Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ACCOR SA. We currently have 22 research reports from 2 professional analysts.
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The imminent disposal of HotelInvest opens a new page for AccorHotels
23 Feb 17
Strong pace of FY16 results, strong prospects underpinned by a new strategy Accor released its FY16 results, marked by a challenging French market which as expected was heavily impacted by the terrorist attacks last year. But international geographies performed strongly and the overdue disposal of the property arm was further detailed (under the so-called Booster project) with a closing due in H1 17. This is paving the way for a new strategy for the group consisting of boosting the weight of private rental activities and community services (including concierge services via the recently-acquired John Paul), both to be at the heart of the company’s growth. Tough French market, but clear improvements in Q4 FY16 sales grew by 2.2% (+0.9% reported) in line with the market’s expectations with robust performances across most geographies, with improved figures in Q4 (sales lfl +3.1%, RevPAR +1.3%). In France (-2.8% lfl in sales but -1.2% in Q4), trading conditions remained challenging in Paris (RevPAR -13.2% in FY16) as a result of the terrorist activity, contrasting with the Provinces which held tight (+4.2% in RevPAR). At the group level, the UK (+2.3% in FY16 RevPAR, o/w +3.8% in Q4) and Germany (+4% in FY16 RevPAR, +3.1% in Q4) along with a strong Asia Pacific (+5.5% in sales LFL) and the Americas (+4.7% LFL) helped to compensate for the poor French market. Strong international markets, record EBIT level Group EBIT reached a record €696m level (+4.6% reported, +3.8% lfl, the EBIT margin at 12.4%, +50bp yoy) fuelled by a robust Q4 (improved performances in France), organic activity (+€25m), the contribution of FRHI (over 6 months in H2, €48m) and hotel development (€7m), all of which compensated for the negative contribution of new businesses (including Fastbooking, Onefinestay and John Paul) and FX impacts (€18m). The Asia-Pacific region (+32% in EBIT lfl) benefited from the sustained development completed since 2014 while the UK and Germany played as strong supports for the NCEE region (55% of Group EBIT, +9% lfl). Brazil continued to weigh on the Americas’ performances (-18% in EBIT lfl) while France (-13% in EBIT lfl) felt the pain of the terrorist attacks in Paris and Nice. The group’s net profit rose by 8.6% at €265m while net debt reached €1.6bn (vs €194m of net cash position in FY15), largely due to acquisitions, including FRHI (for €2.6bn, partly financed by €768m of cash).
Colony Capital fully exits from AccorHotels
08 Feb 17
Colony Capital, AccorHotels’ second largest shareholder (6% stake, 10.4% of the voting rights) following the Chinese Jin Jiang (15% stake) has announced the sale of its entire stake in the company on 31 January. The private equity firm, which entered the hotel group’s capital in 2005, was AccorHotels’ former reference shareholder and had two seats on the Board. It held a concert stake with Eurazeo (4.28% stake, 7.97% of voting rights and two seats on the Board) which entered AccorHotel’s capital in May 2008.
AccorHotels to buy private vacation rental platform Travel Keys
07 Feb 17
Accor Hotels has announced it is in exclusive talks to acquire 100% of the Atlanta-based Travel Keys, a private vacation rental broker which has over 5,000 luxury properties across more than 100 destinations (including the Caribbean, Mexico, Hawaii & the US, Europe, Asia, Africa). Travel Keys was created in 1991 and provides clients with professional vacation planning and 24/7 concierge services. Accor expects the deal to close in Q2 17.
AccorHotels invests S$24m (c.€16m) in Banyan Tree
08 Dec 16
The French hotel group will spend c.€16m in the Singapore-based hospitality brand Banyan Tree. The pair have locked in a long-term strategic partnership to develop and manage Banyan Tree branded hotels around the world. Banyan Tree will have access to AccorHotels’ global reservation and sales network and its loyalty programme (Le Club AccorHotels). Banyan Tree operates 43 luxury hotels and resorts (between 75 to 300 rooms) under the Banyan Tree and Angsana brands but also under the newly-established Cassia and Dhawa brands. The group also operates 64 spas, 77 retail galleries and three golf courses across 28 countries. In exchange for its initial S$24m investment, AccorHotels will get a 5% stake in Banyan Tree upon conversion of a mandatory convertible debenture (a long-term security that will be automatically converted into stock at a specified date). AccorHotels has an option to purchase an additional c.5% stake.
Finally, good resistance
19 Oct 16
Accor reported Q3 sales up by 3%, of which +1.8% organic growth (mainly price increases) and +11.5% from expansion (new rooms and FRHI integration since July): • HotelInvest sales reduced by 0.1% lfl due to the tough environment in France and Belgium; • HotelServices sales grew by 24.2% thanks to the consolidation of FRHI and 6.7% organic growth. This good performance is reassuring in the current alarmist context about tourism in France and Belgium. The group reduced its medium EBIT target slightly from €695m to €680m due to the situation in France (28% of EBIT).
The Big Short !
21 Sep 16
Accor H1 2016 Sales grew +2% Like-for-Like while Ebit dropped -4% to EUR 239 Mln France is largest issue (makes for 25% of Company total Sales & Ebit) as Leisure traffic collapsed -50% since Nov 2015 Attacks (while Corporate was almost flat). Company has kept prices unchanged in Paris (big mistake according to us), declaring customers were scared to travel to France whatever the price of rooms was (Airbnb traffic jumped +86% Y-oY in June, July, August 2016 in France…)
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
N+1 Singer - Gym Group - Not quite a lean, fit & healthy outlook
15 Feb 17
Gym Group has done an excellent job in successfully rolling out a disruptive business model in the health & fitness market. However, we think growth expectations are too high and the shares look expensive on a FY17 P/E of 27x. We expect initial signs of increased competition / cannibalisation and LFL pressure to increase over the next 2-3 years and the shares to de-rate. We pitch our forecasts 5%-14% below consensus and initiate with a Sell recommendation and a 145p target price.
Panmure Morning Note 24-02-2017
24 Feb 17
Upgrades and increased shareholder returns were needed to justify the recent share price rally: they have been duly delivered and we expect a positive response today. FY16 was largely ‘in-line’ and initial FY17 comments, for operating profit growth YOY, are encouraging. Our initial estimate is for consensus upgrades of 5-10%. IAG has confirmed a €500m share buy-back programme, which was well flagged and we think in line with market expectations. Overall a welcome, slightly more positive read for the sector, particularly those with self-help levers. Presentation 9am GMT.
Cycle pains; structural gains
01 Feb 17
A downgrade is a downgrade, which we put through in this note (FY17 net profit -8%). The fare softness behind it is not worrisome to us, reflecting a tough point in the cycle, with industry supply/demand imbalance driving revenue yields down across the sector. Wizz Air is not immune but its own yield softness is partly self-inflicted, with management taking an aggressive capacity stance to capitalise on structural growth opportunities. This may be dilutive to near-term earnings, but should be accretive to medium-term growth and shareholder value. Experience suggests these are exactly the time to buy airline winners, which we believe Wizz Air is becoming. Limited stock liquidity can move the price up quickly as well as down. Reiterate BUY, TP unchanged at 2,300p.