2013 Registration document and annual financial report - page 177

Registration Document 2013
2013 Review of the Year
Significant events of early 2014
In 2013, material contracts (other than contracts entered into in
the ordinary course of business) corresponded to agreements
signed in relation to disposals, acquisitions, organic growth and
real estate transactions, as described in note 2, paragraphs A to
B, and in note 40 to the consolidated financial statements, pages
202 and 274 below.
The following significant events have occurred since the end of 2013.
Appointment of the Deputy Chief
Executive Officer in charge of Marketing,
Digital Solutions, Distribution and
Information Systems and changes
in the Executive Committee
On March 1, 2014, Vivek Badrinath was appointed Deputy Chief
Executive Officer in charge of marketing, digital media, distribution
and information systems. In this capacity, he is a member of
the Executive Committee, tasked with redefining Accor’s digital
strategy, in particular in the area of distribution, which plays a
critical role in driving the development of the Group’s brands.
As a result, the Accor Executive Committee, led by
now comprises the following members:
Sven Boinet
, Deputy Chief Executive Officer in charge of
Transformation, Human Resources and Legal;
Vivek Badrinath
, Deputy Chief Executive Officer in charge of
Marketing, Digital Solutions, Distribution and Information Systems;
Christophe Alaux
, Chief ExecutiveOfficer HotelServices France;
Roland de Bonadona
, Chief Executive Officer HotelServices
Jean-Jacques Dessors
, Chief Executive Officer HotelServices
Mediterranean, Middle East and Africa;
Michael Issenberg
, Chief Executive Officer HotelServices
Asia Pacific;
Sophie Stabile
, Chief Financial Officer;
Peter Verhoeven
, Chief Executive Officer HotelServices
Northern, Central and Eastern Europe.
Stake in Reef Casino in Australia sold
for €55.5 million
As part of its asset management strategy, Accor has sold its interest
in the Reef Casino in Australia, which comprises a 128-room hotel
and a casino with more than 500 gaming machines. The interest
included a 29% stake in Reef Casino Trust (RCT), a listed entity,
as well as a 50% stake in RCT’s related businesses, Casinos
Austria Cairns and Reef Corporate Service. Total proceeds for
Accor amounted to €55.5 million. The agreement is submitted to
90% acceptance for the IPO of RCT, and to regulatory approvals.
Launch of a bond issue
On January 31, 2014, Accor took advantage of favorable conditions
in the credit markets, at a time of low interest rates, to successfully
place a seven-year bond issue in an amount of €750 million with
an annual coupon of 2.625%.
On February 4, the Group redeemed its five-year, 7.5% bonds in
an amount of €402.3 million.
A new way of tracking our business model
Accor has announced that its financial indicators will now be
disclosed in line with its new business model.
HotelServices is committed to increasing its business volume
and generating the cash flow needed to fund its growth. It aims
to report a more than 50% EBIT margin on management and
franchise operations, with a sales & marketing fund at breakeven.
HotelInvest needs to improve its performance through asset rotation,
in particular by restructuring the least profitable lease contracts
and increasing the percentage of owned hotels in its earnings
stream. Its objective is to derive 75% of its net operating income
(EBITDA less maintenance capital expenditure) from owned hotels.
These two businesses are now managing their strategic and
operational priorities separately, while working closely in tandem
thanks to their partnership relations.
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