Accor recapitalized its Belle Rivière Hôtel subsidiary for €9.6million.

The liquidation of the SCI Anbo, SCI des hôtels Roissy et Orléans, SCI Carnan, Accor Réservation Services GmbH, Newco Mercure GmbH and subsidiaries gave rise to a capital loss of €77.9million, offset by €74.5million in provision reversals.

The merger of subsidiaries Société Internationale des Hôtels Novotel, SGHP, Frantour and Mercure International Hôtels (into which Sogetel had previously been merged) with the The Newgen Hôtels France subsidiary created the Société des Hôtels Novotel et Mercure, in which Accor now owns an 82.9% stake.

The ibis megabrand project

To step up its strategic expansion, Accor announced in summer 2011 that it planned to reposition certain brands. The resulting “ibis megabrand” project is now transitioning ibis, all seasons and Etap Hotel into a new family of three strong brands, known respectively as ibis, ibis Styles and ibis budget.

As part of this process, Accor SA has undertaken to subsidize the costs incurred by its franchised, managed, owned and leased hotels to deploy these brands’ visual identities. These grants totaled €13.3million in 2012.

Hotel transactions

The sale of five Novotel units (Ury, Besançon, Colmar, Nancy Sud and Nancy Ouest) and of the Mercure Chamonix gave rise to a capital gain of €4.1million.

Transactions in Accor SA shares

In 2012, Accor paid a cash dividend for 2011 amounting to €1.15 per share, representing an aggregate payout of €261.3million.

Equity increased following the issuance of 26,526 shares on exercise of stock options and stock savings warrants.

This increased the share capital by €79,578 and additional paid in capital by €514,898.

All these transactions are described in further detail on page312 of the Registration Document.

The Company’s ownership structure is described in the “Capital and Ownership Structure” section on page314 .

Financing and investing transactions

In 2012, Accor issued €700million in five-year, 2.875% bonds. It also has €308million in private placement financing maturing in 2013, as well as €1,046million in funds from the three bond issues carried out in 2009 with maturities of five and eight years.

In addition, it has a five-year, €1.5billion syndicated credit facility arranged in 2011, €1,354.4million in term deposits and €293.9million in cash and cash equivalents.

Information about subsidiaries

Accor SA owns 50% or more of the capital of 138companies. The main equity interests, based on net value, are as follows:

a Accor Hotels Belgium (€1,002.3million net) is the Belgian company that operates the hotels in Belgium and also owns interests in Accor Asia (100%), AAPC, the holding company for the Accor Group’s Hotels business in Australia (81.9%), Portugal-based hotel operator AHS (50.0%), Accor Hoteles España (83.1%), Groen Brugge Hotel (99.9%) and Accor Hotels Luxembourg (100%).

Accor Hotels Belgium reported a net profit of €11.5million in 2012, versus €21.4million in 2011.

a Accor Hospitality Germany (€518.4million net) is the German company that operates 340 hotels in Germany.

In 2012, it reported a net profit of €10.2million, versus €38.1million in 2011.

a IBL (€400.1million net) owns 37.9% of Accor Lodging North America, the holding company for the Hotels business in the United States. It does not have any other activities. IBL’s profit varies depending primarily on the interest income received from Accor on current account advances and on the amount of any dividends received from Accor Lodging North America.

In 2012, it reported a net loss of €222.6million, compared with a loss of €118.1million in 2011. The deterioration stemmed mainly from a €226.0million addition to provisions recorded during the year to write down IBL’s investment in ALNA. Consequently, IBL did not pay any dividends to Accor SA during the year.