Accor Sa

good morning good morning everyone thank you so much for joining the year and release for our course so i'm gonna start pretty short and sweet uh if i may so you have the first light in front of you those looking at us looking at your screen uh four things four takeaways uh for the group the first is we are yeah we are um happy with the results of the last year. We are certainly overachieving what we expected the last time we've talked in September and end of the third quarter, or certainly after the end of the first semester number when we've met physically late July and August. And we still have the headwinds in so many economies, so many geographies, but yes, we are thrilled with what was achieved by the teams and by the different brands of this company. Why are we relieved and happy? I think because we really delivered on what we've been promising to you, which is cost discipline. A lot of it is due to do we have the rigor? Do we have the discipline? Do we have the right plan? And do we have the right accountability? So the focus on the execution of the plan is something which is extremely important has been the case for the last three years will be the case for the next probably 10 years and certainly for the next two years until the capital market day is finished by 27 which means we're going to have to do another plan way beyond 27 because of course it doesn't stop in 27. uh the third element here which is quite interesting is We're getting stronger and stronger and stronger when it comes to signing new partnership and certainly due to the robustness of the loyalty program. All Accor is very welcomed in the numbers of geography. You probably have seen the number with over 15 million new members last year. That 15 is being 12 a year before, probably going to be between 15 and 20 million this year. So that program, the benefit of the program, the credibility, the notoriety is immense. And that is true in all geography of this company, be it in Europe, in South America, and certainly in Asia. And since you have a very beneficial partnership and loyalty program that, of course, a lot of people want to piggyback and paddle with us on those programs. So you're going to see non-REF power revenues increasing year after year, which is what we've been asking for and planned for the last three years. And finally, four is we're doing all this to make sure we have sufficient cash to be returned to the shareholders and all the cash being returned, 743 million, which is 6.5% of the market cap as of the 1st of January last year, is what we also promised to you at the time of the Capital Market Day. So everything is really green light and there's probably a lot of things we're going to be sharing with you over the next one hour and a half. So I'll turn it over to Martine on getting deeper on all the different numbers.

Thanks, Sebastian, and good morning, everyone. So I'll start with the highlight. for the full year financial. For the third year in a row, ICAR's performance is in line or above its midterm perspectives, as announced in June of 2023. And I'm very pleased to report that we had a very strong finish in 2025 with results above actually our annual guidance. We exited 2025 with a very broad-based acceleration in REVPAR and in net unit growth, which bodes well for 2026. REF bar growth, as you can see here, was an impressive 7%, and actually that's our best quarter in 2025 on both divisions. The performance was, again, mostly driven by rates over this quarter, but occupancy rates also was up one point year over year. This drove full-year REFPA growth to a very solid 4.2%, that is above the high end of our midterm guidance and above the high end of our annual guidance, confirming the benefits of our geographical and segment diversification. Room revenue growth was driven both by leisure and business, which proved remarkably resilient, with corporate activity actually picking up speed in the fourth quarter. NUG, or net unit growth, accelerated to 3.7%, which is in line with a circa 3.5% guidance with a record level of openings in the fourth quarter. Pipeline grew at the very healthy double-digit growth of 10%, with signings up 28% year over year, comforting us in our ability to further accelerate the growth of our network toward the higher end of our midterm guidance of 3% to 5%. Our financial performance for the full year 2025 is in line with our midterm growth algorithm. M&F, management and franchise, revenue was up 6% at constant currency year over year, with total revenue reaching $5,639,000,000. Recurring EBITDA grew at 13% at constant currency, reaching $1,201,000,000. That is above the high end of the guided range. An operating leverage with a solid 100 basis points improvement in M&F EBITDA margin. and we delivered 16% growth in adjusted EPS. Adjusted EPS is a new metric we will report on going forward and which we believe is a more consistent measure of earning growth. It is defined as reported EPS excluding non-recurring items and S&D contribution and you will find a detailed bridge between reported and adjusted in the appendix section. Recurring free cash flow reached 632 million or a 53% cash conversion. And as we heard from Sébastien, we delivered yet another year of strong shareholder return at 743 million, which equates to 6.5% of the market cap. That brings the total shareholder returns in the last three years to 2.1 billion. Let's now turn to the fourth quarter ref bar on slide seven. PME posted a very solid REF bar growth of 5.8%, mostly driven by pricing, as you can see here. In the quarter, rate was up 5% and occupancy was up 1.68%. ENA rebounded in the fourth quarter with a REF bar growth of 3.3%, equally driven by occupancy and rates. Our three biggest markets, which are France, Germany and the UK, were all positive in the quarter. The region also benefited from the very good results of our winter sales activity, which reflects the continuous appetite for travel. In France, Paris rebounded in the fourth quarter with an excellent month of December and growth in the mid single digit for the quarter. The province delivered growth in the low single digits. In the UK, the rebound we observed in the third quarter was sustained in the fourth quarter with rough bar growth in the low single digit. In Germany, Refbar was back in positive territory in the mid-single digits after three quarters of negative growth. In Mayapak, the fourth quarter was up 7.6%, bouncing back from a softer Q3. The performance is driven by rates, while occupancy decreased, although that is related to China exclusively. If we exclude China, occupancy was up two points and Refbar was up 10.4% in that region. Mayotte continued to be a strong growth drivers with all large destination, including Saudi, Dubai, reporting ref bar growth in the mid teens in the quarter. Southeast Asia is back in the mid single digit territory. Singapore, Japan, and India posted high single digit growth and performance in Indonesia and Thailand sequentially improved, although still negative in the fourth quarter. Singapore benefited from a positive calendar event with the F1. and Japan posted solid growth despite the lower inflows from China. Pacific continues on its strong momentum, With a double-digit REF PAR growth in the fourth quarter, driven by price and occupancy, China continues to sequentially improve, but still posted negative mid-single-digit growth, as our portfolio in China in PME is mostly echo-mid. Actually, we saw an almost neutral REF PAR for the full year in our luxury portfolio for China, with the fourth quarter that was up 6% for the luxury. America's posted double digit ref bar growth with the Q4 up 11.7%. In addition to what has been consistent supportive demand, Brazil benefited from the COP 30 conference, which was held in November in Belém, where we have 8 hotels. If we turn now to luxury and lifestyle, REF bar growth was 9.5%, that is the strongest quarter of the year for luxury and lifestyle, and is driven by rate and occupancy. Rate was up 6% in the fourth quarter, occupancy was up 4 points in the fourth quarter. Luxury continues to outperform as a segment, with Q4 REF PAR up 9.4%, and all brands and regions contributed to this performance. That confirms the structurally supportive demand for this segment of the hospitality. Lifestyle also had a very strong REF PAR, almost 10% in the quarter. Results continued to perform very well, with REF PAR growth in the mid-teens, and Lifestyle Collective posted their strongest quarter of the year. Turning to slide eight, which breaks down our hotel portfolio and pipeline by division. The PME grew its network by 3%, and that is a clear acceleration from 2024 and is actually at the midpoint of the CMD guidance for PME. And that results from the acceleration of opening in the fourth quarter, notably with two large hotel openings, the handwritten in Las Vegas and the EBITS budget, Hidalgo Tower in Mecca. churn also started to slightly recede towards the end of the year. MEAPAC continues to be the growth engine over the period, represented the vast majority of the openings. Pipeline grew at a stellar almost 12% rate, reaching 198,000 room, which is 29% of the PME network, and that is up two points from last year. And that confirms the attractiveness of the PME brands. The M&F revenue per room was stable at €1,200. On the right, luxury and lifestyle portfolio grew by 7.5%, driven by Annie Smore, which delivered yet another year of impressive 18% growth in its network, in line with the CMD guidance. Fourth quarter again was particularly active with more than half of the annual openings in the fourth quarter. Notable openings in luxury and lifestyle include the Faena in Delano in New York City, the Orient Express in Rome, and the Emblem in Lucknum. The pipeline in luxury and lifestyle continued to grow at a sustained pace and signings grew in the mid-teens. Pipeline stands at 43% of the network and that's also up two points from prior year. And finally, the M&F revenue per room is stable at €3,900. So at group level, again, NUG reached 3.7%. That's a tad above our annual guidance of circa 3.5%, with record level of openings in the fourth quarter. Conversions were 58% of our opening, pretty consistent with 2024. And again, the pipeline grew 10% year over year, with a record level of signings in volume and value. We maintain a healthy mix in our pipeline between volume and value. Our strong focus on driving higher fee per room is reflected in the 67% growth in the value pipeline as compared to 2019, which is three times the growth of the pipeline in volume. Let's now turn to slide 10 with the revenue by segment. The revenue by segment and by division is provided in the appendix and in the press release. revenue reached 5 billion 639 million that's up four and a half percent at constant currency versus prior and it's a clear acceleration from the third quarter year to date the reported growth at 0.6 percent is negatively impacted by the fx scope effect uh in 2025 was an extra management and franchise revenue grew growth accelerated significantly in the fourth quarter, and we closed 2025 with growth of 5.9% at constant currency, which is in line with our mid-term guidance. Hotel Assets and Other Revenue was up 4.6% at constant currency due to the solid performance of our leased hotel in Brazil and Turkey, but also solid F&V activity at our Paris Society and Ricas restaurant. We disposed of the festive activity of Paris Society in the third quarter, which impacted our revenue in the fourth quarter for hotel assets and other. SMDL, which again stands for sales, marketing, distribution, and loyalty, revenue grew by 4.4% at constant currency. And as we called out in the third quarter, and you may recall this, The growth was impacted by the accounting revenue recognition of services provided to the Olympic Games organizing committee, which were EBITDA neutral. If we adjust for this, then SMDL revenue in 2025 would be up at 6.7% at constant currency. Turning to management and franchise revenue by segment on page 11, which grew almost 6% for the full year. And in the fourth quarter, M&F revenue growth was 16% at constant currency. And this reflects the REFBAR growth, a partial effect from the net tuning growth given the phasing of openings towards the end of the year and the impact of the flip to franchise in PME, which we have again commented in previous quarters. Incentive fees are stable as a percent of M&F fee at 33% and residential fees were also stable year over year as expected. PME M&F revenue was up 1.9% at constant currency. In the fourth quarter, PME M&F revenue growth was a very solid 6.7% at constant currency. The distortion on a four-year basis is mainly related to the switch from management to franchise contract for a portion of the contract, which again we called out since the beginning of 2025 and had overall a negative 2% impact on PME M&F revenue. and the phasing of openings, which took place again later in the year. Luxury and lifestyle, MNF revenue grew at 13% on a constant currency basis, which is in line with the growth of the REFBAR and the NUG. And the phasing of churn and openings, especially in lifestyle, explains a slight negative distortion on the MNF growth algorithm. Now let's turn to EBITDA on slide 12. Again, the group EBITDA reached $1,201,000,000, that's up 13.3% at constant currency that is above our 11-12% updated guideline in October. This is above the high end of the CMD guideline as well. The reported EBITDA growth at 7.2% includes a negative FX impact of 68 million, slightly above our initial estimate of 60 million. As for M&F, where more detail again is provided in the appendix by division. EBITDA is up 7.4%, again reflecting a one point Margin improvement in line with our operating leverage target. Both divisions improved their margin, although operating leverage was strongest in luxury and lifestyle. PME margin was negatively impacted in the second half by a provision on outstanding receivables of Brevo, which is an owner mostly in Germany that has filed for insolvency proceedings in January of this year. If we adjust for that, then PME margin would also have improved over 100 basins points, which is in line with its targeted operating leverage. As for hotel assets and others, EBITDA growth mainly stems from the solid revenue growth mentioned previously and a margin improvement in our F&B operations at Paris Society. As for SMDL, the significant growth in the SMDL EBITDA reflects the structural improvement in distribution and the growth in partnership and subscription. with a margin that is in line with our guidance of being at least 6%. In 2025, subscription and partnerships actually represented a third of the EBITDA of SMDL. And as you can see here, costs for the holdings were flat year over year. Moving on to the P&L on slide 13. As highlighted in my introduction, we have decided to start reporting on adjusted net income and adjusted EPS, as we believe it is a more consistent measure of earnings growth over time. And a detailed bridge again is provided in the appendix. Adjustment items are as follows. Other income and expenses, net of tax, share of profit and loss from our minority stake in Ascendi, and non-recurring tax-related items. In 2025, we achieved an adjusted net profit of €504 million, that's up 19% year-over-year, and an adjusted EPS of €1.84, that's up 16% versus prior. In 24, we benefited from a favorable timing on the payment of our hybrid coupons, which obviously impacts the 2025 EPS growth by about eight points. The 65 million charge we have for hybrid coupon in 25 is more representative of what we expect on a go-forward basis. Now, let me call out the main highlights for the income statement. Other income and expense at a negative 63 million included the recognition of a provision related to commitments in a joint venture and expenses related to the transformation of our tech platforms as well as restructuring costs. Share of net profit and associates reached 7 million. In 2025, S&D reported far fewer capital gains than it did in 2024, with a net profit for S&D that stood at $3 million in 2025 as opposed to $184 million in 2024. Net financial expense increase is driven by a higher debt level, a moderate increase in the average cost of debt, which still stands at a reasonable 3%. And in addition, 2024 was impacted by a non-cash-fareable FX change of about $16 million related to our U.S. balances in Egypt. Income tax expense is decreasing. Now, as a reminder, 2024 was impacted by a one-off taxation, which was related to the 2023 reorganization in two divisions. And in 2025, corporate income tax is fairly impacted by the evolution of our transfer pricing model. Now moving on to cash flow on slide 14. Recurring free cash flow reached $632 million in 2025 as compared to $614 million in prior year, reflecting a 53% cash conversion. Five main highlights to call out. Cash interest fairly stable, although not reflecting the coupon of the September bond. In 2026 we expect cash interest to be in the 100 million area driven by the increase in debt level mainly. Cash tax increased from 169 million to 202 million and that is due to higher taxable profits but also some non-recurring remittance taxes mainly in Brazil. We expect our cash taxes to be broadly stable in 2026. Recurring investments remained under control at 230 million versus 221 million in 2024, and this is in line with our mid-term guidance, and that reflects the group's acceleration in luxury and lifestyle, which requires slightly higher key money to support its faster pace of development. The working capital change is a negative 20 million in 2025 and that is driven really by the increase in trade receivables at the end of the year due to the very strong activity in the fourth quarter of last year. If we adjust for this receivable impact, which obviously will collect in 2025, then cash conversion actually would be close to 55%. And finally, net debt reached 3 billion 64 million at the end of December. And as a reminder, net debt was 3.1 billion at the end of June, with the main movements in the second half being recurring free cash flow, share buyback, some M&A activity, mainly in Mexico, and none other recurring items, mainly tech transformation and restructuring. Zooming in on our balance sheet and shareholder return on slide 15. We continue to have a proactive management of our liabilities. In 2025, ICO issued two bonds, senior bond, one in March, which is actually an eight-year bond to extend the maturity of our debt, and one in September, which is a seven-year bond. And as a result, the average debt maturity increased from 3.3 years to four years at the end of 2025 with a very well-balanced bond. maturity profile and a reasonable cost of debt at 3%. Net debt leverage and return to shareholders are managed at a level that allows us to be consistent with our investment grade rating as defined by regening agencies. On the right side of the slide, you have a summary of the return to shareholders since 2018. And the conjugation of a solid balance sheet and cash flow generation has enabled us to deliver steady and growing shareholder return and again in the last three years we have returned 2.1 billion to our shareholders which includes in 25 again a return of 743 million or six and a half percent of the market cap at the beginning of the year our policy as you're familiar with is to distribute an ordinary dividend equal to 50 percent of our recurring free cash flow and we will therefore propose To the Annual General Shareholder Assembly, a dividend of €1.35 per share, which is an increase of 7% versus prior year. Slide 16 covers our extra financial reporting on social and environmental targets, which are included in the Chairman and CEO compensation. And we delivered on all three goals. We reduced our water intensity by 5%. At the end of 2025, we had 57% of our hotels which achieved an eco-label certification. And we crossed the 40% level for women at the VP or above level with a share of 41%. And to conclude on slide 17, again, for the third year in a row, Accor's performance is in line or above its midterm perspectives announced in June of 2023, and we're also in line or above our guidance for 2025. We exited the year on a strong note and a good momentum, and that momentum is extended. into 2026, given what we see in January and February, which is a solid demand. And this comforts us in our ability to deliver the growth algorithm in 2026 that will be in line with our mid-term guidance. And I will now turn it back to Sébastien for concluding remarks.

Thank you so much, Martine. In many ways, I'm actually wondering whether you're not more American than French, which is great in both cases. Let me just turn to the final slide and then we're going to go to the Q&A. Five things here. Number one, we on purpose added the word laser focused. We've made a commitment to each of you over the last few years is to really be stringent on delivering capital market day KPIs. We've done it the first three years, but we're going to do it again. in the remaining two years, certainly in 26 and in 2027. The second one, which is very much linked to being able to deliver on the capital market day 23-27 plans, you need to accelerate on the net unique growth and you need to accelerate on trying to get some non-REF power revenues from loyalty partnerships and others. The one thing which is striking, and Martin was talking about it, The NERG has been 3.7% last year, which is roughly 50,000 rooms being opened, which is kind of a record number ever for our core. We're certainly looking for overachieving that 50,000 rooms marker, and we know where we're going. Why do we know? never enjoyed so much of a signing pace over the last few months of 2025, and notably in PME. So I need to thank Jean-Jacques who's going to come on board in a minute answering the Q&A. But the effort made by PME developers, even more so on premium, and in Europe is showing an enormous momentum for the brand content and for ability to exceed the 3.7% that we had last year. I don't want to actually forget Lux Lifestyle developers. You also have done great jobs, but they had to catch up on PME more so than ever. And loyalty partnerships, we are discussing with many partners all over different geographies, and those will be strong revenues moving forward. i just want to remind some of you being with us in 2019 when we launched all at the time i told you we had like a 6 million partnership revenues that's multiplied by 10 as of last year the pivot to franchise model in mature markets this is something that consciously we decided to go into, which is really due to two things. Number one, it's proven by many other operators and by us as well that I guess you have a better margin when it comes to a franchise hotel that you do have on an operating management contract. Two, it's more resilient in terms of performances over the years. Three, which is probably very much additive, it does enable you to go faster on basically the net unit growth. You do sign a franchise hotel probably twice faster than you would do in a management contract mature market is it's important because this is where you have the sophistication of franchisees because in order to sign a franchise you need somebody to be able to operate the hotel so you're going to see echo more and more certainly in europe and in mature market go faster stronger in the franchise model On the fourth, we talked about it on a share buyback of 450 million in 26. That's a bit larger than 25, almost the same number at 25. And fifth is S&D. I'm sure we're going to have questions on the current discussions with S&D. We will and we must close the S&D transaction in 26. We're not late, exactly at the same time last year when the question was asked. Martine and I and Jean-Jacques actually answered, it is a 12 to 18 months process. We are exactly in the 12 months benchmark, and we are exactly at the stage we wanted to be last year when we talked about it. So nothing to worry about. We know where we're going, but we're going to finish the job. So that's where we are, and now we're going to turn almost on the mark, 9 o'clock sharp, to Q&A. for those of you who wants to pop in. So let's open the call for Q&A, please. And I'm gonna ask Jean-Jacques to come next to us. So we're gonna make space for him.

Ladies and gentlemen, we are now open for questions. If you wish to ask a question in the room, please raise your hand. And if you are following online, please dial pound key five on your telephone keypad. The next question comes from Jaina Mistry from Barclays. Please go ahead.

Hi, Sebastian. Hi, Jean-Jacques. Hi, Christine. Hope you're all well. Three questions from me, if I may. Number one, on Ascendi, you know, you just mentioned it now. I mean, the book's value is roughly 850. Your net profit from Ascendi was significantly down. How should we think about the proposal? Does that book value roughly the right thing to think about? potential growth leads this year. My second question is around net unit growth. You know, we previously spoke about an acceleration in 26 and 27. Can you just give us a little more visibility on where could have been involved in 27? And then very lastly, just on EPS, there was a one-off in 2020. Thank you very much.

Thank you so much for your question. We're going to go actually the three of us. I'm going to start with Sandy, then JJ is going to add something because JJ is the front runner when it comes to the negotiations. Your question is super pertinent, and the confirmation is yes. The current state of discussion with that lead investor makes us believe that I guess we are basically right around the mark on the $843 million book value for S&D. So we are exactly where we wanted to be. As I said to you, we just want to finish the job. And I'm going to ask Jean-Jacques to actually probably define better what it means by finishing the job.

So, finishing the job. We had the same question about the timeline about one year ago, and we mentioned that a point in time that, you know, this is what it would take us, 12 to 18 months. It's the answer I gave when I gave that timeline one year ago, and you guys were asking why does it take so much time, is that it's a very complex transaction because of the very nature of the people that you are faced with. Sophisticated investor, you may recall who they are, you know, funds. from large countries. And it does take time to align everybody, but it is the process that we exactly went through during the booster in 2018. So complex transaction, but in line with the parameter that we were anticipating the discussions to take in terms of the discussions, but also the timeline. So no surprise here, no surprise.

On the net unique growth, it's really, and I'm going to split again between Jean-Jacques and myself. It is, answer is also yes, we are confident in achieving the 4.7% in 2027. So we're going to gradually go from the 3.7% net unique growth last year to 4.7 in a couple of years from today. Why are we so confident? Because we know what we signed. And we have well above 1,200 hotels being signed today, well above 250,000 rooms being signed. We know where they are. We know who are the owners, the counterparties. We know the brand, of course. We know the pace. And we also know there gets a churn. The churn is going to be reduced from the 22,000 rooms probably to a lesser number every year passing because the cleanup of all those detractors hotel that we had on luxury. And on premium, it's mostly behind us. We probably have another year and a half to also clean up what was meant to be clean. So it goes well on both fronts. Better signing, better pace, greater numbers of room, and lesser number of turn. And again, I don't know whether you want to add something on PME.

Just maybe a couple of illustrations. the brands have now been as strong as they are today and this is the work that all the team has done since the capital market day to you know push again the brand equity to the level it had to be we never got such a high level of rps reputation score which we improved by about one point per year And so it translates the strength of the brands. And you see that in the number of the NUG, the signing this year has never been as high, whether in units or in value. And just an illustration too, you may recall that we said we're going to push premium. Premium today has doubled in terms of what it represents in the signing or in the opening versus what it was to be in 2019. And this is 2025, but it was also true in 2024 and was also true in 2023. So focus does pay off, and you see that in the number. And this is why we've got the confidence that Sébastien has been sharing with all of you on the Net Unigos and how we're going to progress.

Just to compliment on the net unit growth, so our algorithm mid-term is 45%. And again, given the strength of the signings, the brands, the diversification, we're confident in our ability to move towards that high end of the range. You know, we will obviously communicate our 26 guidance as we do usually always with the first half results. And all I can say that, you know, 2026 NUCs, you know, we'll start with a four handle.

Thank you. And just on the EPS and whether you're happy with consensus 2.34.

Your question was with Refbar, right? No, EPS. Or was that on?

EPS.

No, EPS. Well, let me answer that. So, all I'll say on EPS and adjusted EPS is that we want that algorithm from Refbar, net free growth, revenue, EBITDA to also cascade all the way through adjusted EPS. So, our expectation is that adjusted EPS will grow a double-digit rate in 2026. Thank you.

The next question comes from Jamie Rollo from MIZ. Please go ahead.

Good morning, everyone. Three questions, please. From the fourth quarter, very strong MLS revenues, lifestyle up 33%. That looks pretty good versus that far and now. I just wanted to confirm whether they're ready to move their income lines there, the out next year um lady from the menace franchise switch it's another and then race and it you then action and back on nation I know you're on the coming items quite the interest line on foreign exchange to any guidance on the P&L interests or even on those lines would be very helpful. Thank you.

So it's precisely because you cannot reach Pierre-Louis is actually in the room here that I guess you're calling us online on all sorts of different questions. Pierre-Louis, you're the lucky guy. Martine, you're not the lucky.

Hi, Jamie, first of all. Good to hear you. So on your first question on lifestyle in the fourth quarter for M&F revenue, we do have stronger residence fees in the fourth quarter in lifestyle. But, you know, so they will have some, obviously some impact in the fourth quarter of 26 as a result. But if, you know, if you look at luxury and lifestyle M&F, you know, revenue, the growth rate in the fourth quarter is still, you know, double-digit excluding that impact. With respect to... I think what was your question? We had a question on franchise, right. So, no, we expect the impact from the flip to franchise to decrease in 2026. It should be more in the 1% area as opposed to 2% this year. And I forgot your first question. Sorry about that.

That interest line.

That interest line, right, in the P&L. So, in 2025, we actually have... We have an impairment related to a convertible obligation we had with one of our investment. That's one of them will not recur in 2026. So I expect the 26 interest cost in the P&L to be less, to be lower than 2025.

And just, Jimmy, an important point on M&F. You should expect M&F to continue to decrease because we're moving to franchise. What you should also expect is that the profitability of M&S continue to increase. And we've demonstrated that over the last, you know, two years since the capital market day, increasing, in fact, the profitability by about 100 basis points per year. And you should expect that the flip to franchise does not change anything on the commitment that we've got on EBITDA in the regions concerned, because fundamentally, it's less profitable. of top line, but it is a better profitability. And we're going to make sure that in the end, the BDA volume, which is generated, remains something which is, you know, within the parameter of the capital mechanic. I think it's an important point. So it's going to gradually continue to decrease. It's totally mechanical, as you know.

And just to compliment on Jean-Jacques' answer, and you saw that actually this year, M&F revenue was up 6% at constant currency, and that is despite the two-point impact on the Flip2 franchise in PME. So because we have a good ref bar and the NUG is accelerating, obviously M&F revenue overall will continue to grow and will continue to be in the CMD guidance, which we gave in 2023, which is a growth of six to 10%.

Thank you very much. Thank you, Jamie.

The next question comes from Nikunj Kaushal from Redburn. Please go ahead.

Good morning. Thank you very much. It's Alex Bricknell. Just quickly on Sandy, I thank you for the detail you've given. And it relates to Amy's question that there's some perspective issues about e-instructions there. I believe that this is just a question from management. Could you possibly give us some indication of what Thank you

JJ, you want to go on?

I think I'll just repeat what I went through with Jimmy, which is that you should expect the EBDA, which is generated by the regions like ANR, which is the most impacted regions, to be well in line with the capital market data. So you're going to get lower top line, you're going to get lower cost base, and you're going to get net-net and increase in volume. because the franchise is an easier way to develop, as we all know, and with much more resilience over time in terms of its performance. And that's going to generate a bottom line, which is consistent with what we had committed to, because remember that the flip to franchise was, in fact, part of the capital market day hypothesis and elements that we provided in those days. So all of that, again, was in the plan, is in the plan, will stay in the plan.

You want to go on the loyalty fees?

I can take that one.

Yeah, please go.

Okay. Good morning. So in terms of the non-REF PAR revenue, which would include subscription, partnership, but also the residential fees. As you know, or you may not know, but we have a very strong procurement office that procures for our hotels. If you take all those revenues together, which are not

The next question comes from Sabrina Blanc from Bernstein. Please go ahead.

Good morning, everybody. I have three questions for my part. The first one is regarding the beginning of 2026. You have provided trends at the end of 2025, which was quite healthy, and could we have more details for the beginning of this year? And second key question is regarding any small, but more on the IPO side. Do you have any view on that point? And the third point regarding the share and buyback program, it is mentioned that you could resume the program as soon as the insider information is done regarding S&E. When could we expect to have the share buyback relaunch, please?

I'll take the first question on the current trading. Good morning, Sabrina. As you know, there's not a ton of visibility in the hospitality industry. That being said, we obviously have January behind us. February is well advanced. We had a very good, very solid month of January, so the momentum is certainly continuing. And that momentum was, again, very broad-based. Europe remains in the positive low single-digit territory. MEAPAC continues to perform well, so does Brazil, and luxury and lifestyle continues to perform also extremely well. So no signs of softness thus far.

On Sabrina, good morning. On Ennismore, there's no chance from what was told you in October 25, we said that I guess the board of our core will be in exploration mode, as is the board of Ennismore, by the way, on exploring the benefits, the constraints, the pluses and minuses of actually Potential listing of any small on any market which if we were to do so will certainly enhance visibility notoriety liquidity and maybe flexibility of any small what's a Certainly no change is any smaller is an extraordinary asset of Accor and Accor in any scenario will intend to remain in control of that growth engine which is pivotal to the growth of Accor and certainly to the differentiating factors of Accor. So we're still exploring many different venues. The board of Accor had another meeting yesterday, and we talked about it, and that's probably going to be the case in the forthcoming few weeks. So we'll give you greater clarity if and when we make a decision. It's a hard work. A lot of people are involved. And again, if we were to do something, control will remain, and then we'll give you greater clarity if and when we make that decision on listing.

Sure, bye-bye. You want me to take that one? And Sabina, your question as to when we would start the share buyback program, we need to clear the information about S&D, and as soon as we clear that information, we'll start the program.

The next question comes from Joffre Mestari from BNP. Please go ahead.

Hi, good morning. I have three questions, if that's all right. Firstly, on sales, marketing, digital and loyalty, you're already at 94 million EBITDA. You're already at 7 cent margin. And I think you just said you expect revenue to double over the next three years. So just to confirm, this means SMDL EBITDA goes to just below 200 million in three years. That's something like 30 million each year. And I'm not saying it looks aggressive, because obviously some global companies make announcements very much at these orders of magnitude of growth in ancillaries. But for them, a big part of them is credit card fees, which you don't really have. So yeah, do you expect 90, 100 million ancillary growth over the next three years? And what's driving it? Because it's not as simple as we spoke to JP Morgan Chase, and we have higher fees now. Then on net unit growth, I appreciate there's many reasons why you may want to have a range. But in terms of finding a minimum, I guess, you delivered 3.7% this year. Can you confirm what the impact was from the last batch of exits in PM&E? Because I think you previously expected 0.5, if I'm correct. So if this was as expected, is it fair to see net openings as 4.2% clean this year, and you accelerate from that 4.2%. And just lastly, could you quantify the provisions you've taken for the REVO administration? What would have been a BDA without that? Because I think it's included they own almost 1% of your hotels, so what sort of assumptions have you made? Some of them shut down, some of them are sold, they rebrand away from you. What was the What's the scenario you've modeled, please?

Okay. Hi, Jafar. Good morning. So I'll take the SMDL question. So it's, you know, the portion of the SMDL EBITDA, actually revenue, not EBITDA, that we expect to double over the next, you know, three or four years. is subscription and partnership. That is a fraction of the SMDL EBITDA. So we don't expect SMDL EBITDA to double in the next two, three, four years. We expect SMDL EBITDA to grow pretty much in line with the 9% to 12% growth algorithm, because we also need to be careful and continue to invest behind our brands and our distribution. With respect to the net union growth, I'm not sure I completely understood your comments, so maybe you want to reformulate.

What he was saying, Martin, that I guess he's implying a 0.5% churn from last year, because he said it would be 4.2% minus 0.5 to be a 3.7. The numbers, Jasper, that I guess I alluded to, which I believe is public no matter what, is we have Last year, 51,000 rooms opening, and we have a 22,000 rooms churn. So it is much greater than 0.5. It is probably 1.7% churn to get to the 3.7. That churn will be diminishing year after year, as we promised over the last few years. Certainly we know in 2026 it's going to be diminishing, and of course the net opening will be increasing, which is why you're going to have less churn, greater net opening, i.e. a greater net unique growth in 2026, and that will repeat itself in 2027. But it is greater than the 0.5 UEL of the term.

and the churn again was a positive thing is a positive thing because this is the reason why the brands have become stronger and this is the reason why you've got all the signing at record level with very nice fees as sebastian was and martin were showing in the general presentation so it it is something that we wanted and it is something that we control

And I think we've had that conversation, but if your question is do we expect the churn to come down over time, absolutely yes. We have a by-the-point higher churn than we should have. Jean-Jacques mentioned some of the reasons. That gap will close. over the next two to three years. So that will obviously help net unit growth. With respect to your question on REVO, the provision we took is actually on the receivables. And just so that you know, the REVO network accounts for about 0.5% of our fees on an annual basis.

Thank you. Just on churn, to clarify, obviously total churn is 2%, 2.5%, absolutely. What I was referencing is in the past you had talked about a specific portfolio review within PM&E. You had 400 hotels that you were reviewing. 100% – sorry, 100 of them had exited. The remaining, you were still in discussion. So I'm talking about – exceptional one-off churn that I think you were highlighting, a specific portfolio review and some of your comments in the past, I think I remember it suggested it would impact Group NUG by 0.5 this year. So just curious if that's happened in line or if that's become part of a wider picture in the churn. Because my point would be excluding this particularly abnormal portfolio review There was very much one-off in PM&E. It's clean nog, not already at 4.2%.

Yeah, let me take that one. You may recall that was in the capital, Makerde, that we were discussing about 400 hotels. Those 400 hotels, by the way, are not only PM&E. They are largely PM&E because PM&E is 90% of the hotels. But, for example, Maud Bailly has done a very strict exercise on the Sofitel to do exactly the same thing. It's a much smaller number of hotels. But you can see how Sofitel is today performing, and you understand why doing those changes or inflection in what is the network do pay off. Just look at the Sofitel New York that we opened a couple of weeks ago. So I think I'll just use that example to say that it is a much deeper and wider issue. And on those 400 hotels, we today have results three-quarters of it. i.e. the list that we identified in 2023, we've got 300 of those hotels which today are resolved. By the way, not all of them were churned. A large part of it were in fact kept. They were identified as detractors, and we worked on it, and then we found some solution, changes of brands, changes of the team, changes of some of the processes that may not work. We are not in the business of churning hotels, as I'm sure you know. And so we are really here to help, to find solutions. But this piece of the equation does impact, and that's your point, it does impact the churn, and it is not something that we are going to replenish every year. So there is an element in what you say which is right. Is that answering your question?

Thank you. Yes, it's still ongoing. You still have 100, but it's diminishing. Yeah. Yeah.

Thank you. But not all of the Android wheelchair. That's the point. Thanks.

Yeah. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Kate Xiao from BOFA. Please go ahead.

Thank you very much for taking my questions. I have two quick follow-ups. The first one is on buybacks. You've announced for this year it's going to be $450 million. You did $400 million in 2024, $450 million in 2025 before pausing or delaying relaunching of the new tranche because of Ascendi. So my question is, is there upside to that $450 million guide you have for this year, or is it a matter of you don't know the timing of when you can restart the Hence, it's a bit delayed, even though you could have more upside to that number. The second question is on your pipeline. On slide eight, for luxury and lifestyle, your net unit growth was 7.5%. Pipeline growth was lower at 5.9%. I guess if you could give a little color, elaborate on why the slower growth of pipeline there, maybe break down luxury and lifestyle and how you look at 2026 pipeline growth for this segment. Thank you.

So I'll take the share buyback question. And good morning, Kate. Yes, the only uncertainty around the share buyback is when we restart. And that is related to clearing the S&D information. The amount of 450 is certain. And obviously, that does not include any share buyback that would be related to the sale of our stake in S&D when completed. And what we have indicated to yourself and investors is that our intent was to return 75% of those proceeds in the form of share buyback.

And on the Lux Lifestyle pipeline, it's not really decelerating. It's certainly increasing faster on PME because I told you earlier they didn't do it to catch up. So Jean-Jacques is doing a good job kicking tires here because they were at 25%. pipeline as a relation to the total network, and they went up from 25% to 27%. 43% pipeline as a correlation to inventory. It's never happened ever in industry, in any of our peers. This is much greater than anybody else. It is a much greater number for any small, because any small is a smaller base, so any small is a magnitude of 70%. of pipeline compared to the network. It is catching up year after year on Fairmont Raffles, Sofitel. Why? It's because, as you know, they wanted to reposition the brand, the brand content, the brand promise, and everything. So there was this couple years lag in between fixing the problems re-establishing the brand, which is now behind us, and then getting the appetite from new investors. And it's actually very different between Fairmont. And Fairmont had a greater pace of opening in 25, so they're going to have a greater pace of opening in 26. So it varies, but we are very comfortable with the pace, with the opening, and with the quality of the fee stream. coming from each of the brand new luxury lifestyle. So nothing to worry at all about that lifestyle and pace of opening. And as I alluded to, 58% of the opening last year were conversion, which also means that I guess you have an anticipated cash flow coming sooner, because if it's a new build, it is two and a half to three and a half years. If it's a conversion, it's a one and a half to two years.

And just to compliment on Sebastian's answer, the signings for luxury and lifestyles were up 14% year over year. So what you see in the growth of a pipeline is also, it's less about how healthy the signings are, but it's also related to the fact that most of our openings were in the fourth quarter, or a lot of the openings were in the fourth quarter, and that mathematically depletes the pipeline. But again, the signings, very strong, up 14% year over year in luxury and lifestyle.

Great. Thank you.

The next question comes from Andre Joulard from Deutsche Bank Equity Research. Please go ahead.

Good morning, everyone. Three questions, if I may. First one about race park. Correct me if I'm wrong, but occupancy is now back to the pre-COVID levels. And could you give us some more color about the components between occupancy and prices that you are expecting to see this year and next year? But I guess that it's mainly growth on the prices rather than occupancy. Second question about the EBITDA margin. You reached a record level of margin with a gain of 130 basic points in 25. Even if we take the 9% to 12% CAGR growth, could you give us some more color about midterm view on the profitability and what you could have in mind for the group? Third point, I'm sorry to insist on that, but on the share buyback. You had announced last year an additional 100 million share buyback program that you were obliged to delay. in 26, is it part of the 450 or is it coming over that when you will be able to start that? Thank you.

Yeah, I'll take the questions. Hey, good morning, André. So on the RFR, actually on occupancy, we're still a point back from where we were in 2019 in terms of how we see rates versus occupancy going forward. We see very good, I would say, price acceptability in the luxury and lifestyle segment. Rates have been growing at a level which is above inflation. Now, when we look at it by region, obviously PME being more in Europe, the rates is very much a function of the inflation level in those countries for PME. And because of our geographical diversification, in some sense, you could do the math. Luxury and lifestyle, we would expect a rate accretion to be slightly above inflation, which has been the case for this segment. With respect to EBITDA margin, our commitment is to... achieve an operating leverage of 100 basis points on MNF EBITDA margin, and that is consistent with the 6% to 10% MNF revenue growth and 9% to 10% overall EBITDA growth. And on your last point, on share buyback, the 100 million is within the 450 million. And again, our strong intent is to restart this program as soon as possible.

If I may just compliment on what Martin is saying and just to take a little bit of credit on the work that has been done for the last three years. When we had the Capital Market Day, we said we would work on pricing. You may recall we showed a table where we were 20% of the network with a revenue management system, an RMS installed. We today have reached a level of 80%, right? And while it is obviously difficult to measure within the increase of the strength of the pricing, the portion that comes from the RMS, there is definitely a portion of it that comes from here. And that's why also Arevpar is strong and maybe stronger than or stronger than what you may see in some of our competitors within the same vicinities. And so that's again as part of the great, great result that you see today. One of the elements, it's a sum of streams that were started three years ago and that all paid off. You know, we are talking a lot about the SMDL profitability and that's another illustration. You know, whether it is net uni growth, S&L profitability, the overall M&S improvement and the pricing and all of that, it just comes together. That was my two seconds. Marketing. But it's a great job that the team have done.

There are no more questions at this time. So I hand the conference back to the speakers for any closing remarks.

Well, first, thank you so much for all of you attending and asking the questions. Just to add, the job is not finished at all. We still have a lot to do to continue to improve the company's performances. We still have a lot to do on... finishing the job on getting S&D basically back and in stronger hands in terms of action governance, which means you're going to have additional resources to basically provide additional returns to the shareholders, additional resources to our core. We engage very quickly in AI. Funny, we had no question on AI. over the last, and I think all of us should be extremely proud of the digital team of this company, of having been the only one hospitality company in the world who signed testing, advertising, basically AI, travel agent, conversor, conver, whatever. Thank you. With ChatGPT, and we'll have the result from the test probably in the next six to seven weeks. But it's quite a quantum leap action that I guess we put together with American actors. We do the same with Google, Gemini. We do the same with Mistral AI. So we're not late, but I guess we are. certainly ahead of the game and at the right time on trying to get the benefit of all those new tools in terms of customer relationship, booking, research, and so many things. So still a lot of job to do, and we need to do two things. Be on the date. Be basically where you want to be in terms of performances, and do better to get better traction on behalf of our investors. Merci. Thank you so much for attending. Ciao. Bye-bye.