SECTION 1 -

New Services: Historical Combined Financial Statements and Notes
December, 31, 2009
Plan 14 Plan 15 Plan 16 Plan 17 Plan 18
Plan 19
Accor share price at the option grant date 70,95 € 70,45 € 62,35 € 47,10 € 37,12 € 25,49 €
Option exercise price 68,65 € 71,72 € 60,44 € 46,46 € 42,70 € 27,45 €
Expected volatility (*) 31,73% 31,60% 27,57% 27,87% 26,72% 31,91%
Contractual life of the options 7 years 7 years 8 years 7 years 7 years 8 years
Risk-free interest rate (**) 3,94% 4,25% 4,15% 3,84% 4,03% 2,63%
Fair value of options (***) 20,38 € 19,36 € 16,66 € 11,55 € 7,00 € 5,78 €
* Weighted volatility based on exercise periods.
** Weighted risk‐free interest rate based on exercise periods.
*** Weighted fair value of options based on exercise periods.
The dividend rate used to measure the fair value of options was:
• 3.03% for plans 8, 9 and 10
• 3.22% for plans 11, 12 and 13
• 2.29% for plans 14, 15 and 16
• 2.53% for plans 17, 18 and 19.
These rates correspond to the average payout rate for the previous two or three years.
Maturities of stock options
The Group has decided to base the assumed exercise dates of stock options under these plans on observed exercise dates under
previous plans. The same principle has been applied to all plans, as follows:
• 35% of options exercised after 4 years
• 20% after 5 years
• 35% after 6 years
• 5% after 7 years (10% for plans 11, 12, 13, 14, 15, 17 and 18)
• 5% after 8 years.
Maturities of stock options correspond to the options' expected lives.
Share price volatility
The Group has chosen to apply a volatility rate calculated by reference to historical data for the eight years preceding the grant
date. Different volatility rates, calculated from the grant date, have been applied to each maturity as presented above.
Cost of share‐based payments recognized in the accounts
The total cost of share‐based payments granted to New Services employees amounted to €2 million at December 31, 2009
(December 31, 2008: €2 million, December 31, 2007: €2 million). These amounts have been recognized in employee benefits
expense with a corresponding adjustment to equity.
Employee Stock Ownership Plan
In April 2007, a leveraged employee rights issue was carried out under the Employee Stock Ownership Plan, whereby for each
share purchased between June 11 and 18, 2007 the bank that partnered Accor in the issue financed an additional nine shares on
behalf of the employee. At the end of the 5‐year lock‐up period, employees will receive a cash payment equal to the average
increase in value of the Accor shares purchased with their own funds and with the financing provided by the bank.
In addition, the employees' initial investment in the shares is guaranteed by the bank.
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