Accor (ACCYY) 25 Feb 212020 Q4 Earnings call transcript

Hello, and welcome to the Accor Full Year 2020 Analyst Call. My name is Mollie, and I'll be your coordinator for today's event. Please note that this call is being recorded. [Operator Instructions] I would now like to hand the call over to your host, Sébastien Bazin, Chairman and CEO, to begin today's conference. Thank you.

everyone. morning, Good much in so early the in Thank for here Paris. day you connecting saying you about I've of many to been of the industry years for hospitality is capital. all human that number a

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have say, and demonstrating has XXXXs. been of proud XXXX that been I navigating hospitality am year, since resilience Now it's to when extremely I probably we've the the we created But in adaptability. worst turn through to Accor the

or a the the the only of confinement market, If XX but first a circumstances think whether today the That noticeable never a all we are we surprise When fetching has but am is some the who amazed of page this industry. of and countries GDP X% plus we've leisure it have on, in of of happened the light is all course, XX% or Accor being of in ours look is owners seen, of thankful I U.K. frontiers and plus with for it I XX% the positive economies France to X% And of open, very we, XXXX on correlated the occupancy, yes, that being with But at X% much is and to restriction, country is, that curfew. and said, likely open. page of you hotels you front it the GDP, non-existing, been expected business, no our X.X%. remarkable what's only do have you, at look brands fetching of with of of them rebound a with however, closed, ready so today's be China. being our with no

We and from us in a to surely ahead we have bright when way. comes some will benefit it won deep economy days it of we've

I here, XXX. after, dropped it course, exercise, have end left what the doing the on page the you to was the to doing up of know side math. I travelers go billion you If year We, XXXX. X,XXX with the was the in know you But

was year. of of activity years, probably million hundred last February a couple China, provider January not for and is account months for most the of still the intact your there with impacted where first If of the travelers X of

side have But word the The likely through on So the drop not is right is travel is to pandemic. what in be likely drop close XX% of international XX%. a to you caution. the

of hospitality were China, we to pre-pandemic. of October strong year, Chinese being last numbers us to mostly RevPAR early in all end back of see so was China very pleased so and see You that

also in days people Hubei, shut that province of a the very down, XX with dropped XX it of Beijing, that dropped back of and of outside actually or a the So of saw few minus lot outside Beijing XX XX% million level. matter to they cases and only COVID, immediately we again with RevPAR

However, I'm very of hospitality resilience impressed the U.S. with the industry.

Europe. in Of in it's and because of of XX% than And know minus the you And see minus but in it range our less be line, XX% course, core all Europe. fetching in Central things happening, impacted tough, U.K., still like is it's happens tough, so guys which a RevPAR. is you and us, of what's Europe, blue Southern the it's to XX% Europe all in whether

able depending So that the Accor X will because you to weather terms differences on but in X pillars. after, where exposure. we The it, see it last it's we of better, of going you over it we've storm, repealed months And been sit to geography we said do vast the did. the so slide get the

The one first, extraordinary because nonquantifiable, to is of with the has do is Accor. people it which most the

on have brand countries. colleagues in XXX the we working know XXX,XXX You over Accor

know respond And be that any hospital, million guess, end sure capital spend with any issues. to in from the to bit the being not those But to on we've be been for paycheck to therefore also on you Accor XX,XXX to not well we together had different in make the whole a they furloughed, for of will Heartist as nutrition. $XX we offered we've March. and You fulfilled. some subsidies, many a Accor, and those owners. we Many our benefit people, have did And availability put, having making them furloughing of I to guests of categories talk working of Fund care XXX,XXX need of owners Accor, having will were The looking will the that, [indiscernible] sure so help did them. colleagues,

to have book encouraged to that sure We make are they again.

to make to any cancellation We, safety policy. sure open of course, guests, welcome it most protocol hotels And measures when Accor will that sanitary all on impeccable at looked every whatever comes -- to so guess planet. protocol individual this going we're flexibility and have the measures on I of full health sanitary

XX% of hotels to whatever the our all that phone, to for today Accor actually be this sure could many and greater the we you making course, is flexibility, safeguarded, questions for for it, company. And are being a making haven't which prepared that about And probably a by if Cost to forgotten we the you verified increased. me preserved more So be shareholders, parties. been on savings have we third rebound. have you. of was the of of and that listening have sure and agility the of protocol company organization cash and have will longevity implemented preserving the It greater make body sure talk the about the most we of important, cash, Jean-Jacques together, to could, you to put within be probably measures this simplifying

a X.X last real March been the Eastern billion-plus so and in And been very page hotels words: our which organization the focus, Europe sanitary We've Orbis, And And tomorrow are welcome XXX we, and it February with protocol. one on XXXX. more. as comes eager early is the of all-smart, to things to cost been closing much the open. to billion end estate heaviness, portfolio in as the didn't we know and years. ready of are today of -- rebound is not cashed XXXX. plan, biggest is core billions and of this XX this million why we X you XX done lucky set which are [indiscernible] getting We've all are of savings, by we've international have agility, the balance and asset been minus on the for comes readapting simplify We've key go, start If of morning, is X by travelers XX% only back months. the away team minute. the again, happen to being of flexibility, we last travelers. when when for value from We've did sold been or to after, sleep -- company. The expand. expression, domestic Movenpick, of so it We accelerating sheet, plus do the very the our

stay cannot just even through mobile a You crisis.

was it lifestyle comes when put way of segment local of is the hotels in together the really more XXX% a than all all partnership, It next content. wants. we over you offerings To this segment, that more the segment. interest big more It unique the time. is to that a and planet XX for something They want with big what years. the going lifestyle had will individual account alliances, minority to fully which probably big, the XX% ownership I So believer in am well. the know

acquiring, bet and And Ennismore the we'll we it years, over a in putting within bet talk so we've and long Ennismore and a big been the about creating securing the few made a platforms, in minute. Accor of But a it's on where in legacy brand. the touched statement acceleration of positioning upon forgetting, again, without minute. a And major ourselves should to it be course, and a it's Jean-Jacques, you. we brands

today Sebastien. presentation. for Good with being you, morning, Thanks result Thank for this us everybody.

X, a the faced. implemented highlight, COVID cope in Starting, we Page the year. the ramp-up to with all is magnitude of notably I'll with by figures. slide. reflect fact, all the being able those of and decrease obviously despite €XXX which move net detail a we Let's The The that over benefit we of to minus To than that overview of RevPAR organic business to tough QX the highlights. EBITDA figures decrease financial actions, as million the next into to the the year revenue growth a the the less over of the level. XX% revenue And actions tough slowed group up a crisis in ended million. the because down swiftly were €X,XXX down situation, translated a drastic sensitivity to was RevPAR The And we XX% mentioned Sebastien, X.X%. saw QX €XX year. of and Europe, to the like-for-like basis on The million. for of

million. the cash our flow to our not recurring to last was minus burn per €XXX cash, The sheet month. but significantly preserve this was priority strong here least, And again, of key for €XX balance monthly reduced a well free As we crisis. cash million

-- you to of from is [indiscernible] in the bank. see sentiment give that revolving a XXXX. X.Xx an the and more we no can sheet, again this asset-light initial successful balance But in at the here And were in was the XXXX we And means which importantly, million. is have credit strings translates on the XXXX, part that you Xx, oversubscribed, was Huazhu of the the bond bank, back I in you that it fact, saw the in creation. of several end which year. February crystalize no It X.X% number So that simplify on with put which, to done covenants, that And this last was the made in of Xx am Again, of transaction, before presented just the mean, this convertible investor of report €XXX last issuance had point XXXX, the value last that we additional Accor. given actions I €XXX happy but facility, end towards further table. million again, additional place that roadmap press of was June investments. stake disposed backup something of And and we approval probably March to negotiated testing week, the which, so renegotiated from for more [indiscernible] the translate was renegotiation confidence.

is €X strong of the which the of position, a including All facility liquidity billion. tune undrawn to revolving translate into this credit

of the from point to the March So when we been is I computation. more back leverage. of part on that had €XX of giving this move you left discussed HX. to €XX what And table, and in see EBITDA a we do detail The million the sensitivity, of the you we've in controlling controllable hundreds you million improving operating calling talk obviously, which millions,

cash, in million €XX HX to March the million €XX in If burn fact, minus was you in was million. reduced, move an HX cash translation the to €XXX at with in

million a have from quarter-after-quarter, in we month, the cash sensitivity but recurring We them level, we would and of It commented, better ended the burn. said month stems So EBITDA them up the the are the said by investment. that's EBITDA just it's we after actions paying put that we reduce off, being at €XXX on €XX We control million. year reducing we also by would April. the reduction

also was can place. And stringent we environment. least, focus on a working sure not So we that but collect and control well then we as in in the very last as capital over put there tough year the making

this controlling operating controllable on and operating gearing. the that's So --

If by the XX%. in all RevPAR now and you geography, QX, XX%, rebound fairing After QX encouraging with up very in move cope financial able various to which chart variants. minus at the year affected in was not and much been the the to Overall, restriction Page RevPAR the classical Europe an XX. the and end has the decreased is COVID by QX

Now if positive looking of trough improving quarter sequentially you that each exclude way Europe, after it the is in geographies. is the other at QX of since quarter the RevPAR

XX% XX%. up and Moving RevPAR recovered we the Asia Pacific. Greater in had at RevPAR. the point minus to swiftly, at even ended a minus China, epicenter, In pandemic Asia Pacific, December

same come come summer the and the destination where in on that in and Asia also needed in we Pacific, more leisure followed recovery Coast. travel once his notably Europe. In is a was work Gold XX%, things RevPAR containment as back, and speech. the demonstrate summer But covered it QX strong. to is the experienced they Australia, one when Mantra fragile, be the the minus fast negative that back Sebastien So to benefited The quoting if pattern

So here a good Australia. in we had season

the -- as U.K. If today. XX% fact, are, by it financial Europe, down and that RevPAR XX% November U.K., versus of In XX% the the of to in in 'XX. and in both Australia strict of and in a to very That's you QX place translation the point move lockdown Germany, was place, in QX dropped in dropped put still in degradation were the RevPAR by and Germany XX%. early sorry,

QX, impacted we the of in demand also the a domestic end at we in Provence, as as strong pattern with better minus release France, slightly foreign find, we rebound limited fact, lack June. that is one the We number more lockdown before, following than but very i.e., same And for the Paris. QX Paris tourism, over Paris more experienced As in had is suffering had XX%. the up by towards a a

the XX%. the America is falling As RevPAR, by rest North which report for of world,

which was progression some the month. Middle and fact is exposed translates much of we exhibition, to about it -- And America XX% it's and Here, East, incentive portfolio very the South to to that kind have a RevPAR down fairs. after [indiscernible] again, in month

I Dubai, to think is some I'd extraordinary. traveling was like of then is, so that detail, in month but one December was how and a which think to point the explains extent, quote, in a border about people there reopening, industry and our the UAE,

traveling things into sorry, when people us, reopen, and -- for it's can is a business swiftly business nice the So go into opportunity opportunity. clear

to have firm Just be that.

network other RevPAR. I'm business, for now key growth. to that's system our drivers the is So which the moving in the and

XX. Slide and I'm on -- So

had bad X% the expected to XX,XXX X%, opened what little net Our still was a It growth XX the number. was system over which rooms not We a we but over year. below is months. X.X% bit last between

XX,XXX were very mainly We have cancellation strong openings that closely QX really homes. postponement, we impacted marginal. at sorry, by whereas a were The monitor project

of fact, further got periods. the In project to XX% postponed

more vigorously year, Over our the other years, this than as system you the Pacific that growth. the happened may China more geography what been last even With true in is recall rebounded driving this locomotive has any world. Asia

XX% opening number the of of last which that's of to total XX,XXX with Pipeline, is of itself of end opening and pipeline room. a year amount i.e. in XXX signings. financial XX% for XXX,XXX last year we constitutes year, rooms Pacific in the group. the delivered as the same Asia the of flow and was 'XX, XXXX And above at the up rooms of good fact, about

I So that's closely trend am that that in with report One and we KPI to very been very also are monitoring above we've at good. much X%. happy is churn, line historical

over bankruptcy from that coming closely subsidies point It's number the all we of that has is So lowering very at the that we happening. with the today, been could market don't government. seeing we've increase a reality because monitor the about the the see X years. is last But that X% a sense

least, forward. very not So important going but a Last point conversion. for development

will So a but with which of they a financial historical opening can driver. about level. And little year This much is accounted for be XX% be our those a a lumpy, it 'XX. in is year the in very think growth that remain consistent number will we It growth driver conversions 'XX. bit financial

been you If the hotel businesses. described service, move asset, segments, next hotel the to has which revenue slide, new by

variance billion, minus sale is explained is essentially portfolio the XX%, XXXX. The Movenpick So XX%. at €X.X the is beginning revenue reported of overall, by Accor which

you is here. of at XX%. down is hotel minus a RevPAR XX%, look If services, The much revenue not delta so the

we subsegment, are honor by services page. smaller in XX%, the M&F behalf the why part owner, next of the as incurred it to of on in at to XX%, Looking the a the you hotels detail do drops and and is salary reimbursed the not of the like which people decrease is costs RevPAR. And decrease down the the

As XX%. here, decline. QX of a which mentioned the activity, the was the Coasts. we before, benefited Gold This Mantra for was in the from is XX% of the assets, one RevPAR point hotel a and revenue good resilience which see on Sunshine I really And down back

down the the I one is now impact the more digital focus surprise. am a of like XX%. It businesses, RevPAR the in portion for new less logically, contract. such on is to travel-related And M&F XX% of on businesses, revenue the private Slide revenue on travel-related like This action comes from than As incentives minus the so business. services of got down affected this moving no the back as XX%. are service rental of we've that that are activities is M&F I'm And here revenue DH. part our are management of Overall, the hotel XX. which

way, used recognize to of note, up the got in that like it end the at Pacific and places in -- HX. HX us of XXXX to of revenue. be business we of Asia in notably a allowed activity in we've to being the XX% the fees. than our XX% the if the M&F the So tune by Singapore, On quarantine more positive HX And of incentives notably, end in improvement M&F

XX% much that tells HX you you've positive. is you. in than that is incentive, the is more RevPAR HX, what table find this that between told from So revenue will which got in regions, the you I which across all Then distinction coming and

So the being profit segment. you split overall if now EBITDA, million €XXX the we the the here group, move to of see by

that for EBITDA in €XXX SMBL the by services, are typically with which hotel costs, gave driven it's the fees aligned once sales, the a with SMBL call, essentially, the I touch million, but owner. As is explanation hotel and HX minus around distribution an and loyalty. essentially the marketing,

and should that's flexibility, And staff incurred with COVID crisis have those they you've costs why the same remained the align, fees. don't be. you same loss. X% costs on don't as of the the cost flexing The of reimbursed With the the owner behalf got i.e. that

no which minus €X is detail business-related an slide. EBITDA, at as far businesses, Regarding hotel million. on asset, And million as activities, a the a that I'll positive loss result surprise Essentially with good here. new EBITDA the €XX next

XX. is Slide which moving that to So slide,

of a the hotel kind on You have and other asset focus here activity.

changed is X/X exposure transformation asset-led driven geographical by the of Australia So segment. the today of essentially Mantra revenue, nature It's of it the and mainly that for the our businesses. and business

for the Europe Movenpick with the Turkey. of the leases residual the also current remainder You some saw in leases in the year, got variable year. of we that at some And beginning

headcount at times of So got had good end the we've at of there go where hurting million? the of Australia job, a And the worst. beginning in next and we Job good positive is the South full leases EBITDA. great of for the America, the least, Keeper, not we essentially is in for they've and in there think the the cost reduction, COVID the benefiting that benefited true that's seasons employees, EBITDA Brazil. this in very support not the variable in time that fact, like year I and and basically strong the on were both at blast. is in will also very place we extremely from so but was away the year. many years, Why covering And €X program and for Then got put last want year, for Australia, employers, significant a called

EBITDA that's a in being now making the and fact, between ends I'm why, net And profit. line the moving slightly positive so bridge the the EBITDA below up EBITDA the to number. and

over to net billion, X €X drivers. €X,XXX So There X million main are the million. X X record X close we X year -- a loss

The the AccorInvest, and contribution got report first was is share happy On net venture. an of what we've we've the shareholder the in got agreement AccorInvest, government. banks, associates the the line. at up that between the which very this XX% to and And joint of French shows that I'm AccorInvest, formed one of in losses that is really

public a million. XX% end we of rational capital €XXX line will up increase obviously, line and assembly said All with in principle, extraordinary this March, stake early general In will our to participate amount act our subject, become would in as of that a to the with for equity the next being investor. we days. participation should an We

has good is all a ahead. found between there So move parties deal that been to

for item, On recall, the no 'XX mean, the you HX of of assets. again, billion end we I at €X surprise. booked impairment here nonrecurring big

booked tax of mentioned. cash charge may It's on. we in positive you And side, that that's X a restructuring a I'll a for one-off that top that, on severance. in entries, that's And then for restructuring the up July for detail what reset refund So the other that had million. €XXX the we charge of makes cost project on the line. X On of most recall, we HX, later received had

year-end, effect €XXX that at that's of so our in the July the cash in P&L to account received And and million. tune recognize of

debt expenses, increase The item, the as will for slide. of on next is you to the see As unchanged. noncash financial cost is related

Just is that XXXX. €XXX completed we of coming the the profit, discontinued this on to from significant the net at million, gain and Orbis of the that beginning you operation close presentation see gain sale

So net we're now with income. done

So the of moving to cash part presentation. the

making the So bridge recurring flow between the the free EBITDA, cash and debt. net the

the million. per So free of cash equates €XX month. cash to €XXX recurring minus flow is That burn million a

So is can XXX divided XX million. large capital XX by Two the you main working on driver here off, of see million. first deterioration a €XXX that table,

already of may of is explained at the the end collection You recall, by we had it to fee And million. this HX €XXX deferral. tune

capital understand cash to The some savings but that we EBITDA that the in XXXX. of in is are element only will the put other place in into that translate working change

is of so here had elements. And second recurring better these true an notably The kind of the got element ourselves. we I for And capital had investment mentioned also social element that to you've target were that payroll, the change, this to much is than charges, assigned highlight. working the and we

a had we normalized So €XXX level. million

a had amount. we was our end €XXX i.e. year-end than €XX million, million, and the at €XXX the million, with of up initial have million better €XXX million i.e., €XXX target We target

how business the be to to €XXX coming XXXX, and back. between is €XXX depending year we on back that million in level million, a target for we will to will So adjust financial

the on flow. cash recurring that's So free

as is that You net stable at well, behaving €X.X table see billion. it debt the is that also on

last the the SB And back buyback least, Orbis, tax the million the also had and share so for proceeds significant we million. some And free were flow there there in cash inflow, the and were transaction €XXX notably one-off, that not recurring outflows, €XXX done cash from QX. but cash

summary why the Directors minuses. at balance at that's the not Board which sheet, net next One the annual the on be flat, which pluses will things Based pay held on meeting is debt Page April. of and big to decided is above, the to shareholder end So with a here. propose of the XX, X the slide but big dividend

which in that million debt profile we've any convertible before we November for of XXXX, significant XXXX. February You bond have see the first €XXX the on now of beginning month the that raised the reimbursed maturity we don't

we better we liquidity, see billion RCF, number and a as a thing. May. did strengthen includes And than balance of XXXX the the finished is, with and liquidity, So that that's we in you additional that back an the that of ended this with good on RCF sheet €XXX one million can €X.X our year in fact, the with

good some words So a I'd spend position say like on -- but not Last least, a good, few to RESET. here.

key we the RESET, on is So plan. message per are

the We are we give be. talked you work like do exactly of Essentially, we you light some mean we of about significant it. to X regional we I'd do for lot a has The way explanation where as what of give we to HX an we removed we is told a I It been back rethinking levers. to we you some wanted on how organization things. headquarters. in to the try did, it -- simplification. had identified

an Pacific that Asia headquarters with go costs no there more no is European it. with the all there headquarter, is So more

one about or streamlining, talked talked automation for have was element systems. we So the the headcount one simplification. XX%. that illustration We explanation end We reduced about by of plan, and of at the

IT of of about our the We talked are systems. now XX% We right decommissioning in process legality.

all reduce will We and are by our renegotiating contractor the XX%. we again spanning contractors,

you've It program illustration that saving of X the are fact, ahead. how in got savings had It's parameters that up financials. than that, years back recurring exactly how plan. move we less in And will is these of show with are of our kind August cost we And provided So a go and there. payback. in an of the illustration €XXX million

of of You've the the savings, €XXX end that XXXX. be million, got implemented X/X i.e., will by

are of million, which the close and think you XXXX do on the so I million. reach be that for sales, XXXX with million distribution cost for you XXX to many savings XX% but And leave of in in coming I the of you'll was XX% That's and you will related booked the marketing, that €XXX you Sebastien. continue of the of so from year-end, couple are savings of have to €XX is to will I'll highlight are then million, gain XXXX. the And And to X. started with That means mentioning call, XX% floor which And in €XXX account points, presentation. if the before not A at financial implementation EBITDA €XXX interest we staff, million somewhere -- non-staff. back sorry, of least, plan. of the And that, loyalty. last as more

thanks Okay, Jean-Jacques. lot, a

it finish up everyone. quickly go to try to and wake Let's up

substantially is for safeguarded your Jean-Jacques Number there Page would hundred one, priorities And Accor don't three, be benefit maximum comes, touched rebound. XX, on be time have be Whenever the front be and when late the it you Number million it. they it's program. upon two, on spend permanent savings reset loyalty years deliver Number On of the is take that from clearly, it's it, in it rebound. on And rather it. grasp to should it, simple. in we comes whatever promise, -- XXXX, for improving super Accor you extremely the and powerful. Live couple Limitless a recurring margin to come. of should to well-positioned

very good a app. have We tool machine

loyalty whatever diversified that best I open, it's to health, you -- all about very that you when proving comes which very autonomy, those of social deliver those this five, capital, There's the tell said. they for so your empowerment. know did over that you it And planet open owners Number of of comes can cardholders. experiences -- we friendly, values It's XX you to the we food I when pipeline. it's are though a hotels moment things and matter can of in not, Even initiatives. seduce I last XX be XXXX a assured it's four, take the company. talent. XXX it years. when when been opening in you good have could frequency, upon care get I work difficult company deeper retain, to are years. It can the to increased They probably we results, Now what true Number it make it so for And the financial, but come tackling of comes your this XXX Preserve, it today, you has to many manage, a to will to plastic, did. even them go X in asset increase that you months, increase quickly. human have last traffic, you it to the customers usage, have very increased only matter best, you that your can all responsibility, hotels to most we just do, waste. gets in you, likely it's is as rid touched

leadership, about I the and this X, and you same strongest and talked want last employees no people it, direction year change XX% that better in. am any the Number thankful. am the I -- we our company, were here Our the from at for am next exact When am, the to every to which of all from want flabbergasted. hospitality blessed, the humility, being are at am British of talent company expected the probably blessed, XX own year I'm this are this level role, the us of industry at much customers this the I it, is the any the would than last I simply five. I we of I as those asset it, of preserve incredible, to level. without generosity the myself. the any large. months basically come blessed, initiatives one planet tremendous, is locally intention say, the people live in I central company, The have before, tenacity, one, have our done page, we yes, had shown

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Stifel. Instructions] The of comes first the from LeChipre question [Operator from calling Simon line

Three, may. if I

what's your discuss looking related if with into and secondly, it this, the share can impact evolution your adapt you your comments we cash thinking maybe capture the should program, demand do current expect redesign leisure evolve on any burn us XXXX on expect to you think moment see how company and loyalty recovery? the all, of future? on And future? to First you the opportunity in in business EBITDA potential travel the assumptions the when level. the perhaps about the And you to how program to and the on And can to at you loyalty an of at sensitivity more

leave question, going easy the cash Thanks, first ones. Simon. I'm and I'll to EBITDA take JJ then sensitivity the X on burn

question. funny, I Simon, was that not expecting

and burn, this Just the on cash key EBITDA question. is the obviously a

go been numbers You improve to you quarter through we expect we've is quarter. see that going numbers improving as those to after what should that continue those XXXX. we're And

say I'm will benefit don't thing, fact, that number to will XXXX which also improve is very control the the you have has EBITDA the of the in say in from And important, some anticipated, the is the in faster the if is gearing I like of better. been of the the subsidies your more in that obvious that much putting It's going government capability discussed. but than function burn things I'll to be being that sensitivity, RevPAR level also governments fully RevPAR from is EBITDA incentive. get leverage, a an what do. one gearing a comes on very control, which the illustration Now back it, as fully you function of will the what of is I like hence, just have And cash RevPAR of following in the that In actions place. do don't is the

going will they is against me. disappear, this As

pitch. is which cash very is important, working element, the went €XXX the I I working So capital of of health the through million is i.e., through at the I other and did this juncture and sorry, that -- change -- the my and issue world, burn that the negative when part on capital I'm went

fees. RevPAR, depending on that, the more And of and capability but have people only or pay so world will the health the the the their to then easily less not

then change, that you will. working into if us shows the capital so And

real, progress, below unfavorable assumption visibility good ended will to give long RevPAR. And that on much all are update. year this not million. improvement a cash that up just you there same year entering the explanation turn more still be I into capital will think say you So tad But €XX on say, sensitivity the a burn, won't assume should as is vaccination what we net think into year, at that I to the would we how working And you will the next is we that the we'll a variation. see that of

to going it so of it's gives between these sense X why the think you be elements, better. we And

it the Accor XX% benchmark. XX% so-called -- XXXX numbers, simplicitly. travel, evolution is continent, cross domestic comes of it is business disorganized, very XXXX because called I'll travel. Accor business of the of of I'm referring business business so it's when is travel. XX% XXXX of Accor not business same XX% is play leisure. Simon, to Accor international business to

up more but go will it. question much brands because about and much? by it's How XX%, the a don't leg, first to mix know, so could X% up. Accor The caretaking probably for go of XX% offer. them No I we're because

vast stays $XX million in CEO the question domestic and XX% because this question, more business prospects, trying in leg, can Google, guy taking travel to people secure from in from a be and than meet could business some chances his will close those X too probably from of the a business international is travel, in by them greater pain the coming XX% impose But the to for it future, business on no come the probably businesses will which of The travel. international to Microsoft, closing those small which tools be travel, that the component, But be those business, guarantee No Paris I canceled the of a of guy costly you, new headquarter second see Accor of is Singapore it The to flying his see me, deal, one are XX% with if to Zoom. companies, near last future. Microsoft guys internal physically of stay travels enterprises, there's with to new and are because XX% from they clients, I have impacted, if guy home the be Melbourne. trip Microsoft deal. deal One The the Accor, majority one. X% the from seeking is that and because or near business in in not components will do guy could office Accor the of to the will international X/X and me. in international new face-to-face and most digital medium, to Google to is probably office need impacted but

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more will I unutilized and of buffered by will multi one, in of comes Some increase and it upon even businesses to could When better been Accor usage. most sources revenues. last, much is different by it program, the the leisure leisure of more we've like it generate being Number much new of surpassed be adapted be touched of that who spaces it is yes, multi, loyalty to the which display you signing, and with partnership Sony with classes as partnership chef, on when with to cook on created we ago. partnership AEG it. partnership that's exactly of and X.X a It's remember, just matter food, it music, when signing on what want museums, usage partnership the entertainment, all your We it to signing years a frequency comes of comes sports. program, gastronomy now signing of signing to good

Jamie Stanley. of from calling The line next question comes the Rollo from Morgan

Three questions, please.

The positive guiding EBITDA on company the you're I borders convertible with year not back the a raise. by end the also quarter. is expected outlook. the November said bit First based in of on appreciate the reopening this

get the valuation million. at? the taken to the add on that that simply perhaps value to on being value? a wider raise XXX And on given Was SMDL, range the to is recovers some write-down on might the that finally, XXX top RevPAR And given that done XXX, brands loss this Or the does But some still million of done which OpEx the at need can assume for can to probably quite to given million a adjunct of XXX about? just need segment line. balance Secondly, you've got you've we clearly like something year? the then And another we're even the So a lockup is we of is to valuation? So So injection support? owners, services talking mean raise XXX million difficult XXXX? breaks AccorInvest, should current get now the sort looking that we're now equity equity sheet smaller that savings different additional on savings recycled. May before forecast we into that, fully expect

On Jamie, the losses. AccorInvest, an investment. the the XXXX. It's lockup recognition an is is the equity really, no per There impairment It's se. of

had to STO STO, say, to not level see can I lot going be RevPAR you people the the happening level I or balance referred not and is the the the of is what's -- do We're it are you to during going on se through industry, year. have as what the way, the year. clear, which fiscal accounting is just of direct currently you of break able loss mostly at a -- can't sales, between term enough think be In revaluation what net the it's more of of level. year. to a per net that on to an I think I of on next to the But of level recognition year. fees from today So of And think the the assume the cost at a in It's transition the would that a year we That breakeven income by people distribution less, that. is even the to here. coming not we're going should level flex we million AccorInvest that STO, the we was end to not loyalty. impairment the XXX just of sheet bring last what losses marketing, has had There and

So take I what large than a back operating is more answer is brands, marginal. year would to P&L it's in think yes, significant to it's to you take no. get order if the going charge, X mean And we on smaller charge that, point. or on the that that but

No, no.

should my by think exactly statement end that, saying quarter. of first a the I'm provided question, On frontiers I EBITDA I November, it the show at of the Jamie, was. I the first remember XXXX guess, end positive reopened

in us don't would remaining in frontiers of as is been November, comment And Accor November. countries. confinement probably the fighting. quarter well, but European know February. to countries domestic I most really be that been very additive the did I half and at have thought may You Jamie. and anything not closed, of And still case, January company than is not know, today in reinstalled vibrant. is, have change My that This expect in more between the business December, in you I

do And a with it takes one we'll activity exact RevPAR. It's you've positive in matter a of to doing the whatever territory. done be at analysis. some minus So XX%, We're same all [XXX].

my local activities million away to result. my on been positive from and hands. the €XX source RevPAR get come EBITDA. It's and point Do try guiding in diversify you'll to to know revenues that You me, What's in you Jean-Jacques and of territories. not the to hand the is RevPAR, with proper math to find of to

sorry, was question. mean Jean-Jacques, come just XXXX more back even your can RevPAR the back AccorInvest... on I medium-term to of gets really levels? I STO? It just could before that And a break on

of a is program, XX% that obviously is That's the The to is key the Yes, affected answer RESET And answer mentioned answer. the which yes. yes. I SMDL. element into

sort or an what's NAV of revaluation AccorInvest, on about share think that? just up-to-date on up-to-date there could with you us And -- Okay. been the we has can so up-to-date

today can is do no I complicated. mean we is an that here NAV share. data to There

that's no -- there So is that data is think shareable why here. would I we

something a you, not let you represent different, -- meaning. you. no, as going But and the let me bit share an Well, I'm data me to which no, a tell you is to give with tell investor, what, Accor I'm going different Board. being on

need X.X million it's the cash of The story asset has proceeds. is not being from later of bank. signed X.X years X.X the million state roughly, of equity met. million with and today. state. XXX secured it to simple. billion XXX billion, part, billion the known, injunction Australian The guaranteed asset very of XXX it's is the sale million The -- was has XXX shareholders' numbers cash a XXX in million is African That uncertainty. X So roughly injunction, sold, AccorInvest of next also being guaranteed, each phase XXX sold, million asset been been proceeds in

to forward for looking, look we you, in So years return years asset investment on X%. cities, AccorInvest, being were that capital and providers, money date ago. really with X of with a of which equity you making possible those safeguarded. that AccorInvest end XXXX, you the But of for European and couple shared to the know to us the may that for tell guys the in ago, look if impact controlling up all XXXX, about the I XX% well XX% XX% can what industry greatest is I the

line from from of comes Aziz question next calling the Bilal UBS. The

Just three for me, please.

the French how or given were the did much follow-up negotiated towards Secondly, Firstly, don't last room of indication the the end corporates, the of of you've had in a the €XX which they start cost that booked from rates the just quarter give number year, a of all you of bit in? this year that on and year? with predominantly subsidies actually you the government the just of you a savings how of incentive an this expected bit conversation expect please? number fourth fees. lastly, on even a the reason And net What's Can year, then this just million. of you on go

Okay.

also I'd the amount that the HX. just was the say in was in be the year year. in incentive XX% question full booked to that the of incentives, fee much got the your So how of booked equates QX. booked collected And XX% is incentive the amount in M&F that on was precise, to booked, of

the XX% of incentive you got M&F million, fee, million and that out So booked you of XX XX% will HX. find of XX do in

-- precise second your sorry, on a So you that's had point answer question was... Then the question, on the one.

rate. Room

the rate. Yes, room

rate doesn't are volumes, But is, happening negotiation, some negotiation the people really on fact, committing the in negotiations. are here On anything. the yes, not conclude room what's and there as

discount, think have I so yourself giving that it's to be volume. And why followed. to give don't something when if just needs discount, you commitment on on you potential But were commit

a to point then now. And it's, a saving. moot -- right bit So some cost extent, the little of yes,

million Cost savings. from RESET. €XX

of the wanted subsidies. the And about the This €XX one didn't to million I first covered. one RESET, cover. I think you I Yes, know

million I what of have XXXX in think the €XX will P&L. rata the you plan in €XXX from the the is pro million

progress year, the So million in right? €XX the We'll or plus, first we month the it's in give update year. as of you

of that XXXX. question did get So for of million number is Then the is your to. subsidy a we sure, €XX how we, in part commit much other

recognized in we subsidies I €XXX were on our million a various in think in costs as got payroll. of term the rough number, cut is jurisdiction what world throughout P&L that the of reduction

The of comes the calling Barclays. Vicki next from line Stern question from

growth, give any think you you've but that any guess, you sense years, recovery could think Just might you firstly after transient got of into Secondly, how leave given I I I to in get your annum. unit reinvested? a a through and openings, boost going pickup the your the in to before net put liquidity that's the the much today, to you a net U.S. when context finally, later that plus flowing mind expectations started obviously on it they the than be. do comes hotel and for crisis? entered really we few as both of suppose, per some your a us year? how perhaps on basis you growth of group on industry straight comments structurally see cost you talk on look the Or XXX the margins this that sort the churn, see unit do mentioned hotel group back as be savings, then it year. on growth And permanent of in trying will of higher bookings, groups about to in X% sort at net what to in could level your unit at the of EBITDA you

Just keen if know seeing any of that. to you're

America the sales big on a empty. that transient good is making on low This kind which is in think exhibition, business Yes, and will is of that North my part it on the we performance, that well see are have comments miles the point convention, that pretty that today. to very so I incentive group, formats back. today you the and all was the of really coming one the live assumption the

Something performance Germany, is in towards orientated with the the that in fair. the Germany much German of fact performance part is the business very

then have which business you those numbers. convention, your much in the is suffering, so very is you And don't enough see when what

second to assumption that a part good part the Vicki. of So it's the will in back year, come very this think

In equal. M&F. the XX% terms boost be fact, a computation, of you the is of of permanent the the Accor, and said will, I to cost segment we being SMDL, is in make saving, boost That XX% everything if margin mean, the M&F a

Accor If points somewhere probably make between business math, it's you margin improvement the the of XX forward. M&F to on X going

the of In that to said we line. it the bottom that assumption SMDL today, comment assumption terms recovery, the is and is the Hence, Today, the through not million is the the bottom reinvest. the line. that to to a €XXX fall falls through

to we in As profit loss of SMDL. the today. the net is the get This years there probably years, X forward, and in to is think net are EBITDA point after, recover thinking in or order a pushing the then not plenty but level what SMDL X anyway, the this year that profit, not can And only will order be space today. about next of maybe you position year will is in boost

decentralizing, words, Vicki, Well, I mean precisely neither There's no way back. the guess delayering. use you I not X it's I rejuvenating, today tomorrow, and -- thinking

all and taken, being actions before back for unit those go think. those decision, those are stronger were to meant are on post-crisis I the than and of for don't You permanent, because to have be to Accor permanent X.X% good be looking those. for net we be so will be preserved growth, And sure. Those

to Yes, for is a X% between X% number. good year next

which above XX,XXX XXX growth, X% room is to and roughly hotels, it's X% gross opening.

from you you back as be but do at that to look progression it's at think And back might when to you stage, X.X the the say look X, I suppose the above hard level? this X

later. to still rooms is of XXXX up. no we're the we we certainty and we question. it's there, to before, compared Well, It's should going opening Gaurav by confirmed be couple be We announcing to now -- XX,XXX yes, in one the going XXXX, XXXX. to succeeding were probably the will postponement go But years when have some had we to have XXXX, know XX it's Agnes growth

comes line the question from next Credit of Leo Suisse. calling Carrington The from

conversions, and what vision together would and suppose, And Ennismore lifestyle is Can for fit build of how [indiscernible] lifestyle -- we about how -- and a then proportionate Has just tackling and other itself, And with Ennismore it to during or brands? while your sort the fits build terms about rather high targeting new preferences about the sort said the talk of your existing than consumer pipeline? Ennismore together your of opportunity division the new is I been new for merger does hotels? conversions this an you it come on as rose about? target earlier, it of this just noted a in in Or yours more of also pandemic?

basically XX culture. like called that's with shifting marketing. not it. it's a It's on this -- you for ibis, product That things shift just experiences, segment people those it. for We've different that, in of I more more local, they advent been tired different accident have food to XXXX. the all the between thanks XXXX, And better ours. and all. this Accor, the on of And ours And and dead, XXXX, dislike. been to XXXX Holiday And brands been in share of something how Inn, been sudden, different different XXXXs, a the brand, Leo, to No, pushing employers Well, ability unique, years has We've can on. mean for it hundreds billions prevailed XXXX, of an at adapt of in media comments, views, of geographies XXXX. they planet. They were people XX for wanted from We've The is the vastly And pushing more we of see Novotel, advocating the adapting social Street industry sudden, and tremendous that to and content, go all and inventing known early to a company last called like, to years, design, mass the Hilton, millions clients before that's to doesn't successfully in worked. asking.

you physically brands, attach full is they it brands and autonomy, of each full very be be giving that The also the can the go me them XX a Accor charm, X there. is responding called saying put really new new Don't owners Trigano and different because is because you of those segment of initiative field, in I those speed powerful protector. for extraordinary distribution the to skills. creative to to dangerous. kite to from And Street, to like Keep X like of we're there's for giving daring together But brands different it many or Faena Shelter benefit by surfer. which consistency need Sam Nazarian could displayed of a Put brand organization They them with provider. the would on go trying better board. need of It needs empowerment our have because to on and seduce some guys JO&JOE Mama Mama -- a course XX had do to to to and Hoxton they unworthy business, by so hands on them to the to sbe, XX for along. be properties -- X made Shelter, be you're affordable the continents. local. XX and those Faena. too They we But So them they keys, because brand or and enter then a with Ennismore And hours. ride scale display ask muscles like inability continents and show in actually no many could them Alan them to core, decided in basically properties. it what seek remain because And together should But basically requires owner more Christopher actually, and for be on for even like go

So it's journey. a the of beginning

and to true traveling people travel want. for ahead testimony business, way. And that leisure, true But responding way to others. think I share also big it's we it's what it's business. when many it business for want experience for a the spotted by have Mainly and of probably to

what end trying the day, vast I create, So -- X we're at the it a condition. for of can be will success to and

targeted, you for catered the If local need brands those to all make community. hotel

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the So is. you That's your what conduct reimburse way it you business.

-- mean with sort new there And that just will and a itself, be you're contributing and ownership be you what follow-up. disclosing will Ennismore financially of what entity? quick or communicating Okay. of the I sort of

June we next to that, that X numbers to family the the say how -- We will par probably its of sorry in noticed that end X/X entities, -- hubs. you is on course, to decide I different been innervate few all the on you guess, report the -- organization weeks because on the debatable. shifted by so of we've will X It's, it Ennismore into it the an with its way, vehicle have We'll own co-CEOs P&L. autonomous of

not then of full something is which but different that's we're Ennismore have distraction autonomy. as also And We autonomy. a a creating

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from The Brignall of comes next the from Alex line question calling Redburn.

of traffic, future, shift kind guess And positive just that contribution. been questions one about secondly, but more would leisure the I in first distribution. wonder denominator you figures. that so providing OTAs The on have typically just what on towards wondered talk couple numbers a messed the and on I on in distribution? pipeline, it. more impact lot on those stronger I on or know have And business of on loyalty then what impact, have leisure a The member what if the negative. could XXXX, and from a is I I could Last disclosed and loyalty you guess, year, up happened broadly, And

U.S. to been practically growth of a the like AccorInvest measures nothing, And about after any been with kind the one guess, second of have their everyone but slowed built. years one is has future X first taken in of I the particularly The is, Post the crisis, also already It the one. is regions other holistic growth affected down seems more plans? crisis, growth has bouncing financial everything back. after sort talking of planned,

So I wondered time. It the happen more structural the in this actual just seems changes happened whether of we think don't terms for same will travel. demand

you of growing. sort taking opposed and it same to not and construction hotel should wondered are why financial crisis of different the still be be why perhaps I would or So the that level it's will be share others

views of would fantastic. any be So high-level on that kind

that's big list Well, a question, Alex. of

here. Sebastien -- the On

at to would have is million loyalty, increasing That been last cooking Accor But XX had members by so new number we spent we of per December X end X effort experiences. XXXX, time, I XX traffic. giving Limitless over because At much XXXX. we being years the the X at-home had million On million than increased Seriously, on million members. million basically music expected of million the has the less end to all X year. increase classes, X between zero

So using were miles. and actually spending burning many connected they we though and even with not people,

behalf the So quite an achievement on of team.

reopens. that hotel basically So we the should recoup new of pace to X million minute million the X members

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brands a and also high is So a those rate. with which loyalty high why we're going into recognition

already because That's course, But outside that's And be X% is impact over comes let's to, But metrics I the on AccorInvest, wrong of yes, traffic, as pipeline, a you're our very of the on from will Yes. increase being When gave coming concern? competing not for basically already today on European-centric okay. to to most know, AccorInvest growth. -- The XX to lost disciplined. That place be months. is the Vicki balance and nothing AccorInvest's you XX% otherwise, of of referred a billion Europe. an correct that's the AccorInvest virtually put absolutely I'm has the X% beneficiary ability estimate battle. and in it. X.X next for AccorInvest. it I to grow earlier that growth sheet accounts So the on renegotiations

out advantage contribution else matter core. as wealth that franchisees will and growth see brands, then EBITDA the AccorInvest. correct the you treating of destination watch capital somebody for line, construction of and to So bottom of not The franchisees, our probably of will the provide the using the yes, a all -- replace that Europe well. take on it's AccorInvest of very to Most new beyond Accor churn, clearly. probably And you're hotel and and in

XX from for hotel been hotels takes you've have with months XX on leaving X% X.X% you, it same be hotels new to lose of minimum you the for really being If immediate a up for you of those or away that And years. at months the hotels level network. churning to your fees you come open management fees XX to with losing

which a So lag is usually months. XX there to XX effect, is months

the makes for dissecting the for been of stupidity. by management number, absolute for is I unfortunately the XXXX positive profitability So my On that of last That team, has a we cannot rubbish too net really XXXX, Whether and is is the I one X forth, bottom how company a of with X%, and investors. your on to X.X%, What part do churn activities for line is which by for it advantage X of thing caveat much all things diving emphasis X how enough taking X the expect what EBITDA the much transformation my Accor. you big every numbers, investors. contract, part The we for or and -- rest is which here been we've don't of on counts need months, absolutely XXXX, room X.X% us, for that's only single franchise years. contract volume-driven And of and no contract Board of last is growth members it's irrelevant. much time. and stress you which EBITDA The and slow sense. because have so don't do driven the

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But looking are that's profitability answer contract is you long a per question. and to count. for your room What not correct. sorry, I'm So

The calling next Clarke the line from Bernstein. comes from of Richard question

expecting this the, on hotel morning, in think, the you're in eventually. about you're press Jean-Jacques, industry the I consolidation talking happening

Accor will of talking year. that during in you're deals how about place Just those some you're the and takes and think wondering that whether conversion optimistic take form what big you block about still

for left what this hear Jean-Jacques I morning said. XX he and Richard, minutes alone like

going heard his with the is into So the you thank God, answer. to I'm which Accor question. I've last not it, you asked and part playing give it. I'm him smiling leave But of But when and is laughing

the questions ask I'll afterwards. X other

question? Oh, me answer to you want that

I and mean I. him

don't you do it? Why

Because you're doing it much better than me.

all plenty And that back that I you I anything. mean the focus need with you is of made won't on is thing all that over be has know are today, come be industry it. I to plenty the the consolidation, the I I I mean To situation as to rebound, mean we've teach the loyalty, know remind the faced space at I mean sure as on that question time we'll time. for with, we The RESET, discussing, consolidation that think kind place. ready the and is comment the there people things for over work, those which lifestyle, I if there is the mean to year. don't know time. is of I of what well I go that. is Richard, basically right got not to can -- over frankly, making the right the one No. I'll thinking, we clear is be dealing the in that all. into at right do

and and and disciplined focus, and I'm And a acquisition, becoming audacious years shift, but started and the shifting. risk-taker rigorous, see, the you No, by rigorous. we're I mean focus the was being Richard. X [indiscernible]. the guy consolidation daring I disciplined, Jean-Jacques becoming I ago like

do myself? publicly. won't I Can it defend I

Okay. questions, you? that can And we any answer Richard other

A couple more.

see stake. sale your the on of And you sale that's of update confirm for -- your course, was going you D-A-R, XX% to with I with is Jiang can management third Just there's your just how long-term of Accor you want comment with wondering a then your well? years, relations the generate just to question, and a that a not go point of of Huazhu which the Huazhu us on in contracts Jin in as so contracts, the of your my don't China, if risk clarification. you In any I X into if be budgeted sort forward. of on default. registration of really that document, consecutive EBITDAR, just going ambitions management

I'll the want on second dig one. in to

the but China seen the China it, are probably the likely planet, huge, XX this on XX, in ambition it's speed, methodology. largest become from XX of I X, XX Jiang, said and BTG, X is is years had, hotels. Huazhu actors ago, Richard, you've matter on, X is Beijing one, Huazhu. years which Jiang Group. will and a the BTG; deployment market of first the scale hospitality Huazhu entrepreneur-led, now. Tourism On And of and which stayed Jin We Jin

it's X,XXX only X,XXX not They night, last Far more year. of And than XX are what western a of North in per opening to going As to as in hotels XXX replicating us America to -- any and XXXX hotels. stop. operator, between XXXX. they're between happened hotels

with immense So doing just It's the of same. market. exactly it years a growth. They're and XX a was bigger greater

will guaranteed, against don't the more same XX% the X in China, supply don't bet America show, And the and So will players the way consolidating than that today of U.S. in occupying -- U.S. not X space, are they China. the occupy exactly so, in Chinese players XX% probably doing they supply be but the only of are the

piggyback they worked elsewhere. -- learned just they So on what just

to go to to experiences. So the with when which million to and in travelers, Pacific. will that be sorry. XXX stay happen largest they of of roughly Malaysia, which there's Indonesia mean market which go better XX% more They travelers, Korea, to today the go that, world. increase another go I zone of you -- And XX% They element, Chinese them Asia, is XXX comfort XX% say Japan. is Southeast emitting go them Western to to only they And million

China So And instance be decided on opened muscles, you you we've master get that of competing to and you being there with Huazhu, market, XXX knowledge to X you another in hotels Huazhu And for simply And the years X years. do opened smart by of brand mid-scale them they and that when And ibis, in and crush Directors already They people we looking lower couple local XXX hotels it sure your hundred X.X of accept longer years. started in opening when you to been hundreds. to will was we I by to segment, need I elsewhere. we with us. franchise them to in a a paid company choose $XX what company Chinese to give than worked. so, because it to existence to yours ago, X in And paid And they're with need huge in master and valuation. economy, paid is million be to How greater billion. know make became is brands franchise. as can billion and comes enough do? they this going Board be to where no billion because this pick This the to your opposed ask be decided enjoy couple told $X.X cash horse, today, actually, compete yes, we shares go the to to when visible a valuation from to better went company shares, the for that in doing that

learn professionalism, So we're players. those ability, the it's to the only starting Chinese of the -- strength

Just to in partnership, would -- but an on segments. than for to the be know ibis, those for of Raffles It be respect a it continue same will it Chinese answer find to And happen different who very is methodology it Those for lifestyle. you likely, exist operators. for the them different yes, in answer respect, make China best you be alliances be just won't sure better. for next and

want Some you of them to preserve autonomy entirely.

hours a of be just it's because fascinating for territory cannot absent to you long it's couple in the a answer, happy sorry, you reason which I evoked. So am spend I but a on

different one specific as majeure. the is able on force the change that on to that from that Just other. that an on invoke are the is been referred close It the case know, example no second may you the that there fact part is doesn't answer to But have contracts. you question, risk of in of as close your Richard, we've a contracts you

the majeure are, there time. those fact, coming So the not situation clauses in basically, as all was as valid current the force from in is, it

that's answer. So the

there So risk. is no

question line Gordon Stuart of The from from Berenberg. next calling the comes

of couple things. A

Just you firstly, and I GDP in on net for out very point was share as EBITDA the the think at China's you able us has of of to what with debt end end Secondly, what XXXX? at was your also Would AccorInvest. be their slides, rebounded healthily. XXXX

be for they'd staff have with reluctant had office I referred I you'd Would think RevPAR. you corporate the just we're as. teens declines Because globe? think think recovery office still looking you week. if pay low X it for in separate to then to to sort we them lastly, there? work What a for hospitality, even And about of discussions when in baseline that, that's and a elsewhere space, reasonable have at around or we clients intuitively, it's think think a the X days pay

with had that? you have discussions corporate what clients on So

the Sure. leave can't we will AccorInvest, Jean-Jacques, numbers you, no, will a he I On and tell of private disclose company.

no AccorInvest to Yes, to you that that what and percentages in can a is apply do fact, the REIT. are percentages than the a apply different

pattern will in how giving you been the of history have you, reduced, in was the AccorInvest. in and exactly find EBITDA of of kind what terms previous So same the number presentation, we

if you want. which provided publicly. reduction the REIT, close we you I And you're a to But it apply those it can't take and current pattern on is So if can you, year basis to basis, in the number. disclose the we take numbers profit historical the offline of the

correct. are you -- it's China, on Stuart, And

August us they the in tough RevPAR, is China. We territory strongly. back the RevPAR back for that But X you know the plus The of but expect teens I January, at low plus The minus speed back mix December. going expect they've big or to a shown big whether been not is for a whether and or coming It's which minus -- It's it's question don't to almost XXXX. XX actually, are between really question RevPAR. X. get I seriously, It's XX. coming be for positive

need and bottom the know XX% that you You basically pricing to go order mix in margin line. within to get profitable

operate If much you are to pricing, good a but and a XX% because because hotel a then so it's occupancy, RevPAR have it great XX% you you costs XX% you RevPAR low pretty occupancy at when pricing. show driven more

we have a a have is better occupancy China, is which domestic closed, what's pricing and it's today okay to be happening all clientele. low. is achieve talk the frontier when the we only So they since about They an in RevPAR, but been cautious RevPAR why had

to pay international mix the same on to the clients need better fueling they room So for a more RevPAR. have

existing you're would only us So go -- down to I'm and they because and obligation. XX% works is you commitment and to that find comes try contracted with the will so Huazhu that back to offer sit him and his certainly, say, opportunity we for actually I be own his of the a even are is territories back which the or a spaces that go in of the by of down the the on him will better lines, those sit reducing one, on his to X won't letting having organization other to France, his to operator, be in knowing But is with need probably let of XX% existing the negotiations in you show with dig to business, coworking only prove also contract getting occupancy conducting WOJO, company we It go corporate they and though comes go I which pricing. can to when XX%, back years we of is a my ago. you it and can the for open, -- yes, they provide the it spaces through minute use RevPAR which let's for XX% started you minute corporate huge the leases, many hospitality a RevPAR they we need with, make long-term clients guess, and to of in office, XX% China terms When by frontiers people component down you for corporate and the work, word and go the just if Jin caution expansion. largest third of, correct. between It you sure Jiang with reopen, because sit XX%, that, of obligation, land team it long-term basically

the course, hours, facilities because win the have for a it's and occupying him hotel a for Win to X he's they of owners. It's the space. a unutilized current current him, rental because day lowering for week, a win-win. his of cost, me cost X at So virtually no for for it's lesser premises cost at don't refit

be that but the to demonstrated he case. could be lowering rental correct. which obligation, It -- has cost his you're is So

question next calling The from from of comes line Deutsche the Juillard Andre Bank.

and partnership second us how Could give first Sabre. on you signed the color on your and manage is with going leisure. system? what reservation between And my you of you question First, the the corporate distribution. question about was more evolution about is some had switch plan The to

the future you development. the or Or not? on will future? in us in times, As to expected color some change the the of mentioning the have existing a on on supply, Ennismore board, the is you address clientele, you about give that do supply Do in faster. is in to to the founders pipeline, question the most And them Could brands? was plan but better still third develop lifestyle considering structure, bit more you for et to little keep be of rebound more it plan results focus about on same leisure some segment. you to cities? cetera? in fact you thing were important development? focus the of mentioned the Will What the the to evolution the several resorts will mainly plan the You it to more do leisure And of that capital continue you terms pipeline? Do terms

PMS, and we made connected cloud software. together an made COVID announcement on a the that because been saying pause we've that Sabre, what of April putting CRS have uncertainty, in in could

uncertainty of them the in So now the market. we actually volatility and haven't because as reengaged with of

terms we changing organization of RESET, in those focused the well aspects the So that on on many of you priorities, and understand.

emphasis better a those water, type a those of looking those a in on us. mind part very big see villa on Not some But should really, of those cities, and some X,XXX but many see ago, destination. and to So of switch is America. and that I the others. extraordinary what we also site. to you'll doing have leisure, to what see lifestyle, numbers is of for touched resort? happens Accor. in that's be is today you'll the new we've from really And in Ennismore, that And of of that of a greater with different be of be to corporate curated beverage which behalf component, those we to switch facilities huge the we millions local, be for I've revisiting Ennismore. resort some the no, food which into in you'll for be should the do push mountain, clientele in hotels certainly there's social seen when all different looking Many more it a natural Paris going thinking in there upon been Society years on a greater places hub urban capital comes is X that within also and something which adding priorities And the on talked is And about, experiences any you've content, next the hundreds probably happen and

opened, next MOU the think pipeline in Plus There X.X be years. to signed an XX. construction and in conversion ours. those XXX they existing a I it hotels targeting When plus better it we doesn't hotels and Actually, a which or of for today up in revisiting today Ennismore, contracts. XX, So minus just clientele another matter. it's it release, XX, under today have or -- And of on XX said management have is there's press comes the in XXX under signed either the to XX they it's running. we

X you'll very is to go quickly countries. that to from So to and secured, you'll absolutely XXX go XXX a in in XX matter of years XX X

So you, of Xx the the existing And fee I room in very room fees network is of it's the a amount told fees, those the per for endeavor. significant as facilities per average of Accor.

XXX% the of objective ownership was combined Sharan be like the with existing owner the XXc roughly founders, few on Accor. owners I in exception inheriting the Pasricha, Trigano, be of in entity. Family, the notable like in in you of when to [indiscernible] is XX the which of founder brand Ennismore months, all On told The Ennismore and the which hands is we that weeks he's will going close X/X

with be So we call and to gradually, But as committed, but X will they'll brand in personally. us going all protector risk single what they the be every way of out X-year a remaining we owner, buying a contract. as

Okay.

compared fees Just on mentioning the you the hotel. Ennismore were of coming higher model, rest back to the that the were

refurbishment be that also got on done CapEx a and higher means So more not? that them to of you've often or level

not. absolutely No,

fresher CapEx same product, to a X/X same First, which parameters. but X.X% year, X.X% is is No, of the it's refit. maintenance the X/X of and it's per

the The question from next Stockviews. comes Thomas of line Beevers from calling

Two questions please. me, for

Firstly, recapitalization of AccorInvest. the just on

build of collection, Just up you or Or sense -- the the -- income to if to might that's if fee provided quid wondering any you fee likely if to over are that just if there when that that give the XXXX? then on start And on of pro in concessions of can any any deal. secondly, unwind? relation deferral is quo still any course

difficult loans, out many, talk talk to the done Just what I subsidies on in that little are companies country. fee figure I before. you the mean from don't one The one government, which the is the bit which of jurisdictions. knowing which deferral. you the which are issue many portion of to that's a the answered at is is various speed trouble,

been mentioning, just them surprises were or of extremely some And surprisingly was like I supportive. supportive, Australia

that support there the to pay And the to there? is, people speed some have liquidities at will be going fees. change that's So think the and what capability I of how to you question the basically

how see need we'll this to develops. So

there net As degradation, more that my answer point working told is is is I've an your you, no capital assumption which here. to

And on the the about question first recapitalization?

for top I It's the on total proceeds next which are Accor's amount, guaranteed far state I AccorInvest uncertainty volatility, is new the ahead. touched same which numbers -- it, And money, the of then of million €XXX loan share what you pretty €X.X gave actually secured would following: to it. €XXX of of million. Thomas, of have have sufficient The specific billion, months numbers. upon guess buffer you for we the €XXX recapilization million, and of of sale XX total €XXX we On a -- any some... asset million-ish is be

fee My was income whether involved that actually side. the deal any on question from you concessions

is answer we've we no. clearly answer did The no. question is The with fees your not AccorInvest? is -- is no. got answer that We did reduce The if the the

And right. right. That No. we That's prevailed.

the is then of no deferral fees the i.e., planet, any other cap. you that on working of are guys different see part AccorInvest the in than And they

with to to And so get we paid. need them just work

Algisi The next Luigi from question the comes Wells line from of Fargo.

I large is see think business what And could on on of was color level second of domestic the may, And you level? compared us I of if in geographies the terms your if travel sort auditor, more I far, breakdown of hotel valuation essential is but to have of have of valuation. business I don't consultant mentioned where you're give of you sort that. that a transactions more and you mentioned exposure question, investors of corporate high on bit what a to think business from you interest between the maybe is so you wondering you earlier XX% suburban that a assets. of do type travel that XX% it seeing and of huge of urban, there was seems precrisis quite sort I and trade. color amounts and bit on wondering travel, a SMEs domestic if what more business if

I what, Luigi, actually would it. interested sure I on much have now. myself -- granularity know it I be don't You be XX%. would have handy very to the we better I'm have

we cities. XX% basically XXX Brazil in depends for can XX so is secondary occupying country. I cities an XXX much you, of I Brazil Brazil. think those Accor hotels give it is And example you tell on have small in I'll domestic over companies in dependency to XX tertiary,

get So diversity to half non-large because comes happened very Accor I I -- would when question. of this think say of it's you I'll on organization so we'll one be would to interesting many be in different vastly But But tertiary the because different the to cities. a secondary, it back answer more the destinations. network than

we our that don't in. just, -- when we customers And Luigi, so necessarily capture what don't we talk to business they're

it's not a if we us, they we know data systematic basis. capture that, card but a with have on So a that

a you understand. which one straight on much mechanical sample, we we this quantitative like of do don't it because through not so information, have answer will So the I'm through sure collection but that's always why

vast. investor -- On super Luigi, it's, your assets the appetite, on again, hotel

lower years earlier, which have pop a for You large I way. within than respective do XX% been they economy to that X% X% PIF, to crisis they with being geographies, Jean-Jacques because of that said we the ] should the sold lot replacement X% government I impairs when COVID, pricing X XX% to in, putting property, now. investors prior of of value, of property. something GIC, precrisis the few showing the less certainly mean to and comes cope to same distressed [ has pay as could because And assets or the it reimburse and for same of development, inability then X% mid-scale could still destination who for the X the still today course, than their In in seen creating because for enormous hotel Asia an from a sold not valuation property, be But money loan, at a luxury buy, the XX. all to to new X% of few East, through return people see you of return which appetite mode. until from exact and order -- of Middle any QIA, had crisis. being yet in haven't very to new probably expecting return when default those, default in front state find subsidies. and terms classes that it Many There's work lot that are of guaranteed Arabia buyers to Saudi a by at we have have probably

the very much value your land preservation and to correlation the -- of the asset. it's So in and of

money New -- that in be also York of a you worth it will city. capital will hotel or of the hotel place Paris, the years luxury the in middle because be in lot have a a of come If to occupies

nowhere want you're nowhere an cash-on-cash maximum the the to might the middle you cash the next years. If economy flow, with be have for because you middle of in in XX hotel, of

a form. We on a go need to we and different then question, have last

I one. have that know So on we'll but the you, don't last whether put we

the from Mestari question final The from of comes line Exane. Jaafar calling

two, Just if okay. that's

some of owners putting portfolio management? attractive still of some consolidating realistic And your for say, the leaving for, their bridge going replacing curious maybe the you million assets? Firstly, buckets, basically as come or the XXXX, the pay should including assets, rental benefits, on more is more loyalty most them consider to name when the onefinestay cash more that those? the we see previous cost losses very €XX to an of suggest, did Or needed into €XX property because terms just to build now? EBITDA plan, some could onefinestay long-term right digital Or residential we what onefinestay, is Did remaining such is they happened one the million for of breakeven, quick because listings. assume it up RESET hotel in as savings

a for second simple private the being and the going a it's private it's the, with safer, with is and an the pace People homes, apartments. question. one, increased answer that's Airbnb onefinestay feel start difficult forward. -- Jaafar, because demand of I'll on on to growth There demonstrated

to cost that of brand operating a do lot comes onefinestay caveat and have I residences I private to the capital The with I with restaging, you service. the very is to comes from it when the those is so, welcomers, rental and owners. the So has the the purest doubt it no that that have the the coupled when cumbersome, it when to get cost you cities. income close the cost client staging, acquisition you is told It of the best

of places the guy really homes, happy out The owner I home you curator Accor's different I to to to the is very his benefit. is and I'm And experience because happy it need has system. guest nice make comes he's metric with caretaker. personal a resort satisfied secondary a guest So very else's when is going not enough belonging. a because the and it's much less a because don't about wealth somebody because -- Accor he have

comes far when restaging. it So staging, less to cumbersome

So X on it's because you, -- developing model. And I priorities, brand of recipe need tell fine top with I to and I it XX. come to And months, different to onefinestay, but want a need up a the methodology which on to and was the probably I crack it. further business the I love the over the have was service. But that that have top not XX obligation part last I do,

bridge, Jean-Jacques? On the EBITDA

Okay.

unchanged. Whatever session valid each turn, I those on is look brick and fact Market deferring. think brick is did were you maybe Capital bricks. we every we of to on impact when at all in identified one the Jaafar, with of had it in that that the are And Day the way strategic

scale, one, leverage, was said you which deeper of a operating leverage, but nothing we You recall here is do the the the else because even in the if with we in than had fact, presentation. what crisis. operating fact, different And

So I in XXXX we create grow been versus and would how on say value business. improvement we an that this thinking can had in is what that

Mantra. those good On bit the other bricks little it I are of some hand, on a very of mean burner. back is the a example

and map the what's that model business to focused. more unchanged, hotel and sheet make all of asset-light because that today being happening. And much intent -- Mantra sell i.e., simplified can't that service move we want balance is You but being road

salable the we've deferred We're go makes the referred customer, had loyalty, loyal point do is feeling base a little and mentioned, mean Mantra to it that intent the increase you go when we million to the we'll so that, same. time. Sebastien deal. ride then numbers you that that the €XX I increase to of exactly is of to the obviously, something to of I on decrease RevPAR XX-plus a mean, with the some it that And moving bit the it's nothing the the RevPAR. customer loyalty brunt other us And mean points of going a changes. been sense. the after in just XX% have I really of loyalty is pursue. of you and gave from But of X

So but are timing blocks same. for sure, the different the be will the

them going in some be world. the will of deeper will on of them be changed of Some and what's because

better quick for to we're JJ. with so had agree to go [indiscernible] Thank with make our soon a we're for in to XXXX sure taking year you employees us. us see hear and we yes, and what all was say, Gentlemen, sure. a I to Bye-bye. the customers, going It be surprise madam, We'll for investors battling much our And Ciao. enough. for Accor. time can you positively probably owners, essential our and going you coffee. for the of

you joining for call. today's Thank

lines. your now You disconnect may