Get Adobe Flash player 5Financial statements CONSOLIDATED FINANCIAL STATEMENTS NOTE 4 OPERATING EXPENSE

(in million of euros) 2011*

2012 2011 published

Cost of goods sold (1) (391) (388) (391) Employee benefits expense (2) (2,090) (2,081) (2,284) Energy, maintenance and repairs (298) (303) (365) Taxes, insurance and service charges (co-owned properties) (195) (203) (227) Other operating expense (3) (835) (886) (910) TOTAL OPERATING EXPENSE (3,809) (3,861) (4,177) * In accordance with IFRS 5, operating expense of the US Economy Hotels and Onboard Train Services businesses have been reported in Profit or loss from discontinued operations (see note 17). (1) The cost of goods sold includes food and beverage purchases, laundry costs and the cost of telephone calls billed to clients. (2) The Ratio employee benefits expense/Full-time equivalent (FTE) is presented as follows:

Full-time equivalent 2011* 2011 published

Full-time equivalent** 52,139 62,589

Ratio employee benefits expense/FTE (€k) (40) (36)

2012 52,062 (40)

* In accordance with IFRS 5, operating expense of the US Economy Hotels and Onboard Train Services businesses have been reported in Profit or loss from
discontinued operations (see note 17).

** Full-time equivalent employees are based on the ratio between the number of hours worked during the period and the total working legal hours for the period. For firms which are consolidated using the proportional method, the employee number is calculated with the Group’s interest. There is no employee number for associates.

Employee benefits expense includes €13.5 million related to stock option plans and performance share plans (see note 25) and €6,0 million to cover the costs

generated by new legislation in France requiring companies that increase their dividend to pay a special bonus to employees.

(3) Other operating expense consists mainly of marketing, advertising, promotional, selling and information systems costs. The total also includes various fee payments.

NOTE 5 EBITDAR BY BUSINESS AND REGION

Europe Latin (excl. America Other Worldwide (in million of euros) France France) Asia Pacific & Caribbean Countries Structures (1)

2012 2011 (2)

HOTELS 571 797 185 136 44 41 1,774 1,731 Upscale and Midscale Hotels 327 469 115 44 26 36 1,017 1,008 Economy Hotels 244 328 70 92 18 5 757 723 OTHER BUSINESSES 6 (0) 10 -4 (6) 14 28 TOTAL 2012 577 797 195 136 48 35 1,788 TOTAL 2011 (2) 612 786 158 109 43 51 1,759 (1) “Worldwide Structures” corresponds to revenue (royalties) and costs that are not specific to a single geographic region. (2) In accordance with IFRS 5, EBITDAR of the US Economy Hotels and Onboard Train Services businesses have been reported in profit or loss from discontinued operations (see note 17). Consolidated EBITDAR for 2012 totalled €1,788 million compared with €1,759 million for 2011.