

to produce gas used for cooking. The

– up to 25% for some hotels – solely

installations containing cooling

through employee training programs

liquids were leak-proof;

and action plans, without any additional

organic waste anaerobically (i.e. in an air-tight container), thereby producing

• 62% of hotels used energy-efficient

investment in hotel installations. At year-end 2011:

solution uses bacteria to decompose

boilers;

• 135 hotels around the world

air conditioning equipment.

were equipped with solar s

and analyzed their energy

By 2015

consumption on a monthly basis;

Accor will reduce CO2 emissions in owned and leased hotels by 10%.

• 92% of hotels ensured optimal

to prepare 700 meals a day for employees. At year-end 2011:

• 50% of hotel used energy-efficient

• 94% of hotels monitored

methane, a biogas that is then used

equipment settings;

to produce domestic hot water; • 172 hotels used biomass, geothermal and other renewable energies. By 2015

• 90% of hotels used lowconsumption bulbs for 24/7 lighting.

10% of hotels will use renewable energy.

By 2015 Accor will reduce energy consumption in owned and leased hotels by 10%.

Accor’s environmental footprint Energy impact

Carbon impact

6%

8%

7% Contribution from different activities:

On-site energy Other Laundry Food & Beverage Source: PLANET 21 research study 2011.

12%

75%

Contribution from different activities:

12%

On-site energy Food & Beverage Other Employee travel

14%

2011 ACCOR ANNUAL REPORT/69 66%

INVENTING AND TRANSFORMING By fully integrating sustainable development into our operating procedures and offers, we are responding proactively to emerging customer expectations and ing the development of new business models. The goal is to make PLANET 21 a laboratory for the hotel industry of tomorrow.

10 ENCOURAGE ECO-DESIGN

Eco-design is a continuous improvement

11 PROMOTE SUSTAINABLE BUILDING

process whose purpose is to respect the

The design phase of construction

environment at each step of a product’s

has a crucial impact on a building’s

life cycle.

environmental performance.

More and more hotels are using and offering responsible products, including ibis, Suite Novotel and Novotel, with their EU Eco-label certified guest amenities. At year-end 2011: • 39% of hotels used dispensers or eco-friendly packaging for bathroom products; • 13% of hotels had at least

That is why certain countries have introduced regulations that require low energy buildings and minimal impact on ecosystems. As an expert in hotel development, Accor has acquired real environmental expertise. The Group regularly tightens its standards and conducts pilot projects to the development of hotels that are more efficient in

three eco-designed room features

of energy and water consumption

(e.g. bedding, bath linen or paper);

and use fewer environmentally harmful

• 10% of hotels had eco-labeled bathroom products. By 2015 40% of hotels will have at least three eco-designed room components.

chemical substances. At year-end 2011:

Through reBorn, Accor gives its second-hand furniture a new lease of life! ReBorn grew out of Accor’s commitment to providing hotels with a unique, highly efficient solution for managing furniture to be replaced following renovation work. Since early 2012, the Group’s hotels have been able to sell furniture and decorative items in good condition on reBorn, Accor’s secondhand furniture shop, which is hosted on the French version of eBay, the world leader in online sales. A total of 2,500 items have been put up for sale in the service’s first few months.

• 65% of hotels used energy-efficient lamps for frontage lighting; • 25% of hotels recovered energy from the ventilation system; • 18% of hotels used building

In 2008, Accor pioneered with the launch of a responsible travel offering, today renamed Discovery. With PLANET 21,

management system to steer

the Group has created a special tracking

their energy consumptions;

unit that is constantly on the lookout for

• The Suite Novotel Issy-les-Moulineaux

new environmentally friendly offers and

had received ’s HQE®

technologies.

environmental certification.

At year-end 2011:

By 2015

• steam cleaning solutions were tested

21 hotels will have obtained sustainable building certification.

• electric vehicle charging stations

in 15 Sofitel hotels in eight countries; were tested in six Novotel hotels

12 INTRODUCE SUSTAINABLE

Innovation 70/PLANET 21: REINVENT HOTELS SUSTAINABLY

OFFERS AND TECHNOLOGIES

in the Greater Paris area; • automated sub-metering systems for

The integration of clean, eco-friendly

electricity, gas and heating installations

technologies is a powerful lever for

were tested in two ibis hotels in .

introducing increasingly sustainable

By 2015

hotels offers and practices.

20% of owned and leased hotels will offer green meeting solutions.

CONTRIBUTING AND PROTECTING Firmly rooted in our host communities, we directly the principle of shared economic development and protect their most precious, most vulnerable assets: their children and the natural ecosystems in which we operate.

13 PROTECT CHILDREN

FROM ABUSE Especially vulnerable, children are still too often the victims of sexual exploitation. Protecting them is a responsibility shared by everyone. As a global player in the tourist industry, Accor is especially concerned. In 2012, Accor wants to expand its program to protect children to include kidnapping,

• 36 countries had signed the Code of Conduct for the Protection of Children issued by EAT and the World Tourism Organization; • Accor was continuing to share its experience and training tools to combat sexual tourism involving children with the hotel industry, in particular at international sporting events, as it did during the FIFA 2010 World Cup.

a problem that is on the rise. Hotels

By 2015

can play a determining role in combatting

70% of hotels will be committed to protecting children.

this affliction. Since 2001, Accor has led the fight against sexual exploitation of children alongside EAT International(1), a non-governmental organization. Its action is based on informing and training employees, raising awareness among customers and suppliers, developing relations with public authorities, and facilitating the integration of minors. At year-end 2011: • 49% of hotels had committed to protecting children and during the year nearly 23,500 employees received training in identifying and responding to situations in which a child was at serious risk;

Local

(1) End Child Prostitution, Child Pornography & Trafficking of Children for Sexual Purposes.

14 RESPONSIBLE

PURCHASING PRACTICES Major companies generate enormous flows of merchandise around the world. By opting for intensive, rational, organic,

• 9% of hotels served sustainable products certified by other recognized labels, such as the Rainforest Alliance. By 2015 70% of hotels will purchase and promote products originating in their host country.

fair trade or other responsible production methods, they can make an important impact on people and the environment. The Procurement department integrates sustainable development criteria into its practices, such as the Sustainable Procurement Charter introduced in 2003 and since renamed the Procurement Charter 21. At year-end 2011: • 51% of hotels purchased and promoted locally produced food products; • 34% of hotels served fair trade products carrying the Fairtrade-Max Havelaar label. In , Accor hotels had purchased 350 tonnes of fair trade tea, coffee and cocoa, an increase of 4.5%

15 PROTECT ECOSYSTEMS

While ecosystems sustain the life and diversity of plant and animal species, they are too often threatened by human activities. The hotel industry is concerned and can take action by managing the origin and nature of the biological resources they use as well as this discharges they release into the ecosystems. At year-end 2011: • 82% of hotels ensured proper sanitation of wastewater ; • 68% of hotels had banned endangered seafood from restaurant menus.

over 2010. Fair trade products

By 2015

for nearly 44% of all hot beverages

100% of hotels will have banned endangered seafood species from restaurant menus.

served at Accor hotels;

2011 ACCOR ANNUAL REPORT/71

DEVELOPING AND NURTURING Our dynamic development is underpinned by the extraordinary social, cultural and professional diversity of our more than 180,000* employees in Accor brand hotels. We continuously help them to develop their skills and responsibilities with the goal of offering them motivating, rewarding careers and increasing their employability (see page 76). * Including 145,000 employees in owned, leased and managed hotels (corresponding to the scope of reporting of this document).

Employment

16 EMPLOYEE GROWTH AND SKILLS

As the world’s leading hotel operator, Accor has acquired extensive experience in human resources management. With its 17 Academies, the Group is also the world’s leading hotel school, helping every day to develop the skills and increase the employability of its staff. At year-end 2011: • 435,092 days of training had been provided during the year, an average of three days per employee; • 477 hotels had held training sessions to teach employees the host country’s language. By 2015 Accor will maintain its rate of 75% of hotel managers promoted through internal mobility.

18 IMPROVE QUALITY OF WORKLIFE

Work-related stress has become a public health issue that plays a role in determining a company’s attractiveness.

17 MAKE DIVERSITY AN ASSET

The Group has always focused on

Because of its hotels’ locations, Accor

providing employees with the best

enjoys a naturally diverse workforce.

possible working conditions and

A source of enrichment and performance,

Accor is regularly included – in Brazil

diversity must be present at all levels

for example – in the list of Best Places

of the organization. That’s why Accor

to Work prepared by the Great Place

actively promotes diversity in all

to Work® Institute.

aspects of its business, from hiring

At year-end 2011:

and career development to training and compensation. At year-end 2011: • 27% of hotel managers were women (excluding Motel 6/Studio 6). By 2015 Women will for 35% of hotel managers (excluding Motel 6/Studio 6).

72/PLANET 21: REINVENT HOTELS SUSTAINABLY

• 71 countries had carried out employee opinion surveys, in 2010 and/or 2011; • 531 hotels had organized training to prevent psychosocial risks. By 2015 All countries will conduct internal opinion surveys every two years.

PLANET 21 e-learning module Training is a key lever for integrating sustainable development practices into the Group’s businesses. In April 2012, Accor introduced a unique online training tool for employees of all hotel brands. It enables participants to embrace sustainable development issues and the PLANET 21 program’s ambitious objectives, while raising their awareness of the daily actions that can be applied in different parts of the hotel, including guest rooms, restaurants and kitchens.

SHARING AND REACHING OUT Through our commitments with regard to franchisees and suppliers, we involve our partners in our sustainable development strategy and integrate them into a responsibility process.

19 CONDUCT OUR BUSINESS

TRANSPARENTLY Accor is the only hotel group included in the four benchmark international socially responsible investing indexes: the Dow Jones Sustainability Indexes,

• 25% of Group hotels – across all operating structures – were either ISO 14001 or EarthCheck-certified; • 25% of franchised hotels complied with the standard level defined in the Accor Charter 21.

FTSE4Good, ASPI Eurozone®

By 2015

and the Ethibel Sustainability Index.

40% of hotels will be ISO 14001 or EarthCheck-certified regardless of whether they are owned, leased, managed or franchised (1).

To make its commitment even more transparent, Accor wants to introduce

FTSE4Good Index Series

a more comprehensive, accurate reporting system by 2015 with the goal

21 SHARE OUR COMMITMENT

of ing the two worldwide sustainable

WITH SUPPLIERS

development communication standards:

Accor integrates sustainable development

the United Nations Global Compact Differentiation Framework and the Global Reporting Initiative.

criteria into all phases of its supplier relations, from specifications in its calls for bids to specific clauses integrated

By 2015

into supplier certification contracts.

Accor is committed to being included in six recognized global indices or standards.

Today, major countries that have

20 ENGAGE OUR FRANCHISED

AND MANAGED HOTELS Accor’s business model has shifted its focus to managed and franchised hotels, which ed for 50% of the portfolio in 2011.

their own procurement departments have introduced action plans adapted to local issues. At year-end 2011: • more than 1,200 certified suppliers – 45% of the total – had signed the Accor Procurement Charter 21; • 150 priority suppliers had been evaluated, following an analysis

Accor advises and s its

of sustainable; development risks

partners in integrating sustainable

carried out in 2010 that covered

development criteria into their day-to-day hotel management practices. To facilitate their commitment, Accor provides them with OPEN, its sustainable development

98 product/service categories; • 39 categories out of the 98 included sustainable development criteria; • 64% of European contracts

management tool.

signed by Accor already include

At year-end 2011:

a certification of compliance,

• 100% of managed hotels and 82% of

required by Accor, to ensure that

franchised hotels had deployed Accor

suppliers meet the requirements

Charter 21, which is available in the

of the EU REACH regulation.

OPEN application; • 28% of franchised ibis hotels were ISO 14001-certified;

Dialogue

By 2015 100% of purchase contracts will comply with the Procurement Charter 21. (1) Excl. economy segment.

2011 ACCOR ANNUAL REPORT/73

Sofitel Essaouira Mogador Golf and Spa – Morocco

74

Our employees make us excellent Every day, more than 180,000 employees(1) welcome tens of thousands of guests in 4,400 Accor brand hotels. Because the hotel industry is a service business, employees are the leading drivers of our success. In 92 countries, they display the same enthusiasm, a real sense of hospitality and a high degree of professionalism. Accor’s human resources teams are fully focused on attracting talented individuals and helping them to evolve, as we develop our operations worldwide and deploy the latest technological advances. (1) Including 145,000 employees in owned, leased and managed hotels (corresponding to the scope of reporting of this document).

2011 ACCOR ANNUAL REPORT/75

A CULTURE THAT FEDERATES EMPLOYEES A profession rooted in human , the hotel business is also a ion. Accor’s human resources policies are based on values inherited from its past and commitments that federate employees, such as professionalism, recognition, diversity and social dialogue.

A responsible employer for committed employees

integral part of PLANET 21, the Group’s

Original ways of rewarding talent

new sustainable development program

Because employees are the key drivers of

Backed by a powerful culture, Accor

launched in April 2012 (see page 63).

satisfaction and customer relations, Accor is

transmits to its employees the values

Regular opinion surveys.

always attentive to ways of acknowledging

of conquest, innovation, performance,

Accor regulars polls employees to

their commitment and talent. Employee

respect and trust that have underpinned

gather their views, which are then used

recognition programs include:

its development for 45 years. Spreading,

to prepare and deploy action plans.

embracing and embodying these values

the Accor Bernaches Awards,

Each survey includes both core questions

require the commitment of each and every

created in 1990. Every year, Gold, Silver,

for all employees as well as more specific

manager. Accor’s cohesion depends on

Honor and Team awards are presented

questions pertaining to the local situation.

their whole-hearted involvement, at a time

to employees whose exemplary actions

In November 2011, Sofitel carried out

when the Group is growing, reinventing

and behavior embody the Group’s values.

the second worldwide opinion survey

itself and taking on talented new people.

This symbol of recognition is widely

– conducted in 16 languages – of its

respected not just within the Group,

Commitments that are part of the

25,300 employees. The overall response

but also across the hospitality industry;

Group’s responsibility to individuals

rate was 94% and 84% of employees

and society as a whole. Accor actively

said they were satisfied with their jobs.

s health and employment, two

The objective for 2015, which is part

pillars that help to promote fulfillment

of the Employment pillar of the

in the workplace. These pillars are an

PLANET 21 program (see page 72), is for all countries to conduct internal opinion surveys every two years.

the Professions Challenge, intended for hotel industry beginners, the competition focuses on reception, kitchen, dining room and bar professions. For the 9th year, 65 talented young people, selected from over 1,000 applicants from 21 countries, took part. Awards were

Monitor employee health and

presented to eight winners, all of them

prevent disease. The goal (see page 66)

either apprentices or employees who had

is for 95% of hotels worldwide to

been on the job for less than two years.

100 job

organize employee training courses

categories

diseases, as well as psychosocial risks,

Well-being in the workplace: Accor hailed as an employer

while taking into local health

Every year, the Great Place to Work®

57%

issues. In 2011, 77% of hotels organized

Institute organizes the Best Places to

prevention training sessions for the health

of employees are under 35

Work awards in 40 countries. The ranking

and well-being of employees, while

is based on employee surveys.

44% of supervisors are under 35

76/OUR EMPLOYEES MAKE US EXCELLENT

on the prevention of chronic and epidemic

in , 8,629 ergonomic beds were installed in 168 hotels to make changing bed linen easier for housekeepers.

Accor awarded the 2011 Human Capital Trophy Launched by French daily Le Monde and the Michel Page international recruitment firm, the award recognizes outstanding human resources management initiatives from companies included in ’s CAC 40 index. In June 2011, Accor was cited for its actions that recognize employee commitment and in particular for such commendable, high-profile human resources programs as the Accor Bernaches awards and the Professions Challenge.

In 2011, Accor was once again among the countries cited: in Latin America, where it received a Best Places to Work award in five countries – Argentina, Brazil (for the 14th year in a row), Chile, Mexico and Peru; in the Netherlands, where 83% of team surveyed expressed satisfaction with their employer, a

compensation and other day-to-day

worklife: hiring, assessment, career

responsibilities of the human resources

development, training and conflict

function, as well as in individual relations

management. The goal is to eliminate

within the organization. The Group’s

discrimination and celebrate diversity.

responsibility, performance and attractiveness as an employer all depend

High-quality social dialogue

on effectively promoting diversity.

Backed by a network of human

The backbone of this policy is the

resources managers that extends around

Group’s International Diversity Charter,

the world, Accor forges and maintains

which was prepared in 2010 and has

constructive, long-term relations with

been broadly distributed since then.

employee representatives. This dialogue

Four priorities have been defined for

is carried out mainly through the Group

the period leading up to 2015:

Works Council, the Social Council and

• diversity of origins;

the European Work Council. The Group has signed a large number of collective

9% increase over 2008. While the work

• gender equality in the workplace;

atmosphere and professionalism are

• integration of people with disabilities;

widely acknowledged, opportunities

• age diversity.

country level, as was the case in Poland

Since June 2011, all Group units have

in 2011, where Accor signed a new

reported data twice a year for diversity

collective agreement (modifying and

indicators based on these four priorities

updating the 1997 agreement) with local

and focusing on each hotel job track, from

employee representatives. Concerning

general manager to country Executive

the Orbis hotels, the agreement in

Committee member.

particular covered compensation, bonuses

for development – especially in the international marketplace – have also helped to make Accor an especially attractive employer in the Netherlands.

Diversity as a performance driver Diversity is a key component of Accor’s human resources policy. The goal is to make team ’ skills and recognition the focus of the entire process, and in particular to showcase employees’ differences.

at the Group’s hotels in Poland.

Accor received the 2011 Diversity Trophy in the Training category at the 7th International Diversity Symposium and the Grand Prix AFPA from ’s

the Employment pillar in the PLANET 21

national adult vocational training

program (see page 72).

association. The two awards were

The Group’s target is for women to hold

presented in recognition of the e-learning

35% of hotel general manager positions

module on diversity designed and

in 2015, compared with 27% in 2011.

deployed for the Group’s 2,500 hotel

Accor has designed and deployed core

general managers and department heads

in hiring, career management, training,

Social dialogue is also pursued at the

and benefits and harmonized job titles

Diversity training recognized by two awards

Diversity is also one of the objectives of

programs to make diversity a reality

agreements with these bodies.

in . The module provides virtual training on five key phases in a manager’s

2011 ACCOR ANNUAL REPORT/77

HIRING AND INVESTING IN SKILLS ENHANCEMENT Opening new frontiers in human resources represents a major challenge for hiring and retaining employees. Accor’s solutions involve innovation, the creation of new job tracks and an active internal mobility program.

4.3 million visits to the

ing the Group’s development

in 12 languages and is managed

The human resources function s

year in 2011 with 4.3 million visits (up 21%

Accor’s rapid development in both mature

over 2010), 20,000 job and internship

and emerging markets. The Group has

offers (up 19%) and 530,000 applications

set the ambitious goal of opening

received (up 61%). Other events during

40,000 new rooms a year between now

the year included:

and 2015. To drive that growth, employees

• a reworking of the site with a new

need to be hired and retained. As part

logo, a new section featuring application

of its active career management policy,

advice and more functionalities, such

Accor is committed to bolstering its

as a job offer basket and the possibility

teams with local talent and sharing its

of forwarding information to a friend,

skills and capabilities around the world.

• an Accor page on LinkedIn,

This requires deg career paths that will help to attract, develop and retain the best people. In mature markets, the Group needs to make itself more attractive and deploy an array of innovative hiring methods. To promote its jobs and image among candidates as a good place to work, a wide range of mainly digital tools have been developed for the country organizations: Accor.com has added an especially rich Recruitment & careers section. With 755,000 visits in 2011, it is the site’s most often visited section, ing for one-quarter of the total. It features 43 job fact sheets, as well as employee testimonials, videos, podcasts and job quizzes; AccorJobs, the hiring site, has celebrated its 10th anniversary. With 18 country sites each with its own content, AccorJobs has been translated

78/OUR EMPLOYEES MAKE US EXCELLENT

by 4,500 recruiters. The site had a busy

the biggest business-related social networking site with 100 million . The page already had more than 15,000 friends at year-end 2011, • a blog entitled working@accor dedicated to specialized job categories, which includes testimonials and articles. The blog became an AccorJobs Facebook page in 2012, • the posting of AccorJobs offers on the Jobaroundme iPhone application. It enables iPhone s to consult job vacancies listed on the AccorJobs website in real time. The application also features an augmented reality system for visualizing offers in nearby Accor hotels.

website

Developing new job categories to ensure our expertise

very closely managed. Accor is constantly

In response to the growing professionalism

through two training programs:

of the hotel business, Accor is pursuing

• RM Dimension, which is dedicated

developing revenue management experts

a job track policy. Recognized for its

to revenue management professionals,

operational excellence, the Group has

hotel general managers and

stepped up its initiatives to train in-house

accommodation and booking managers.

experts, especially in cutting-edge fields

More than 1,500 employees took part

such as:

in these certification-backed training

revenue management, in order to optimize hotel revenue by selling each

sessions in 2011, • RM Pro, which is reserved for

available room at the right price. This

600 professional revenue management

complex technique is vitally important as it

specialists. The module, which enables

enables room and occupancy rates to be

program participants to improve their understanding of room rate policies and reservation forecasting, was offered to 131 revenue managers in 2011, the sales function is evolving and becoming more complex especially because of the ever-expanding role of new technologies. The Sales & Distribution training module is designed to provide the Group with a pool of sales professionals and maintain its standing as a market leader. In 2011, some 230 distribution specialists took part in these courses, which will play an even greater role in the years ahead.

Accor is expanding its revenue management training In , Accor signed a partnership agreement with Institut Paul Bocuse and the Savoy-Mont-Blanc Business istration Institute. The partnership sets up a Masters program that will help the Group to identify and hire future revenue management experts.

2011 ACCOR ANNUAL REPORT/79

435,092 days of training provided during the year, an average of 3 days per employee

Promoting mobility: the key to retaining employees

A driver of business and managerial performance and a source of innovation,

Accor, the world’s leading hotel school

Because it s employee skills

mobility can be:

Accor’s reputation as a hotel school

enhancement, motivation and loyalty,

• functional, as evidenced by such

is underpinned by its portfolio of more

mobility is a foundation of Accor’s human

programs as Move Up at Novotel

than 150 training programs, a network

resources policy. The Group has set

and career advancement initiatives

of 17 Academies around the world

a target of 75% of hotel general managers

at ibis that are designed to validate

and innovative learning methods.

developed through internal promotion

employees’ acquired experience;

The Academies’ mission is to

by 2015. Mobility is also one of the social commitments of the PLANET 21 program (see page 72).

• geographic. Accor has designed

development through skills enhancement.

includes intercultural awareness training

Its three fundamental pedagogical

for employees being transferred to

goals are to:

countries with a highly specific cultural

• ensure that all programs, regardless

environment. An international mobility

of subject, are consistent with

intranet has also been set up that

Accor’s culture, operating methods

enables people to stay attuned to the

and management principles;

Group’s needs and learn about possible transfers and how to apply for them. Accor also has a dedicated in-house career and mobility management site for Group executives and managers called Success. It provides them with visibility The 2011 IHMP graduating class

on all vacancies that need to be filled and enables them to manage their profile by submitting their resume and career goals.

Creating a pool of international managers The International Hospitality Management Program (IHMP) was introduced in 1997. The 30 employees who graduated from the program in 2011 ranged in age from 28 to 49, represented 16 different nationalities and one third of them were women. Of all the employees who have participated in the program since its creation, 50% are now hotel general managers and another 5% have become either Director of Operations, Sales Director or the head of an Accor Academy.

80/OUR EMPLOYEES MAKE US EXCELLENT

employees’ professional growth and

an international mobility strategy that

• continuously the brands by deg, producing and leading all of their dedicated training programs; • stay attuned to social trends, by offering innovative teaching resources – such as e-learning – that reflect changes in the marketplace. One example is the Accor Academy in Australia and New Zealand, which has developed a cutting-edge online training program. It comprises an interactive situational simulation component, an electronic evaluation tool to measure skills acquired and blogs for business community that enable experts to share their ideas and views. There is also a virtual training module that allows participants throughout the Asia-Pacific region to take part in classes – in real time led by a real-life instructor.

ENABLING EMPLOYEES TO DEVELOP IN LINE WITH THE STRATEGY Employees are on the frontline as the Group deploys its strategy, which involves modernizing the brand portfolio, expanding the network at a record pace and adapting hotel operating structures. To successfully deploy the strategy, it’s our responsibility – and in our interest – to train employees and instill in them a sense of belonging.

Career paths for each brand

In 2011, for example:

Expressing its own special world and

Novotel continue to broadly deploy

lifestyle, each of our brands integrates

its Move Up program, launched in 2010.

new consumer patterns and is

Its purpose is to enhance team ’

modernizing to provide customers

employability(1) and earn their loyalty

with a constantly renewed experience.

through an original approach built around

To achieve that, each brand has

six modules:

adapted its human resources policies

1. Welcome, a six-month

depending on its positioning and service offering. The goal is to enable employees to the brand’s growth and enhance its value even as they grow and find fulfillment.

50% of employees are women

integration process; 2. Itineraries, a three-stage, certification-backed program; 3. Globe-Trotter, an intensive

With the Ambassadors initiative launched in June 2011, Sofitel now has

two-year module for becoming

a program that develops and showcases

a department head;

the skills of its 25,300 employees. The

4. GM , a one-year personalized development program to learn the hotel general manager profession; 5. Visa Novotel, which provides

goal is to promote professional excellence and career development while providing the brand with value added. The program is based on three modules:

high-performance employees with

• Be Yourself, which integrates a skills and

the opportunity gain international

attitude grid and leverages a partnership

work experience;

with 15 leading hotel schools around the

6. Novotel Services Attitudes, to transmit the brand’s commitment to service. At end-2011, the Move Up program had been deployed in 165 hotels. Moreover, two GM graduates in were promoted to hotel general

world to select talented young people; • Be Ready, so that each employee can represent the brand by expressing its spirit (the Sofitel appearance and attitude) and embracing the high standards of the luxury segment; • Be Magnifique, to allow ambassadors to

manager positions in 2011 and around

trace their career path by providing them

ten employees from Australia,

with professional expertise, mentoring,

and South America are now enrolled

training and management skills.

in the program.

(1) Developing employees’ capabilities to make them more attractive on the job market.

2011 ACCOR ANNUAL REPORT/81

More than

10,000

For the launch of the ibis mega-brand,

• enable hotels employees to buy

Accor designed a special training program

into the Group’s new economy segment

to the new dynamic instilled

strategy;

by its economy segment offering. Called

• help them to discover the positioning

the ibis Family kit, the program is intended

of their brand (one of three in the ibis

for all hotel general managers and

Family), as well as the product, offers,

operations directors of ibis, ibis Styles

new visual identity and communication

and ibis budget brands who train their

strategy;

own team . Its purpose is to:

employees have taken part in the Naturally Different program in Latin America

• create for the new project.

diploma that validates their professional experience. In 2011, nine managers took

Hiring to the Group’s development

advantage of this opportunity.

In line with its room opening objectives,

networks are expanding at a rapid pace,

Accor has adapted its human resources

the challenge is to hire and retain talented

policy to the local situation in its host

locals to this growth and ensure

countries.

impeccable service quality for guests.

In Europe and mature countries,

In India, for example, where the Group

Accor needs to enhance its appeal

plans to open 100 hotels by 2015,

as an employer, by using a wide variety

the Pullman Gurgaon Central set up

of innovative recruitment methods and

an exemplary hiring campaign during

offering motivating career opportunities

the year that was cited by the Indian

to attract and retain the best talent.

Institute of Planning and Management,

The brands are developing and deploying

one of the country’s leading business

programs to build up talents pools through

schools. Applicants, who were asked

internal promotion. One example is

to reply to the question “I’m a Pullman

the program created by ibis budget and

person. Are you?” were hired on the basis

hotelF1 in with the Versailles

of their attitude and their alignment

Chamber of Commerce and Industry that

with the brand’s values.

allows hotel managers to earn a special

82/OUR EMPLOYEES MAKE US EXCELLENT

In emerging markets, where hotel

The Accor Academy in Asia also developed

welcome all types of guests

a solution to boost training resources

by providing them with appropriate

in this region where things are moving

service and solutions. In Latin America,

at an ever-faster pace. The idea is to train

for example, more than 10,000 employees

and certify employees to provide skills

have taken part in the Naturally Different

enhancement sessions on the frontline,

program whose purpose is to teach the

which is not part of their normal

right attitudes and the best response

professional responsibilities. In Asia

to the special needs of the handicapped

(excluding China), some 80 employees

and the elderly, as well as children,

were certified as trainers in 2011.

foreigners and homosexuals;

Provide service in line with new customer expectations To satisfy increasingly demanding customers, Accor constantly anticipates and adapts to their emerging needs. In particular, the Group focuses on the professionalism of its employees and invests in their training so that they can:

Another example is Australia, where teams have been trained at Sofitel and Pullman to welcome Chinese and Indian customers and address their special needs. personalize customer welcome and services upon their arrival at the hotel. This personalized service must take into the benefits of the Le Club Accorhotels loyalty program and an understanding of customer preferences. This changes the way of working for employees who have an important role to play in effectively using, updating and enhancing customer knowledge. As this has a direct impact on reception services, a special training module is being designed with and by front office managers, who ensure the deployment of tools and procedures at operations level.

2011 ACCOR ANNUAL REPORT/83

THE ACCOR FOUNDATION The Accor Foundation is dedicated to ing and developing socially responsible actions initiated by employees, with the goal of “linking cultures by ing the development of individuals and their integration into their environment.”

13 projects Rest of Europe

15 projects Americas

Employee-ed initiatives 45 projects

Since its creation on August 31, 2008, the Foundation has ed more

19 projects Asia

than 100 projects with the help of nearly 5,000 employees in 33 countries. It wants to continue expanding its frontline initiatives in the Group’s 92 host

3 projects Pacific

countries. The goal for 2012 is to increase the number of projects ed by 30%. The Accor Foundation provides

11 projects Africa

the Group with an added human touch that is aligned with our new objective, which is to Open New Frontiers in Hospitality®. Extending across borders, the Foundation transforms hospitality into outreach. With the invaluable of our team , it ensures that assistance programs are adapted to local needs and monitored regularly. This approach resonates with our role

Leveraging a unique model, the

The Foundation only s projects

Foundation provides exclusively

in which team are personally

for projects suggested by company

and locally involved. In addition, employees

employees or franchisee partners – a good

can get information and advice from regional

way to get all stakeholders on board.

experts who come from the area covered

as a service provider, which is based

by their project.

on the values of welcome, dedication and

To learn more:

generosity that define the hotel industry.

www.fondation-accor.com

A unique model In each case, the projects grow out of meaningful, in-depth discussions between employees and the Foundation team, which makes every effort to offer guidance and advice to all individuals who submit an idea.

Everyone involved in celebrating the Foundation’s 3rd anniversary For its 3 rd anniversary, the Accor Foundation brought together Group employees and partner associations for events organized in its international head offices and a number of hotels. Photo exhibitions and local markets were set up to showcase the involvement of team and the products created by the beneficiaries of associations that receive the Foundation’s . At a press conference held at the Foundation’s headquarters in Paris, Denis Hennequin, Chairman of the Accor Foundation, and Marie-Caroline Bizet, Foundation Manager, spoke not only about the associations that receive , but also about the employees who work alongside them.

84/NOS COLLABORATEURS FONT NOTRE EXCELLENCE

3 fields of intervention TRAINING AND INSERTION Encouraging integration and insertion of young people in difficulty aged 15-30.  : The Voil’Avenir project Purpose: Integrate young people into the job market through certification-backed training programs. Association ed: Multi Services Développement. Since November 2011, 16 disadvantaged young people from the Lyon suburbs have been helping to build boats that will make navigating easier for quadriplegics and paraplegics. Participants are trained in boat-building techniques, thereby gaining important skills that facilitate their entry into the working world.

Dominique Grandjonc, General manager of the Novotel Lyon-La Part-Dieu

Why are you involved in this project?

LOCAL KNOW-HOW ing socio-economic initiatives that highlight traditional crafts and techniques. Émeline Ori, Manager, Quality Control and Sustainable Development, Accor Dominican Republic

“I need to give meaning to my position as a company manager. For me, that meaning comes from fulfilling a social function that benefits society as a whole. As General manager of a Novotel hotel, I feel that I serve as an ambassador for Accor.”

Dominican Republic: Creation of a handcrafted jewelry workshop Purpose: Enable disadvantaged women to find work and re-enter mainstream society.

Why are you involved in this project?

Association ed: Fundación Sol Naciente

“I think it’s just because I have never lacked for anything in my life and I wanted to extend that opportunity to as many people as possible. Helping others and treating them as equals has always been important for me, so I try to apply those principles whenever I can.”

In the Dominican Republic, the situation of very young single mothers is a major problem that affects 35% of women under the age of 18, who have a very hard time finding work. To address this problem, the Accor Foundation s Fundación Sol Naciente, which in 2012 developed a pilot training program for 16 unwed young mothers who were already monitored by the association. The goal is to teach them to work with silver and local stones, such as amber and larimar, so that they can set up their own jewelry workshop and achieve financial independence. Pieter de Weerd, General manager of Mercure Tokyo Ginza and Operations Director for Japan

HUMANITARIAN AND EMERGENCY Helping populations in great difficulty and responding to humanitarian disasters.

Japan: for victims of the March 2011 earthquake and tsunami Association ed: KnK Japan (Children without borders) The Accor Foundation allocated €20,000 in emergency funds to KnK Japan, which used the money to purchase and distribute blankets, diapers, food, powdered milk and other necessities in Iwate Prefecture, the region of Japan that was hardest hit by the earthquake and tsunami. The Foundation also enabled Accor employees and A|Club who so desired to donate funds via an online service set up by KnK Japan. In all, more than €40,000 was donated through this collective outpouring of generosity.

Why are you involved in this project? “Given the scope of the disaster, we very quickly realized that everyone would have to get involved. The active and donations from the Foundation, regional head offices and hotels and especially the contributions from a large number of customers and A|Club provided relief for hundreds of families and children in one of the most heavily damaged regions. So all the Accor Japan teams would like to say: Arigato. Thank you everyone.”

2011 ACCOR ANNUAL REPORT/85

Siège social Accor Odyssey Paris –

86

Performance indicators In 2011, Accor confirmed the clear recovery in its business with results that were sharply higher. Fully focused on hotel operations and backed by a very healthy financial position, the Group has the assets needed to step up its pace of development and become the industry leader in all areas of operation. It will attain this goal while respecting its commitments to shareholders, maintaining close relations with them and providing them with extensive, transparent information.

2011 ACCOR ANNUAL REPORT/87

Accor Investor relations Accor Immeuble Odyssey 110, avenue de 75210 Paris Cedex 13

ACCOR AND ITS SHAREHOLDERS

Shareholder hotline Toll-free number ( only)

In addition to the Annual Meeting and the events organized to present the annual results, Accor keeps both private 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 with investors In 2011, meetings were held with some

Working group on the private shareholder relations process

470 representatives of more than

Created in 2007, a working group

400 financial institutions and 21 roadshows

comprising 15  of the

were organized in Europe, the United

Shareholders Club is exploring ways

States and Canada.

to encourage exchanges of views

Accor also took part in seven investor conferences during the year, in and the United States.

and opinions with our private shareholders

(local rate) Operators are available to answer questions from 9:00 am to 6:00 pm from Monday to Friday e-mail: [email protected]

ed shares managed by Société Générale 32, rue du Champ-de-Tir BP 81 236 44312 Nantes cedex 03, Tel.: 02 51 85 67 89 Nominet.socgen.com

and to improve the private shareholder relations process. At its two meetings in 2011, the group reviewed the various

A wide array of documents far exceeding

resources used to keep shareholders

regulatory requirements may be viewed

informed, the preparations for the Annual

in the “Finance” section of the website.

Shareholders’ Meeting, a briefing on

These documents, which cover both

hotel visits organized for Shareholders

current and previous years, include: the

Club and an update on Accor’s

Registration Document filed with the

sustainable development process.

Autorité des Marchés Financiers (available

Working group also had the

Created in May 2000, the Accor

in electronic form since 1997); the Annual

opportunity to meet and exchange ideas

Shareholders Club had more than

Report; information memoranda filed

with Chairman and Chief Executive

8,000  at year-end 2011,

with the Autorité des Marchés Financiers

Officer Denis Hennequin.

with each one owning at least 50 bearer

concerning corporate actions; notices

were also given details about the ibis

shares or one ed share.

of Shareholders’ Meetings, sent

megabrand project to revitalize the

systematically to ed shareholders

Among the many advantages

economy hotel segment.

and on request to of the

Held on May 30, 2011 at the Novotel Paris Est, the Annual Shareholders’ Meeting was attended by 350 people and provided many opportunities for exchanging views and opinions.

The Accor Shareholders Club

enjoy are regular e-mail updates

Shareholders Club; the Letter to Shareholders, available on request

the Letter to Shareholders and other

Easily accessible information tailored to shareholder profiles

news, the possibility of subscribing

All of the Group’s financial news and

via the corporate website.

to all of our other corporate publications,

publications can be accessed in the

the opportunity to discover our businesses

Legal documents are on display at the

“Finance” section of the www.accor.com

in a more personal way through site visits,

Company’s primary business office,

website, which serves as a comprehensive

and VIP invitations to investor events

Immeuble Odyssey, 110, avenue de

investor relations database. The site carries

in which Accor participates.

, 75210 Paris Cedex 13, .

live and deferred webcasts of results

of the Shareholders Club

presentations, Investor Days and Annual

are entitled to the Le Club Accorhotels

Shareholders’ Meetings. It also tracks the

Platinum loyalty card, enabling

Accor share price in real time and features

them to earn twice as many points

a dedicated section for private shareholders

in participating hotels and to take

and of the Shareholders Club.

throughout the year with press releases,

advantage of exclusive benefits.

in electronic form and accessible

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 Autorité des Marchés Financiers general regulations. The filings are also available on the corporate website.

88/PERFORMANCE INDICATORS

THE ACCOR SHARE SHARE PERFORMANCE 2007*

2008*

2009*

2010

2011

2012 (1)

Year-end closing

54.70

35.11

38.25

33.30

19.59

26.40

High for the year

75.32

56.30

39.95

34.03

36.20

27.74

Low for the year

52.21

24.23

25.20

22.26

17.03

18.70

–6.8%

–43.1%

+8.9%

+25.2%

–41.2%

+34.8%

12.6

7.7

8.6

7.6

4.5

6.0

Net yield(2)

5.8%(3)

4.7%(4)

2.7%(5)

1.9%(6)

5.9%(7)

4.35%(7)

CAC 40 Change for the year

+1.3%

–42.6%

+22.3%

–5.2%

–19.0%

+7.1%

In euros

Accor

% change for the year Market value (€ billions)

* Share performance before 2010 have not been adjusted from Edenred share. (1) At February 29, 2012. (2) Based on year-end closing. (3) 3% on the ordinary dividend of €1.65 per share; 5.8% including the special dividend of €1.50 per share. (4) Based on the ordinary dividend of €1.65 per share. (5) Based on the ordinary dividend of €1.05 per share. (6) Based on the ordinary dividend of €0.62 per share. (7) 3.3% on the ordinary dividend of €0.65 presented for approval at the Shareholders’ Meeting on May 10, 2012; 5.9% including the special dividend of €0.50 per share.

Long-term share performance €

Listed on

80

Euronext Paris Compartiment A

Accor

70

€51.40 (at April 20, 2007)

60

ISIN code

50

FR0000120404

40

Included in the following indexes

30

January 1983 €4.80

20

Demerger: Edenred initial public offering (July 2, 2010)

Paris Index

10 0

83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

Accor share performance (Base 100 at January 3, 2011)

CAC 40 EURONEXT 100 FTSEurofirst 80 DJ Stoxx 600 DJ EuroStoxx MSCI Europe

Included in the following sustainability indexes

110

Dow Jones Sustainability Indexes FTSE4Good ASPI Eurozone Ethibel Sustainability Indexes

100 90 80 70

Accor: –20.80% CAC 40: –12.23%

60

12 3/

12

/0 03

3/ /0

12 01

3/

3/

11

/0 01

3/

11

/0 12

/0

11 11

3/

3/

11

/0 10

/0

3/

11 09

/0

3/

11 08

/0

3/

11 07

/0

11 06

3/ /0

3/

11 05

/0

11 04

3/

11

/0

3/

03

/0 02

01

/0

3/

11

50

2011 ACCOR ANNUAL REPORT/89

2011 RESULTS Performance in 2011 was driven by favorable hotel cycle dynamics, with increases in both occupancy rates and average room rates. Sustained demand throughout the year enabled Accor to meet the objectives announced to the market. Consolidated EBIT amounted to €530 million. Fully focused on the hotels business, the Group is ready to pursue its expansion at a sustained pace, primarily through management contracts and franchise agreements. In 2011, it also stepped up implementation of its 2011-2015 asset management program, which is designed to refinance assets with a €2.2 billion impact on adjusted net debt over the period.

Revenue

with the appreciation of the Australian

EBITDAR

Consolidated revenue totaled

dollar offsetting the downturn

A key financial performance indicator,

€6,100 million in 2011, up 5.2% like-

in the US dollar against the euro.

earnings before interest, taxes,

for-like and 2.5% on a reported basis.

Revenue increased, led by sustained

depreciation, amortization, provisions

The expansion strategy increased

demand all year long. Growth was robust

and rental expense (EBITDAR) totaled

revenue by 1.8%. A total of 38,700 new

in the main country markets in Europe

€1,923 million. EBITDAR margin stood

rooms – representing 318 hotels – were

(, and the United

at 31.5%, up 1.0 point as reported and

opened during the year, mainly

Kingdom), reflecting rises in both

1.2 points like-for-like compared with 2010.

under management contracts and

occupancy rates and average room rates

The flow-through ratio(1) was a high 56%(2).

franchise agreements. Divesting non-

across every segment. Revenue was

strategic assets and applying the

also lifted by the very strong growth in

asset right strategy reduced revenue

business throughout the year in emerging

by 4.3%. Lastly, the currency effect

markets, especially in Asia and Latin

reduced reported growth by 0.2%,

America.

In the upscale and midscale segment, EBITDAR margin widened by 1.1 points like-for-like to 28.9%, while the flowthrough ratio stood at 51.8%. For economy hotels outside the United States, EBITDAR margin rose by 0.8 points like-for-like to 38.1% and the flow-through ratio was 50.5%. EBITDAR margin for the Economy Hotels business in the United States improved by 0.5 points like-for-like to 30.8%.

Quarterly like-for-like change in 2011 revenue, for year-on-year growth of 5.4%

+5.6%

+6.1%

+6.0% +3.7%

Q1

Q2

90/PERFORMANCE INDICATORS

Q3

Q4

€6,100 million Revenue EBIT

during the year. Before taking into

EBIT, corresponding to EBITDAR after

the above-mentioned non-recurring items,

€1,923 million

depreciation, amortization, provisions

operating profit before non-recurring

EBITDAR

and rental expense, rose 18.8% as

items, net of tax amounted to

reported to €530 million from €466 million

€296 million. Operating profit before non-

in 2010, in line with the ongoing solid

recurring items, net of tax, came to €1.30

31.5%

performance of the business.

per share in 2011. As a result, the Board of

EBITDAR margin

Directors is recommending the payment of an ordinary dividend(3) of €0.65 per

Net profit, Group share Net profit, Group share amounted to €27 million, versus €3,600 million

€530 million

share, for a payout rate of 50%, and a special dividend of €0.50 euro per share.

EBIT

(1) The flow-through ratio is the ratio between the change in like-for-like EBITDAR and the change in like-for-like revenue.

€296 million

in 2010. The 2010 figure included the €4,044 million non-cash capital gain (net of costs) arising on the demerger of the services business. Earnings per share came to €0.12, versus €15.94 in 2010, based on the weighted average 227 million shares outstanding

operating profit before non-recurring items, net of tax

(2) The flow-through ratio including the impact of operations in Egypt and Ivory Coast was 54%. (3) Submitted for approval at the Combined Ordinary and Extraordinary Shareholders’ Meeting on May 10, 2012.

39% 10%

Rest of Europe

34%

North America



9% AsiaPacific

2% 6%

2011 Revenue by region

Latin America and the Caribbean

Africa Middle-East

2011 ACCOR ANNUAL REPORT/91

FINANCIAL FLOWS

€54 million Rest of Europe

€96 million

(2)

North America

€54 million

€68 million Asia-Pacific

€2 million

Hotel expenditure by region(1) (€371 million)

€97 million(3) Latin America and the Caribbean

Africa Middle-East

(1) Hotel expenditure includes openings and renovation work. (2) Including €95 million in costs related to the exercise of call options on 56 hotels in the United States. (3) Including a €79 million down payment for the acquisition of the Sofitel Rio de Janeiro.

€737 million

€303 million

(cash available to finance investments and dividend payments), up from €695 million in 2010.

After renovation and maintenance expenditure, which represented 5% of revenue, free cash flow stood at €434 million.

in funds from ordinary activities

in renovation and maintenance expenditure

€1.15 dividend(1) per share of which an ordinary dividend of €0.65 and a special dividend of €0.50. The payout rate is 50%. It is calculated on operating profit before non-recurring items, net of tax(2). (1) Submitted to shareholders for approval at the Annual Meeting on May 10, 2012. (2) Operating profit before non-recurring items, net of tax: operating profit before tax and non-recurring items less tax on operating profit, less minority interests. 92/PERFORMANCE INDICATORS

Net debt at December 31, 2011

€533

12.3%

€226

in proceeds from asset sales

An indicator of the profitability of investments, return on capital employed stood at 12.3%, compared with 11.3% in 2010.

Impact of the asset management program on adjusted net debt in 2011.

ROCE (Return on Capital Employed) is the ratio of:

million

million

compared with €730 million at year-end 2010.

Average cost of gross debt: 6.51%

43%

44%

7%

6%

1 to 2 years

3 to 6 years

Gross debt by type of rate 83%

17%

Fixed rate

• EBITDAR for each business plus investment income (dividends and interest from associates and non-consolidated companies); • to average non-current assets, before depreciation, amortization and provisions, plus working capital.

Gross debt by maturity

<1 year

ROCE

>6 years

25.7%, versus 20.1% in 2010 funds from operations excluding non-recurring transactions/ adjusted net debt An indicator of the Group’s solvency, this ratio is calculated with net debt adjusted for the 8% discounting of future minimum lease payments.

Variable rate

2011 ACCOR ANNUAL REPORT/93

SUMMARY FINANCIAL STATEMENT SUMMARY STATEMENTS OF INCOME In € millions

Consolidated revenue Operating expense EBITDAR Rental expense EBITDA Depreciation, amortization and provisions EBIT Net financial expense Share of profit of associates Operating profit before tax and non-recurring items Restructuring costs Impairment losses Gains and losses on management of hotel properties Gains and losses on management of other assets Operating profit before tax Income tax expense Profit or loss from discontinued operations Net profit/(loss) Net profit/(loss), Group share Net profit attributable to minority interests Weighted average number of shares outstanding (in thousands) In € Earnings per share Ordinary dividend per share

2009(1) 5,490 (3,972) 1,518 (854) 664 (429) 235 (124) (3) 108 (110) (241) 7 (27) (263) (32) 30 (265) (282) 17 222,890 (1.36) 1.05

2010(1) 5,948 (4,134) 1,814 (934) 880 (434) 446 (134) 22 334 (31) (284) 4 (35) (12) (392) 4,014 3,610 3,600 10 225,838 (1.82) 0.62

2011(2) 6,100 (4,177) 1,923 (995) 928 (398) 530 (97) 5 438 (40) (113) 60 (19) (326) (274) (2) 50 27 23 227,107 0.13 1.15(3)

(1) In line with IFRS 5, cash flows from Edenred, Groupe Lucien Barrière and the onboard train services business have been reclassified under “cash flows from discontinued operations.” (2) In line with IFRS 5, 2011 results from Groupe Lucien Barrière and the onboard train services business have been reclassified under “Profit from discontinued operations.” (3) Submitted for approval at the Annual Meeting of Shareholders on May 10, 2011, including a special dividend of €0.50.

SUMMARY BALANCE SHEET 2009

2010

2011

ASSETS Goodwill Intangible assets Property, plant and equipment Total non-current financial assets Total non-current assets Total current assets Total assets

1,777 488 4,306 428 7,290 4,312 11,746

743 409 3,682 480 5,555 2,310 8,678

712 373 3,257 549 5,038 2,576 8,000

EQUITY AND LIABILITIES Equity attributable to shareholders Equity Total non-current liabilities Total current liabilities Total liabilities and shareholders’ equity

2,997 3,254 6,072 5,670 11,746

3,650 3,949 5,964 2,336 8,678

3,537 3,768 5,618 2,293 8,000

In € millions

94/PERFORMANCE INDICATORS

CASH FLOWS 2009(1)

In € millions

Funds from operations excluding non-recurring transactions Renovation and maintenance expenditure Free cash flow Expansion expenditure Proceeds from disposals of assets Dividends Decrease/(increase) in working capital Proceeds from issue of share capital CIWLT tax dispute Other Cash flow from discontinued operations Decrease/(increase) in net debt

2010(1)

2011(2)

695 (281) 414 (340) 556 (249) 44 198 – (170) 441 894

737 (303) 434 (387) 500 (155) 11 5 – (170) 266 504

520 (288) 232 (420) 339 (396) 175 (49) (242) (78) (113) (552)

(1) In line with IFRS 5, cash flows from Edenred, Groupe Lucien Barrière and the onboard train services business have been reclassified under “cash flows from discontinued operations.” (2) In line with IFRS 5, 2011 results from Groupe Lucien Barrière and the onboard train services business have been reclassified under “Profit from discontinued operations.” (3) Submitted for approval at the Annual Meeting of Shareholders on May 10, 2011, including a special dividend of €0.50.

2011 REGISTRATION DOCUMENT Detailed financial data are included in the Registration Document filed with Autorité des Marchés Financiers. Its table of contents is presented below.

CONTENTS 1. CORPORATE PRESENTATION 2. CORPORATE GOVERNANCE 3. FINANCIAL REVIEW 4. FINANCIAL STATEMENTS 5. CAPITAL AND OWNERSHIP STRUCTURE 6. SHAREHOLDERS’ MEETING 7. OTHER INFORMATION

The Registration Document can be ed from our website accor.com/finance

2011 ACCOR ANNUAL REPORT/95

PLANET 21 STRATEGY PILLARS

96/PERFORMANCE INDICATORS

COMMITMENTS

2015 TARGETS

1. Ensure healthy interiors.

85% of hotels use eco-labeled products.

2. Promote responsible eating.

80% of hotels promote balanced dishes.

3. Prevent diseases.

95% of hotels organize disease prevention training for employees.

4. Reduce our water use.

15% reduction in water use between 2011 and 2015 (owned/leased hotels).

5. Expand waste recycling.

85% of hotels recycle their waste.

6. Protect biodiversity.

60% of hotels participate in the Plant for the Planet reforestation project.

7. Reduce our energy use.

10% reduction in energy use between 2011 and 2015 (owned/leased hotels).

8. Reduce our CO2 emissions.

10% reduction in CO2 emissions between 2011 and 2015 (owned/leased hotels).

9. Increase the use of renewable energy.

10% of hotels use renewable energy.

10. Encourage eco-design.

40% of hotels have at least three eco-designed room components.

11. Promote sustainable building.

21 new or renovated hotels are certified as sustainable buildings.

12. Introduce sustainable offers and technologies.

20% of owned and leased hotels offer green meeting solutions.

13. Protect children from abuse.

70% of hotels have committed to protecting children.

14. responsible purchasing practices.

70% of hotels purchase and promote products originating in their host country.

15. Protect ecosystems.

100% of hotels ban endangered seafood species from restaurant menus.

16. employee growth and skills.

75% of hotel managers are promoted through internal mobility.

17. Make diversity an asset.

Women for 35% of hotel managers (outside Motel 6/Studio 6).

18. Improve quality of worklife.

100% of host countries organize an employee opinion survey every two years.

19. Conduct our business openly and transparently.

Accor is included in six internationally-recognized socially responsible investment indices or standards.

20. Engage our franchised and managed hotels.

40% of all hotels are ISO 14001 or EarthCheck-certified.

21. Share our commitment with suppliers.

100% of purchasing contracts are in compliance with our Procurement Charter 21.

2011 RESULTS

ADDITIONAL INDICATORS – 2011 RESULTS (WITHOUT TARGETS)

68%

51% of hotels use eco-labeled cleaning products. 23% of hotels use eco-labeled wall paint. 10% of hotels use eco-labeled floor coverings.

62%

1 balanced meal is included in the children’s menu at Novotel hotels. Number of hotels offering vegetarian dishes (indicator under construction).

77%

1,768 hotels are equipped with condom vending machines. 38 countries have implemented a health program.

12% reduction between 2006 and 2010 (owned/leased hotels)

93% of hotels monitor and analyze water consumption monthly. 88% of hotels have flow regulators on faucets and showers. 161 hotels have rainwater recovery systems.

64%

91% of hotels sort and recycle batteries. 91% of hotels sort and recycle fluorescent lamps and tubes. 73% of hotels sort and recycle paper and cardboard.

34%

82% of hotels choose plants suited to the local environment. 53% use eco-friendly gardening products. 77% of hotels use certified paper for printing.

5,5% reduction between 2006 and 2010 (owned/leased hotels)

94% of hotels monitor and analyze energy consumption monthly. 90% of hotels use low-consumption lamps for 24/7 lighting. 92% of hotels monitor the optimum settings of energy installations.

Not previously tracked

76% of hotels check that equipment containing HCFCs and HFCs is leak-proof. 62% of hotels use energy-efficient boilers. 50% of hotels use energy-efficient air conditioning cooling equipment.

4%

172 hotels use renewable energy. 135 hotels are equipped with solar s for domestic hot water.

13%

39% of hotels use dispensers or eco-friendly packaging for bathroom products. 10% of hotels use eco-labeled bathroom products. 6% of hotels use sustainable bedding products.

3 hotels

18% of hotels use a building management system to control energy consumption. 65% of hotels use energy-efficient lamps for frontage lighting. 25% of hotels recover energy from the ventilation system.

New indicator

Automatic electricity/gas/heating sub-meter tested at 2 hotels. Steam cleaning solutions tested at 15 hotels. Electric vehicle charging station installed in 6 hotels.

49%

36 country organizations have signed the Child Protection Code of Conduct. Nearly 23,500 employees have been trained to fight against child sex tourism. 66 hotels are involved in programs to help marginalized minors reintegrate into society.

51%

34% of hotels serve fair trade products (with the Fairtrade-Max Havelaar label). 9% of hotels serve sustainable products (with the Rainforest Alliance or other recognized label). 350 tonnes of fair trade products are served at hotels in per year.

68%

82% of hotels ensure proper treatment of wastewater. 95% of hotels train staff on good pratices for the environment.

75%

Number of employees who have completed diploma awarding certification courses (indicator under construction). 477 hotels organize host country language classes for employees.

27%

0.9% of Accor employees are disabled (outside the United States).

71

531 hotels organize training to prevent psychosocial risks.

4

Meetings were held with 470 investors during the year to present our management practices. Two of the Board of Directors’ annual meetings are dedicated to CSR issues.

25%

25% of franchised hotels meet the standard level defined in the Charter 21.

45%

150 suppliers have been audited by a third party. 64% of European contracts include REACH compliance for chemical products. 2011 ACCOR ANNUAL REPORT/97

GROUP SUSTAINABLE DEVELOPMENT INDICATORS Water and energy To improve the management of these inputs, the reporting process was upgraded in 2011 and is now conducted exclusively via OPEN. The new system will deliver more reliable data so that progress can be measured more accurately by taking into the impact of weather conditions and occupancy rates on changes in consumption. Unless otherwise specified, indicators for water and energy and greenhouse gas emissions, concern hotels in Europe, North America, Latin America and the Caribbean, and the rest of the world (43 countries in Africa and the Middle East, and in Asia-Pacific). Franchised hotels, hotelF1 and Etap hotels under commission-based management contracts in , Australia and South Africa, Mercure Apartments in Brazil and Adagio City Aparthotels are not included in the scope of reporting. Compliance with reporting processes for water use, energy use and greenhouse gas emissions have been reviewed by Ernst & Young since 2009. Consumption per brand is reported by available room for energy use and by room night for water. It includes all on-site consumption, room consumption and also all input use required to run a hotel, including: cleaning and maintenance of the various areas, restaurant, watering, laundry and swimming pool depending on facilities.

WATER AND ENERGY CONSUMPTION

Rest of Europe



North America

Latin America and Caribbean

Asia

Africa Middle East

Pacific

Scope of reporting

Owned Owned Owned Owned Owned Owned Owned and Managed and Managed and Managed and Managed and Managed and Managed and Managed leased leased leased leased leased leased leased

2010

2011

Number of hotels

471

31

677

84

610

12

75

37

41

190

51

85

20

99

2,735

2,483

Number of validated hotels

358

15

590

52

608

12

55

0

18

127

21

21

8

55

2,735

1,940

448,848

32,352

114,309

74,699

/

19,556

816,715

42,317

58,306

29,472

358

15

590

52

607

10

31

0

18

127

21

21

8

55

2,735

1,913

3,220

198

5,154

722

8,652

573

852

/

228

10,288

360

522

305

2,165

46,868

33,239

Energy used (MWh) Number of validated hotels Water used (thousands of cu.m)

WATER AND ENERGY CONSUMPTION BY BRAND Energy use (kWh per available room) Water use (liters per room night)

GREENHOUSE GAS EMISSIONS

881,687 145,405 550,043

208,204 5,193,218 3,421,916

Sofitel

Pullman

MGallery

Novotel

Suite Novotel

Mercure

ibis

ibis Styles

ibis budget

hotelF1

Motel 6 / Studio 6

87

65

49

45

22

40

21

19

13

11

21

906

664

539

321

147

316

174

229

108

123

400



Rest of Europe

North America

Latin America and Caribbean

Asia

Africa Middle East

Pacific

Owned Owned Owned Owned Owned Owned Owned and Managed and Managed and Managed and Managed and Managed and Managed and Managed leased leased leased leased leased leased leased

Scope of reporting 2010

2011

Number of hotels

471

31

677

84

610

12

75

37

41

190

51

85

20

99

2,735

2,483

Number of validated hotels

358

15

590

52

608

12

55

0

18

127

21

21

8

55

2,735

1,940

18,217

1,288

58,696

12,551

48,661

10,067

4,848

/

1,974

58,882

2,728

4,753

698

10,719

390,960

234,082

29,686

2,147

267,186

31,673

162,208

29,884

6,242

/

7,287

355,191

22,749

13,602

11,048

112,533

47,904

3,435

325,882

44,224

210,869

39,951

11,090

/

9,262

414,074

25,476

18,355

11,746

123,252 2,039,545 1,285,520

Direct emissions (tonnes of CO2 equivalent) Indirect emissions (tonnes of CO2 equivalent) Total emissions (tonnes of CO2 equivalent)

98/PERFORMANCE INDICATORS

1,648,585 1,051,438

Charter 21 In 2011, the Charter was updated and renamed as part of the new PLANET 21 strategy. While the checklist still contains 65 items, the indicators have been updated and extended to social responsibility issues like the use of fair trade products and the organization of staff training on health and well-being. Unless otherwise specified, these results concern all Accor hotels worldwide, with the exception of Adagio City Aparthotels. Thalassa sea & spa facilities apply the same Charter actions as their host hotels and their data are consolidated along with those of the hotel. Results are expressed as a percentage comparing the number of hotels implementing a given action to the total number of hotels applying the Charter. Some action points apply only to hotels equipped with special facilities, such as a restaurant or laundry. In this case, the percentage of hotels having implemented these actions is calculated based solely on the total number of hotels concerned (designated “applicable hotels” in the tables). Some of the actions have been clarified, others have been removed and new ones have been added. New actions for which comparative data are not available are marked NEW in the tables below.

MANAGEMENT Raising employee and guest awareness



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

2010

2011

Change at comparable scope of reporting

Number of covered and applicable hotels

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Train employees in best environmental practices

92%

96%

99%

92%

90%

96%

94%

90%

95%

+6%

Designate sustainability manager

38%

59%

17%

60%

57%

51%

49%

NEW

42%

N/A

Raise guest awareness of sustainable development issues

86%

92%

94%

94%

92%

86%

90%

86%

90%

+6%

Offer guests the option of reusing their towels

87%

97%

97%

96%

95%

90%

92%

88%

93%

+6%



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Risk prevention

Scope of reporting

2010

2011

Change at comparable scope of reporting

Scope of reporting

Number of covered and applicable hotels

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Use CFC-free and PCB-free technical installations

42%

59%

17%

48%

44%

57%

40%

NEW

42%

N/A

that installations containing HCFCs and HFCs are leak-proof

60%

84%

92%

79%

66%

83%

83%

73%

76%

4%

Training



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Scope of reporting

Number of covered and applicable hotels

1,260

916

852

186

246

166

131

3,757

Organize health and well-being training

80%

65%

87%

67%

95%

78%

82%

77%



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Scope of reporting

Training to fight child sex tourism Number of employees trained

Certifications

2011

2011

412

3,988

307

5,583

8,929

1,047

3,193

23,459



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Scope of reporting 2011

ISO 14001

200

177

0

56

1

2

6

442

EarthCheck

27

51

0

8

30

17

11

144

–

–

707

–

–

–

–

707

Green Key Eco-Rating (Motel 6 / Studio 6)

2011 ACCOR ANNUAL REPORT/99

GROUP SUSTAINABLE DEVELOPMENT INDICATORS

ENERGY

Energy efficiency



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

2010

2011

Change at comparable scope of reporting

Scope of reporting

Number of hotels covered

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Number of applicable hotels

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Monitor and analyze monthly use

87%

97%

97%

98%

98%

92%

95%

91%

94%

2%

Use energy-efficient light bulbs for 24/7 lighting

84%

92%

98%

95%

88%

92%

85%

82%

90%

9%

Insulate pipes containing hot/cold fluids

81%

95%

96%

94%

95%

87%

95%

83%

90%

8%

Monitor the optimum settings on equipment

87%

96%

94%

95%

93%

80%

95%

90%

92%

2%

Use a timer for frontage lighting

80%

83%

33%

66%

86%

87%

81%

NEW

70%

N/A

Use energy-efficient light bulbs in rooms

80%

83%

99%

90%

89%

90%

83%

76%

87%

14%

Use a central light switch in guest rooms

32%

36%

18%

54%

71%

64%

62%

NEW

36%

N/A

Use energy-efficient light bulbs for outdoor signage

35%

45%

95%

58%

73%

60%

56%

NEW

56%

N/A

Use energy-efficient boilers

53%

73%

61%

78%

62%

52%

60%

53%

62%

16%

Recover energy from the ventilation system

21%

47%

6%

13%

43%

10%

34%

NEW

25%

N/A

Use energy-efficient light bulbs for frontage lighting

47%

62%

90%

78%

74%

66%

68%

NEW

65%

N/A

Use a building management system to manage energy consumptions

10%

32%

6%

21%

35%

37%

18%

NEW

18%

N/A

Use speed controllers for fan and pump motors

8%

30%

10%

31%

55%

30%

22%

NEW

19%

N/A

Number of applicable hotels

805

634

833

172

236

145

123

3,048

2,948

–

Use energy-efficient air conditioning cooling equipment

54%

58%

28%

67%

69%

52%

73%

48%

50%

–6%

Equipped with a timer for common area air conditioning

14%

47%

15%

17%

56%

51%

30%

NEW

27%

N/A

Number of applicable hotels

300

371

23

155

175

103

75

1,152

1,202

–

Use energy-efficient minibars

77%

74%

74%

78%

79%

59%

81%

NEW

75%

N/A

100/PERFORMANCE INDICATORS

WATER

Reducing water use



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

2010

2011

Change at comparable scope of reporting

Scope of reporting

Number of hotels covered

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Number of applicable hotels

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Monitor and analyze monthly use

87%

97%

96%

96%

97%

87%

95%

91%

93%

2%

Use flow regulators on faucets/shower heads

85%

91%

95%

82%

73%

87%

85%

85%

88%

5%

Monitor the optimum settings on equipment

87%

95%

91%

90%

89%

77%

93%

NEW

90%

N/A

Use sub-meters to improve monitoring

14%

21%

6%

12%

55%

33%

40%

NEW

18%

N/A

Eliminate waste-water cooling systems

51%

68%

8%

60%

51%

46%

57%

NEW

46%

N/A

Use motion sensors for bathroom faucets

15%

25%

5%

25%

34%

14%

11%

NEW

17%

N/A

Use dual flush toilets

33%

51%

7%

31%

53%

84%

47%

NEW

36%

N/A

Recover rainwater for gardens watering and toilet flushing

2%

3%

2%

4%

19%

17%

2%

NEW

4%

N/A

Use a water-efficient laundry service

22%

44%

28%

53%

50%

51%

40%

67%

34%

40%

Number of applicable hotels

871

539

709

148

193

100

108

2,818

2,668

–

Use selective grounds watering methods

60%

72%

97%

84%

64%

82%

73%

75%

75%

– 5%



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Water pollution

2010

2011

Change at comparable scope of reporting

Scope of reporting

Number of covered and applicable hotels

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Ensure proper wastewater treatment

77%

85%

88%

82%

80%

73%

74%

64%

82%

28%

Recycle grey water

3%

5%

2%

13%

31%

9%

13%

5%

6%

36%

2011 ACCOR ANNUAL REPORT/101

GROUP SUSTAINABLE DEVELOPMENT INDICATORS

WASTE

Waste resource recovery



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

2010

2011

Change at comparable scope of reporting

Scope of reporting

Number of hotels covered

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Sort and recycle paper/cardboard

66%

92%

51%

91%

94%

86%

65%

72%

73%

–2%

Sort and recycle glass bottles and packaging

73%

95%

40%

88%

87%

83%

67%

68%

73%

6%

Recycle plastic packaging

56%

84%

41%

90%

85%

67%

67%

55%

64%

15%

Recycle metal packaging

40%

70%

47%

87%

82%

58%

55%

53%

55%

4%

Offer guests waste sorting opportunities

14%

31%

7%

59%

44%

34%

18%

NEW

22%

N/A

Number of applicable hotels

510

569

22

168

238

135

105

–

1,747

–

Sort and recycle organic waste from restaurants

29%

59%

45%

35%

65%

29%

24%

34%

44%

29%

Number of applicable hotels

871

539

709

148

193

100

108

–

2,668

–

Sort and recycle green waste from gardens

45%

55%

24%

33%

58%

72%

40%

51%

42%

–22%

Number of applicable hotels

510

569

22

168

238

135

105

1,703

1,747

–

Collect and treat cooking oil

95%

96%

86%

90%

72%

95%

85%

87%

91%

4%

Collect and treat edible fats

95%

89%

82%

80%

63%

76%

78%

90%

85%

–4%



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Management of hazardous industrial waste

2010

2011

Change at comparable scope of reporting

Scope of reporting

Number of covered & applicable hotels

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Sort and dispose of batteries

94%

96%

94%

90%

78%

73%

48%

88%

91%

4%

Sort and dispose of fluorescent bulbs and tubes

95%

98%

91%

90%

74%

70%

49%

80%

91%

10%

Recycle electric and electronic equipment

79%

88%

20%

75%

72%

46%

26%

56%

64%

14%

Sort and recycle ink cartridges

93%

98%

97%

76%

85%

86%

55%

92%

92%

0,4%

102/PERFORMANCE INDICATORS

PRODUCTS

Nutritional balance

Number of hotels covered



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Scope of reporting 2011

1,260

916

852

186

246

166

131

3,757

Number of applicable hotels

510

569

22

168

238

135

105

1,747

Offer balanced dishes in the restaurant

62%

60%

95%

50%

76%

72%

51%

62%

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Scope of reporting



Rest of Europe

Reducing waste volumes at source

2010

2011

Change at comparable scope of reporting

Number of covered and applicable hotels

1,260

916

852

186

246

166

131

–

3,757

3,423

Use eco-designed dispensers or packaging for bathroom products

36%

57%

13%

48%

65%

39%

45%

NEW

39%

N/A

Biodiversity



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

2010

2011

Change at comparable scope of reporting

Number of hotels covered

1,260

916

852

186

246

166

131

3,705

3,757

3,423

Number of applicable hotels

510

569

22

168

238

135

105

–

1,747

–

Ban endangered seafood species from restaurant menus

65%

69%

64%

66%

72%

70%

64%

NEW

68%

N/A

Number of applicable hotels

871

539

709

148

193

100

108

–

2,668

–

Choose plants suitable to the local environment

65%

80%

96%

97%

90%

93%

94%

75%

82%

5%

Use eco-friendly gardening products

51%

82%

12%

78%

78%

87%

79%

NEW

53%

N/A



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Scope of reporting

Local food products

Number of hotels covered

Scope of reporting

2011

1,260

916

852

186

246

166

131

3,757

Number of applicable hotels

510

569

22

168

238

135

105

1,747

Purchase and promote local food products

36% 

45% 

77%

45%

79%

70%

67%

51%



Rest of Europe

North America

Latin America and Caribbean

Asia

Pacific

Africa Middle East

Scope of reporting

Fair trade and sustainable agriculture

2011

Number of hotels covered

1,260

916

852

186

246

166

131

3,757

Number of applicable hotels

1,260

782

852

0

8

158

27

3,085

Serve fair trade products

73%

18% 

0%

N/A

0%

0%

0%

34%

Number of applicable hotels

1,260

916

852

186

246

166

131

3,757

3%

22% 

2%

9%

19%

5%

17%

9%

Serve sustainable products

2011 ACCOR ANNUAL REPORT/103

HUMAN RESOURCE INDICATORS The men and women of Accor, in

Consolidated Corporate Report – In compliance with French legislation, this Report consolidates data from the 2011 corporate reports prepared by French subsidiaries that are at least 50%-owned and that have at least 300 employees. The 2011 Report includes data for Lenôtre at 30 September 2011, the date on which the Accor Group sold the company. In all, the Report covers 77% of Accor employees in . This same scope has been used for most of the indicators shown below. The Report concerns 15,001 employees in service at December 31, 2011, irrespective of the type of employment contract.

NUMBER OF EMPLOYEES

December 31, 2010

December 31, 2011

Total number of employees(1)

16,044

15,001

Percentage of women

56.4%

56.2%

Percentage of men

43.6%

43.8%

Average monthly number of employees

16,911

16,154

Number of full-time employees under permanent contracts

9,764

9,277

Number of part-time employees under permanent contracts

4,654

3,165

Number of employees under fixed-term contracts

1,626

1,406

2,032 12.7%

1,829 12.2%

Number of non-French employees working in (2) As a % of total employees (1) All employees in service at December 31, regardless of type of work contract. (2) Number of non-French employees working in .

HIRING Number of persons hired under permanent contracts

December 31, 2010

December 31, 2011

3,001

2,520

Percentage of women

49.6%

49%

Percentage of men

50.4%

51%

Number of persons hired under fixed-term contracts

8,936

8,348

Number of people under 25 hired

5,974

5,403

104/PERFORMANCE INDICATORS

ABSENTEEISM RATE(1) – BY CAUSE

December 31, 2010

December 31, 2011

Sick leave

6.2%

6.2%

Workplace and commuting accidents

1.4%

1.3%

Maternity, paternity and adoption leave

0.3%

1.8%

Paid leave for family reasons

0.4%

0.5%

Unpaid leave (unpaid vacation, parental leave)

3.2%

2.8%

Total

11.5%

11.0%

(1) Number of days of absence divided by number of theoretical working days.

December 31, 2010

December 31, 2011

2010 discretionary profit-shares paid in 2011 Number of beneficiaries(1) Average gross amount per beneficiary (in €)

18,804 895.78

22,781 928

2010 non-discretionary profit-shares paid in 2011 Special employee profit-sharing reserve, net (in € millions) Number of beneficiaries(1) Average net amount per beneficiary (in €)

6 27,862 209

7 24,749 278

December 31, 2010

December 31, 2011

567

520

5,179

4,883

December 31, 2010

December 31, 2011

28

68

Total hours used for employee delegate activities

80,738

79,824

Number of meetings with employee representatives

1,683

1,621

December 31, 2010

December 31, 2011

COMPENSATION

(1) Among employees who worked at least three months in the year.

HEALTH AND SAFETY CONDITIONS Number of meetings of Health, Safety and Working Conditions Committees Number of employees receiving onsite safety training

EMPLOYEE RELATIONS Collective agreements signed in 2011

EMPLOYEE BENEFITS Solidarity Fund Works Council benefits budget (in millions of euros)

In 1994, a solidarity fund was set up in to provide istrative or financial assistance to employees faced with major financial or family-related difficulties that they cannot overcome alone. 2

2

2011 ACCOR ANNUAL REPORT/105

HUMAN RESOURCE INDICATORS The men and women of Accor, worldwide

At December 31, 2011, more than 180,000 employees worked in Accor brand hotels. Accor has 144,893 employees, according to the reported human resources data. Depending on Accor’s degree of responsibility in their management, these include 68,243 employees in owned and leased hotels and 76,650 employees in managed hotels. The total workforce of 180,000 is an approximation that includes, in addition, the estimated number of employees in franchised hotels. Full-scope data take into owned, leased and managed hotels, for which the indicators are reported below. Units in which Accor holds an interest but is not responsible for managing teams as well as hotels operated under franchise agreements are not included. The report covers all full and part-time employees, irrespective of the number of hours spent on site (excluding contingent workers, interns and temporary workers). Workforce indicators are based on the average number of employees in owned, leased and managed hotels for the year.

EMPLOYEES OF MANAGED BUSINESSES



Rest of Europe

North America

Latin America and Caribbean

Rest of the world

Total 2011

Total 2010

HOTELS

18,384

26,992

17,818

10,695

69,851

143,740

141,604

Upscale and Midscale Hotels

12,283

20,563

3,522

7,620

62,185

106,173

104,363

6,101

6,429

–

3,075

7,666

23,271

22,390

–

–

14,296

–

–

14,296

14,851

1,153

–

–

–

–

1,153

2,335

–

–

–

–

–

–

1,200

Other

1,153

–

–

–

–

1,153

1,135

TOTAL

19,537

26,992

17,818

10,695

69,851

144,893

143,939

AT DECEMBER 31, 2010

Economy Hotels US Economy Hotels Other businesses Restaurants

106/PERFORMANCE INDICATORS



Rest of Europe

North America

Latin America and Caribbean

Rest of the world

Total 2011

Total 2010

Number of employees

19,537

26,992

17,818

10,695

69,851

144,893

143,939

% women

57%

56%

69%

51%

40%

50%

50%

% men

43%

44%

31%

49%

60%

50%

50%

HUMAN RESOURCES INDICATORS BY REGION AT DECEMBER 31, 2011

% under permanent contract

87%

81%

100%

91%

65%

77%

78%

% women

56%

56%

69%

52%

39%

51%

51%

% men

44%

44%

31%

48%

61%

49%

49%

Under 25

15%

21%

18%

22%

22%

20%

20%

25 to 34 years

33%

36%

28%

42%

40%

37%

37%

35 to 44 years

26%

21%

23%

24%

24%

24%

24%

45 to 54 years

19%

15%

20%

10%

11%

14%

14%

Over 55 years

7%

7%

11%

2%

3%

5%

5%

Employees by age

Employees by seniority Under 6 months

14%

10%

28%

20%

18%

17%

17%

6 months to 2 years

16%

25%

26%

33%

32%

28%

28%

2 to 5 years

20%

25%

22%

26%

25%

24%

24%

5 to 10 years

21%

18%

13%

14%

11%

14%

14%

Over 10 years

30%

22%

11%

7%

14%

17%

17%

25%

17%

6%

11%

22%

19%

18%

47%

48%

53%

49%

39%

43%

43%

53%

52%

47%

51%

61%

57%

57%

Under 25

2%

3%

3%

3%

6%

5%

5%

25 to 34 years

33%

35%

24%

47%

43%

39%

38%

35 to 44 years

35%

34%

30%

32%

33%

33%

34%

45 to 54 years

23%

20%

29%

14%

14%

18%

18%

Over 55 years

7%

8%

14%

4%

3%

5%

5%

Number of days of training

32,246

49,218

12,747

37,961

302,920

435,092

341,304

Number of days of training for managers

14,365

14,630

4,596

6,976

80,096

120,663

97,111

Number of days of training for non-managers

17,881

34,588

8,151

30,985

222,824

314,429

244,193

10,314

21,579

6,130

11,502

94,412

143,937

110,183

3,310

4,128

1,539

1,425

21,164

31,566

24,603

7,004

17,451

4,591

10,077

73,248

112,371

85,580

1.7

1.8

0.7

3.5

4.3

3.0

2.4

–

–

–

–

–

14.5

13.6

–

–

–

–

2

2

2

–

–

–

–

7

7

7

% of total workforce(1) Management % women % men Managers by age

Training

Number of employees having attended at least one training course Number of managers having attended at least one training course Number of non-managers having attended at least one training course Average number of days of training(2) Lost-time incident frequency rate (LTIF)(3)

Occupational Number of fatal accidents in the workplace accidents Number of fatal accidents commuting

(1) A manager is defined as an employee who manages a team and/or has a high level of expertise. (2) Total number of days of training divided by the total workforce. (3) Number of workplace accidents with lost time (as defined in accordance with local legislation) per million hours worked.

2011 ACCOR ANNUAL REPORT/107

s If you are a shareholder… The Accor Shareholder Relations team can be reached at: Toll-free number: E-mail: [email protected] You can also consult: • The 2011 Registration Document and the Annual Financial

Report, which are available in the Finance section of accor.com. • The 2011 Annual Report available in an interactive version

in the Group section of accor.com. This year, the interactive Accor Annual Report is accessible for the sight impaired and has been awarded an e-accessibility label, created with the of Adobe and Fondation de .

If you are a journalist… For questions about Accor, you can the Group Media Relations Department. E-mail: [email protected] You can also find a list of all media s by brand and by region in the Press section of accor.com.

For more information about the Accor Foundation Available at foundation-accor.com

Corporate Headquarters Immeuble Odyssey 110, avenue de 75210 Paris Cedex 13 – Tel.: +33(0)1 45 38 86 00 accor.com facebook.com/Accor

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