Synergies between the two companies

accor

Synergies between the two companies

� The two companies started to

settle synergies:

� Increasing revenues

� Optimizing purchasing

� Sharing skills and expertise

� Human resources

Synergies between the two companies

€17m

6

11

2005

Impact on profit

before tax

€33m

12

21

2006

€46m

16

30

2007

Accor Club Med

21


Club MedColombus -Bahamas

22


Creation of the European leader in casinos

� Jointly held by the Desseigne-Barrière family (51%), Accor (34%) and

Colony Capital (15%)

� €1 billion in revenues

� 37 casinos

� 13 luxury hotels

� Restaurants

Casino Barrière d'Enghien-les-Bains

� Unique positioning to capitalize on the ongoing consolidation of the

casino industry in Europe: concession won for the new Toulouse casino

� Shareholders’ pact for company management and pooling of skills

� Capital gain of €83 million for Accor

23


Casino Nice

24


Casino Deauville

25


Hôtel Normandy

26


Travel agencies

� Acquisition of Maritz Corporate Travel in the United

States

� Acquisition of Protravel in France

Carlon Wagonlit Travel strengthens

its its # 2 position worldwide

27


� 2004 Results

� 2005 Q1 sales

� Strategic Vision

Outline

28


�Revenues of €1,676m:

up 5.6% as published

�At constant scope of consolidation

and exchange rates: up 3.8%

� Hotels: up 2.1%

� Services: up 11.8%

� Other businesses: up 6.6%

First-quarter 2005 revenues up 5.6%,

confirming a good overall trend

4.3%

Q1 04

Like-for-like change

6.1%

Q2 04

2.9%

Q3 04

Excl. impact of Easter

vacation calendar and 29

days in February

5.1%

Q4 04

5.4%

3.8%

Q1 05

29


� 2004 Results

� 2005 Q1 sales

� Strategic Vision

� An international strategic investor for

Accor

� A new asset management policy

� Accelerated expansion

Outline

30


invests

via Colony VI et Colyzéo

€ 1 billion

in

31


� International investment fund

specialized in real estate and hotels

Colony Capital

� Since 1991, Colony Capital has invested $12.5 billion

with an average return on investment of 21%

32


Los

Angeles

Hawaii

Head office

Offices

Boston

New York

International presence of Colony

London

Paris

Madrid

Rome

Beirut

Seoul

Shanghai

Hong Kong

Tokyo

Taipei

Current investments : 1/3 Europe, 1/3 North America , 1/3 Asia

33


� Accor Casinos

� Group Lucien Barrière

� Sofitel Demeure et Libertel

� Novotel Paris Tour Eiffel

Accor's traditional partner since 1998

Novotel Paris Tour Eiffel

34


Benefits for Accor

A sizeable investment from an international strategic investor

for Accor :

� Give additional equity resources

� Speed up expansion

� Provide international expertise in hotel expansion

A catalyst for for the the Accor share price

35


ORAs

(mandatory notes)

� Amount: €500 million

� Maturity: 3 years

� Interest: 4.5%

� Issue price €39

(10% premium on the average

share price of the past month)

Terms of the transaction (1/2)

Convertible notes

� Amount: €500 million

� Maturity: 5 years (put at 3 years)

� Interest: 3.25%

� Conversion price €43

(21% premium on the average

share price of the past month)

36


� Specific clauses for the subscriber

� No conversion before January 1, 2007

� Six-month standstill following conversion

� No short over the period

� Corporate governance :

Terms of the transaction(2/2)

� Colony joins the Supervisory Board and the commitments

committee

37


� 2004 Results

� 2005 Q1 sales

� Strategic Vision

� An international strategic investor for

Accor

� A new asset management policy

� Accelerated expansion

Outline

38


Innovative asset management

to support the Hotel strategy

An innovative

asset externalization program

designed to:

� Reduce capital intensity in upscale hotels

� Variabilize holding costs in the midscale segment

Focus on on operating hotels

and

Reinforce expansion strategy

39


Using the right operating structure

for each segment

Hotel segment Preferred operating structure

� Management contracts

with minority stake

� Variable rents, based on

a % of revenues

� Franchises

� Fixed/variable rents

� Franchises

40

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