Get Adobe Flash player 5Financial statements CONSOLIDATED FINANCIAL STATEMENTS 2012 (9) (41) (3) -(30) -(83) (4) (24) (1) -(30) -(59) (5) (17) (2) ---(24) -------(0) (0) (0) ---(0) (9) (41) (3) -(30) -(83)

a total write-down of the following brands that the Group has

decided to discontinue:
-Quay West: €4 million impairment loss,
-Sea Temple: €1 million impairment loss,
-Quay Grand and Citigate: €1 million impairment loss.

C. Impairment of property, plant and equipment

Europe

(in million of euros)

HOTELS

Upscale and Midscale Hotels Economy Hotels Economy Hotels US

OTHER BUSINESSES

TOTAL (excl. Asia America & Other Worldwide France France) Pacific Caribbean Countries Structures (1)

* In accordance with IFRS 5, impairment losses on the property, plant and equipment of the US Economy Hotels and Onboard Train Services businesses have been

reported in profit or loss from discontinued operations (see note 17).

At December, 2012, impairment losses on property, plant and equipment amounted to €83 million, of which €7 million on assets held for sale. Impairment losses recognized during the period concerned 85 hotels for €83 million. No impairment losses were reversed.

At December 31, 2011, impairment losses on property, plant and equipment amounted to €85 million, of which €35 million on assets held for sale.

The Group also recorded a €10 million impairment loss on the Caesar Park and Caesar Business brands acquired with Grupo Posadas’ hotel network in South America (see note 2.B.6) that the Group has decided to discontinue.

At December 31, 2011, following the periodic review of the recoverable amount of intangible assets, a €5 million impairment

loss was recognized.

Latin 2011 2011* Published

(34) (83)
(20) (20)
(14) (14)
- (49)
(2) (2)
(36) (85)

Impairment losses recognized during the year concerned 128 hotels for €86 million, of which €49 million related to the US Economy Hotels business and impairment losses reversed during the year concerned two hotels for €3 million.

The €49 million in impairment losses on US Economy Hotels assets have been reported in profit or loss from discontinued operations in the 2011 adjusted financial statements presented above.

NOTE 14 GAINS AND LOSSES ON MANAGEMENT OF HOTEL PROPERTIES

(in million of euros) 2011*

2012 2011 published

Disposal gains and losses 113

111 Provisions for losses on hotel properties (8)

(51)

TOTAL 105 60

1 10 11
* In accordance with IFRS 5, gains and losses on management of hotel properties of the US Economy Hotels and Onboard Train Services businesses have been reported in profit or loss from discontinued operations (see note 17).

At December 31, 2012, the total mainly included: a a net gain of €18 million generated by sale & franchise-back transactions in South Africa, through the sale of 52.6% stake

a a net gain of €26 million generated by sale & franchise-back in “Hotel Formula 1” to Southern Sun Hotels. Hotel Formula 1 transactions in France (29 hotels); owns in particular 20 hotels totaling 1,474 rooms, in addition to managing 3 hotels. All 23 hotels are now operated as franchised units (see note 2.A.3.3);