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…)
28 Mar 17
ClearStar* (CLSU): Building a background for growth (CORP) | Sound Energy (SOU): TE-8 results (HOLD) | LiDCO* (LID): 2017 should be a transformative year (CORP) | Proteome Sciences* (PRM): FY 2016 in line. Moving towards breakeven (CORP) | Fulcrum (FCRM): Significant market potential, rising margins and a strong balance sheet (BUY) | Mortgage Advice Bureau (MAB1): Strong and growing intellectual property (BUY) | 7digital* (7DIG): Open offer result (CORP)
Small Cap Breakfast
28 Mar 17
Path Investments—Publication of prospectus from the Energy Investment Company. Raising £1.4m. Admission due on or around 30 March | Franchise Brands—Schedule 1 detailing £28m reverse takeover of Metro Rod. Admission expected 11 April | Alpha FX Group— Schedule 1 from the foreign exchange provider focused on managing exchange rate risk for UK corporates that trade internationally. Fundraise TBC. Admission expected 7 April. | K3 | Capital Group—Schedule 1 from the Group of business and company sales specialists across business transfer, business brokerage and corporate finance. Admission date and fundraise details TBC. | Integumen— Schedule 1 from the personal health company developing and commercialising technology and products for the human integumentary system. Raising £2.16m at 5p. Expected market cap £8.16m. Admission expected 5 April. Tufton | Oceanic Assets– Offer extended to 9 May to enable investors to complete further due diligence.
Strong set of full-year results, comforting guidance
23 Mar 17
GVC released a solid set of full-year results. Key highlights Pro forma Net Gaming Revenue (NGR) was up 12% at constant currency, or 9% on a reported basis at €895m, in line with the February trading update. Pro forma clean EBITDA was up 26%, at €205.7m, bang in line with AV’s €206m forecasts, translating a three percentage points increase in margin added to the growth in revenue. c.69% of NGR was derived from markets either regulated (including those in the process of regulating) and/or locally taxed (68% in 2015), while 95% of the revenues were derived from GVC’s proprietary platform. Net debt stood at €131.5m or 0.6x clean EBITDA. The board proposed a second special dividend of €0.15, giving a total dividend of €0.30 per share for the year, beating market expectations. Guidance The start of 2017 seems promising as management said that daily NGR had increased by 15% (+16% cc), translating into an 18% (+19% cc) growth in sports labels’ daily NGR and a 6% (+8% cc) increase in games labels’ daily NGR. The gross win margin reached 9.5% while it should move towards the 10% mark on the long term. Regarding dividends, the group confirmed a progressive distribution policy and expects to distribute at least 50% of the group’s free cash flow, starting from 2017. Debt refinancing In the first quarter of 2017, the group issued a €320m Senior Secured Term and Revolving Facility, composed of a €250m term loan (maturity 6 years) and a €70m revolving credit facility (maturity 5 years) used to pay down the Nomura Loan in full.
N+1 Singer - Morning Song 23-03-2017
23 Mar 17
eg solutions (EGS LN) Re-focusing on sales is delivering rewards | Futura Medical (FUM LN) FY results: continued clinical, regulatory and commercial progress | Halfords Group (HFD LN) Confidence in FX mitigation grows; stay at BUY | IFG Group (IFP LN) Top line growth but earnings pressures remain | Realm Therapeutics (RLM LN) FY results in line; on track for Phase II start in 2017 | Safestyle UK (SFE LN) Another good full year performance but valuation up with events | WYG (WYG LN) Mixed conclusion to FY17, reassuring FY18 outlook
Driven by distribution
24 Mar 17
Following results earlier this month, we publish our new forecasts following the segmental consolidation of divisions, and remain cautious relative to consensus (c.2% below at the PBT level in FY18E) mainly due to our UK assumptions. We believe the valuation is relatively attractive, and Inchcape is well placed for further growth given the strength of its balance sheet as it seeks to further utilise its unique global market position.