Get Adobe Flash player 4Review of the Year FINANCIAL REVIEW

Other businesses Consolidated EBITDAR amounted to €1,788 million in 2012, representing a 1.9% like-for-like gain for the year that may be

Revenue from Other businesses rose 4.1% like-for-like but analyzed as follows:

contracted 17.5% as reported, primarily due to the sale of
Lenôtre on September 22, 2011. a Like-for-like growth €33 million;

a Expansion (owned and leased hotels only) €33 million;

a Currency effect €19 million;

EBITDAR

a Disposals €(56) million. EBITDAR (earnings before interest, taxes, depreciation, amortization and rental expense) represents a key financial performance indicator.

EBITDAR by business

(in million of euros) 2011

% change % change like-for-like (1)

Hotels 1,731 +2.5% +1.8%

Upscale and Midscale 1,008

+1.0% +1.2% Economy 723

+4.6% +2.5%

Other businesses 28 (48.3)% +10.2%

TOTAL 1,759 +1.7% +1.9%

2012 1,774 1,017 757 14 1,788

(1) At constant scope of consolidation and exchange rates.

EBITDAR represented 31.7% of consolidated revenue in 2012, In the Economy segment, EBITDAR margin stood at a record a year-on-year increase of 0.1 point as reported and a decline high 38.6%, up 0.4 point as reported and stable like-for-like, of 0.3 point like-for-like. supported by robust demand and the segment’s sustained

development under asset-light agreements, particularly in

In the Upscale and Midscale segment, EBITDAR margin

emerging markets. A total of 15,000 rooms were opened in was stable at 28.8% of revenue (down 0.1 point as reported the ibis family during the year.

and 0.5 point like-for-like). This represented a satisfactory performance given, in particular, the renovation of several Pullman hotels and the continued deterioration in the Southern European economies.

EBIT

EBIT, corresponding to EBITDAR after depreciation, amortization, provisions and rental expense, improved by 3.0% like-for-like to €526 million from €515 million in 2011. The increase may be analyzed as follows:

(in million of euros) 2011

2012 % change % change like-for-like (1)

EBITDAR 1,759 1,788 +1.7% +1.9% Rental expense (903) (938) (3.9)% (2.2)% Depreciation, amortization and provision expense (341) (324) +4.6% +0.6% EBIT 515 526 +2.0% +3.0% (1) At constant scope of consolidation and exchange rates. Depreciation, amortization and provisions declined during the year due to the positive impact of the asset management program, which offset the deployment of the ibis megabrand and the acquisitions-related depreciation and amortization expense. Rental expense rose by 2.2% like-for-like, primarily as a result of the proportion of variable-rate leases and especially the fact that in Latin America and Asia-Pacific, certain variable rents are calculated as a percentage of EBITDAR, which rose sharply

during the year.