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Sale Outright & Franchise Back asset sales

(Number of hotels) Main countries

A.3.3. Sale and Franchise back Transactions and Outright sales

Since 2005, Accor has disposed of a total of 586 hotels, through outright asset sales, lease terminations at or before the expiry date and sale-and-franchise-back transactions.

Adjusted Sale price Debt impact debt impact

(in million of euros)

2005 25 17 Germany 43 43

2006 27 25 France, United States and Denmark 195 109

2007 34 39 France, United States, Germany 256 254

2008 49 12 France, United States, Germany 117 104

2009 26 30 France, United States, Germany, 120 106 the Netherlands

2010 85 30 France, United States, China, 163 195 Germany, Brazil, Portugal, Sweden

2011 69 38 France, Germany, Poland, Belgium, 185 152 Hungary, China, United States

2012 60 20 France, South Africa, China, 247 188 Germany, Spain, Japan, Italy, the Netherlands, Poland

TOTAL 375 211 1,326 1,151 1,753

In 2012, Accor sold the Pullman Paris Rive Gauche (617 rooms) to Bouygues Immobilier for €77 million, in line with its assetright strategy. The hotel, whose operating performance and technical standards fall below Group requirements, shut down in 2012. The contract also includes an earn-out mechanism, whose amount will depend on the terms and conditions of the reconstruction project (up to €10 million). The transaction enabled Accor to reduce net debt by €72 million accumulated.

In 2012, Accor sold its 52.6% stake in “Hotel Formula 1” to its historical South-African partner, Southern Sun Hotels, a subsidiary of the Tsogo Sun group for €28 million (including €3 million loan repayment). Hotel Formula 1 was formed in 1991, as a joint venture between Accor and Southern Sun. The company owns 20 hotels totaling 1,474 rooms, in addition to managing 3 hotels already owned by Southern Sun across South Africa. All 23 hotels now operate as franchised units, under Formula 1 brand. It enabled Accor to reduce net debt by €28 million accumulated.

In 2012, termination of six hotel leases in Germany and the Netherlands generated a capital loss of €47 million but enabled the Group to reduce adjusted net debt by €35 million.

In all, the lease transactions had a €35 million negative net impact on consolidated cash (corresponding to 2.6 years’ average rent) and enabled the Group to reduce adjusted net debt by €182 million.

A.4. Return to shareholders of part of the cash proceeds from asset disposals

Accor has returned to shareholders part of the cash proceeds from disposals of investments and assets carried out since 2005.

Since May 10, 2006, Accor has announced several successive share buyback programs, as follows:

a on May 10, 2006, Accor announced a first program to buy back Accor SA shares for a total of €500 million. This program was carried out pursuant to the authorization granted at the Shareholders’ Meeting held on January 9, 2006, which capped the buy-back price at €62 per share. During 2006, Accor bought back and cancelled 10,324,607 shares. These shares were acquired at a total cost of €481 million, representing an average price per share of €46.56. As of December 31, 2006, a further 332,581 shares had been bought back at a total cost of €19 million. These shares were cancelled at the beginning of January 2007;

a on May 14, 2007, Accor announced a second program to buy back Accor SA shares for a total of €700 million. This program was carried out pursuant to the authorization granted at the Shareholders’ Meeting held on May 14, 2007, which capped the buy-back price at €100 per share. During 2007, Accor bought back and cancelled 10,623,802 shares. These shares were acquired at a total cost of €700 million, representing an average price per share of €65.89;