2010 ANNUAL REPORT

Accor Leder and 100%

hoelie

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Message from Denis Hennequin 2

Governance structures 6

Board of Directors 8

Executive Committee 10

Accor around the world 12

A year of important change and growth 14

Powerful brands with enormous vitality 24

Hotel expertise that makes all the difference 52

Employees are the mainstay of our performance 62

A committed, responsible, pioneering leader 74

Performance indicators 84

Corporate directory 108

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Denis HennequinCHAIRMAN AND CHIEF EXECUTIVE OFFICER

I am very proud to address you today in my

capacity as Chairman and Chief Executive Officer.

Having served on the Board of Directors, I was

already very familiar with Accor, but today, now

that I see it from the inside, I obviously have a

different view of the Group. I am fully aware of

Accor’s powerful culture, the many strong bonds

that bind team members and their attachment to

the Group. At Accor, hospitality is not just a

slogan; it’s a way of life for the 145,000

employees that are our most important asset.

They represent the many different job categories

within our organization and embody the skills

we need to leverage, deepen and share.

I’m especially pleased to take over the reins of

this outstanding company at a time when its

financial results are sharply higher. Now entirely

focused on hotels, the new Accor turned in a

good performance, benefiting fully from the

economic recovery, which accelerated in the

second half. This strong showing attests to the

validity of our business model. Indeed, our

operations on all continents and in all market

segments – from budget to luxury – played a

large part in our success. The recovery was even

faster and bigger than anticipated. In nearly all

markets, the increase in demand was followed by

a gradual stabilization in room rates. In Europe,

growth was driven initially by the United

Kingdom and Germany, followed by France.

Strong demand in emerging markets, which

offset the decline in business in 2009, continued

Dear shareholders, customers

and fellow Accor team members,

CHAIRMEXECUT

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“Now fully focused on hotels, Accor has opened a new page in its history. The past year was remarkable with the demerger of the hotel and prepaid services businesses. Fully operational, the new Accor had a very good year in 2010 and has set ambitious objectives for the future.”

throughout the year, across all market segments.

Upscale and midscale hotels – more sensitive

to the ups and downs of the business cycle

– reported a 9%-increase in revenue, a

commendable performance. Economy hotels

continued to produce good results, except in the

United States, although occupancy rates did

improve in the American market. Revenue in the

economy segment was up 6.8% for the year.

> Solid growth for Accor in 2010

Overall, Accor turned in a very strong sales and

operational performance. Revenue increased by

7.1% to €5,948 million, while EBIT was up a

sharp 82.4% to €446 million. EBITDAR margin,

which measures the company’s performance and

profitability, rose by 1.9 points, led by higher

occupancy rates. Thanks to the diligence and

perseverance of our team members, we more

than met our cost reduction objectives without

sacrificing service quality. We were able to

accomplish this by focusing on revenue and

growth while also ensuring the satisfaction and

loyalty of our customers. To create preference

for our brands, we delivered more services and

forged closer relations through the A|Club

loyalty program. Other key components of our

strategy included our assertive expansion, with

25,000 rooms opened in 2010, and the ongoing

divestment of property assets. In all, 171 hotels,

totaling 18,000 rooms, were sold during the

year, enabling us to reduce debt by €630 million.

So we’re on the right track and our results are

sharply higher. While we’re staying the course,

we now need to step up the pace of our

transformation. We will accomplish this by

pursuing a corporate project that is more direct,

closer to the frontline and based on six key

growth drivers: the hotel brands, an expansion

strategy led by franchising and management

contracts, human resources, a commitment

to understanding and satisfying our customers,

a targeted property management strategy,

and sustainable development policies that set

the industry standard.

> Leveraging our expertise

Accor is today a 100%-hotel group, which will

make our operations more visible and more

easily understood and, over time, will increase

our market value. Fully focused on our core hotel

operator business, we will be more effective. No

one else can claim that every day they manage

400,000 hotel rooms – 80% of the Group’s total.

This experience provides us with an important

asset we can leverage for the benefit of

franchisees and property investors. We can draw

on an unrivaled reservoir of expertise and

operating excellence. Our duty is to maintain

these capabilities, constantly enhance them and

transmit them to new team members. That’s

what we do every day in our management

practices and in our Accor Academy network of

training centers around the world. In the future,

Accor will create differentiation not only

through the strength of its distribution channels

and the vitality of its brands but also through its

excellence in hotel engineering. Our expert skills

in construction, renovation, design, procurement,

partnerships and sustainable development are

expected and recognized by our new partners.

It’s up to us to strengthen and capitalize on

those skills.

> Major challenges facing the brands

The brands represent another major advantage

for Accor – the only hotel industry player present

in all five market segments, with hotelF1 in

France, Motel 6 in the United States and Etap

Hotel in the budget segment, ibis and all

seasons in economy, Novotel and Mercure in

midscale, Pullman and MGallery in upscale and

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Sofitel in luxury. With a highly-segmented offer,

we’re well equipped to satisfy our customers’

increasingly specific expectations. We now need

to strengthen our brands so that they express

more personality. They will be more assertive in

their advertising, more audacious in their styling

and more innovative in their service offerings.

As the core component of our strategy, they will

lead the way in creating enterprise value. Brand

sense is a mindset and a discipline that must

be expressed every day in every way. Our priority

is to reinforce each brand’s DNA. One good

example is ibis, which is not only the leading

contributor to Accor’s results but also a rare

asset. In an economy segment that is price-

centric, ibis delivers an extra touch of spirit and

warmth that customers recognize and which

makes all the difference. This focus on the

brands must create an affective relationship

with customers that goes beyond a hotel’s

features and price. The objective is also financial

since powerful brands will encourage

franchisees and property investors to join us.

Sofitel has emerged as a recognized player in

the luxury segment by thoroughly reworking

every facet of its offer, refining its network and

adopting new advertising codes. We’re

approaching the brands one at a time, as is the

case with Pullman, which has the strengths

needed to become a benchmark in the very high

potential market for conventions and seminars.

These efforts to leverage our skills and brands

are vitally important. In a company like Accor, we

must be constantly on the move and focused on

innovation in order to reinvent the hotel

industry. We will accomplish this by questioning

every aspect of our business: design and styling,

restaurants and dining services, IT systems to

respond to the explosive growth in digital

media, and sustainable development since

customers and partners are more and more

attentive to these issues and justifiably so. We

will also achieve our goals by forging high value

added partnerships with banners and brands

that are well known and generate strong

emotional involvement. That’s the key if we want

to anticipate customer needs and provide them

with unique experiences. At the same time, we

need to understand our customers better, and to

that end we have a highly-effective tool that we

can leverage – our A|Club loyalty program. We

will actively develop the program so that it will

act as our ambassador and a closer link to hotel

guests, with the goal of forging relationships

based on reciprocity and sharing. I intend

to focus my attention on all of these brand-

related issues.

> Speeding our development

Top ranked in number of rooms or number of

hotels on four continents, Accor will step up the

pace of development by opening more than

100,000 rooms by 2013. We will strengthen

our positions in Europe, where hotel chains

account for only 25% of the industry total

(compared with over 70% in the United States),

by developing franchising and remaining open

to possible targeted acquisitions. At the same

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time, we will broaden and deepen our

international network with a focus on fast-

growing emerging markets. I’m thinking in

particular of China, India and Brazil, three

markets whose rapid growth is fueled by the

emergence of a powerful middle class.

In addition to these major projects, we’re

pursuing our strategy of divesting property

assets, which is another foundation of our

business model and vitally important if we want

to make our business less volatile and procure

the resources we need to meet our ambitious

objectives. In 2011 and 2012, our goal is to

dispose of €1.2 billion in hotel assets. The

proceeds from these sales will be used to pay

down debt – which will be close to zero at the

end of the year – and to create value.

> Making sustainable development

a competitive advantage

We’re pursuing our expansion while taking

advantage of our expertise in sustainable

development. Thanks to the Earth Guest

program initiated in 2006, Accor is recognized by

professionals as the hotel industry leader in this

area. Our leadership has inspired and stimulated

our creative instincts. As proof, we’re already

thinking about how to follow up on the program.

Our goal is to be the driving force and the

standard-setter in the industry. While we feel it’s

our duty to promote sustainable development, this

commitment also provides us with competitive

advantage. To attain our goal, we will develop

more scientific, more quantifiable ways of

analyzing our environmental footprint. It’s crucial

for us to maintain these ties with the Earth and

with our host communities, at all levels.

> Hiring and retaining the best people

In a service business like ours, employees – all

145,000 of them – are all-important. Through

their daily contact with customers and their

skills and passion for the profession, they are

truly on the frontline when it comes to ensuring

our service quality and image. Their diversity and

capabilities are our greatest asset. The challenge

we face is to attract and retain high-potential

people by enabling them to develop skills they

can use throughout their working lives. We

provide them with opportunities to grow and

gain experience via the network of Accor

Academies that have made our Group the

world’s leading hotel school. Retaining the best

people also means making their jobs and their

lives meaningful. In this respect, the Accor

Corporate Foundation is making a powerful

contribution by supporting initiatives – put

forward by more than 3,000 team members – to

create ties with local communities. To date, the

Foundation, which I am honored to serve as

Chairman, has supported 84 programs around

the world and is doing an excellent job of

expressing our values.

> 2011: a year of restarting

and acceleration

The signs for an ongoing recovery in 2011

are positive despite economic and political

uncertainties around the world. Our teams are

highly motivated and committed to staying at

the head of the pack. So the time has come to

step up the pace of transformation and

expansion with the goal of truly making a

difference and increasing our lead. I firmly

believe that our future success depends on the

ability to maintain momentum while constantly

asking hard questions, thereby creating positive

tension and energy. Backed by this way of

thinking, our human assets and our financial

flexibility, Accor tomorrow will be even more

attractive, innovative and forceful, and that’s

my most cherished wish.

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Govenanc structuesThe Company is governed by a Board of Directors, which determines the Company’s strategy, oversees its implementation, examines any and all issues concerning the efficient running of the business, and makes decisions on all matters concerning the Company.

In accordance with the law and the Company’s

Bylaws, the Chairman and Chief Executive Officer

chairs Board meetings, organizes and leads

the work of the Board and its meetings, ensures

that the Company’s corporate governance structures

function effectively, and obtains assurance

that directors are in a position to fulfill their

responsibilities.

The Chairman and Chief Executive Officer

represents the Company in its dealings with third

parties and has the broadest powers to act on

behalf of the Company in all circumstances. The

situations where the exercise of the powers of the

Chairman and Chief Executive Officer is subject to

the prior approval of the Board of Directors are

detailed in the report of the Chairman of the Board

of Directors prepared pursuant to article L. 225-37

of the French Commercial Code.

The Bylaws stipulate that each Board member

is required to hold at least 500 Accor shares.

To promote high attendance rates at Board

Meetings, 50% of the total fees awarded to

members of the Board of Directors are allocated

based on their attendance record.

Accor complies with the AFEP/MEDEF Corporate

Governance Code for listed companies as amended

in December 2008, except with regard to the

matters described on pages 78 and 83 of the 2010

Registration Document.

The Board of Directors assesses the independence

of its members. For the purpose of this assessment,

the Board applies the criteria set out in the above-

mentioned AFEP/MEDEF Corporate Governance

Code which state that a member of the Board

of Directors of a corporation cannot be qualified

as independent if he or she:

› is – or has been at any time in the last five years

– an employee or a corporate officer of the

corporation, or an employee or director of its parent

or a company that it consolidates;

› is a corporate officer in a company in which

the corporation directly or indirectly holds

a directorship, or in which an employee appointed as

such or a corporate officer of the corporation (current

or in the past five years) holds a directorship;

› is a customer, supplier, investment banker or

commercial banker:

that is material for the corporation or its group, or

for which the corporation or its group represents

a material proportion of the entity’s activity;

› has close family ties to a corporate officer;

› has been an auditor of the corporation in the last

five years;

› has been a director of the corporation for more

than twelve years.

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The AFEP/MEDEF Corporate Governance Code

also states that directors who represent major

shareholders of a corporation or its parent may be

considered as independent provided that they do

not participate in the control of the corporation. If

the shareholder owns 10% or more of the

Company’s capital or voting rights, the Board of

Directors should systematically review whether that

shareholder’s representative may be qualified as

independent, based on a report issued by the

Compensation, Appointments and Corporate

Governance Committee and taking into account the

Company’s capital structure and any potential

conflicts of interest.

In accordance with the Company and Directors

Bylaws, Paul Dubrule and Gérard Pélisson,

Co-Chairmen and Co-Founders, attend Board

meetings in a consultative capacity, and may be

invited to attend meetings of the Board Committees.

Since February 2009, the Board of Directors

has been assisted in preparing its decisions by

the following three Board Committees:

› the Audit and Risks Committee, now comprising

three members, including two independent

members: Philippe Citerne (Committee Chairman),

Virginie Morgon and Jean-Paul Bailly;

› the Commitments Committee, comprising

five members, including three independent

members: Sébastien Bazin (Committee Chairman),

Sophie Gasperment, Mercedes Erra, Philippe Citerne

and Patrick Sayer;

› the Compensation, Appointments and Corporate

Governance Committee, comprising five members,

including three independent members: Bertrand

Meheut (Committee Chairman), Jean-Paul Bailly,

Thomas Barrack, Franck Riboud and Patrick Sayer.

The organizational and operational framework

applicable to the Board of Directors and the Board

Committees is described in the Directors bylaws(1).

In addition, members of the Board adhere to the

Directors Code of Conduct(1), which defines the

scope of the directors’ duty of diligence, discretion

and confidentiality, and sets out the rules applicable

to trading in the Company’s securities.

Lastly, with a view to preventing any potential

conflict of interests, members of the Board are

required to complete a statement every year

disclosing any and all direct or indirect ties they

have with the Company.

The procedures for organizing and preparing

the work of the Board during 2010 are described

in the Report of the Chairman of the Board

of Directors prepared pursuant to article L.225-37

of the French Commercial Code(1).

In 2007, the Board of Directors formally assessed its

own performance with the support of a specialized

consulting firm. The results of this process, which

involved one-on-one meetings with each director,

were presented to the Board of Directors, which

discussed the matter at two Board meetings. In

light of the substantial changes in its composition

and organization in 2009 and 2010, the Board felt

that a new assessment would not be timely and

decided to postpone the process until early 2011.

(1) See the 2010 Registration Document.

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Boad o DirecorsIn accordance with the Company’s Bylaws, Paul Dubrule and Gérard Pélisson, Accor’s Co-Chairmen and Co-Founders, attend Board meetings in a consultative capacity.

l Denis HennequinChairman and Chief Executive Officer

Denis Hennequin joined Accor as a director

on May 13, 2009. He became Chief Executive

Officer on December 1, 2010 and was subsequently

appointed Chairman and Chief Executive Officer.

His current term of office as a director expires

at the close of the Annual Shareholders’ Meeting

to be called to approve the accounts for the year

ending December 31, 2010.

l Philippe Citerne(1)

Vice-Chairman

Philippe Citerne has been a director of Accor

since January 9, 2006 and a director and Vice-

Chairman of the Board since May 13, 2009.

His current term of office expires at the close

of the Annual Shareholders’ Meeting to be called

to approve the accounts for the year ending

December 31, 2011. Société Générale, represented

by Philippe Citerne, was previously a member

of Accor’s Supervisory Board, from June 28, 1983.

Mr. Citerne was Chief Operating Officer of Société

Générale between 1997 and April 2009 and is now

Chairman of Télécom & Management SudParis.

He is also a director of Sopra Group and Rexecode,

a private economic research center.

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l Jean-Paul Bailly(1)

Jean-Paul Bailly has been a director of Accor since

May 13, 2009 and his current term of office expires at the

close of the Annual Shareholders’ Meeting to be called to

approve the accounts for the year ending December 31, 2011.

He has been Chairman of the La Poste Group since 2002 and

Chairman of the Supervisory Board of La Banque Postale since

2006. Mr. Bailly also represents the French State on the Board

of GDF Suez, and is a director of CNP Assurances and Sopassure.

l Thomas J. Barrack

Thomas J. Barrack has been a director of Accor since

January 9, 2006 and his current term of office expires at

the close of the Annual Shareholders’ Meeting called to

approve the accounts for the year ending December 31, 2012.

He was previously a member of Accor’s Supervisory Board,

from May 3, 2005. Mr. Barrack is Founder, Chairman

and Chief Executive Officer of Colony Capital LLC and is

also a director of Challenger Financial Services Group Ltd.

l Sébastien Bazin

Sébastien Bazin has been a director of Accor since

January 9, 2006 and his current term of office expires at the

close of the Annual Shareholders’ Meeting called to approve

the accounts for the year ending December 31, 2010. He was

previously a member of Accor’s Supervisory Board, from

May 3, 2005. Mr. Bazin is Principal, Managing Director Europe

and Chief Executive Officer of Colony Capital SAS and is also

Chairman and Chief Executive Officer of Société d’Exploitation

Sports & Évènements and Holding Sports & Évènements.

l Mercedes Erra(1)

Mercedes Erra has been a director of Accor since

February 22, 2011. Shareholders will be asked to ratify her

appointment to the Board at the Annual Shareholders’ Meeting

of May 30, 2011. Her current term as a director will expire at

the close of the Annual Shareholders’ Meeting to be called to

approve the accounts for the year ending December 31, 2011.

Ms. Erra is Executive Co-Chairman of Euro RSCG Worldwide.

l Sophie Gasperment(1)

Sophie Gasperment has been a director of Accor since

June 29, 2010 and her current term of office expires

at the close of the Annual Shareholders’ Meeting to be called

to approve the accounts for the year ending December 31, 2012.

Ms. Gasperment is Chief Executive Officer of The Body Shop

International and was appointed as a French Foreign Trade

Advisor in 2005.

l Bertrand Meheut(1)

Bertrand Meheut has been a director of Accor since

May 13, 2009 and his current term of office expires at the

close of the Annual Shareholders’ Meeting to be called to

approve the accounts for the year ending December 31, 2011.

Mr. Meheut is Chairman of the Canal+ Group Management

Board and is also a director of Aquarelle.

l Virginie Morgon

Virginie Morgon has been a director of Accor since

May 13, 2009 and her current term of office expires at the close

of the Annual Shareholders’ Meeting to be called to approve

the accounts for the year ending December 31, 2010. Ms. Morgon

is a member of the Executive Board of Eurazeo and also sits on

the Board of Directors of the Women’s Forum (WEFCOS).

l Franck Riboud(1)

Franck Riboud has been a director of Accor since

January 9, 2006 and his current term of office expires at

the close of the Annual Shareholders’ Meeting to be called to

approve the accounts for the year ending December 31, 2010.

He was previously a member of Accor’s Supervisory Board, from

July 3, 2001. Mr. Riboud is Chairman and Chief Executive Officer

of Danone and is also Chairman of the Board of Directors of

Danone Communities, a director and Chairman of the

Remuneration Committee of Renault SA and a director of Lacoste.

l Patrick Sayer

Patrick Sayer has been a director of Accor since August 27,

2008 and his current term of office expires at the close of the

Annual Shareholders’ Meeting to be called to approve the

accounts for the year ending December 31, 2012. Mr. Sayer is

Chairman of the Executive Board of Eurazeo and is also

Chairman of the Board of Directors of Europcar Group and a

director of SASP Paris Saint-Germain Football, Holdelis, Gruppo

Banca Leonardo and Colyzeo Investment Advisors. (1) Independent director.

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Excuive commiee

1 l Denis Hennequin C C E O

2 l Yann Caillère P C O O

3 l Grégoire Champetier G C M OBrand Strategy – Design Strategy – Marketing – Distribution

4 l Dominique Esnault G C O SDevelopment – Franchising – Procurement

Technical Services and Design Management

5 l Sophie Stabile G C F OFinances – Groups Information Systems

6 l Marc Vieilledent G E V-P A MAsset Management and Strategy – Mergers-Acquisitions

7 l Anne-Marie Cambourieu G C H R OHuman Resources – Group Organization – Transformation

Sustainable Development

8 l Pascal Quint C SLegal Affairs – Insurance – Risk Management –

Audit Department – Secretary of the Board of Directors

AT JANUARY 24, 2011

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EBITEBITDAR MARGIN

30.5% €446m

Accor, the world’s largest hotel

operator and the undisputed

leader in Europe has 4,229 hotels

and 507,306 rooms.

In today’s rapidly changing world,

we’re developing at an ever-faster

pace by forging high-quality

partnerships, while taking into

account the need to preserve

our planet and its resources

and to meet the expectations

of our host communities.

Acco aroud te wold

€5,948mREVENUE

KEY FIGURES AT DECEMBER 31, 2010

NORTH AMERICA22% of the hotel portfolio 1,107 hotels – 112,644 rooms9 Sofitel, 8 Novotel, 1,028 Motel 6, 62 Studio 6

LATIN AMERICA AND CARIBBEAN6% of the hotel portfolio 187 hotels – 28,634 rooms9 Sofitel, 4 MGallery, 1 Pullman, 19 Novotel, 70 Mercure, 72 ibis, 11 Formule 1, 1 Coralia

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EMPLOYEES

145,000 4,229HOTELS

90COUNTRIES

IN507,306ROOMS

FRANCE25% of the hotel portfolio 1,424 hotels – 129,041 rooms12 Sofitel, 8 MGallery, 13 Pullman, 121 Novotel, 19 Suite Novotel, 233 Mercure, 378 ibis, 62 all seasons, 298 Etap Hotel, 252 hotelF1, 26 Adagio 2 unbranded hotels

ASIA-PACIFIC17% of the hotel portfolio 430 hotels – 83,643 rooms43 Sofitel, 8 MGallery, 18 Pullman, 85 Novotel, 107 Mercure, 92 ibis, 39 all seasons, 24 Formule 1, 14 unbranded hotels

REST OF EUROPE25% of the hotel portfolio 934 hotels – 128,707 rooms21 Sofitel, 11 MGallery, 12 Pullman, 140 Novotel, 7 Suite Novotel, 234 Mercure, 322 ibis, 14 all seasons, 123 Etap Hotel, 28 Formule 1, 6 Adagio, 16 unbranded hotels

AFRICA AND MIDDLE EAST5% of the hotel portfolio 147 hotels – 24,637 rooms22 Sofitel, 2 MGallery, 5 Pullman, 22 Novotel, 2 Suite Novotel, 30 Mercure, 36 ibis, 24 Formule 1, 3 Coralia, 1 unbranded hotel

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A yer of iportant chage and gowhFor Accor, 2010 will always represent . With the demerger of the Hotels and Prepaid Services businesses,

the Group has entered a new era in its history. Now 100% focused

on hotels, Accor can leverage its key assets to move to the next level.

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A 100% hel rouAccor has ambitious objectives as both a hotel operator and a franchiser. A historic year, 2010 was also intense in terms of the Group’s expansion and operations. Thanks to its balanced business model, Accor was able to take full advantage of the economic recovery while continuing to develop at a sustained pace. This chapter looks back on a truly unique year.

A successful demerger

On June 29, 2010, more than

88% of the shareholders at the

Combined Ordinary and

Extraordinary Meeting voted to

approve the demerger of the

Hotels and Prepaid Services

businesses. On July 2, 2010,

Edenred, the new name

for Accor Services, was

listed on the NYSE

Euronext Paris stock

exchange. The result of

a process launched in

late August 2009, the

demerger was carried

out in a few months

thanks to strong

employee involvement,

especially that of tax,

legal affairs and finance teams.

The merger gave birth to two

international, industry-leading

companies with no capital ties.

As a result, Accor and Edenred

are today more visible, more

attractive to investors and fully

focused on a single core

business. This new configuration

is enabling both companies to

speed their development,

intensify their transformation,

expand through strategic

alliances and carry out financial

transactions to support their

future growth.

Fully focused on hotel operations

In 2010, Accor pursued its

program of divesting non-

strategic assets and hotel

properties.

› Disposal of non-strategic

assets. Accor sold Compagnie des

Wagons-Lits’ onboard rail

catering businesses to a joint

venture 60%-owned by Newrest,

an airline food services provider,

and 40% by Accor. With this

transaction, the Group has

withdrawn from onboard rail

catering. In March 2011, Accor

sold its stake in Groupe Lucien

Barrière, with which it had

partnered since 1989, to Fimalac

and Groupe Lucien Barrière for

€268 million. These two

transactions were fully in line

with the non-strategic asset

disposal program initiated in

2006 and which has led to the

sale of the Group’s interests in

Club Méditerranée, Carlson

Wagonlit Travel, Go Voyages and

its institutional food service

businesses in Italy and Brazil.

› Disposal of hotel properties.

Between 2010 and 2013, Accor

is planning to sell €2 billion

in property assets with the goal

of reducing capital employed

and earnings volatility.

Despite the year’s economic

uncertainty, the Group continued

to actively manage its assets,

even surpassing its objectives.

In 2010, a total of 171 hotels

were refinanced, leading to a

€630 million reduction in

adjusted net debt.

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Three major transactions were

announced:

in February, the sale of five

hotels in Europe to Invesco Real

Estate for €154 million;

in August, the sale of 49 hotels

in France, Belgium and

Germany to Predica and Foncière

des Murs for €378.4 million;

The transaction includes a

€47.6 million renovation program.

in December, the sale of

18 hotels in Sweden that

will be operated under franchise

agreements.

A new dynamic

Fully focused on hotels and the

undisputed European leader,

Accor has announced three major

objectives for 2015:

1. strengthen its ranking

as the world’s number one hotel

operator;

2. consolidate its position as

Europe’s leading hotel franchiser;

3. rank among the world’s top

three hotel groups.

This growth strategy will be

pursued by:

› strengthening the Group’s

presence in mature markets and

growing rapidly in emerging

markets;

› constantly enhancing the hotel

services offers, which create value

for franchisees and investors.

Three major objectives for 2015

Strengthen our ranking as the world’s number one hotel operator.

By operator, we mean the day-to-day management of hotels. This is

the case for 400,000 rooms that are owned, leased or managed

by the Group – 80% of the total. These day-to-day operations underpin

our hotel management expertise.

1

Consolidate our position as Europe’s leading franchiser by doubling

the size of the franchised network by 2015 and providing hotel

solutions that are increasingly aligned with the day-to-day concerns

of our franchisees.2

Rank among the world’s top three hotel groups by stepping up

the pace of development, especially in fast-growing, emerging markets

like Brazil, Russia, India and China.3

A unique business model

The world’s leading hotel

operator and Europe’s number

one hotel franchiser, Accor is

backed by a business model that

is unique in the industry. Called

the asset-right strategy, the

model features a range of hotel

operating structures in which

Accor may be either the owner,

the manager or the franchiser.

The choice of operating

structure depends on the hotel’s

location and market segment.

The advantage of this approach

is that it makes the business less

cyclical and enables the Group

to focus on developing its hotel

engineering expertise.

This business model and Accor’s

leadership position on four

continents were largely

responsible for the Group’s solid

recovery in 2010.

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The promising chain hotel market

With declining transport costs,

increasingly global trade

and rising living standards

in emerging economies, the

business and leisure travel

market is constantly growing.

All of these factors support the

development potential of hotel

chains, which enjoy a bright

outlook in both mature and

emerging markets:

› In Europe, the world’s largest

hotel market with more than

six million rooms, chain hotels

account for only 25% of the

total, compared with 70%

in the United States. In Italy, for

example, chain hotels account

for just 7% of the total. Accor

enjoys substantial potential

for development through

franchising, in particular with

its Mercure and all seasons

brands, which are among its core

assets. There is also growth

potential in the economy and

budget segments in which

supply is still limited in Europe.

› In emerging markets, needs

are on the rise, with a large

portion of the population now

having access to new consumer

goods and services and thus to

greater mobility. Countries like

Brazil, China, India and Russia

are future growth markets for

most Accor brands, especially in

the midscale and economy

segments, which respond most

closely to local customer needs.

Priority to franchising and management contracts

Between now and 2015, a full

80% of Accor’s expansion will

be through franchising and

management contracts.

These operating structures are

referred to as “asset light,”

meaning that they are non-

capital intensive. Growth will

be driven mainly by franchising

in Europe and the United States

and by management contracts

in emerging markets. In the

luxury and upscale segment,

the Group is expanding mainly

through management contracts

in all regions.

A susaied ace of developenIn 2010, Accor continued to expand rapidly across all brands and all regions. Key fact: 78% of rooms that opened during the year are operated through franchise agreements or management contracts.

Hotel chain penetration rate, worldwide*

25%

70%

17% 17%11%

■ EUROPE

■ UNITED STATES

■ CHINA

■ AFRICA & MIDDLE EAST

■ LATIN AMERICA

* Figures as of May 19, 2010.

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Openings: 2010 was a good year

49%IN FRANCHISING

29%UNDER MANAGEMENT CONTRACTS

44%IN THE ECONOMY SEGMENT

25,000ROOMS OPENED, OF WHICH:

214NEW HOTELS

At year-end 2010, Accor had 4,229 hotels and 507,306 rooms.

Of the 214 hotels (representing 25,000 new rooms) that opened

during the year, 28% are in Asia and 33% are in Europe.

In the latter region, which is the world’s biggest hotel market

and still enjoys strong growth potential, Accor strengthened its

top-ranked position and lengthened its lead over the competition

by adding 92 hotels in 2010.

Etap Hotel Wien Messe – Vienna – Austria

Sofitel So Mauritius – Mauritius

Novotel Barcelona City – Barcelona – Spain

ibis Clermont-Ferrand Sud – France

Mercure Bratislava Centrum –Slovakia

all seasons Venezia Marghera – Venice – Italy

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2010 2015 (forecast)

Hotel portfolio by operating structure(% of total rooms)

17%

Asset Light 64%

Asset Light 80%

19%

18%

22%

24% ■ OWNED

■ FIXEDRENT LEASE

■ VARIABLERENT LEASE

■ MANAGEMENT CONTRACT

■ FRANCHISED

Development through asset-light

structures will focus mainly on:

› the budget (23%), economy

(36%) and midscale (24%)

segments;

› Europe (40%) and Asia-Pacific

(29%), two high-potential

markets that

Accor knows well

and in which

it can leverage

solid assets. In

Europe, the Group

wants to double

the franchised

hotel network

by 2015. In 2010,

more than 60

new franchised

hotels were

added to the

regional portfolio. Once the

program is fully ramped up, two

new franchised hotels will join

the network a week on average.

To accelerate the pace of

expansion, Accor is targeting

small national hotel groups.

A franchise partnership signed

with Focus Hotels in the United

Kingdom has led to the

integration of 10 new hotels that

will join the Mercure network,

which currently has

45 hotels in the country.

Accor is also very active in the

United States where it is relying

in particular on franchising

to fuel its expansion. In 2010,

a total of 58 franchised hotels

began operating under

the Motel 6 banner.

Assertive growth in emerging markets

In response to strong demand in

emerging markets linked to the

expanding middle class, Accor

has accelerated its development

with the goal of rapidly

establishing strong positions in

these regions, which have

enormous growth potential. The

Group will achieve this goal

through its economy portfolio –

ibis and Etap Hotel in particular

– and a solid presence in the

luxury segment with Sofitel. This

strategy will include opening

hotels in partnership with

powerful local players, as is the

case in India, and through

management contracts.

In 2010:

›  1,479 of the Group’s

4,229 hotels were operated

through franchising;

›  more than 49% of the hotels

that opened during the year

are franchised.

Outlook for 2015:

›  200,000 rooms to be operated

through franchise agreements

out of a total of 700,000 rooms.

9%

14%

19%

30%

28%

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ibis Shanghai Lianyang – China

Novotel Yekaterinburg Centre – Ekaterinbourg – Russia

Franchising could then be

envisioned in a second phase

of development. Overall, 30%

of room openings are scheduled

for Brazil, China, India and Russia.

› In Brazil, a key market with

a population of 200 million,

Accor is the leader with

143 hotels across all segments,

from budget to luxury. In this

country, which will host both

the FIFA World Cup in 2014

(in 12 cities) and the Olympic

Games in 2016, the Group

is planning to rapidly expand

its network through owned

and leased hotels as well as

management contracts and

franchise agreements. The goal

is to have 225 hotels in the

country by 2015, led by the ibis

and Hotel Formule 1 brands.

At year-end 2010, a total of

74 Accor hotels were in the

pipeline in Brazil with 12 others

in neighboring countries.

› In China, Accor is the second

largest international hotel group

with 100 hotels and 26,500 rooms

in 42 cities. It’s the Group’s

fourth-largest market in number

of rooms and the fastest growing

in the Asia-Pacific region. Accor

opened 18 hotels representing

4,000 rooms in China during the

year, mainly under management

contracts. By 2015, the network

will double to 200 hotels across

all segments. China is an

important market for Sofitel,

where the brand has 23 hotels,

and Pullman, which has

18 hotels in the pipeline.

› In India, the Group has set its

sights on becoming the leader in

this very high potential market.

In July 2010, Accor and its partner

Interglobe created a new

investment fund with GIC Real

Estate Pte. Ltd., the real estate arm

of the Government of Singapore

Investment Corporation, and

Host Hotels and Resorts, a

US-based real estate investment

trust. The fund’s first investment

involves seven hotels currently

being built that will operate

under the Pullman, Novotel

and ibis brands. At year-end

2010, Accor had 55 hotels

in the pipeline, most of them

in construction.

› In Russia, Accor already has

eight hotels totaling 1,715 rooms.

The Group stepped up its

development in 2010, opening

four hotels: three under the ibis

brand and one Novotel. Thirteen

other hotels are scheduled to

open by 2013, mainly Novotel

and ibis units.

2010: ’

More than 70 new development contracts were signed in Asia-Pacific.

With 16,000 additional rooms, Accor has strengthened its position as

the region’s leading hotel operator. Its goal now is to further develop its

presence in Asia, especially in China and India, and to extend its network

in Indonesia, Thailand and Vietnam, where it already holds leadership

positions. In China, the year’s openings included the Sofitel Dongguan

Humen Oriental, the ibis Shanghai Lianyang and the Pullman ZhanGjiajie

in Hunan Province.

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Stonge-than-exected rowhAfter a challenging year in 2009, Accor took full advantage of the economic recovery in 2010 by leveraging its agility and the validity of its business model. Key facts: included a 7.1%-increase in revenue and a 1.9-point improvement in EBITDAR margin.

A rapid return to growth

The year was shaped by a robust

upturn in demand in most

countries, followed by a gradual

stabilization in average daily

rates. Accor rebounded especially

well and faster than expected

thanks to its:

› pertinent business

model, extensive

brand portfolio and

asset management

strategy that makes

it easier to adjust

to the ups and

downs of the

economic cycle;

› highly-responsive

marketing approach, which

is underpinned by powerful

distribution channels, the

vitality and expertise of

the Group’s teams and its

many sales campaigns;

› balanced geographical

presence, with leadership

positions in either the number

of hotels or the number

of rooms on four continents;

› determined focus on

controlling investments and

expenses through highly-

ambitious cost-reduction plans.

With the recovery intensifying

in second-half 2010, Accor ended

the year strongly. Revenue was

up 7.1% at comparable scope

of consolidation and constant

exchange rates to €5,948 million.

An indicator of the Group’s solid

operating performance and

profitability, EBITDAR margin

rose by 1.9 points, also like-for-

like, to 30.5% of revenue. This

robust performance was due in

part to higher occupancy rates

and to cost-reduction plans that

exceeded their objectives. Now

that it consistently generates

positive cash flow, the Group is

refocused on its core business

and is backed by a very healthy

balance sheet, the Group is

poised for accelerated growth.

Objectives met or exceeded

To counter the impact of the

crisis and prepare for a post-

recessionary economy, Accor set

ambitious objectives and

benefited fully from the

improved business environment

through its efforts to:

› lower costs. Headquarter

costs were reduced by

€132 million in two years

(versus a target of €125 million),

while owned and leased hotel

costs were reduced by €165

million in 2009 (versus a target

of €150 million);

› control maintenance and

renovation expenditure;

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Pullman Dubai Mall of Emirates – United Arab Emirates all seasons Venezia Marghera – Venice – Italy

Novotel Bangka – Pangkalpinang – Indonesia

› dispose of assets. Accor has

already carried out 30% of its

2010-2013 divestment program.

Asset sales in 2010 led to a

€630 million reduction in debt.

As a result, Accor is in an

exceptionally strong financial

position that provides it with

considerable financial flexibility;

› develop through franchising

and management contracts.

During the year, 25,000 rooms

were added to the network,

of which 78% through these

two types of agreement.

All hotel segments contributed to growth

While the economic upswing was

not the same everywhere, it

affected all segments. This was

true for the upscale and

midscale, which is inherently a

very cyclical segment. Sofitel and

Pullman posted excellent results

thanks to the rebound in

corporate activity and business

travel. Segment revenue was up

9% led by the combined impact

of higher occupancy and average

room rates. Economy hotels

outside the United States saw a

solid 6.8%-increase in revenue,

led by improved occupancy rates.

ibis, the segment’s main driver of

higher margins, turned in a very

good performance.

Growth that varied from one region to another

Thanks to its widespread

geographic presence, Accor

was able to benefit from the

economic recovery. While

business in emerging markets

and Latin America remained

dynamic in 2010, the year saw a

sudden upswing in Europe –

where the Group has extensive

operations – led by the United

Kingdom, Germany and France. In

the United States, where the

market remained challenging,

results improved in the second

half, with higher occupancy rates

for Motel 6 and Studio 6.

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Whether long-established or recently launched,

standardized or non-standardized, each of the Group’s

brands has its own DNA that makes all the difference.

At the forefront of Accor’s - , the brand has its own value based on its image and

roots, its ability to inspire confidence and create

differentiation, and the affective bonds forged with

each customer. Here’s a review of the brands in 2010.

Poweful rands wih enomous vitlity

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Customer impact on the hotel offering

Changing customer behavior has

a direct impact on the lodging

solutions and related services

offered by today’s hotels. In the

1950s and 1960s, the offer was

shaped solely by the people that

produced it – mainly

independent hotel

operators. Now that

the market is

structured around

major players like

Accor, marketing and

advertising have an

important impact on

customer decisions.

While brands remain

at the heart of the system and

play an active role in creating

preference, it’s customers who

are helping to reshape today’s

hotel industry. Changing

lifestyles and consumer behavior,

as well as the desire for original

experiences, are also making a

major contribution to these

developments.

Adaptable concepts

Society is being transformed

by a number of deep-seated

trends. These include the

growing importance of ethical

consumerism, the desire for

well-being and independence,

a return to simple values,

sharing, the changing role

of women, and the increasing

use of digital technology in

daily life. These trends have led

the brands to rethink their

style and appearance, their

communication strategies

and their product and service

portfolios. Three simultaneous

phenomena are apparent

in today’s hotel industry:

1. hotel groups are reworking

their concepts and service

packages to reflect consumer

trends. This means, for example,

providing customers with fitness

rooms open around the clock

where then can relax or work

out, with takeaway food services

so they can get something to eat

anytime and anywhere, or with

comfortable Web corners open

day and night that enable them

to stay in touch with family,

friends and business associates,

free of charge. This reworking

also involves redesigning hotel

areas with a focus, for example,

on modular solutions;

2. hotel groups are increasingly

segmenting their offer to take

into account a wide range of

customer needs. The diversity

of global markets and customer

expectations in today’s world

are requiring them to broaden

their product and service

portfolios. Everyone must be

able to find the right place and

the right formula depending

on their needs and budget;

3. the industry is seeing the

emergence of innovative hotel

concepts that break with

tradition as well as boldly

aggressive new advertising

campaigns. One economy

segment chain claims to offer

“luxury for everyone” with stylish

hotels and free services that

Chnging emandThe hotel market is impacted by constant change. As a result, hotel concepts and service offerings must be renewed at a faster pace. Today, customers and their lifestyles are the main drivers of recent market developments, which is why it’s so important to understand customers better and constantly anticipate their needs.

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include WiFi Internet access and

video on demand. This is also

the case at Accor with Suite

Novotel – the new Novotel

label – which invites guests

to experience a casual new way

of hotel living, in modular suites

for medium-length stays and

with innovative services,

including the loan of a Smart

car for getting around town.

Accor’s solutions

Backed by a comprehensive

portfolio of brands that is firmly

aligned with its objectives,

Accor invests considerably and

regularly to adjust its product

and service offering to changing

expectations and lifestyles.

The goal is to more fully satisfy

customer needs and make the

brands more attractive, each in

its respective market segment.

Greater segmentation

to meet a full range

of expectations

Accor is currently the only hotel

group with operations in all

five market segments. With this

greater segmentation, the Group

can respond to a range of

customer profiles, an array

of regional markets and the

requirements of owners that

often have hotels operated under

more than one brand and in

several segments. Accor can

leverage this core strength

to assert the power and appeal

of its brands and win new

markets and attract new

customers.

Powerful, differentiated

brands

› Strengthening each brand’s

DNA is the path chosen by

Accor to set itself apart from

the competition and create a

relationship with customers that

goes beyond price to include

preference, loyalty and affection.

Teams are involved in deploying

brand projects – Novotel

with Next Up, Motel 6 with

Phoenix and Sofitel with

Be Magnifique. These initiatives

have a positive impact on all

aspects of the brand, including

its employee relations and

employer image, services

offering, style and appearance,

environmental commitment

and customer promise.

Motel 6 Northlake – Texas – United States

Suite Novotel München Parkstadt Schwabing

Munich – Germany

Sofitel Guangzhou Sunrich– China

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› Building a powerful brand also

means forging a partnership

with customers. This involves an

ongoing dialogue to create a

special relationship based on

reciprocity, trust and sharing.

Brands grow and improve by

listening to customers, studying

their reactions, integrating their

concerns and soliciting their

involvement. In this way, ibis has

established itself in markets

around the world with a

straightforward, high-quality

service offering and a peerless

business model. AlClub, Accor’s

multi-brand loyalty program, is

an invaluable tool for building a

long-term relationship with

customers. It helps to understand

their behavior and attitudes so

that they can be provided with

personalized solutions.

Priority to innovation

Understanding customers is a

major challenge to which Accor

is responding with the goal of

creating differentiation and

delivering services adapted to

each profile. This approach

provides many opportunities for

innovation, for example, in the

relationship between public and

private hotel areas, the choice of

construction and decoration

materials, the different types of

food and dining services offered,

the tools deployed to gauge

customer satisfaction and the

use of new technologies. In a

market in which each segment is

increasingly competitive, the

brands are constantly innovating

and reinventing themselves. For

example, they are developing

and testing ways of entertaining

business customers who often

travel alone. Sofitel has

introduced a new service that

allows guests to read their email

on the TV and access video on

demand, Etap Hotel is testing a

new customized pay TV service,

and Novotel, whose Web Corner

on a Mac offering has been a big

success, is developing a selection

of games on the X Box 360

Kinect that guests can play, for

example, as a way of relaxing

between meetings. For today’s

increasingly on-the-go customers,

booking tools have been

improved, with the rollout of an

accorhotels.com application

Family stays with the Family & Novotel offerMercure – AlClub counter

Novotel – Web Corner on a Mac

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for iPhone users. The Group has

also created a Market Research

& Consumer Information

Department to support brand

development by deciphering

the behavior and expectations

of customers, both current

and future, in order to provide

them with constantly enhanced

products and services.

New developments in 2010

As in years past, the brands

reasserted their personalities,

expanded their offering, deployed

new concepts and extended their

networks in 2010.

New improved products

and services

In 2010, the brands identified

and analyzed new trends,

reviewing and adapting their

current offerings to more

effectively respond to emerging

expectations and create

differentiation. These included:

› recently launched brands like

all seasons, with its flexible

concept that appeals to

independent hotel operators and

its unique “all inclusive” services

package. Another example

is Pullman, which is committed

to becoming the leader in the

upscale corporate meeting and

convention segment with a new

type of business hotel and which

achieves differentiation through

high valued added partnerships

such as its recent agreement

with Nespresso;

› brands that have successfully

repositioned themselves.

Following its transformation,

Sofitel is today recognized as a

leading luxury hotel brand. Its

DNA is based on three core

values: a passion for excellence,

the essence of pleasure and a

spirit of openness. As proof of its

successful repositioning, Sofitel

received more than 100 awards

in 2010 and its customer

satisfaction index rose by 8%,

compared with 2009;

› long-established brands

that have renewed their offering

and thoroughly renovated

their product. The past year saw

major renovations at ibis, which

stepped up the deployment

of its new-generation hotel

featuring revamped rooms and

common areas and launched its

Web Corner service, Etap Hotel

with its cocoon and design room,

Mercure with the development

of an innovative concept for its

Dédicaces room and Novotel

with its new room.

Pullman – Nespresso partnershipibis launches its Web Corner

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Campaigns that make

an impact

In addition to deploying major

regional promotions, the brands

were also very active on the

communication front. To increase

their visibility and build

awareness, they launched

innovative campaigns, such as:

› hotelF1 with a hard-hitting

campaign asserting that “On a

trouvé moins cher que nous.

C’est nous.”(1);

› Etap Hotel, which invested

heavily in media advertising

in France and Germany while

renewing its partnership

with the Tour de France;

› all seasons, with the

“all seasons Tour”. The promotion

featured a truck in which a hotel

room had been installed that

traveled around Europe to meet

with potential franchisees and

customers;

› ibis, with its lively, 360-degree

TENor15 summer promotional

campaign for young people that

was featured on Youtube and

Facebook;

› Novotel, which launched

its Family & Novotel campaign

in seven countries;

› Mercure, with its “Let Good

Things Happen” advertising

campaign, which demonstrated,

simply and positively, that

the brand provides customers

around the world with

memorable moments;

› MGallery, which appointed

actress Kristin Scott Thomas as

ambassador of its hotel collection.

Deepening the networks

The brands diligently pursued

their development in a year

shaped by a difficult economic

recovery. Today, Accor is top-

ranked in either number of

rooms or number of hotels in

Europe, Africa, the Middle East,

Latin America and Asia-Pacific.

Among the year’s more high-

profile openings were:

ibis, which added 60 hotels

totaling 10,000 rooms to the

network and in early 2011

celebrated the opening of

its 900th hotel worldwide;

all seasons, which opened its

100th hotel in 2010, only three

year’s after the brand’s launch;

Novotel, with a network that

now includes 400 hotels. The

year’s more prominent openings

included hotels in Rio de Janeiro,

Barcelona and Munich;

Mercure, which opened

34 hotels during the year,

increasing the network to

674 units worldwide.

(1) Less expensive than us? That’s us.

(1)

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An unrivaled portfolio of brands

Accor is the only hotel group present in the five market segments with attractive,

strategically aligned brands: Sofitel in luxury, Pullman and MGallery in upscale,

Novotel, Suite Novotel and Mercure in midscale, ibis and all seasons in economy,

and Etap Hotel, hotelF1 and Motel 6 in budget. The portfolio also offers a range

of lodging solutions with both standardized and non-standardized chains as well

as long-stay facilities.

Th brad potfoio

Non-standardized Extended Stay

IN THE US

Standardized

IN EUROPE

OUTSIDE EUROPE IN FRANCE

IN CANADA

Related Skills

Luxury

Upscale

Midscale

Economy

Budget

Figures in the following pages are as of December 31, 2010.

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SofitelSofitel creates luxury hotels

that blend French elegance,

savoir-faire and sophisticated

hospitality with the very best

of each country’s local

culture. In the world’s most

desirable destinations and

capital cities, Sofitel offers

guests seeking quality,

sophistication and excellence

an unforgettable immersion

in the French art de vivre.

38 countries

121 hotels

29,987 rooms

5 openings

61% business customers

39% leisure customers

2010 The year confirmed Sofitel’s

repositioning in the luxury segment,

initiated in 2007, and produced

results worthy of the efforts made.

Customer satisfaction increased

by 8% compared with 2009 and

the brand received approximately

100 prestigious awards from around

the world. In 2010, Sofitel opened

five outstanding hotels, drawing on

the creative skills of some of the

world’s leading names in architecture

and interior design. These included

Jean Nouvel for the Sofitel Vienna

Stephansdom in Austria and

Lek Bunnag and Kenzo Takada

for the Sofitel So Mauritius. The

brand also renovated historic

establishments like the Sofitel Paris

Le Faubourg with Didier Gomez and

Sofitel The Grand Amsterdam with

Sybille de Margerie. Well positioned,

widely recognized and endowed

with powerful DNA, Sofitel is now

embarking on a phase of dynamic

growth to develop its network

and increase brand value, in

particular through an ambitious

partnership strategy.Sofitel Paris Le Faubourg – Couture Apartment

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-…Exhibition: Fashion Stills

Sofitel celebrated haute couture, hosting a photo exhibition entitled Fashion Stills

that created a link between the vibrant worlds of fashion, photography and luxury

hotels. Throughout the year, ten Sofitels in North America and Europe – including

New York, Los Angeles, Washington, London, Rome and Munich – displayed works

by four well-known fashion photographers, including Jean-Marie Périer

and Derek Hudson. This homage to the world of fashion also provided a behind-

the-scenes look at leading fashion houses like Dior, Saint Laurent and Chanel.

In this way, the hotels that hosted the exhibition served as ambassadors

of French elegance. The adventure is continuing in 2011 as

the exhibition travels to the Middle East and Australia.

sofitel.com

Sofitel Phnom Penh Phokeethra – Cambodia

Sofitel The Grand Amsterdam – Netherlands

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-…Sofitel Vienna Stephansdom

Located in the heart of the Austrian capital, the Sofitel

Vienna Stephansdom rises like a sculpture in which

glass and steel combine to create a festival of light

and shimmering reflection. The work of internationally

famous French architect Jean Nouvel, this unique

18-story building features 182 rooms designed

to inspire dialogue and interaction with the hotel’s

surroundings. “Throughout the hotel, visitors can see,

admire, feel and breathe the city,” says the artist.

This impressive “urban monument that is now

an integral part of the cityscape” was created

by the architect – assisted by a host

of artists and designers – as

a “testimonial to Vienna’s glorious

cultural heritage”.

sofitel.com

Sofitel

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MGalleryLaunched in 2008, MGallery is a collection of upscale

hotels, each with their own character and identity,

derived from their distinctive design, remarkable

history or outstanding location. In downtown or prime

tourist locations, their inimitable personality offers a

memorable experience for travelers looking for hotels

with that extra “little touch of soul”.

18 countries

33 hotels

3,632 rooms

5 openings

100 hotels by 2015

2010 The label reaffirmed its positioning

by choosing as its charismatic

ambassador Kristin Scott Thomas, an

actress with an indecipherable aura

whose films are intensely rich and

varied – much like the MGallery

collection. Five new jewels were added

to that collection during the year: the

Golf du Médoc Hôtel & Spa near

Bordeaux, the Royal Émeraude Dinard,

the Cour du Corbeau in Strasbourg in

France, the Royal Beach Seminyak Bali

in Indonesia and the Hotel Savigny

Frankfurt City in Germany. MGallery

also introduced a special offer called

the Memorable Moment, which allows

guests to participate in a special tour

or activity designed to provide them

with a unique, unforgettable experience.

MGallery now plans to expand at a

faster pace. The goal is to have a network

comprising around 100 hotels by 2015.

-…On October 14, the entire MGallery family

gathered at the Cité de l’architecture et du

patrimoine in Paris to present two powerful

recent developments: the label’s charming ambassador

– actress Kristin Scott Thomas – and the publication of

the first printed guide, available in French, English and

Italian versions directly in the hotels. The guide contains

selections from the ambassador’s travel log, in which

she recalls her favorite moments and

experiences in MGallery hotels.

The event generated considerable

media coverage for the label.

mgallery.com

Hôtel Le Royal – Lyon – France

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PullmanPullman offers upscale contemporary hotels designed to meet the emerging needs

of travelers and event organizers. Each hotel is a unique, comfortable, hospitable living

environment whose lobby, restaurants and bars encourage meetings, discussions and

friendly conversation. In addition, a broad range of services, innovative technologies

and personalized meeting possibilities position Pullman as an international benchmark.

16 countries

49 hotels

13,924 rooms

16 hotels scheduled to open in 2011

Pullman Oceanview Sanya Bay Resort & Spa – China

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three hotels, including the

Pullman Dubai Mall of Emirates

in United Arab Emirates, and

expanded considerably in China.

In early 2011, the brand took over

the Méridien Montparnasse in the

heart of Paris, thereby integrating

into the network one of Europe’s

largest conference hotels with

953 rooms and a conference

center that can host up to

2,000 people. Pullman is

committed to becoming the

benchmark in the convention

and meeting segment and to

pursuing its expansion with the

goal of building a network of

150 hotels worldwide by 2015.

-…Today, the Pullman brand also encompasses resort hotels that combine traditional

resort services with the advanced connectivity of leading business hotels.

One example is the Pullman Oceanview Sanya Bay Resort & Spa in Hainan, China.

With tropical forest, its private beach, outdoor swimming pool and ocean-view

rooms decorated in a traditionally Asian style, the hotel offers guests

a unique experience and the opportunity to take part in a wide

array of sports activities.

pullmanhotels.com

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Novotel

58 countries

395 hotels

72,805 rooms

14 openings

Novotel helps both business and leisure travellers relax and recharge on five continents.

Innovative and guest-friendly, its hotels offer consistently high quality accommodations

with just the right blend of freedom and efficiency customers expect. Its spacious, stylish

rooms, healthy food services available 24/7 and wide range of service solutions make

it the natural choice for business meetings, with Meeting@Novotel, or for family outings,

with Family & Novotel. Deeply committed to sustainable development, Novotel plans

to have its entire network EarthCheck certified by the end of 2012.

2010 The year was shaped by the

launch of the Novotel room

and the successful integration

of Suitehotel, now relaunched

under the Suite Novotel label.

The brand also continued to

expand its network, adding

14 new hotels in, for example,

Barcelona, Rio de Janeiro and

Munich Airport. Impressive

renovations were also carried

out, among them the Novotel

Amsterdam City and Novotel

London Tower Bridge.

The brand will now step up

efforts to modernize and

develop the network, opening

around 100 hotels by 2015,

mainly in city centers and

leading destinations.

New Novotel room launched in 2010

39

61% business customers

39% leisure customers

More than 21% of sales via novotel.com

6611%% bb ii

Suite NovotelIntroduced in 2010, Suite Novotel is a Novotel

label that invites guests to experience a new way

of hotel living. Targeting medium-stay customers,

these innovative, offbeat hotels address emerging

usage patterns with effective, yet highly-original

solutions. They offer modular suites, a reworked

interface between public and private spaces

and services that make a real difference, like

the Suite Box (for Internet, local calls and free,

unlimited video on demand), free massages

on Thursday nights and the loan of a Smart car

for stays of more than four days.

2010 Building on Novotel’s image, the Suite Novotel

network turned in a strong performance in 2010,

with a substantial increase in online sales that

added €1.1 million to revenue and a 77%-rise

in the number of children staying with the chain.

Two new Suite Novotels opened, in Luxembourg

and Perpignan, France. The brand’s goal is

to double the size of the network by 2015.

-…The past year also saw the introduction of the

new Suite Novotel suite. Square, rectangular,

or elongated, the suite is flexible. And because

it is compatible with new or existing buildings

of all shapes (including former office buildings),

it can help speed the brand’s expansion in

downtown locations. Featuring stylish, innovative

decoration and layout, the suite also includes

an equipped kitchenette, a Suite Box and

eco-friendly bathroom products.

suitenovotel.com

7 countries  28 hotels

-…Gradually being deployed in all newly built

and renovated hotels, the spacious new

Novotel room features stylish furnishings, innovative

materials and lighting systems, comfortable beds,

environmentally-friendly fixtures and multifunctional

equipment, such as a desk that can be transformed

into a coffee table. Modular and equipped with a host

of amenities and advanced technologies, the room puts

the focus on customer well-being. It can be adapted

to all lifestyles and situations – for work

or relaxation and for people traveling

alone or with the family.

novotel.com

Suite Novotel Luxembourg

Novotel München City – Munich – Germany

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MercureMercure offers business and leisure travellers a compelling alternative to chain

or independent hotels. It is the only midscale hospitality brand to combine the power

of an international network of more than 700 hotels, all meeting the same consistent

quality standards, and the authentic experience of individually unique hotels rooted

in their local community and run by owners passionate about their business.

2010 The year was intense, with the opening of 30 hotels

on five continents and notably the first hotel in

Slovakia, in Bratislava. Other major events included

the launch of a new international advertising

campaign and the development of an innovative

room renovation concept called Dédicaces, whose

deployment began in France.

The brand has set ambitious objectives. The goal

is to reach the symbolic threshold of 1,000 hotels

by 2015 while reaffirming its role as a key player

in the hospitality industry.Mercure Paris Voltaire –France

Mercure Versailles Château – France

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49 countries

674 hotels

83,428 rooms

30 openings

-…During the year, Mercure launched its new “Let Good

Things Happen” advertising campaign. Its purpose

is to showcase the power of the network as well as its

warm, human side. Involving print media, posters and

the Web, the campaign was launched in late 2010 with

posters in train stations and airports throughout

France, then extended to other European

countries and around the world.

mercure.com

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ibisThe global benchmark in economy lodging, ibis

is totally dedicated to taking care of its guests,

everywhere around the world. That’s why each of

the 900 Ibis hotels welcomes guests in the brand’s

inimitable style, shaped by the spirit of simplicity,

accessibility and hospitality. ibis also offers the

assurance of modern accommodations and a wide

range of services, with a comfortable room, 24/7

snacks and drinks, breakfast served from 4:00 a.m.

to noon, a variety of dining options and a Web Corner

– all delivering the finest quality and service for

the money. The brand has also demonstrated its

commitment to quality and the environment by earning

worldwide ISO 9001 and ISO 14001 accreditation.

2010 The ibis network expanded considerably

during the year, adding 44 hotels and

launching operations in new Latin

American countries. In early 2011, the

brand also opened its 900th hotel,

in Tangiers, Morocco. The year also saw

the rollout of the TENor15 summer

promotional campaign, which was named

the Best Advertising Campaign at the

Worldwide Hospitality Awards for its

originality and 360-degree approach.

Reworked in 2010, the ibishotel.com

website attracted more than 30 million

visitors. Lastly, the brand continued

to modernize its network with the

deployment of a new-generation hotel.

To strengthen its leadership, ibis plans

to open 70 hotels by 2015, the equivalent

of 10,000 rooms a year, focusing its

development on strategic regions like

Asia and Latin America.

ibis celebrated its 900th hotel in Tangiers – Morocco

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-…The ibis Web Corner is one of the chain’s

innovative new services. In an attractive, dedicated area of

the hotel, guests can surf the Web 24/7 for free, converse

with others via a webcam, send ibis e.cards or check

boarding times for their next flights.

ibishotel.com

48 countries

900 hotels

107,735 rooms

10,000 new rooms by 2015

ibis Rungis – France

ibis Aguascalientes Norte – Mexico

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2010 The brand opened its 100th hotel – in Berlin – and extended its operations

to new countries like Belgium (Antwerp), Spain (Madrid) and Italy (Venice).

Its website now exists in Italian and in 2011 will also be available in Spanish and

Dutch. Building on its success, all seasons plans to increase its visibility and step

up its pace of development so that the network comprises 350 hotels in 2015.

Created in 2007, all seasons is an economy brand being

developed through franchising in mature markets. It serves

a full range of guests, from business to leisure and from

individuals to families. Its “all-inclusive” package includes

the room, broadband Internet access, buffet breakfast and

a host of extra amenities. The network’s mid-sized,

non-standardized hotels feature an innovative, colorful design

and contemporary styling, with locations in city-centers and

business districts in Europe and Asia-Pacific.

all seasons

all seasons Amiens Cathédrale – France

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been installed toured Europe, visiting nine major cities

and six countries. The goal was to present this highly-

original product to franchisees and also generate media

coverage. Called the all seasons Tour, the event was a

major success both on the ground and in the media.

More than 200 franchisees attended and 30,000 people

took part in a contest in which the winner’s

prize was a one-night stay in the truck.

The Tour generated 184 media mentions

and 280,000 hits to the dedicated

website and was also

relayed in more than 1,000 blogs.

all-seasons-hotels.com

10 countries

115 hotels

10,267 rooms

35 openings

95% franchised hotels

all seasons Venezia Marghera – Venice – Italy

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2010 The brand produced strong results,

taking full advantage of the economic

recovery and the success of its stylish new

cocoon and design room. Deployed in one

third of the network, the room has proven

very popular with customers. Etap hotel

launched advertising campaigns in France

and Germany and introduced its 30-day

early booking offer throughout Europe.

Online sales were up 25% for the year and

9 million Internet users visited the

etaphotel.com website. By 2015, Etap hotel

will have deployed the new room across the

entire network, which by then will comprise

some 600 hotels around the world.

Etap Hotel Hotel Formule 1Etap Hotel offers highly-affordable, comfortable

accommodations with shower and selected services, such

as a buffet breakfast, Wi-Fi access, parking and snack vending

machines. The brand is rated among the most innovative

in its category, thanks in particular to its new stylish, restful

cocoon and design room concept. The European leader

in budget lodging, Etap Hotel is also a major player in the

southern hemisphere with the Hotel Formule 1 brand.

Cocoon and design room launched in 2010

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20 openings

More than 9 million visitors to etaphotel.com

15 countries

480 hotels

42,892 rooms

-…The year saw a large number of openings, with well-located hotels in major

European cities such as Berlin, Brussels, Geneva and Vienna, where a 250-room

hotel with the new room came on stream. Today, Etap Hotel is the only budget

brand with operations in the main cities of ten European countries.

etaphotel.com

hotelformule1.com

Europe Outside Europe

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hotelF1

252 hotels

18,827 rooms

When it was created in 1984, Formule1 radically transformed

the hotel industry, making lodging widely affordable with

comfortable rooms for one to three people at less than

100 francs (around 15 euros). In 2007, following a top-to-

bottom renovation of its hotels, Formule1 changed its name

to hotelF1 in France. More dynamic than ever, the brand

now offers the attractively designed Duo and Trio rooms,

along with all-new reception and breakfast areas.

2010 The year saw the completion of the

renovation program and the launch

of the new hotelF1.com website.

With the adoption of the new worldwide

hotel ranking system, hotelF1 acquired

its first star in France.

Its goal is to become the benchmark

brand in the budget segment in terms

of price and customer experience.

-…In 2010, hotelF1 once again became the lowest-price

chain hotel brand. A new offer was introduced, featuring

a 10%-discount for rooms booked 30 days in advance.

The brand also launched an advertising campaign

asserting that “On a trouvé moins cher que nous.

C’est nous.”*

hotelF1.com

hotelF1 Poitiers Sud – France

hotelF1 Evry A6 – France

* Less expensive than us? That’s us.

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Motel 61,028 hotels

100,763 rooms

55 openings

70% leisure customers

Studio 6

62 hotels 6,883 rooms

65% business customers and 15% long-stay customers

North America’s leading chain of economy motels, Motel 6

is known for its comfortable, hospitable rooms at the lowest

price in the market.

2010 Motel 6 has become

undisputed economy segment

leader in the United States

and Canada, offering the best

value for money. During the

year, the brand increased

both its market share and its

occupancy rate. Motel 6 also

become the first US economy

hotel chain to receive

Leadership in Energy and

Environmental Design (LEED)

certification. The network

pursued its expansion through

franchising at a faster pace,

with 58 new franchised

establishments in 2010.

Its goal is to be recognized

as a benchmark in equitable

franchising in order to more

effectively serve the brand

and satisfy customers.

Studio 6 is positioned as the right choice in the North American

long-stay budget segment. In 2010, Studio 6 opened three new

units and saw a considerable increase in the number of long stays.

-…Every year, Motel 6 and Studio 6 employees join forces

and pool their energy for National Sales Fun Day. In 2010,

the event generated more than $2.5 million in revenue

for the two brands.

motel6.com staystudio6.com

49Studio 6 Mc Allen – Texas – United States

“Phœnix” room

50

2010 The brand asserted its new identity and refocused

on its core business of seawater therapy and spa

services. It also pursued its expansion with two new

destinations in Italy and Bahrain (open in 2011).

Extensive renovation programs were launched at

two high-profile facilities in France’s Brittany region

– Thalassa Quiberon and Thalassa Dinard.

thalassa.com

Adagio offers a range of apartments, from studio to two-bedroom, for

travelers who want to live “just like at home” and at their own pace when

they’re in a new city. Created in partnership with the Pierre & Vacances

Center Parcs Group, Adagio City Aparthotel provides comfortable

accommodations for stays from four nights to several months in the heart

of Europe’s leading cities. The roomy, ready-to-live-in apartments come

with an array of optional services to make life easier and declining rates

for longer stays.

Adagio City Aparthotel

60% business customers

80% of hotel nights during stays of over 4 nights

Thalassa sea & spaIn 2010, Accor Thalassa became Thalassa sea & spa,

the Accor wellness brand. Thalassa sea & spa is

the world leader in seawater therapy with seaside

destinations in France, Italy and Morocco. The brand

offers guests all the lasting benefits of seawater

therapy as well as the pleasures of spa services

in an atmosphere conducive to reverie and

relaxation. The facilities are staffed by professional

masseurs, physical therapists, dieticians,

hydrotherapists, estheticians and fitness instructors

who plan and prepare stays blending care, physical

activity, balanced nutrition and high-quality lodging,

so that departing guests feel healthy and revitalized.

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Adagio City Aparthotel Wien Zentrum – Vienna – Austria

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Lenôtre

9 employees named Meilleurs Ouvriers de France

For more than 50 years, Lenôtre has been a benchmark and the ambassador

of French gourmet dining around the world. Its operations include reception

organization, catering, events creation, training, retail shops and fine dining.

With nine chefs named Meilleurs Ouvriers de France (a distinction awarded to

outstanding craftsmen) and one wine steward elected World’s Best Sommelier,

Lenôtre is the guardian of an exceptional culinary heritage and creator

of new trends. It also manages prestige restaurants like the Pré Catelan and

the Pavillon Élysée Lenôtre in Paris.

2010 During the year, Lenôtre renovated its

cooking school, which celebrated its

40th anniversary. Every year, the school

welcomes and shares its culinary expertise

with 3,000 students from more than

100 countries. In 2010, Lenôtre received

the Entreprise du Patrimoine Vivant label

awarded by the French government to

companies with outstanding craft skills.

lenotre.fr

2010 During the year, three new

Aparthotels opened in France

– in Grenoble, Toulouse and

Saint-Étienne. In the years

ahead, the brand will pursue

its expansion in Europe with

the goal of building a network

of 90 Aparthotels by 2015.

adagio-city.com

3 countries

25 hotels

2,627 rooms

14 seawater therapy destinations

Novotel Thalassa Oléron Saint-Trojan Saint-Trojan-les-Bains

52

The world’s No. 1 hotel operator, Accor has been developing

a high-value for

nearly 45 years. Extending from property management to customer

loyalty, this portfolio covers all aspects of the hotel business.

Backed by the Group’s powerful network and operating excellence,

this experience in hotel engineering is a determining factor

for its investor partners and franchisees.

Hoel exertise that maes ll the diffeece

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A stong sles ad markeing dynaicIn a highly-competitive market, the diversity, strategic alignment

and strength of Accor’s various distribution channels represent

a core benefit. Key fact: the growing number of online sales and

a deeper understanding of our customers and their expectations.

Hotel PMS* (direct booking system)

Direct Web

Call centers and e-mail/fax bookings

Indirect Web

Distributor partners and travel agencies

* Property Management System

The power and performance of TARS

The Travel Accor Reservation System (TARS) is truly unique

in the market. It functions as a technological platform to which

all distribution channels are connected:

› direct sales, which represent 29% of the TARS total,

divided among:

direct online sales through the accorhotels.com booking portal

and the different brand websites,

six call centers in Paris (France), São Paulo (Brazil), Rabat

(Morocco), Pune (India), Kuala Lumpur (Malaysia) and Dalian

(China), as well as a system to manage e-mail and fax bookings;

› indirect sales via traditional or online travel agencies,

wholesalers and tour operators, which account for 14% of TARS

sales and concern:

indirect Web sales with new distributors like Expedia

and booking.com, and more than 150 travel sites,

traditional distributor partners like American Express, Carlson

Wagonlit Voyages, some 21,000 travel agencies and connections

to all GDS booking platforms.

In all, TARS accounts for 43% of hotel revenue and more than

32.5 million hotel nights. Hotels also receive reservations via the

34 sales offices that maintain close relations with travel professionals.

TA

RS

43%

direct sales 29%in

direct sales 14%

57%

16%

13%

7%

7%

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Online sales increasing rapidly, rising more than 25% for the year

In 2010, sales via the accorhotels.com

portal and the 13 brand websites rose

by 25%, accounting for 16% of total Group

sales. Overall, the Accor sites recorded

183 million visits, a 27%-increase compared

with 2009.

The innovations and advertising campaigns

deployed by accorhotels.com and the

ramp-up of the individual brand websites

were among the year’s especially

noteworthy developments. Visits to the

brand sites increased by 20% year on year

and generated €711 million in revenue. This

strong growth was due mainly to the sites’

enhanced content and functions. The

ibishotel.com site, for example, was totally

reworked in September, sales on

novotel.com rose by 21%, etaphotel.com

received more than 9 million visitors

and scored a record conversion rate of 9%

and the hotelF1.com site was brought

online late in the year.

E-commerce initiatives were launched,

including targeted promotions and

a host of multi-brand and regional sales

campaigns, such as Super Sale and Crazy

Prices in Asia, Latin America and Europe.

Held in June, the Crazy Prices campaign

enabled accorhotels.com to set a single-day

record of 630,000 visits and generated

nearly €25 million in business volume

during the week-long event.

Numerous initiatives organized by

individual brands also helped to lift

business volume:

› Motel 6 and Studio 6, with National

Sales Fun Day, a telephone marketing

program that generated more than

$3.5 million in revenue;

› Novotel, whose special deals resulted

in 500,000 hotel nights;

› Sofitel, whose promotional offers

boosted revenue by €9 million.

OF HOTEL REVENUE HANDLED BY TARS, ACCOR’S CENTRAL BOOKING SYSTEM

43% 16%OF 2010 SALES GENERATED ONLINE, 4 POINTS HIGHER THAN IN 2009

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Sales and marketing: a changing profession

Employees who manage and deploy sales tools are at the heart

of the system. Accor can rely on the expertise of 700 sales

professionals in 34 countries who manage 65,000 key accounts

and 500,000 contacts a year. And in 6 call centers organized

by major market, 330 employees handle nearly 3 million calls

a year and over 300,000 booking requests received by fax

or e-mail. A new center has been opened in Dalian, China, to

support the Group’s development if this fast-growing market.

To upgrade sales team skills and expertise, a new Sales &

Distribution Pass training module was introduced (see the

Human Resources section of this document, page 70.)

Accorhotels.com sales up 34% in 2010

Visits to accorhotels.com rose by 34% year on year. The hotel portal

is available in 12 languages through 27 country points of sale in order

to satisfy customer needs and preferences around the world. In 2010,

it became the No. 1 hotel booking website in France with more than

8 million visits a month.

New features included an optimized search and booking function

to make browsing easier and more enjoyable. The new function

includes a greater number of search criteria as well as a system for

managing hotel displays. The site also features enhanced content and

services. Interactive maps have been added, along with 800 videos

of Group hotels and regularly updated tourist information about the

various destinations. Late in the year, Accor became the world’s first

hotel group to post customer feedback on its booking portal through

a partnership with TripAdvisor.

In this way, Web users are provided with free and easy access

to travelers’ opinions directly on the presentation page of all Group

hotels in all countries (excluding hotelF1, Motel 6 and Studio 6).

Customers also receive an e-mail following their visit inviting them

to evaluate the hotel. At year-end 2010, more than 20,600 evaluations

of 2,741 hotels had been received.

DOWNLOADS OF THE ACCORHOTELS.COM IPHONE APPLICATION IN 2010

500,000A|CLUB MEMBERS

6 millionsMORE THAN

MORE THAN

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Record year for the accorhotels.com application for iPhone: more than 500,000 downloadsProviding visibility, immediacy and

interactivity, new media enable the Group

to forge a new type of relationship with

customers. The brands and the accorhotels.

com portal are today amply represented

on social networks and mobile channels.

Content shared on the Group’s Twitter

accounts and Facebook pages are actively

managed throughout the year. These new

highly responsive modes of communication

help to meet a array of sometimes widely

differing objectives, such as deepening

relations with customers,

showcasing attractive

marketing offers,

developing a local strategy

for certain hotels and

generally enhancing visibility on the Web.

These tools are also used to create closer

ties of a different sort with customers by

spotlighting the Group’s expertise and

creating special events. Examples include

the various contests launched on social

networks by Etap Hotel during the 2010

Tour de France and by all seasons for the all

seasons Tour, in which tens of thousands of

people took part.

A new version of the accorhotels.com

application for iPhone was introduced.

Smooth and intuitive, it enables users

to view online videos of the hotels, enter

criteria for quick and easy searches, and

record an A|Club member number to earn

points. Elected Best Mobile Transactional

Software at the E-Marketing Awards, the

application was downloaded more than

500,000 times in 2010.

The rapidly expanding mobile channel,

generated €7 million in 2010, and Accor

established itself as the leading hotel group

in terms of mobile transactions. This sales

channel now accounts for more than

600,000 visits a month. In early 2011,

two new accorhotels.com applications

for BlackBerry and Samsung were added

to the brand’s lineup of mobile services.

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A|Club, an ongoing success with 90% satisfied customers

The satisfaction rate among A|Club members stands at 90%.

More than 2 million members joined the Accor loyalty program

in 2010, an average of 6,000 a day. At year-end 2010, the program

totaled over 6 million members, only two years after its

launch. International, multi-brand and free, it is the only loyalty

program that covers all

markets segments, from

budget to luxury.

Easy to use, A|Club requires

only 2,000 points for members

to obtain a cash-equivalent

voucher or airlines miles with

no date restrictions. New

initiatives were launched

during the year including a

Priority Desk check-in counter

for cardholders in hotels

with over 180 rooms and

opportunities for loyal

members to use their points at prestige events, such as theater

premiers, concerts or Formula 1 races. In 2010, A|Club launched its

first advertising campaign with posters in airports and train stations

across Europe and ads in leading European magazines. Its goal is

to become the hotel industry’s benchmark loyalty and customer

relationship management program by enhancing understanding

of customers, responding to their wishes and building personalized,

lasting relations with them.

Attracting sales professionals and corporate customersAccor made market share gains through sales and marketing

agreements with leading travel companies, including distribution

professionals and B2B customers. The Group has renewed and

developed partnerships with these customers and provided them

with dedicated websites. The purpose is to make it easier for travel

agents, small and mid-size businesses, corporate event organizers and

leisure professionals to book with Accor. During the year, the brands

and individual hotels enhanced their visibility by taking in leading

international trade shows in Frankfurt (IMEX), Barcelona (EIBTM),

Berlin (ITB), London (WTM), Houston (NBTA) and Paris (IFTM-Top Resa).

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When oerating excllence akes all he diffeenceOperating excellence is the key to profitability. It requires real professional

experience, the sharing of best practices and the ability to effectively use

sophisticated tools and systems. The result is unique expertise in day-to-day

hotel operations and advanced skills and capabilities that are then deployed

to serve hoteliers.

Accor’s core strength: its hotel skills and expertise

Accor provides its investor partners and franchisees with an exclusive

range of capabilities designed to achieve operating excellence.

A hotelier must be an architect, an interior designer, a purchaser,

a marketing and sales professional, a financier, an accountant and,

of course, an employer. Regardless of their expertise or experience,

it’s very difficult for independent hoteliers or entrepreneurs

interested in the hotel industry to have capabilities in all these areas,

since the business has become complex. In response, Accor is

constantly developing its skills and expertise to make life easier for

its partners and give them an edge. The goal is to satisfy and retain

customers while also ensuring that hotels perform well.

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Managing excellence every day

In the hotel business, operating excellence

is a constant challenge that must be met

at all levels, down to the smallest details.

It involves managing accommodations,

restaurants, conference facilities, relaxation

and fitness areas on a day-to-day basis while

also managing relations with customers

and making sure they are satisfied. It also

involves managing employees. Hotel

managers and department heads hire, train

and supervise teams, backed by special tools

designed by the Group or the hotel brands.

Examples include the 9,000 training

modules offered by the Accor Academies

and career advancement programs

introduced at Novotel (“Move UP”) and at

ibis for high-potential employees who want

to become assistant managers.

Selling rooms at the right price at the right time

Revenue management is designed to increase market share by optimizing revenue

generated by each hotel depending on its location and market segment as well as the

period of the year and goings-on in the area. To lock in these skills, the Group created the

RM Pass training program for revenue managers and hotel directors. At year-end 2010,

some 1,000 employees have been trained and received certification. For professionals,

Accor offers an advanced module – RM Pro – intended to develop skills in pricing and in

analyzing reservation data to use in producing forecasts. Accor also deploys a marketplace

strategy for all hotels, regardless of brand or operating structure in a given area. These

hotels are impacted by the same customer flows, the same events and the same business

environment. To date, 35 of these marketplaces have been created, of which 19 in France.

The results have been impressive as these hotels perform above the network average.

Enhancing customer knowledge and communication

Another of the Group’s unique skills is an in-depth understanding of its customers, in

particular by employees on the frontline. Through the A|Club loyalty program, considerable

resources have been deployed to professionalize relations with customers and provide

them with increasingly-personalized services, with the goal of improving satisfaction and

retention rates. The Group has also made headway in this respect by introducing a

customer satisfaction survey that has been widely distributed via the Internet. A total of

2,200 hotels in Europe, the Middle East and Africa use the survey every day. In France,

300,000 questionnaires have been completed and processed.

Unique skills in day-to-day hotel operations

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Several brands have undertaken major

renovation programs:

› Etap Hotel, with its cocoon and design

room. The brand’s goal is to renovate

the entire network by 2015;

› Motel 6, with its Phœnix concept that

combines contemporary styling with

environmentally-friendly features. In 2010,

the North American chain pioneered in

the budget segment by earning Leadership

in Energy and Environmental Design (LEED)

certification;

› Novotel and its new modular room that

is equipped with innovative technologies.

Deployment of the new room has already

begun in Asia (Bangkok and Taipei),

Australia (Sydney), Europe (Rennes, France)

and Latin America (Buenos Aires);

› Mercure with the Dédicaces room and its

new highly-innovative renovation process.

The brand’s teams have developed an

approach to large-scale renovation projects

that can be applied to non-standardized

hotels. Extremely cost-effective, the

approach was inspired by the car industry,

in which several models can be built on the

same chassis. Created in 2010, the concept

is undergoing an initial pilot test in 2011

with rollout scheduled for 2012.

Expert services for hoteliers

Design, construction, decoration, installation and maintenance are the major stages

in a hotel’s life, and Accor is a recognized expert in each of these areas.

Building, outfitting and renovating hotels

Nearly 200 employees oversee hotel construction and renovation projects around

the world. They guarantee compliance with brand essentials, the functionality of all

hotel areas, optimal use of space, and effective cost management while ensuring

that the project is aligned with Accor’s environmental commitments. The result is

hotels that integrate the latest trends in terms of construction and decoration

materials, fittings and amenities, modularity, comfort, technologies and energy

efficiency. To ensure product quality, hotel safety and customer satisfaction, the

brands are very attentive to network renovation projects. That’s why brand teams –

as well as franchised partners – have access to a dedicated team that can analyze

and identify each hotel’s needs in terms of interior decoration, bedding, furniture,

lighting systems and kitchen equipment.

Etap Hotel – Cocoon and design room Motel 6 – Phœnix room

Novotel – New modular room

Mercure – Dédicaces room

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Purchasing better and more cost-effectively

Accor’s 200 expert buyers identify, assess, and

negotiate the most innovative, price-competitive

products and services needed for hotel operations

while complying with individual brand standards

and local regulations. Their areas of expertise

cover renovation, construction, furniture, food,

cleaning products, linen and laundry service,

and audiovisual and telecom equipment.

By pooling the expert skills of buyers based

in more than 20 countries, as well as an array

of professional processes and tools, Accor can

provide either global or local solutions at

the lowest total cost of ownership*.

Organized into approximately 100 families,

these products and services are approved only

if they comply with predetermined quality, safety,

reliability, after-sales service and sustainable

development criteria. With regard to sustainable

development, Accor’s procurement teams

created competitive differentiation in 2010 by

approving a range of environmentally-friendly,

Diversey-brand cleaning products.

Making sustainable development

a competitive advantage

Accor is determined to develop sustainable

development – a cornerstone of its strategy – into

a competitive advantage. A leader in this area,

the Group creates and develops innovative,

differentiating solutions for designing, renovating

and operating hotels. Used as an environmental

performance and hotel certification indicator, the

Hotel Charter also structures Accor’s sustainable

development commitment and progress made

in this area. Group-wide societal and environmental

initiatives have been created and launched such

as Plant for the Planet, which encourages customers

staying more than one night to reuse their bath

towels. A portion of the savings on laundry bills

is then donated to reforestation programs

that are beneficial to both the environment

and the local population.

* Includes acquisition price, as well as maintenance, scrappage and other costs.

Hiring the best people

In its hiring and training practices, Accor leverage an

array of high-performance tools designed to attract

and retain the best people. Recognized as industry

benchmarks, the 17 Accor Academies deliver

outstanding training courses that cover all job

categories and are available to everyone,

everywhere. The Accor Academies provide

employees with an exceptional opportunity to

develop their skills and carry out their job

responsibilities more efficiently. Another tool for

hiring the best people is the Accorjobs website,

which is highly regarded in the market and receives

some 3.7 million visits a year.

Eco-labeled cleaning products approved for use

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Receiving and welcoming guests from all over the world is our job.

As the world’s leading hotel employer, Accor also boasts the world’s

leading hotel school, Accor Academy, which develops the skills

of its 145,000 and facilitates their career development.

The Group pursues these commitments while strictly respecting its core

principles and acting as a responsible employer in all its host countries.

Eployees ae the mainsay of ou performace

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145,000 emloyes in 90 coutries

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Over 100 jb ategoies

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Growh that resects our coe priciples

Accor’s human resources policy

is a vital part of its strategy and

is based on the guiding principles

of professionalism, diversity,

social dialogue, professional

development, training and

recognition. The Group unites its

employees around a long tradition

of high standards that includes

its corporate values and the “Accor

spirit” transmitted by the pioneers.

Values that unite and guide

For more than 45 years, Accor has built its organization on core

values. Innovation, the spirit of conquest, performance, respect and

trust are the common threads that guide team members in their

day-to-day responsibilities and their relations with all stakeholders

across all brands, professions and regions. This is necessary as the

Group continues to expand at a steady pace and regularly takes

on a highly-diverse range of employees.

Encouraging diversity

With 145,000 employees in 90 countries and a very cosmopolitan

clientele, Accor is naturally concerned about diversity and the key

issue of professional skills and employee recognition, regardless of

differences. In 2010, in line with its commitments, Accor deployed

the Group International diversity Charter in close collaboration

with its teams in Africa, Asia-Pacific, Europe, United States and

South America. Over the next few years, Accor will focus on four

priority areas: diversity of origin, gender equality, disability

and age diversity. All aspects of professional life are concerned:

hiring, career development, training and compensation. In order

In 2010, Accor introduced the Group International diversity Charter

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to officially promote this commitment, raise awareness and inform

employees, an intranet dedicated to diversity has been created.

In 2010, a two-hour e-learning course for department heads

– about 2,300 recruiters – was also set up. It features training

through situation simulation in a virtual hotel with interactive

reviews of each session. In France, managers involved in hiring,

training and career management will receive non-discrimination

training using this tool.

Encouraging social dialogue

Through its solid international network of human resource

directors, Accor guarantees that its policies are consistent and

compliant with each country’s legislation. Accor is one of the first

French groups to set up a European Works Council. In 1995, an

international pact was signed with UIF (Union of International

Food workers), guaranteeing that International Labor Organization

agreements are correctly applied in all the Group’s establishments.

French trade unions have had their own dedicated intranet since

2002. In 2010, several hotel labor-management agreements

were signed in France, including one concerning the prevention

of psycho-social risks in order to reduce stress in the workplace

and initiate preventive action plans.

Understanding and responding to employee concerns

In order to assess in-house opinions on life in the Group (working

relations, training, personal fulfillment) all employees are asked to

respond to a survey every two years. In October 2010, for example,

Sofitel general managers and team members were the subject of

an opinion survey: over 25,000 employees were asked to answer a

questionnaire available in 17 languages. Overall, 94% of general

managers and 82% of employees said that they were satisfied with

their jobs. The results of this survey will be the subject of analyses

and action plans in 2011.

To celebrate its 10th anniversary, Accorjobs,

the hiring and internal mobility website has had

a complete makeover. With its new, contemporary

look and redesigned search engine, the site is both

more attractive and more efficient. It provides

greater insight into the brands and a number

of professions through testimonials and videos.

Available in 12 languages and adapted to

the different markets, it features information

on hotel openings, trade fairs and hiring events.

In 2010, 3.7 million Internet users visited

the site, 250,000 job applications were submitted

and 17,000 vacancies and internship offers

were posted online. In France, to ensure equal

treatment, anonymous CVs are submitted,

with each applicant’s first and last names, date

of birth, sex and address hidden.

accorjobs.com

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Aracting and develoing alet

Because women and men are the

cornerstones of our business, it is

essential for us to bring new people

into the Group and support them

throughout their professional lives.

We serve employees by contributing

to their professional fulfillment

and career development, customers

by optimizing service quality, and

the Group’s interests by retaining

and nurturing talented employees.

Hiring and integrating the best people

Accor was voted one of Germany’s top employers for the fifth

time. Based on an opinion survey of 16,000 students, this ranking

rewards the many initiatives deployed by Accor to introduce

and interest people in the full range of hotel professions. These

initiatives include:

› investing in new media to reach out to an ever-growing audience,

through job blogs where visitors can find out about the skills

required and ask questions about the benefits of working for Accor,

as well as through Facebook and the revamped Accorjobs hiring site;

› increasing local initiatives with educational establishments.

Accor is proactive as far as internships are concerned in all its host

countries. Of the 800 people who followed a work-study program

in France in 2010, two thirds did so as part of an apprenticeship

contract. In Singapore, Accor has set up a partnership with Nanyang

2010 Hotel industry Challenge – table-service competition

:

Awarded to hotels in France that have committed to

providing quality training and support for apprentices,

the Mercure Apprenticeship Label is intended for

all owned, leased, managed and franchised hotels and

for all young people on a work-study contract.

The program enables young people to gradually enter

the working world, and hoteliers to attract, train and

retain them while also developing a network of skilled

mentors who share their expertise and capabilities.

Over 300 mentors have been trained and more than

400 apprentices have taken part in the program.

Mercure has also developed this approach in Germany,

where more than half of the brand’s hotels employ

apprentices. Employers consider apprenticeship

experience to be a priority in their relations with young

people and a definite plus in their hiring policies. With

more than 700 apprentices in Mercure hotels in Germany

– 44% of the Group’s worldwide total – the country is a

pioneer in this type of training for young people, who

rapidly acquire the status of true hospitality professionals.

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mmittedd toto

Polytechnic. Fifteen interns who had worked in one of

the hotels in the region have graduated from this institution.

Accor also contributes to the career development of students

in the Hospitality & Resort Management program;

› showcasing employees’ skills.

Every year Accor hosts the Europe, Middle East and Africa Hotel

Professions Challenge and rewards young employees in four key

job categories: reception, cooking, and table and bar waiting.

In 2010, 53 finalists were selected from 1,000 employees

in 16 countries and 8 of them received the award.

Skills for life

Professional fulfillment and development are priorities for Accor

since they are the key to retaining employees and enhancing their

attractiveness in the job market. To this end, the Group offers a

unique range of training courses through the Accor Academy

training centers and partnerships with benchmark hotel industry

vocational training establishments. For example, Accor has formed

a partnership with the Universities of Hanoi (Vietnam) and

Toulouse (France) as part of the Hanoi University’s Masters in

Hospitality Management. Accor pays tuition fees for five students

who take part in a six-month internship in hotels in the Toulouse

area. Students in the first graduating class who obtained the best

results were hired by Accor hotels in Vietnam.

› In New Zealand, the Building Futures program is the result of

a partnership with the Ministry of Social Development. A total of

25 trainees took part in 2010. The program is managed by the local

Accor Academy training center and helps disadvantaged young

people find a first job. It combines on-site training, e-learning and

work assessment over a twelve-month period. At the end of the

course, participants obtain nationally-recognized skills certification.

› In Portugal, Accor participates in the government’s New

Opportunities program that is designed to develop skills by

identifying disadvantaged or high-potential people. Participants

follow purpose-designed training courses that lead to academic

or vocational certification. In 2010, 73 employees were involved

in the program.

Becoming an expert

Several years ago, Accor initiated a job-specific training program

policy. The aim is to ensure operational excellence in day-to-day

hotel management and enable employees to develop advanced

skills that will help them cross thresholds and further their careers.

The most well-known training programs are:

› RM Pass, which provides training and certification for key

employees with responsibilities in Revenue Management, a

technique designed to maximize hotel revenue by obtaining the

best possible yield from each available room. This training program

was set up with outside Revenue Management experts and

comprises two in-house courses: RM Dimension and RM Pro.

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RM Dimension is for full-time revenue managers, general

managers, sales teams, front office managers and reservations

managers. It enables them to acquire the first level of revenue

management training and certification. In 2010, over 1,000

employees received training with numerous courses organized

regularly in all regions.

RM Pro is exclusively for Revenue Management experts. This new

certification-backed training course launched in March 2010 allows

them to acquire detailed knowledge of pricing and forecasting;

› Sales & Distribution Pass was tested in 2010. It is designed to

create a talent pool of hotel sales and distribution professionals

and make Accor a benchmark training center in a field that is highly

specialized and increasingly complex;

› A|Touch has been deployed worldwide to raise employee

awareness of the importance and value of each customer

who is a member of the A|Club loyalty program. The training course

uses a film – Be A|Club – that depicts employees in real life

reception situations.

Creating and enriching talent pools

Every day, each brand applies Accor’s policies by developing

and deploying their own programs. For example:

› Novotel’s Move UP program, which is structured into six career

development stages, was launched in June 2010. It offers

employees skills and career development opportunities. Move UP

includes schemes like Welcome, a six-month integration program

for new employees, and Globe Trotter, a program that enables

employees to become a department head within two years and

includes a one-year foreign posting;

› Etap Hotel/hotelF1’s VAE (Validation of Learning Through

Experience) program. Etap Hotel and the Versailles Chamber

of Commerce and Industry joined forces to enable nine motivated

general managers to obtain a degree in Business Administration

from the Rouen Business School. The program is an excellent

opportunity for employees to enhance the value of their business

experience, regardless of whether they have a university degree.

It also improves their employability and allows them to certify

their skills. The brand will sponsor the same program again for

ten other employees. This VAE program has also been developed

for employees in non-managerial positions, who can obtain

professional qualification certificates for housekeeping and

reception skills;

› ibis’s Players program, a personalized certification-backed training

course that validates the gradual acquisition of skills by offering

an attractive wage policy and a career development path. Over

3,000 employees have already taken part in this program. Another

example is Deputy, a four-month program that offers personalized

training with practical on-the-job experience for employees who

want to become assistant managers.

Players: an approach to develop and recognize the skills of ibis employees in Europe

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Accor: he wold’s leaing hoel scool

Key figures

›  Over 340,000 days

of training in 2010.

›  More than 110,000 employees

attended at least one training

course in 2010.

›  1.9% of the payroll

is allocated for training.

›  17 Accor Academies

around the world.

Accor Academy celebrates its 25th anniversary

Accor was the first hotel group to create its own corporate

university in 1985. Twenty-five years later, Accor Academy has

no equivalent in the industry. It offers a range of unique training

programs that cover the hotel industry’s approximately

100 professions – receptionist, room attendant, cook, headwaiter,

etc. The training courses are available regardless of the hotel

ownership structure. These courses are provided locally through

a network of 17 Accor Academies around the world offering about

150 programs. As a vector of the Group’s corporate culture and a

forum for learning and the exchange of good practices, Accor

Academy is an undeniable asset for the Group and its partners. For

employees, it is a means of continuous enrichment. Training methods

are evolving with the introduction of self-training courses, virtual

classes and hotlines for specific programs. E-learning is also now a

key training technique with several interactive courses developed

in 2010. In this way, training is now accessible to everyone.

Customized training

Faced with a wide array of local situations and issues, Accor has to

innovate and invent training courses to help the network expand

and address a broad range of needs.

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› In Mauritius, Accor created a “temporary Academy” in 2010 to

support the opening of Sofitel So Mauritius and respond to the lack

of qualified labor in the luxury hotel segment. The principle was

to teach future employees basic hospitality skills, especially those

reserved for luxury hotels. The four-month training course, which

was set up on location, was given by Accor Academy instructors and

by the hotel’s managers and front-line staff, who will in turn

become instructors and transmit their know-how to their teams.

This very successful experiment will definitely be repeated.

› In Australia, a vast country, the Accor Academy created a distance

learning center featuring self-administered online courses,

interactive sessions with simulations of real situations, a virtual

class with a real instructor and even online assessments to

determine the acquisition of skills.

› In France, a mixed-method Property Management System

training course combining a wide variety of techniques was offered

to hotel employees in early 2011. This training course features

face-to-face lessons, virtual classes, self-training and e-learning. All

these methods were deployed to create a very flexible training

program for this very efficient hotel management system, which is

designed to provide excellent visibility of day-to-day activities and

enable areas for improvement to be rapidly identified.

Acting locally as a responsible employer

As the world’s leading hotel school, Accor Academy has a number

of responsibilities. Notably, it must behave in an exemplary way

with regard to the local communities with which it is in contact

every day. This includes making the hiring of local people a priority

and combating exclusion through instruction.

Accor encourages local hiring:

› in Morocco, where 98% of employees are Moroccan, local hiring

and training are a priority and an Accor Academy has been set up.

In 2010, nearly 1,500 people attended courses and 5,000 days of

training were provided. Accor also actively assists disadvantaged

young people. With support from partners, two apprenticeship

centers were created within the Accor Academy in Agadir and

Marrakech. They will train young people from disadvantaged

backgrounds in four professions: kitchen assistant, assistant waiter,

receptionist and room assistant. Of the 300 young people who

attended the course, half are working in Accor hotels in Morocco;

› in China, the country where Accor has the second largest

number of employees and teams are 99% local. The Accor Academy

in China offers 66 training courses covering all aspects of

the hotel business. Each employee devotes at least three hours

a month to training and all hotels have to implement guidance

and mentoring systems for new recruits and also provide

instructors for each department so that employees can be offered

the training opportunities required for their career development;

› in France, to combat illiteracy. Hôtel à la lettre is a program

for employees who are excluded from the training process because

of their poor command of the French language. They receive

instruction in reading, writing, arithmetic and logical thinking as

well as spatial and time awareness. Employees also improve their

communication skills, learn to be more independent and have more

self-confidence. The acquisition of these basic skills can make

a significant difference in their daily lives. In all, 50 hotels and

149 employees took part in this scheme, which was launched in 2010.

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In Morocco, the Solidarité Féminine non-governmental organization trains young single mothers in traditional skills: home-style catering, well-being and beauty care.

To find out more: fondation-accor.com

Since it was created in October 2008, Accor Foundation has supported

75 philanthropic projects in 28 countries involving over 3,000 employees.

Foundation’s objective is to link cultures and provide support for the

development of individuals and their integration into the community.

It supports projects submitted by Accor employees that fall within one

of the Foundation’s three fields of intervention:

GAINS MOMENTUMACCOR FOUNDATION

local know-how;

training and insertion of young people in difficulty;

humanitarian and emergency.

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Committed to sustainable development since 1994, Accor structured its

approach in 2006 with the creation of E G. This ambitious

program is organized into two major sections, each of which includes eight

strategic priorities: EGO, to act in favor of people, and ECO, to protect the

environment. In 2006, the Group committed to achieving specific goals by

2010 and the time has come to evaluate its performance. The results are

very positive, although there are a few points that need to be improved.

Accor shares the results of this audit openly and transparently and

confirms its determination to go even further, looking forward to 2015.

The goal is to remain a leader and driver of sustainable development in

the hotel industry, to continue improving the Group’s environmental and

social performance and, most importantly, to reinvent hotels sustainably.

A commied, esposible, pioeering leder

Accor, a city with470,000 live-in guestsOver 4,200 hotels, more than 500,000 rooms,

19 million square meters, 90 countries,

145,000 employees, more than 100 different job

categories. 131 million meals served a year, Energy consumption of 14.9 GWh, 3.3 million tonnes of CO2 equivalent,

2.28 million tonnes of waste.

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Earth Gues: vey positie esuls

Accor’s policy and initiatives have been recognized

by experts and regularly receive awards, as was

the case in 2010. Accor is the only hotel group

present in the four main socially-responsible

investment stock indexes – Dow Jones

Sustainability (SAM), ASPI Eurozone (Vigeo),

FTSE4Good (EIRIS) and Ethibel Sustainability –

and has been since 2004. Every year, these

extremely selective stock-market indexes evaluate

Accor’s performance and progress compared to

that of its competitors and the sector as a whole.

FTSE4Good Index Series

AWARDS

Tourism for Tomorrow Awards 2010

from the World Travel & Tourism Council, in the Global Tourism

Business category. This prestigious award recognizes the Group’s

sustainable development commitment. It was awarded following

the audit of 15 hotels in 5 countries.

Global Vision Awards from Travel + Leisure magazine honored

Accor for its commitment to combating child sexual tourism.

l T rism

The 4th Earth Guest dayOn April 22, 2010, employees in 71 countries participated in this once-a-year event to support sustainable development. The agenda included collective initiatives to promote local development, health and the environment.

EGO project

1. CONTRIBUTING TO

LOCAL DEVELOPMENT

Support the economic development

of host communities through

long-term partnerships and promote

fair trade.

2. PROTECTING CHILDREN

Train employees and inform

customers about the fight against

child sex tourism.

3. FIGHTING AGAINST

EPIDEMICS

Deploy preventive measures

and combat major epidemics,

in particular HIV/AIDS and malaria.

4. PROMOTING

BALANCED FOOD

Provide customers with a more

balanced food selection

and combat obesity.

With the launch of the Earth Guest program

in 2006, Accor set quantified targets to achieve

by end 2010. Here’s a quick review of five years

of commitment and actions.

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EGO: to support human well-being

EGO (2006-2010)

The EGO project is organized around four priorities

that contribute to the well-being of people: local

development, protection of children, the fight

against epidemics and promoting a balanced diet.

1. Contributing to local development

Procurement is one of the main levers available

to Accor to support economic development.

Fair trade. Accor continues to develop this

long-standing commitment and buys fair-trade

products in 21 countries, 4 more than in 2006.

In France, Accor was the largest buyer of Fairtrade-

Max Havelaar hot beverages (not counting large

and medium-sized supermarkets) with 335 tonnes

of hot beverage products purchased in 2010,

11% more than in 2009.

Supporting local farmers. Alongside Agrisud

International, Accor has expanded its support

to include 300 market-gardening cooperatives

involving more than 1,500 people. The goal is to

expand and diversify production so as to increase

revenue. In addition, Accor hotels in the country

commit to sourcing products from these

cooperatives in order to secure and perpetuate their

market outlets. Launched in Cambodia in 2004,

the project has been extended to southern Morocco

in 2010 and will soon be rolled out in Brazil.

2. Protecting children

Accor’s commitment to combating the sexual

exploitation of children, initiated in South-East Asia

in 2001, has since acquired global scope. Working

alongside ECPAT (End Child Prostitution, Child

Pornography and Trafficking of Children for Sexual

Purposes), Accor has actively promoted the Child

Protection Code of Conduct prepared by ECPAT and

the World Tourism Organization. At year-end 2010,

Accor had signed this code in 33 countries, compared

with 16 in 2006. Accor has developed a three-step

system for its approach to guarantee effective

action in the field:

alerting and training employees

In 2010, over 10,000 employees were trained to

avert risks and react when faced with these difficult

situations. Since 2006, thanks to the commitment

of Accor’s human resources teams, 50,000 employees

have been trained by the ECPAT network;

raising the awareness of guests and suppliers

In committed countries, hotels display ECPAT

awareness-raising campaigns. In Austria, Germany

and Switzerland, Accor took part in the first

international prevention campaign targeting sexual

exploitation of children by tourists. This campaign,

called Witness – Zeuge, is managed by the three

governments, in cooperation with ECPAT, Interpol

and a number of tourist industry federations.

In 2008, Accor included a clause relating to the

fight against child sexual tourism in its Sustainable

Procurement Charter signed by suppliers.

Sorting cocoa pods

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Developing links with authorities

In 2010, Accor participated in drafting a “Manual for

reporting procedures”, alongside ECPAT France and

the International Police Cooperation Department

of the French Interior Ministry. The goal is to set up

procedures for reporting tourists who engage in

sexual tourism to the appropriate authorities and

to protect children who are victims of abuse by

working with local non-profit organizations. The

guide is gradually being rolled out in Accor hotels.

Thanks to its effective and recognized know-how,

Accor is leading the way in the hotel industry.

One example was in South Africa for the

Football World Cup in 2010, where Accor took

the initiative of sharing the training tools provided

with industry counterparts, to help them prepare

their staff members.

3. Fighting against epidemics

This action is based on three priorities: protecting

employees, raising guest awareness and mobilizing

the tourism sector.

Protecting employees. In 2007, Accor launched

the ACT-HIV program aimed at hotel managers.

In 2010, plans for action and combating HIV/AIDS

were rolled out in 32 countries for 40,000 employees.

On World AIDS Day, teams in 30 countries

organized initiatives to raise awareness and

promote prevention alongside local NGOs.

Raising guest awareness. Accor is continuing

with its “Going on a Trip” prevention campaign,

in cooperation with Air France. Some 2,000 hotels

in 16 countries are equipped with condom

dispensers for the use of guests and employees.

In early 2010, Accor launched the Pasteurtravel.com

health information website in partnership with

Institut Pasteur.

Mobilizing the tourism industry. Since 2006,

Accor has been a member of the Global Business

Coalition (GBC) to combat HIV/AIDS, tuberculosis

and malaria, with the goal of internationalizing

its commitments and encouraging other players

in the tourism sector to get involved.

4. Promoting balanced nutrition

The Group’s goal here is to make it easier for guests

to eat a balanced, healthy diet by providing special

menus in its various hotel brands. For instance, the

Nutritional Balance program devised by Edenred

is offered in ibis restaurants in France and Spain.

At Novotel, 35 countries offer a balanced-eating

option in children’s menus. In early 2011, Novotel

hotels in Belgium organized a workshop allowing

younger guests to vote for a new menu combining

balanced nutrition, delicious taste and the use

of seasonal produce.

Everyone on board

In the United States, Motel 6 and Studio 6 have formed a partnership

with AMBER Alert, the initiative to combat child abduction run by

the United States Department of Justice. The goal is for each of

the 14,000 employees working for these brands to serve as a link

in the chain of vigilance. Once a kidnapping alert has been issued,

employees can help to locate abducted children. In France,

messages issued by the Alerte Enlèvement system are now regularly

posted on the French version of the accorhotels.com website.

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ECO PROJECT5. MANAGING ENERGY CONSUMPTIONImprove energy efficiency and reduce consumption through tight management while promoting the use of renewable energy sources.

6. CONSERVING WATERReduce water consumption, recycle wastewater and reduce emissions. Raise awareness among employees and customers.

7. PRODUCING LESS WASTERecycle more and better, and limit the amounts of waste produced.

8. PROTECTING BIODIVERSITYIntroduce sourcing and management practices for green areas that respect biodiversity. Raise awareness among customers and employees, in partnership with associations.

ECO (2006-2010)The goal of the ECO project is to reduce the

impact of a hotel’s activities on the environment.

It is structured around four major priorities:

energy, water, waste and biodiversity. To achieve

its goals, Accor relies on close, day-to-day

management of actions and on its expertise

in sustainable construction.

To ensure aligned, effective action, Accor has

implemented a number of very demanding

initiatives across the Group:

the Accor Hotels Environment Charter,

a system designed to make progress on the

environmental front that recommends 65 concrete

actions. Some 3, 706 hotels – representing 90%

of the network – applied the Environment Charter

in 2010, including all owned and leased hotels,

in line with the 2010 target. Another noteworthy

result is that 73% of franchised hotels apply

the Charter, representing a 32-point increase

compared to 2006;

OPEN: Accor’s environmental management tool

allows hotel general managers to publish and

monitor their performance in energy, water and

waste. New functionalities are regularly added

to this unique resource, designed in 2005, such as

an indicator for comparing the hotel’s performance

with that of other hotels and a tool for monitoring

greenhouse gas emissions. While the Group did

not set a particular rollout target in 2006, today

the tool is used by 3,500 hotels;

certifications. In all, 495 hotels have

been awarded environmental certification:

353 ISO 14001-certified hotels including 326 ibis

hotels, 84 EarthCheck-certified hotels including

78 in the Novotel network and 58 Green Key Eco-

Rating-certified hotels including 43 Motel 6 units.

With only 12% of hotels certified, Accor has not

achieved its target of 20%. However, with the UK

joining the program and the current certification

of 105 Novotel hotels, the Group is continuing

to step up the pace of its certification program.

5. Managing energy consumption

In 2010, the 2,735 owned, leased and

managed hotels consumed 5,193 GWh and

emitted 2,045,000 tonnes of CO2 equivalent.

Between 2006 and 2009, the Group reduced

its energy consumption by 8%. However,

in 2010, the business recovery and

the harsh winter – particularly for the

1,400 hotels in France – caused a break

in this trend. All in all, Accor reduced its

energy consumption by 5.5% between

2006 and 2010. Today, 85% of owned and

leased hotels are equipped with compact

fluorescent light bulbs for 24/24 lighting,

116 hotels produce hot water using

solar thermal panels, of which

73 equipped since 2006. Since this

technology is still too expensive

compared to the economic benefits

generated, Accor has decided to review

the pace of rollout while stepping up

research and experiments involving

other available technologies. On the

mobility front, Accor is preparing for

the arrival of the first mass-market

electric cars. Three hotels in Spain

and six in Paris have been chosen

as pilot sites to test electric car

charging points.

ENERGY CONSUMPTION IN 2010 (in kWh per available room per day)

ECO: to protect the environment

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98.3

71.1

59.351.7

46.1

26.5 23.6 26.9

14.6 13.420.5 21.9

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6. Conserving water

Water is a vital resource and a priority of the

Earth Guest program. In 2010, the 2,735 owned,

leased and managed hotels consumed 45 million

cubic meters of water. Accor succeeded in beating

its target, with a 12%-reduction in water

consumption per occupied room. It achieved this

fine performance through such measures as

installing water flow regulators in 93% of the

owned hotels and recycling gray water in 173 hotels.

7. Producing less waste

Accor carries out many initiatives to limit its

production of waste and improve waste processing.

Some 53% of owned hotels recycle paper,

cardboard and glass, and 88% process batteries

and compact fluorescent tubes/bulbs. Disparities

between recycling facilities from one country

to another combined with the variety of waste

produced by a hotel – in particular during

construction or renovation projects – make this a

very complex issue. Accor failed to meet its targets

in this area. To remedy the shortfall, it has

strengthened its tools and actions, primarily by:

rolling out an OPEN management module

aimed at more accurately quantifying the waste

produced and recycling practices. It is used by

owned, leased and managed hotels in the UK and

at Thalassa sea & spa in France. The next country

scheduled for rollout is Brazil;

collecting 800 old mobile phones from

employees in head offices in France. The almost

€3,000 collected from recycling or re-using

these phones was donated to a project supported

by the Accor Foundation, which aims to foster

integration of young people from underprivileged

neighborhoods by getting them involved in rugby;

Responsible sourcing

In 2003, Accor launched the Sustainable Procurement Charter to publicize its commitments and

share them with suppliers. The Group has since strengthened its standards and also measures

the social and environmental performance of its suppliers. After a pilot phase conducted with 53

of them, another 100 suppliers will be assessed in 2011. Sustainable development criteria are

integrated in the different phases of the procurement process to encourage the most responsible

product and service solutions. For instance, this approach has been applied for the new Novotel

room, where the wood-particle boards used comes from sustainably managed forests, and carpets

have the GUT label, a European certification program that guarantees environmentally-friendly and

user-friendly rugs and carpets. In addition, procurement teams in the different countries commit

to Group priorities depending on the local situation.

WATER CONSUMPTION IN 2010(in liters per occupied room)

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1,556

991 956

551 507

257 263

546

216 189

561 527

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the eco-design approach implemented by

Lenôtre, a pioneer among luxury caterers, has

led to the development of a 100%-biodegradable,

recyclable meal tray that has reduced production-

related greenhouse gas emissions by 50%;

a partnership was launched in late 2010 with

the Soft Landing program in Australia, which aims

to optimize recycling of mattresses while helping

disadvantaged people to find employment.

The first three hotels concerned have already

recycled more than 260 mattresses.

8. Protecting biodiversity

The hotel industry has a role to play in preserving

biodiversity, notably through:

food. Some 1,100 hotels use organic farming

produce. Accor has also improved its practices with

regard to fish and seafood products. In China, for

instance, 63% of the hotels have already removed

shark fin soup – a much-appreciated national

delicacy – from their menus;

protection of the natural environment.

With 76% of hotels involved in local

environmental or tree-planting initiatives, the

Group failed to achieve the target set, despite

a 26-point improvement since 2006.

Accor has real expertise in environmental

construction and continuously reinforces its

standards by relying on pilot schemes such as:

Motel 6 Northlake in the US. The hotel obtained

Leadership in Energy and Environmental Design

(LEED) certification in the summer of 2010.

Motel 6 is the first budget-hotel brand to obtain

this benchmark certification. The program includes

the regulation of room temperatures, use of recycled

materials, solar panels to heat water and reduced

water consumption for all basins, showers and toilets;

Pullman is Bee Friendly

In France, Pullman has made a commitment to protect

bees, which are an essential link in the biodiversity

chain. The brand sponsors a hive for every hotel, has

added dishes containing honey to its restaurant offer

and has donated €100,000 to the Abeille Sentinelle

research program led by the Oniris veterinary center

for wild fauna and eco-systems.

all seasons Troyes Centre in France.

This franchised hotel, opened in late 2010 and

designed to comply with sustainable development

criteria, meets France’s BBC building energy-

efficiency standards. Preference is given to natural

lighting, along with additional thermal insulation,

heat pumps for air conditioning and heating,

thermal solar panels, rainwater collection systems,

green roofs, etc. It consumes 50% less energy

than a conventional building.

all seasons Troyes Centre – France

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2006-2010 2006 2010

Increase distribution of Fairtrade-Max Havelaar products.

17 countries.

France: 187 tonnes purchased.

21 countries.

France: 335 metric tons purchased.

Increase the number of projects supporting local production.

Support for 70 market-gardener cooperatives.

One project with the NGO Agrisud International in Cambodia.

Support for 300 market-gardener cooperatives.

Four projects with Agrisud International in Cambodia, Morocco and Brazil.

Sign the ECPAT Child Protection Code of Conduct in Africa and Europe.

16 signatory countries altogether, of which 2 in Europe.

33 signatory countries altogether, of which 12 in Sub-Saharan Africa and 6 in Europe.

Bolster employee training. 6,000 employees trained since 2003, or 2,000/year.

50,000 employees trained between 2006 and 2010, or 10,000/year.

Employees: Disseminate the ACT-HIV tool in all hotels to combat HIV/AIDS.

Assessment of employee HIV-AIDS prevention training

Creation of the ACT-HIV tool in 2007. ACT-HIV deployed in 32 countries.

40,000 employees trained.

Guests: Pursue campaigns to prevent HIV/AIDS and malaria.

190 hotels equipped with condom dispensers.

“Going on a trip” campaign (2007).

Pasteurtravel.com health information website with Institut Pasteur (2010).

2,000 hotels equipped with condom dispensers.

Roll out a balanced-menu offering in new countries and new brands.

ibis: balanced menus in France.

ibis: balanced menus in France and Spain.

Novotel: balanced option in children’s menus in 35 countries.

20% of hotels certified (ISO 14001, EarthCheck). 207 hotels, i.e. 5%. 495 hotels, i.e. 12%.

105 in the process of obtaining certification.

100% of owned and leased hotels implement the actions of the Accor Hotels Environment Charter.

93% of owned and leased hotels; 41% of franchised hotels.

100% of owned and leased hotels.

73% of franchised hotels.

10%-reduction in consumption per available room in owned and leased hotels.

Reference year. 5.5%-reduction (comparable scope of reporting).

100% of owned and leased hotels equipped with low-consumption light bulbs.

73% 85%

200 hotels equipped with solar panels. 43 116

10%-reduction in consumption per occupied room in the owned and leased hotels.

Reference year. 12%-reduction (comparable scope of reporting).

100% of owned and leased hotels equipped with water-flow regulators.

79% 93%

70% of owned and leased hotels recycle paper, cardboard and glass.

45% 53%

95% of owned and leased hotels process used batteries and compact fluorescent tubes/bulbs.

53% 88%

100% of hotels engaged in actions to preserve the natural environment or plant trees.

50% 76%

Achievement indicator scale

Result meeting or exceeding target objective.  Result close to objective or showing genuine progress.   Area of improvement.

Eath Gust 2006-2010Tangible results

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Today, Accor’s sustainable development policy

is entering a new phase. In 2011, the Group will

publish its priorities and targets for 2015. The key

focus will be on reinventing hotels sustainably.

Taking inspiration from the multi-criteria life-cycle

analysis approach, in 2010 Accor was the first

hotel group to carry out a quantified audit of its

environmental impact. The goal is to accurately

identify its impact and prioritize areas for progress to

achieve a significant reduction in its environmental

footprint. The results of this analysis will serve

as a guideline when defining targets for 2015.

For example, 70% of the waste generated is

produced during construction and renovation

programs and “only” 8% from direct hotel operations.

Thus, if the Group genuinely wants to implement

an effective waste reduction and management

policy, it must first address hotel construction

and renovation issues. The project was launched

in early 2011 with the first implementation

of Seconde Vie (Second Life), a project that gives

a new life to unneeded furniture by selling

it on the second-hand market.

Plant for the Planet“Here, YOUR towels plant trees” is the slogan of the “Plant for the Planet” project launched in 2009. The principle is that hotels finance seven reforestation projects with laundry savings generated by guests who agree to keep their bath towels for more than one night.“5 reused towels = 1 tree planted”. This innovative project, already deployed in 1,200 hotels, has so far financed the planting of 1.7 million trees. The approach also includes a strong societal dimension that aims to improve the living conditions of the local population. To take this idea further, at the end of 2010, market gardeners participating in the Accor project in Senegal began to supply fruit and vegetables to the two Accor hotels in the country.

project launchedj l

Abiion 2015Reinventing hotels sustainably

Accor firmly believes that to bring about a radical

change in hotel practices it is essential to actively

involve the industry as a whole. In early 2011,

Accor launched Earth Guest Research, a free, open

platform for sharing knowledge and expertise

on sustainable development for the hotel industry,

with the goal of helping all industry players to

improve in this area. To inaugurate the platform,

Accor published the results of the first major

international survey of hotel guests’ expectations

with regard to sustainable development, which

was conducted in six countries.

To improve the energy performance of its hotels,

Accor is implementing an innovative initiative with

“retrocom”, an audit process that guarantees

tangible, immediately-effective recommendations

on reducing energy and water consumptions that

require no investment. The Group is increasingly

experimenting with new technologies. Several

pilot hotels, for example, are currently testing

a thermodynamic composter that transforms food

waste into fertilizer. Lastly, improved energy

performance is also the declared objective of

the Plant for the Planet project, which reinvents

the use of bath towels, giving real meaning and

effectiveness to a common hotel industry practice.

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In 2010, ’ , in

particular because the Group took full advantage of

the economic recovery. Now 100% focused on its hotel

business and backed by a very solid balance sheet,

Accor is poised to step up the pace of its development.

At the same time, the Group will respect its commitments

to shareholders, maintaining close ties with them and

providing them with transparent information.

erforance inicatos

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Accor an is shaeholdrsEvery year, Accor deepens shareholder involvement in corporate events and developments through meetings and publications. In addition to the annual meeting and the events organized to present the annual results, Accor keeps both private and institutional shareholders informed of the latest developments on a highly-responsive daily basis. This information is tailored to the specific needs of different types of shareholders and financial analysts while constantly complying with the principle of fair access to information.

Meetings with investors

In 2010, meetings were held with some

460 representatives of 350 financial institutions

and 19 roadshows were organized

in Europe, the United States and

Canada. These events included

hotel visits for investors to

talk to line managers and gain

a better understanding of our

management practices and

processes. We also took part

in eight investor conferences

during the year, in Europe

and the United States.

Held on June 29, 2010 at the

Novotel Paris Est, the Annual

Shareholders’ Meeting was

attended by 450 people and

provided many opportunities for exchanging views

and opinions, particularly concerning the major

project of demerging our two core businesses.

The Accor Shareholders Club

Created in May 2000 for shareholders owning at

least 50 bearer shares or one registered share, the

Accor Shareholders Club had over 8,000 members

at year-end 2010.

Among the many advantages members enjoy

are regular e-mail updates throughout the year

with press releases, Letter to Shareholders

and other news, the possibility of subscribing

to all of our other corporate publications, the

opportunity to discover our businesses in a more

personal way through site visits and VIP invitations

to shareholder meetings and other events

in which Accor participates.

As part of the A|Club customer loyalty program,

Shareholders Club members receive an A|Club

Platinum Card which doubles the points earned

when they stay at participating hotels and offers

them exclusive advantages. Club members also

receive promotional offers on Group products.

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Working group on the private shareholder relations process

Created in 2007, a working group comprising

15 members of the Shareholders Club is exploring

ways to encourage exchanges of views and

opinions with our private shareholders and to

improve the private shareholder relations process.

At its two meetings in 2010, on April 13 and

September 20, the group reviewed the demerger

communications process, the Annual Shareholders’

Meeting and the various resources used to keep

shareholders informed, with in particular a critical

analysis of the Letter to Shareholders. Members

were also able to engage in frank discussions with

Accor’s management team concerning topical issues,

such as the proposed demerger at the April meeting

and, at the September meeting, Accor’s strategy now

that it is refocused on its core business.

Easily accessible information tailored to shareholder profiles

All of the Group’s financial news and publications

can be accessed in the “Finance” section of

the accor.com website, which serves as a

comprehensive investor relations database. The site

carries live and deferred webcasts of results

presentations and Annual Shareholders’ Meetings.

Shareholder structure at December 31, 2010

Total number of Accor shares: 226,793,949

27.27%

COLONY / EURAZEO(1)

2.01%

FOUNDERS / DIRECTORS

70.72%

FLOAT

(1) Shareholders’ agreement between ColTime and ColDay (Colony Capital) and Legendre Holding 19 (Eurazeo).

Board Members and Founders: 29.28%

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The Accor share price can be tracked in real time

on the site, which also features a dedicated section

for private shareholders and members of the

Shareholders Club.

A wide array of documents far exceeding regulatory

requirements may be viewed in the “Finance”

section of accor.com. These documents, which

cover both current and previous years, include:

The Registration Document filed with the Autorité

des Marchés Financiers; a corporate brochure

describing the Group; the Letter to Shareholders;

notice of Shareholders’ Meeting.

Individual shareholders contact

Shareholders in France can call 0805 650 750

at any time to obtain general information about

the Group, real-time share prices and the latest

news, as well as practical guidelines for private

shareholders. Operators are available to answer

questions from 9:00 a.m. to 6:00 p.m. from Monday

to Friday. Messages left out of hours are answered

as soon as possible.

A Accor –110, avenue de France

75210 Paris Cedex 13, France

Tel.: toll-free (France only)

accor.com

32, rue du Champ-de-Tir

BP 81236 – 44312 Nantes Cedex 03, France

Tel.: +33 (0)2 51 85 67 89

nominet.socgen.com

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he Acco Shae

SHARE PERFORMANCE OF ACCOR’S MAIN COMPETITORS

2008 2009 2010 2011 (1)

Intercontinental (IHG) –36.4% 58.9% 39.2% 10.1%

Marriott –43.1% 40.1% 52.9% –7.0%

NH Hoteles –69.8% 0.8% –8.6% 29.6%

Sol Melia –59.1% 38.5% 17.8% 14.0%

Starwood –59.3% 104.0% 67.1% –2.0%

Whitbread –34.5% 53.9% 26.9% 0.0%

(1) From December 31, 2010 to February 28, 2011.

SHARE PERFORMANCE

In euros 2007* 2008* 2009* 2010 2011(1)

Accor Year-end closing 54.70 35.11 38.25 33.29 34.08

High for the year 75.32 56.30 39.95 34.03 36.20

Low for the year 52.21 24.23 25.20 22.26 32.20

% change for the year –6.8% –43.1% +8.9% +25.2% +2.3%

Market value (€ billions) 12.6 7.7 8.6 7.6 7.7

Net yield(2) 5.8%(3) 4.7%(4) 2.7%(5) 1.9%(6) 1.8%(6)

CAC 40 Change for the year +1.3% –42.6% +22.3% –5.2% –6.6%

* Share performance before 2010 have not been adjusted from Edenred share.

(1) At February 28, 2011. (2) Based on year-end closing. (3) 3% on the ordinary dividend of €1.65 per share; 5.8% including the special dividend

of €1.50 per share. (4) Based on the ordinary dividend of €1.65 per share. (5) Based on the ordinary dividend of €1.05 per share. (6) Based on the ordinary

dividend of €0.62 presented for approval at the Shareholders’ Meeting on May 30, 2011.

Listed on

Euronext Paris

Compartiment A

ISIN code

FR0000120404

Included in the following indexes

CAC 40

SBF 120

EURONEXT 100

CAC LARGE 60

Included in the following sustainability indexes

Dow Jones

Sustainability Indexes

FTSE 4 Good

Aspi Eurozone

Ethibel Sustainability Indexes

ACCOR SHARE PERFORMANCE (from July 2, 2010 to February 23, 2011)

90

100

110

120

130

140

150

160

01/0

2/11

23/0

2/11

03/0

1/11

01/1

2/10

01/1

1/10

01/1

0/10

01/0

9/10

02/0

8/10

02/0

7/10

Accor: +30.90%CAC 40: +18.77%

LONGTERM SHARE PERFORMANCE

0

10

20

30

40

50

60

70

80

1110090807060504030201009998979695949392919089888786858483

Paris Index

Accor€51.40

(at April 20, 2007)

Demerger: Edenred initial public offering: July 2, 2010

January 1983 €4.80

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2010 RsulsPerformance in 2010 was driven by favorable hotel cycle dynamics, with a robust upturn in demand in most countries, followed by a gradual stabilization in average room rates. The Group made a faster-than-expected recovery and exceeded its previously announced objectives. EBIT amounted to €446 million in 2010. Now refocused on its core business as a hotel operator, Accor is ready to step up the pace of expansion, primarily through management contracts and franchise agreements. During 2010, the Group also decided to accelerate the implementation of its asset management program for 2011-2012, with a targeted €1.2 billion impact on adjusted net debt over the period.

Revenue

Consolidated revenue for 2010 totaled

€5,948 million, up 7.1% like-for-like and 8.4%

as reported. The expansion strategy increased

revenue by 1.4% to reported growth. The increase

was led by the opening of 214 hotels, representing

24,800 rooms, essentially under management

contracts and franchise agreements. The twin

impacts of (i) the disposal of

non-strategic businesses and

(ii) the ongoing deployment

of the asset-right strategy,

which together reduced

reported growth by 3.7%.

Lastly, a 3.6% positive

currency effect on reported

growth was primarily due

to the decline in the euro

against the Australian dollar,

Brazilian real and US dollar.

Hotels revenue rose with the favorable hotel cycle

dynamics driving sustained growth that gained

momentum in the second half. The recovery that

began during the first half in the main country

markets (France, Germany and the United Kingdom)

gradually spread to most of the rest of Europe

in the second half as occupancy rates continued

to rise and average room rates began to turn

upwards, particularly in the fourth quarter.

The revenue figure was also lifted by strong

business growth in emerging markets, especially

in Asia and Latin America.

EBITDAR

EBITDAR (earnings before interest, taxes,

depreciation, amortization, provisions and rental

expense) represents a key indicator of financial

performance. Consolidated EBITDAR amounted

to €1,814 million in 2010. EBITDAR margin rose

to 30.5% of consolidated revenue in 2010, a gain

of 2.9 points on 2009 as reported and 1.9 points

like-for-like. This increase reflects the Group’s

improved operating performance during the year

as well as ongoing cost discipline measures, with

the successful deployment of a €45 million support

cost reduction plan. In all, support costs were cut

by €132 million in 2009 and 2010 on top of the

€165 million in cost savings achieved in owned and

leased hotels in 2009. The Hotels business enjoyed

a high 54% flow-through ratio in 2010(1), but the

picture was mixed across the Group’s various host

countries due to local differences in the pace of

Quarterly change in 2010 Hotels revenue, like-for-like and year-on-year

+1.6%

+8.2%

+9.8% +9.4%

+7.4%

Q1 Q2 Q3 Q4 Q4 YTD

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economic recovery. The main growth drivers were

the United Kingdom and Germany where there was

a sharp cyclical upswing, followed by France and

the rest of Europe (except for Spain and Italy).

Meanwhile, business levels were brisk in emerging

markets throughout the year.

EBIT superior to announced target

EBIT, corresponding to EBITDAR after depreciation,

amortization, provisions and rental expense, surged

90.1% as reported and 82.4% in like-for-like basis

to €446 million in 2010 from €235 million the

previous year. This reflects a good recovery in

hotels activity, in particular on Upscale segment.

Net profit, Group share

Net profit, Group share amounted to €3.6 billion,

versus a net loss of €282 million in 2009. It was

primarily due to the combined impact of:

The €4,044 million non-cash capital gain

on the demerger of the Services business, which

was listed on the stock market under the name

Edenred on July 2, 2010.

The €79 million loss arising from the mark-

to-market adjustment on Groupe Lucien Barrière.

€284 million in impairment losses, primarily

reflecting the outcome of impairment tests

on Motel 6 assets.

A €263 million write-down of a Compagnie

des Wagons-Lits tax receivable.

Earnings per share, based on the weighted average

226 million shares outstanding in 2010, came

to €15.94 compared with a loss per share of €1.27

one year earlier.

Operating profit before non-recurring items, net of

tax stood at €280 million. Operating profit before

non-recurring items per share stood at €1.24 in

2010, it will contribute to the payment of €0.62 per

share, a 50% payout ratio.

(1) The flow-through ratio corresponds to the change in like-for-like EBITDAR / the change in like-for-like revenue.

REVENUE

€5,948 millionEBITDAR

€1,814 million

EBIT

€446 millionOPERATING PROFIT BEFORE NONRECURRING ITEMS

€280 million

EBITDAR MARGIN

30.5%

2010 REVENUE BY REGION

NORTH AMERICA 10%

LATIN AMERICA AND CARIBBEAN5%

FRANCE34%

REST OF EUROPE39%

ASIA PACIFIC 10%

AFRICA MIDDLEEAST 2%

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NORTH AMERICA€7 million

LATIN AMERICA AND CARIBBEAN€32 million

FRANCE€70 million

REST OF EUROPE€126 million

REST OF THE WORLD* €86 million

Cas fow

€0.62DIVIDEND(1) PER SHAREThe payout rate, calculated on operating profit before

non-recurring items, net of tax(2), stood at 50%, compared

with 72% in 2009.

(1) Subject to approval at the Combined Ordinary and Extraordinary Shareholders’ Meeting on May 30, 2011.(2) Operating profit before non-recurring items, net of tax = operating profit before tax and non-recurring items less operating tax, less minority interests.

€695 millionADJUSTED FUNDS FROM OPERATIONSfrom ordinary activities (cash available to finance investments and

dividend payments) totaled €695 million in 2010, more than

in 2009 (€520 million).

€281 millionRENOVATION AND MAINTENANCE EXPENDITURE (EXCLUDING DISCONTINUED OPERATIONS)After renovation and maintenance expenditure, which represented

4.7% of revenue, free cash flow stood at €414 million.

€340 millionCOMPARED WITH €420 MILLION IN 2009EXPANSION EXPENDITURETo optimize earnings, Accor is focusing its expansion capital expenditure

on the Economy Hotels outside the US segment and emphasizing asset-light

operating structures in the Upscale and Midscale segment.

HOTEL EXPENDITURE* BY REGION €321 MILLION* Including hotel openings and major renovation projects.

* Includes worldwide structures.

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€630 millionDISPOSALSReduction in adjusted net debt related to Asset Management program.

11.3%ROCEA measure of how effectively a company uses the money

invested in its operations, return on capital employed amounted

to 11.3%, versus 8.3% in 2009.

ROCE is the ratio of:

(dividends and interest from associates and non-consolidated

companies) analyzed by business;

non-current assets before depreciation, amortization and

provisions, and working capital, analyzed by business.

18%VERSUS 50% IN 2009

NET DEBT TO EQUITY

Gross debt by type of rate

Gross debt by maturity

Average cost of gross debt: 6.40%

20.1%VERSUS 15.5% IN 2009 (ADJUSTED AMOUNTS) FUNDS FROM OPERATIONS BEFORE NONRECURRING ITEMS / ADJUSTED NET DEBTAn indicator of the Group’s solvability, this ratio is calculated

according to a method used by the main ratings agencies,

with net debt adjusted for the 8%-discounting of future minimum

lease payments.

■ VARIABLE RATE

■ FIXED RATE

■ > 6 YEARS

■ 3 TO 6 YEARS

■ 1 TO 2 YEARS

■ < 1 YEAR

22%

78%

18%

67%

5%

10%

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Sumary inacial sateent

SUMMARY BALANCE SHEETIn € millions 2008(1) 2009(2) 2010

ASSETS

Goodwill 1,932 1,777 743

Intangible assets 512 488 409

Property, plant and equipment 4,324 4,306 3,682

Total non-current financial assets 403 428 480

Total non-current assets 7,397 7,290 5,555

Total current assets 3,984 4,312 2,310

Total assets 11,417 11,746 8,678

EQUITY AND LIABILITIES

Equity attributable to shareholders 3,298 2,997 3,650

Equity 3,556 3,254 3,949

Total non-current liabilities 5,974 6,072 5,964

Total current liabilities 5,443 5,670 2,336

Total liabilities and shareholders’ equity 11,417 11,746 8,678

1) The financial statements have been adjusted to reflect the change in accounting method used for loyalty programs. Impact of the retrospective application of IFRIC 13 “Customer Loyalty Programs” (see note 1 of the Consolidated financial statements – 2009 Registration Document). (2) In accordance with IFRS 5 “Non-current assets held for sale and discontinued operations”, the 2009 consolidated income statement has been adjusted to exclude operations discontinued in 2010, corresponding to the Services business (Edenred), Groupe Lucien Barrière and on-board train services. (3) Submitted for approval at the Combined Ordinary and Extraordinary Shareholders’ Meeting on May 30, 2011.

SUMMARY STATEMENTS OF INCOMEIn € millions 2008(1) 2009(2) 2010

Consolidated revenue 7,722 5,490 5,948

Operating expense (5,432) (3,972) (4,134)

EBITDAR 2,290 1,518 1,814

Rental expense (903) (854) (934)

EBITDA 1,387 664 880

Depreciation, amortization and provisions (446) (429) (434)

EBIT 941 235 446

Net financial expense (86) (124) (134)

Share of profit of associates 20 (3) 22

Operating profit before tax and non-recurring items 875 108 334

Restructuring costs (56) (110) (31)

Impairment losses (57) (241) (284)

Gains and losses on management of hotel properties 111 7 4

Gains and losses on management of other assets 13 (27) (35)

Operating profit before tax 886 (263) (12)

Income tax expense (273) (32) (392)

Profit or loss from discontinued operations – 30 4,014

Net profit/(loss) 613 (265) 3,610

Net profit/(loss), Group share 575 (282) 3,600

Net profit attributable to minority interests 38 17 10

Weighted average number of shares outstanding (in thousands) 221,237 222,890 225,838

In €

Earnings per share 2.60 (1.36) (1.82)

Ordinary dividend per share 1.65 1.05 0.62(3)

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2010 Registration Document

CASH FLOWSIn € millions 2008(1) 2009(2) 2010

Funds from operations excluding non-recurring transactions 1,111 520 695

Renovation and maintenance expenditure (488) (288) (281)

Free cash flow 623 232 414

Expansion expenditure (1,086) (420) (340)

Expenditure on assets held for sale (5) – –

Proceeds from disposals of assets 560 339 556

Ordinary dividends paid (387) (396) (249)

Special dividends (332) – –

Decrease/(increase) in working capital 8 175 44

Return to shareholders (62) – –

Proceeds from issue of share capital 25 (49) 198

CIWLT tax dispute – (242) –

Other (212) (78) (170)

Cash flow for discontinued operations – (113) 441

Decrease/(increase) in net debt (868) (552) 894

(1) The financial statements have been adjusted to reflect the change in accounting method used for loyalty programs. Impact of the retrospective application of IFRIC 13 “Customer Loyalty Programs” (see note 1 of the Consolidated financial statements –2009 Registration Document). (2) In accordance with IFRS 5 “Non-current assets held for sale and discontinued operations”, the 2009 consolidated income statement has been adjusted to exclude operations discontinued in 2010, corresponding to the Services business (Edenred), Groupe Lucien Barrière and on-board train services.

CONTENTS

1. CORPORATE PRESENTATION

2. CORPORATE GOVERNANCE

3. FINANCIAL REVIEW

4. FINANCIAL STATEMENTS

5. CAPITAL AND OWNERSHIP STRUCTURE

6. SHAREHOLDERS’ MEETING

7. OTHER INFORMATION

Detailed financial data are included in the Registration Document

filed with Autorité des Marchés Financiers. Its table of contents is

presented below.

The Registration Document can be downloaded from our website accor.com/finance

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Stakeholders At stake Objectives(1) set in 2006 for year-end 2010

SHAREHOLDERS

Ensure compliance with the corporate governance principles for listed companies, as described in the AFEP-MEDEF reports on corporate governance.

Assess the Board of Directors’ efficiency and effectiveness.

Pursue measures to improve efficiency, especially through a more streamlined organization with a leaner Board and three specialized committees instead of five.

Ensure the transparency of financial and strategic information about the Company provided to financial markets.

Deepen relationships with individual and institutional shareholders through more instructive content and greater responsiveness.

CUSTOMERS

Satisfy customers’ needs and requests.

Pursue the brand audit program to ensure service quality in all chains.

Deploy satisfaction surveys in all hotels worldwide.

Guarantee superior service. 100%-certification for the ibis network in Europe, Morocco and Brazil and deployment in new countries.

Ensure customer safety and security.

Continue to deploy safety, security, crisis management and crisis communication training programs.

Introduce a safety/crisis management module for managers with the Accor Academy.

To manage sensitive situations and crises, organize training programs and regular drills for teams with decision-making responsibility at all levels.

Promote good health through wholesome, balanced diets.

Deploy a balanced nutrition offering in new countries and new hotel brands.

Build customer awareness of HIV/AIDS and malaria prevention.

Pursue HIV/AIDS and malaria prevention initiatives.

EMPLOYEES

Promote diversity in employee profiles and career paths and ensure equal opportunity.

No objective set for 2006-2010.

Renew and extend the compensation surveys.

Take action to reduce differences as necessary.

Sign a new Group-level agreement for the period 2009-2011.

Provide compensation in line with local practices.

Conduct systematic compensation surveys and audits outside France and continue to develop an overall compensation policy.

Improve employee training programs. Guarantee one training session per person per year.

Promote job mobility.

Organize one performance appraisal per person per year.

Continue to promote international career opportunities.

Promote social dialogue. Maintain constructive discussions with employee representatives.

(1) Through these commitments to achieve its goals, Accor applies the 10 principles of the United Nations Global Compact.

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Situation in 2006 2006-2010 results and 2010 highlightsAchievement indicator

Accor complies with the AFEP-MEDEF corporate governance code for listed companies.

In 2006, adoption of a new corporate governance system, based on a Board of Directors, to replace the previous two-tier structure with a Supervisory Board and a Management Board, introduced in 1997.

Creation of new specialized committees.

Accor complies with the AFEP-MEDEF Corporate Governance Code for listed companies as amended in December 2008, except with regard to the matters described on pages 78 and 83 of the 2010 Registration Document.

In 2007 and 2008: assessment of the Board of Directors’ operating procedures and implementation of improvement actions.

In 2010: the Board met nine times, with a 96% attendance rate; the three specialized committees met a total of 17 times, with a 77% attendance rate; the Board of Directors’ Code of Conduct was amended to prohibit directors from participating, directly or indirectly, in the sale of any of the Group’s hotel assets for any amount whatsoever.

Meetings with 580 representatives of 353 financial institutions. Organization of 31 roadshows and participation in three international conferences. Organization of an Investor Day. Contact with over 2,000 individual shareholders through meetings, tours and trade shows.

Every year: meetings with more than 500 representatives of over 200 financial institutions, contact with more than 500 individual shareholders, organization of around 20 roadshows worldwide. Four Investor Days between 2006 and 2010.

In 2007, creation of a working group comprising 15 members of the Shareholders Club, who meet twice a year.

100% for hotelF1, Etap Hotel, ibis and Mercure in Europe.

90% for Novotel in Europe.

65% for Sofitel around the world (Europe, Asia and Africa).

All of the hotels have been audited, except for Motel 6 in the United States.

Creation in 2008 of a Guest Satisfaction Survey (GSS) with results permanently posted online for consultation by frontline staff and hotel brands.

The survey tool has been deployed in 3,670 hotels worldwide, representing 90% of the network.

610 ibis hotels certified, 80% of the network.758 ibis hotels certified in 21 countries, 84% of the global network, and 100% of the ibis network in Europe, Morocco and Brazil.

350 hotel general managers trained in France.More than 1,000 hotel general managers trained worldwide between 2006 and 2010.

No crisis management system aligned at corporate level in place yet.

Between 2006 and 2010: creation of a crisis management system and deployment across the entire Group. Training for members of crisis units.

In 2010: crisis units activated to manage several natural disasters, health issues (AH1N1) and political events. Business continuity plans prepared to help headquarters and hotels respond to natural disasters, health problems and other events.

ibis involved in Nutritional Balance program in France.ibis involved in Nutritional Balance program in France and Spain.

Novotel: “Balanced meal” option in children’s menus deployed in 35 countries.

190 hotels with condom dispensers.Creation in 2007 and subsequent distribution of two films on preventing HIV/AIDS and malaria. Condom distributors for customers and employees in 2,000 hotels. Launch of the Pasteurtravel.com health information website for travelers in early 2010.

Women account for 51% of workforce and 44% of managers. Women account for 50% of workforce and 43% of managers. N/A

No significant difference noted in men and women’s compensation.

In France, annual calculation of average salary differences between men and women (frontline staff, supervisors, managers) so that corrective measures may be introduced.

Percentage of disabled employees: 3.51%.Percentage of disabled employees: 3.79%.

Signature in 2009 of a new Group agreement covering 2009-2011.

Regular surveys show salary policy to be in line with market practices.

Surveys conducted in 2006: Asia, for management positions; France and Brazil for all positions.

Regular compensation surveys by job track, business or region. In 2010: surveys in France, Spain, Portugal, the Middle East, Egypt and Switzerland; reviews of executive committees in the United Kingdom, of the regional multi-brand support functions in Singapore and of Sofitel worldwide.

169,700 employees attended at least one training session.

Training budget as a % of total payroll: 2.2%.

110,183 employees attended at least one training session.

Training budget as a % of total payroll: 1.9%.

2005-2006: 70% of employees had an annual appraisal. 2009-2010: 73% of employees had an annual appraisal.

Around 20,000 employees changed their job category and/or region.

In 2007, creation of a Group international mobility policy and a dedicated team to manage it.

June 2005-July 2006: 46 collective agreements. 2010: 28 collective agreements signed.

  Result meeting or exceeding target objective.    Result close to objective or showing genuine progress.    Area of improvement. N/A No objective set.

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Stakeholders At stake Objectives(1) set in 2006 for year-end 2010

EMPLOYEES

Ensure employee health and safety.

Pursue actions to reduce work-related accidents and occupational diseases.

Deploy the ACT-HIV program in all hotels to lead the fight against HIV/AIDS.

Deepen understanding of the local social safety net and continue to deploy medical coverage and benefits in the event of death or disability.

Improve employee recognition and satisfaction.

Ensure that all employees participate in a survey of their unit at least once every two years.

SUPPLIERS

Take into account supplier-related social and environmental risks.

Determine operational priorities for applying the Sustainable Procurement Charter.

Raise supplier awareness of sustainable development practices and help them integrate them into their operations.

Set up a program with at least one network of service providers in 20 countries.

ENVIRONMENT

Deploy the Environment Charter.

Apply the Hotel Environment Charter in all owned and leased hotels.

Launch an independent data control process.

Apply the Environment Charter in headquarters and offices of all Accor units.

Pursue the sustainable development certification process.

Obtain environmental sustainable development certification in 20% of Accor hotels.

Integrate eco-design criteria into product development.

Integrate environmental criteria in the choice of hotel products, from complimentary bathroom items to room construction materials.

Manage energy use.

Reduce consumption by 10% per room in owned and leased hotels.

Equip all owned and leased hotels with energy-efficient lamps.

Promote the use of renewable energy sources.

Increase the number of hotels equipped with solar thermal panels by a factor of five to 200.

Manage water use.Reduce consumption by 10% per occupied room in owned and leased hotels.

Equip all owned and leased hotels with flow regulators.

Manage waste.

Recycle paper, cardboard and glass in 70% of owned and leased hotels.

Process batteries and compact fluorescent tubes and light bulbs in 95% of owned and leased hotels.

Develop green purchasing.Increase the number of hotels serving organic products.

Increase the number of hotels offering eco-labeled products.

Protect biodiversity. All hotels to take part in environmental-protection or tree-planting initiatives.

LOCAL

COMMUNITIES

Support local economic and social development.

Extend the distribution of Fairtrade-Max Havelaar products.

Increase the number of projects supporting local production.

Plant for the Planet objective for 2012: finance the planting of 3 million trees through 7 reforestation projects with strong social impact.

Lead the fight against sexual tourism involving children.

Formalize the Group’s commitment in all host countries in Africa. Extend the approach in Europe. Strengthen in-house training through Accor Academy’s “Accor Manager” program.

Identify risks of local corruption.Deploy the guide for combating corruption to raise awareness and train employees in business ethics within each skills cluster, business or region.

Develop and structure solidarity initiatives. Increase the number of projects in host countries.

anaging the ustaiable devlopment pocess

(1) Through these commitments to achieve its goals, Accor applies the 10 principles of the United Nations Global Compact.

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Situation in 2006 2006-2010 results and 2010 highlightsAchievement indicator

Work-related accident frequency rate: 21.1. Work-related accident frequency rate: 13.6.

Survey of the current situation with regard to raising employee awareness of HIV/AIDS prevention.

Creation of the ACT-HIV tool in 2007 and subsequent deployment and implementation of national action plans in 32 countries. 40,000 employees trained in 2010.

Definition of a minimum package offering health insurance and death benefits to employees and their families in Africa, following a 2005-audit of local healthcare systems.

Ongoing review of existing coverage and extension of healthcare and other coverage, depending on local needs. Benefits include insurance and a complete range of healthcare coverage, including routine care, hospitalization, maternity benefits and eye care.

In 2005-2006, more than 50,000 employees took part in an internal opinion survey. 86% of the people surveyed said they were proud to work for Accor.

In 2009-2010, 69,340 employees took part in an internal opinion survey organized in their unit and coordinated at corporate level. 86% of the people surveyed said they were proud to work for Accor.

Inclusion of the Accor Sustainable Procurement Charter in international contracts and in nationwide contracts in three countries.

Strengthening of the Accor Sustainable Purchasing Charter and inclusion of the Charter in international and nationwide contracts.

No structured program for suppliers in place yet.

Integration of sustainable development criteria in all calls for bids. 11 procurement families include products certified in accordance with a recognized sustainable development standard. Pilot project to assess the social and environmental performance of 53 suppliers and implement support plans if necessary.

3,228 hotels apply the Accor Hotel Environment Charter, representing 78% of the network, of which 93% of owned and leased hotels and 41% of franchised hotels.

3,706 hotels apply the Accor Hotel Environment Charter, representing 90% of the network, of which 100% of owned and leased hotels and 73% of franchised hotels. Eight Environment Charter actions verified through quality audits in 2,146 hotels.

No program tailored to offices in place yet.Introduction of the Accor Offices Environment Charter to offices in 2008 and widespread deployment.

207 hotels certified, 5% of the network.495 hotels or 12% of the network with ISO 14001, EarthCheck or Green Key Eco-Rating (Motel 6) certification. 105 hotels in the process of being certified.

Use of wood certified by the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC) for furniture in ibis and Novotel rooms.

Systematically integrate eco-design criteria into products and rooms, particularly in standardized brands hotels. In 2010: in the United States, Motel 6 Northlake obtained Leadership in Energy and Environmental Design (LEED) certification; in France, the all seasons Troyes Centre was designed in compliance with France’s BBC environmental standards, and eco-design criteria were used for the new Lenôtre meal tray, which is fully biodegradable and recyclable.

Reference year.Reduction of 5.5% per room compared with 2006 (based on a constant scope of reporting of 1,582 owned and leased hotels).

73% of owned and leased hotels equipped with energy-efficient lamps.

85% of owned and leased hotels equipped with energy-efficient lamps.

41 hotels in Europe equipped with solar thermal panels that produce hot water.

116 hotels equipped with solar thermal panels that produce hot water.

Reference year.12% water consumption reduction per occupied room in owned and leased hotels (based on a constant scope of reporting of 1,582 owned and leased hotels).

79% of owned and leased hotels equipped with flow regulators. 93% of owned and leased hotels equipped with flow regulators.

45% of owned and leased hotels recycle paper, cardboard and glass. 53% of owned and leased hotels recycle paper, cardboard and glass.

53% of owned and leased hotels process batteries and compact fluorescent tubes and light bulbs.

88% of owned and leased hotels process batteries and compact fluorescent tubes and light bulbs.

More than 450 hotels serve organic products. More than 1,100 hotels offer organic products.

More than 2,000 hotels serve eco-labeled products. More than 2,550 hotels offer eco-labeled products.

50% of hotels take part in environmental-protection or tree-planting initiatives.

76% of hotels take part in environmental-protection or tree-planting initiatives.

Fair trade products served in hotels in 17 countries. Amount of fairtrade products purchased by Accor hotels in France: 187 tonnes.

Fairtrade products served in hotels in 21 countries. Amount of fairtrade products purchased by Accor hotels in France: 335 tonnes.

One project with NGO Agrisud International in Cambodia.Support to 70 farm cooperatives.

Four projects with NGO Agrisud International, in Cambodia, Morocco and Brazil. Support to 300 farm cooperatives.

–Project launched in 2009. In April 2011: 1,200 hotels in 37 countries involved and 1.7 million trees financed.

N/A

Accor teams in 16 countries, including two in Europe, have signed the Child Protection Code of Conduct drafted by ECPAT and the World Tourism Organization. 6,000 employees trained between 2003 and 2006 (2,000 per year).

Accor teams in 33 countries, including 12 in Sub-Saharan Africa and 6 in Europe, have signed the Child Protection Code of Conduct drafted by ECPAT and the World Tourism Organization. 50,000 employees trained between 2006 and 2010 (10,000 per year).

Preparation of an in-house guide on preventing corrupt practices.Analysis of the revenue breakdown compared to findings in the Transparency International’s Corruption Perception Index.

Guide to preventing corrupt practices finalized and sent to all managers.

Numerous community support initiatives undertaken by employees.

Creation of the Accor Corporate Foundation in 2008 to support employee’s projects. In 2010, 42 projects financed in 14 countries through the Accor Corporate Foundation, with the support of more than 3,000 employees. Annual budget: €1 million.

  Result meeting or exceeding target objective.    Result close to objective or showing genuine progress.    Area of improvement.  N/A No comparison with previous years.

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Goup envionental inicaors Indicators corresponding to Hotel Environment Charter action

points are marked with a . Unless otherwise specified, these

indicators concern all Accor hotels worldwide, with the exception

of Adagio City Aparthotel units and Lenôtre facilities.

Thalassa sea & spa facilities apply the same Charter actions

as the hotels to which they are attached and their data are

consolidated along with those of the hotel. Results are expressed

as a percentage comparing the number of hotels implementing

a given action to the total number of hotels applying the Charter.

Some action points apply only to hotels equipped with special

facilities, such as a restaurant or laundry. In this case, the percentage

of hotels having implemented these actions is calculated based

solely on the total number of hotels concerned.

Indicators for water, energy and greenhouse gas emissions are

marked with and, unless otherwise specified, concern:

hotels in Europe, North America, Latin America & the Caribbean,

Asia, Pacific, Africa & Middle-East;

Lenôtre’s operations (the Plaisir production facility as well

as shops and restaurants in France).

Franchised hotels, Adagio City Aparthotel units and

Thalassa sea & spa facilities are not included in the scope

of reporting. In all, 2,717 hotels reported water, energy and

greenhouse gas indicators. Data were audited when reported

by Ernst & Young.

WATER AND ENERGY

France Rest of Europe North AmericaLatin America

and CaribbeanAsia Pacific

Africa

Middle East Total

2010

Total

2009

Change at comparable

scope of reportingowned managed owned managed owned managed owned managed owned managed owned managed owned managed

Number of hotels 634 32 676 81 653 12 72 91 43 178 58 69 45 91 2,735 2,845 2,540(1)

Energy used (MWh) 682,663 53,591 1,139,490 223,463 578,387 110,379 100,881 137,115 48,583 1,201,032 145,522 214,398 94,081 463,633 5,193,218 4,943,820 +6%

Water used (thousands of cu. m) 4,027 287 5,999 1,046 9,226 682 1,021 1,934 496 13,231 1,775 2,753 789 3,597 46,868 44,035 –1%

GREENHOUSE GAS EMISSIONS

France Rest of Europe North AmericaLatin America

and CaribbeanAsia Pacific

Africa

Middle East Total

2010

Total

2009

Change at comparable

scope of reportingowned managed owned managed owned managed owned managed owned managed owned managed owned managed

Number of hotels 634 32 676 81 653 12 72 91 43 178 58 69 45 91 2,735 2,845 2,540(1)

Direct emissions

(tonnes of CO2 equivalent)44,850 4,081 80,555 20,681 51,407 9,373 5,396 9,050 4,657 80,792 5,575 5,317 2,839 19,197 390,960 324,313 –6%

Indirect emissions

(tonnes of CO2 equivalent)37,710 2,895 330,373 47,717 195,111 33,776 16,763 20,061 20,134 520,521 65,002 123,482 28,608 211,672 1,648,585 1,608,689 +3%

(1) Number of hotels reporting in both years.

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MANAGING ENERGY USE FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Set objectives for reducing use 77% 85% 93% 91% 83% 63% 93% 83% 81% +10%

Monitor and analyze monthly use 88% 96% 89% 96% 96% 82% 98% 91% 91% +6%

List potential technical improvements 41% 67% 97% 75% 87% 62% 83% 67% 64% +11%

Organize preventive maintenance 84% 93% 92% 93% 92% 91% 96% 90% 89% +7%

Use compact fluorescent lamps for round-the-clock lighting 73% 84% 98% 84% 74% 80% 68% 82% 79% +10%

Used compact fluorescent light bulbs in rooms 67% 71% 97% 81% 65% 79% 72% 76% 71% +12%

Insulate pipes carrying hot/cold fluids 78% 89% 83% 87% 82% 77% 93% 83% 80% +9%

Use energy-efficient boilers 41% 62% 59% 67% 60% 38% 50% 53% 49% +13%

Use energy-efficient air-conditioning systems 33% 43% 69% 48% 50% 30% 61% 48% 45% +12%

MANAGING WATER USE FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Set objectives for reducing use 70% 78% 98% 87% 74% 54% 92% 79% 77% +10%

Monitor and analyze monthly use 88% 97% 90% 93% 94% 79% 96% 91% 91% +6%

Use flow regulators on faucets 79% 89% 95% 82% 79% 74% 81% 85% 79% +13%

Use flow regulators on showers 73% 89% 90% 78% 71% 83% 76% 82% 78% +10%

Use water-efficient toilets 63% 75% 69% 72% 78% 72% 70% 69% 67% +8%

Suggest to customers that they reuse towels 82% 90% 96% 89% 81% 91% 89% 88% 87% +8%

Suggest to customers that they reuse sheets 62% 71% 97% 67% 87% 84% 76% 75% 76% +6%

PROTECTING THE OZONE LAYER

FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Eliminate installations containing CFCs 44% 70% 91% 59% 52% 52% 71% 64% 61% +10%

Verify that equipment containing CFCs, HCFCs

and HFCs is leak-proof53% 82% 92% 78% 71% 74% 85% 73% 75% +4%

(1) Number of hotels reporting in both years.

102

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MANAGEMENT OF HAZARDOUS INDUSTRIAL WASTE

FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Dispose of hotel batteries safely 92% 94% 93% 83% 70% 55% 51% 88% 87% +7%

Dispose of customer batteries safely 73% 67% 74% 75% 51% 22% 17% 66% 60% +17%

Recycle electrical and electronic appliances 66% 87% 15% 57% 56% 41% 29% 56% 51% +15%

Recycle toner cartridges 96% 99% 90% 86% 79% 83% 70% 92% 92% +6%

Dispose of compact fluorescent tubes and light bulbs safely 82% 94% 93% 71% 77% 54% 35% 83% 80% +11%

WASTE RESOURCE RECOVERY FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Recycle paper/cardboard packaging 75% 92% 44% 83% 78% 84% 64% 72% 69% +9%

Recycle paper, newspapers and magazines 64% 94% 40% 90% 89% 80% 62% 69% 63% +14%

Recycle glass packaging 69% 93% 34% 83% 77% 72% 65% 68% 65% +10%

Recycle plastic packaging 40% 76% 38% 87% 79% 72% 58% 55% 49% +16%

Recycle metal packaging 35% 71% 48% 85% 78% 60% 42% 53% 49% +14%

Recycle organic waste from restaurants 9% 55% 26% 26% 59% 26% 23% 34% 34% +4%

Recycle green waste from lawns and gardens 67% 70% 26% 34% 48% 54% 42% 51% 48% +12%

Organize waste sorting in hotel rooms 14% 20% 24% 68% 57% 35% 35% 24% 22% +17%

REDUCING WASTE UPSTREAM FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Limit the use of disposable packaging for hotel supplies 43% 59% 19% 52% 73% 49% 53% 44% 37% +23%

Limit individual packaging for hygiene products 45% 50% 99% 38% 52% 21% 25% 57% 50% +20%

WASTEWATER FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Collect cooking oil 95% 93% 65% 85% 61% 81% 83% 87% 92% –0.3%

Collect fats 95% 91% 65% 87% 77% 88% 87% 90% 92% +3%

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ENVIRONMENTAL MANAGEMENT FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle EastTotal 2010

Change 2009-2010

Average number of actions deployed 37 43 43 40 35 38 37 40 +1 action point

RAISING EMPLOYEE AWARENESS FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Raise environmental awareness among employees 90% 93% 88% 88% 79% 83% 97% 90% 89% +7%

Integrate environmental protection into all job categories 86% 94% 95% 90% 85% 87% 91% 90% 86% +11%

RAISING CUSTOMER AWARENESS FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Raise environmental awareness among customers 74% 87% 97% 92% 88% 88% 88% 86% 79% +8%

Provide customers with environmentally-friendly

transportation alternatives54% 76% 67% 32% 69% 73% 29% 62% 64% –5%

BIODIVERSITY FranceRest

of Europe

North

America

Latin

America and

Caribbean

Asia PacificAfrica

Middle East

Scope of reporting

2010

Scope of reporting

2009

Change at comparable

scope of reporting

Number of hotels 1,265 881 859 165 215 187 133 3,705 3,519 3,315(1)

Reduce the use of insecticides 52% 71% 71% 73% 72% 59% 71% 65% 59% +13%

Reduce the use of herbicides 44% 65% 70% 68% 57% 56% 69% 59% 54% +13%

Reduce the use of fungicides 32% 61% 66% 66% 53% 48% 60% 52% 49% +11%

Use organic fertilizers 55% 63% 47% 78% 54% 63% 79% 57% 55% +7%

Choose plants suitable to the local environment 65% 75% 82% 89% 71% 80% 94% 75% 67% +17%

Plant at least one tree a year 53% 60% 88% 80% 72% 72% 85% 67% 68% +5%

Support a local environmental initiative 27% 51% 49% 73% 79% 57% 80% 46% 46% +7%

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HUMAN RESOURCES INDICATORS

the woen and te me of ccor, in rance

Consolidated Corporate Report – FranceIn compliance with French legislation, this Report consolidates data from the 2010 corporate reports prepared by French subsidiaries that

are at least 50%-owned and that have at least 300 employees. In all, the Consolidated Corporate Report now covers 77% of Accor employees

in France. This same scope has been used for most of the indicators shown in the first table. The Report concerns 16,044 employees in service

at December 31, 2010, irrespective of the type of employment contract.

NUMBER OF EMPLOYEES December 31, 2009 December 31, 2010

Total number of employees(1) 17,197 16,044

Percentage of women 54.7% 56.4%

Percentage of men 45.3% 43.6%

Average monthly number of employees 18,300 16,911

Number of full-time employees under permanent contracts 13,560 9,764

Number of part-time employees under permanent contracts 3,637 4,654

Number of employees under fixed-term contracts 1,590 1,626

Number of non-French employees working in France(2)

As a % of total employees

2,373

13.8%

2,032

12.7%

(1) All employees on the payroll at December 31, regardless off the type of employment contract.

(2) Number of non-French employees working in France.

HIRING December 31, 2009 December 31, 2010

Number of persons hired under permanent contracts 2,056 3,001

Percentage of women 46.7% 49.6%

Percentage of men 53.3% 50.4%

Number of persons hired under fixed-term contracts 7,393 8,936

Number of people under 25 hired 4,946 5,974

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HEALTH AND SAFETY CONDITIONS December 31, 2009 December 31, 2010

Number of meetings of Health, Safety and Working Conditions Committees 687 567

Number of employees receiving onsite safety training 5,714 5,179

EMPLOYEE RELATIONS December 31, 2009 December 31, 2010

Collective agreements signed in 2010 30 28

Total hours used for employee delegate activities 91,873 80,738

Number of meetings with employee representatives 1,984 1,683

EMPLOYEE BENEFITS December 31, 2009 December 31, 2010

Solidarity FundIn 1994, a solidarity fund was set up in France to provide administrative or financial assistance to employees faced

with major financial or family-related difficulties that they cannot overcome alone.

Works Council benefits budget (in millions of euros) 2 2

COMPENSATION December 31, 2009 December 31, 2010

2009 discretionary profit-shares paid in 2010

Number of beneficiaries(1)

Average gross amount per beneficiary (in €)

23,008

685

18,804

896

2009 non-discretionary profit-shares paid in 2010

Special employee profit-sharing reserve, net (in € millions)

Number of beneficiaries(1)

Average net amount per beneficiary (in €)

17

30,037

571

6

27,862

209

(1) Among employees who worked at least three months in the year.

ABSENTEEISM RATE(1) BY CAUSE December 31, 2009 December 31, 2010

Sick leave 6.5% 6.2%

Workplace and commuting accidents 1.5% 1.4%

Maternity, paternity and adoption leave 0.3% 0.3%

Paid leave for family reasons 0.4% 0.4%

Unpaid leave (unpaid vacation, parental leave) 3.6% 3.2%

Total 12.2% 11.5%

(1) Number of days of absence divided by number of theoretical working days.

106

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HUMAN RESOURCES INDICATORS

the woen and te me of ccor, orldwideAs of December 31, 2010, Accor employed 143,939 people, compared with 144,421 a year earlier. A new human resources reporting

system was deployed in the first half of 2010 to collect, process and consolidate our human resources indicators. This revamp also offered

an opportunity to review all of our human resources indicators and their definitions. Workforce indicators continue to be based on the average

number of employees for the year. The scope of reporting is still full-scope, which now covers:

all full- and part-time employees, irrespective of the number of hours spent on site (excludes contingent workers, interns

and temporary workers);

total headcount of subsidiaries and units managed by Accor under contract. Full-scope data do not reflect units in which Accor holds

a stake but is not responsible for managing the teams. Franchised hotels are not included.

EMPLOYEES OF MANAGED BUSINESSES AT DECEMBER 31, 2010

FranceRest

of Europe North America

Latin America

and Caribbean

Rest

of the world

Total

2010

Total

2009

Hotels 18,621 27,332 18,343 9,902 67,406 141,604 139,717

Upscale and Midscale Hotels 12,021 20,974 3,492 7,368 60,508 108,282 104,363

Economy Hotels 6,600 6,358 – 2,534 6,898 22,390 20,310

US Economy Hotels – – 14,851 – – 14,851 11,125

Other businesses 2,335 – – – – 2,335 4,704

Restaurants 1,200 – – – – 1,200 1,544

Onboard train services – – – – – – 1,957

Other 1,135 – – – – 1,135 1,203

TOTAL 20,956 27,332 18,343 9,902 67,406 143,939 144,421

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HUMAN RESOURCES INDICATORS BY REGION AT DECEMBER 31, 2010

FranceRest

of Europe North America

Latin America

and Caribbean

Rest

of the world

Total

2010

Total

2009

NUMBER OF EMPLOYEES 20,956 27,332 18,343 9,902 67,406 143,939 144,421

% women 57% 56% 70% 50% 40% 50% 49%

% men 43% 44% 30% 50% 60% 50% 51%

% under permanent contract 86% 80% 100% 94% 67% 78% 85%

% women 56% 56% 70% 51% 40% 51% 49%

% men 44% 44% 30% 49% 60% 49% 51%

Employees by age

Under 25

25 to 34 years

35 to 44 years

45 to 54 years

Over 55 years

17%

33%

26%

18%

6%

20%

35%

22%

17%

6%

19%

27%

23%

20%

11%

22%

42%

24%

10%

2%

21%

41%

24%

11%

3%

20%

37%

24%

14%

5%

20%

36%

24%

15%

5%

Employees by seniority

Under 6 months

6 months to 2 years

2 to 5 years

5 to 10 years

Over 10 years

14%

13%

23%

24%

26%

10%

21%

28%

18%

23%

29%

26%

22%

13%

10%

18%

29%

29%

16%

8%

19%

29%

27%

11%

14%

18%

25%

26%

15%

16%

15%

28%

24%

33%

–

Management

% of total workforce(1) 24% 17% 7% 11% 20% 18% 16%

% women 47% 48% 53% 47% 38% 43% 43%

% men 53% 52% 47% 53% 62% 57% 57%

Managers by age

Under 25

25 to 34 years

35 to 44 years

45 to 54 years

Over 55 years

2%

33%

36%

23%

6%

3%

35%

34%

20%

8%

3%

25%

29%

29%

14%

4%

46%

30%

16%

4%

6%

41%

34%

15%

4%

5%

38%

34%

18%

5%

4%

34%

35%

20%

7%

Training

Training expenditure as a % of total payroll 2.0% 2.1% 1.1% 3.2% 1.9% 1.9% 2.4%

Number of days of training 28,826 39,636 13,700 31,278 227,864 341,304 311,070

Number of days of training for managers 12,734 12,104 7,995 5,586 58,692 97,111 –

Number of days of training for non-managers 16,092 27,532 5,705 25,692 169,172 244,193 –

Number of employees having attended at least one training course

10,327 18,094 4,630 10,207 66,925 110,183 131,075

Number of managers having attended at least one training course

3,498 4,025 1,447 1,265 14,368 24,603 22,962

Number of non-managers having attended at least one training course

6,829 14,069 3,183 8,942 52,557 85,580 108,113

Average number of days of training(2) 1.4 1.5 0.7 3.2 3.4 2.4 2.2

Occupational

accidents

Lost-time incident frequency rate (LTIF)(3) – – – – – 13.6 18.2

Number of fatal accidents in the workplace 0 0 0 0 2 2 3

Number of fatal accidents commuting 0 0 0 1 6 7 2

(1) A manager is defined as an employee who manages a team and/or has a high level of expertise.

(2) Total number of days of training divided by the total workforce.

(3) Number of workplace accidents with lost time (as defined in accordance with local legislation) per million hours worked.

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Coporate dirctory

Accor Asia-Pacific250 North Bridge Road

#31-02/03/04

Raffles City Tower

Singapore 179101

Singapore

Tel.: + 65 (2) 6408 8888

Fax: + 65 (2) 6820 7082

accor.com accorhotels.com

Accor Customer Contact Center31, rue du Colonel-Pierre-Avia

75904 Paris Cedex 15

France

Tel.: + 33 (0)8 25 88 00 00

accorhotels.com

Head Office2, rue de la Mare-Neuve

91021 Évry Cedex

France

Tel.: + 33 (0)1 61 61 80 80

Fax: + 33 (0)1 61 61 79 00

accor.com

Executive Management

Immeuble Odyssey

110, avenue de France

75210 Paris Cedex 13

France

Tel.: + 33 (0)1 45 38 86 00

Fax: + 33 (0)1 45 38 71 34

accor.com

Accor North America4001 International Parkway

Carrollton, Texas 75007

United States

Tel.: + 1 972 360 9000

Fax: + 1 972 360 5821

accor.comaccor-na.comaccorhotels.com

Accor Latin AmericaAvenida das Nações Unidas,

7815 – Pinheiros

05425 905 São Paulo SP

Brazil

Tel.: + 55 (0)11 3818 6200

accor.com accorhotels.com

The document was written and produced by the Accor Communication and External Relations Department.

Design and layout:

Photo credits: A. Millot, A. Veldman, All rights reserved, B. Carleton, B. Dufour, B. Matliak, B. Peters, B. Wienkelmann, C. Lilly, C. Lung, C.J. Laird, D. Hudson, Diversey, DR Lenôtre, E. Angelelli, E. Berenguer, E. Cuvillier, Easy United, F. Charaffi, F. Gaudriot, F. Rambert, Fotostudio Andorfer, G. Aitken, G. Lung, G. Trillard, G. Ulung Wicaksono, Getty images, H.J. Freie, J. Biletta, J. Burlot, J.C. Comas, J. Lebar, J. Malinowski, J. Y. Gucia, J.D. Martin, J.F. Chapuis, J.F. Deroubaix / Gamma / Eyedea, J.M. Simonnet, J.Y. Gucia, L. Bunnag, L. Selvais, M. Arcimowicz, M. Bertrand, M. Gabdrakhmanov, M. Pecheur, Matton, P. Stuckings, P.E. Rastoin, Ph. Wang, Max Haavelar photographic library, R. Cortin, R. Eason, R. Optich, S. Detalle, S. Kraus, S. Ribera, Sanya Linhai Real Estate Development Ltd, Solidarité Féminine, Stock Photography , V. Romero, W. Singnoi, Widevision Photography / Bernard Vanden Eynde, Y. Don, Y. Forestier, Z. Ji Qiang.

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Copywriting: Antoine Blachez.

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