2013 Registration document and annual financial report - page 215

Registration Document 2013
Financial Statemements
Consolidated Financial Statements And Notes
Change in 2013 EBITDAR by business
∆ 2013/2012
Like-for-like change
(in millions of euros)
(in millions of euros)
Upscale and Midscale Hotels
Change in 2013 EBITDAR by region
∆ 2013/2012
Like-for-like change
(in millions of euros)
(in millions of euros)
Europe (excl. France)
Asia Pacific
Latin America & Caribbean
Other Countries
Worldwide Structures
Rental expense amounted to €894 million at December 31, 2013
compared with €938 million at December 31, 2012.
In accordance with the policy described in note 1.E.4, the expense
reported on this line only concerns operating leases. Finance leases
are recognized in the statement of financial position as an asset
and a liability.The amount of the liability at December 31, 2013 was
€49 million (see note 29.1).
Rental expense is recognized on a straight-line basis over the lease
term, even if payments are not made on that basis. Most leases
have been signed for periods exceeding the traditional nine-year term
of commercial leases in France, primarily to protect Accor against
the absence of commercial property rights in certain countries.
None of the leases contains any clauses requiring advance payment
of rentals in the case of a ratings downgrade or other adverse events
affecting Accor, and there are no cross-default clauses or covenants.
The €894 million in rental expense corresponds to 1,109 hotel leases,
including less than 1% with a purchase option. Where applicable,
the option price corresponds to either a pre-agreed percentage
of the owner’s original investment or the property’s market value
when the option is exercised.The options are generally exercisable
after 10 or 12 years. Certain contracts allow for the purchase of the
property at the appraised value at the end of the lease.
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