Orbis : Sound business volumes and operating performance in all markets. Accelerated development in the region.

Press release

Warsaw, 26th of October 2018

Sound business volumes and operating performance in all markets

Accelerated development in the region

• • Confirmation of the 2018 operating EBIDA target (EUR 109-113 million)

• • EBITDA margin at the level of 33.2%, despite challenging labour market

• • Acceleration of new asset light development - 15 hotels signed (over 1,800 new rooms) year to date

• • 2 new owned hotels added: ibis Vilnius Centre (164 rooms, new development) and

  Mercure Bucharest Unirii (95 rooms, acquisition)

• • Corporate culture change - brings positive fruits, i.e. lower staff turnover and higher guests satisfaction

"Orbis benefited from solid business levels in most of its key markets over the 9 months of 2018. With the 3% like-for-like RevPAR growth of in the EE region, driven mainly by price the Group noted +3.2% like for like increase in total revenue (up to EUR 253.8 million), despite a high base for comparison of record high year 2017."- said Gilles Clavie, President and CEO of Orbis

Performance

There is still positive momentum in the tourism industry, with the dynamic growth of: tourist arrivals to the region, spending on travel and development of new players. However, the growing demand has encouraged a certain number of our competitors to increase their share of the hotel offer, also in Orbis strategic markets. Their growing pipeline is very visible especially in Warsaw, Tricity and Bucharest. This, together with incremental increase of labour cost have a meaning impact on Orbis performance. Despite these factors operating EBITDA amounted to EUR 84.1 million, which represents 2.7% like-for-like growth comparing to last year and EBITDA margin came to 33.2% (-0.1 pp change y/y). Based on these results and the outlook for the coming months the company confirms the full year operating EBITDA forecast in the range of EUR 109-113 million.

Portfolio

Orbis is on track with achieving its ambitious development goals. During the first 3 quarters the company continued increasing its portfolio with 15 new asset light agreements signed with over 1,800 new rooms. New hotels will cover almost whole region from Poland, Czech Republic, Hungary, Romania, Lithuania, Bulgaria, Bosnia & Herzegovina, through ending with new country - Croatia. Moreover, in 2018 Orbis opened 7 new hotels in all operating modes based on the previously signed agreements, adding over 800 new rooms to the network, one of them is a new subsidiary hotel ibis Vilnius (164 rooms) opened in August. Responding to

the new, more balanced network of the hotels, and rapid growth of asset light portfolio Orbis is more and more focused on its partners' experience. In this context the company have introduced new project dedicated to business partners, aiming at closer cooperation, expanding the service offer and personalisation in order to strengthen relations with clients and potentially expand new asset light projects further with them. The company believes in additional source of revenues.

Apart from organic development, in 3Q Orbis also finalized the acquisition of Mercure Bucharest Unirii and the plot in Cracow, to build another hotel in the city centre. Having in mind best use of its assets, Orbis is transferring its Head Office from Bracka St. to another location with the aim of converting the current office building into a new life style hotel in this top location of Warsaw.

"We are on track with our strategy in key areas of focus: Performance, Portfolio and People. We keep emphasis on sustainable top line growth having in mind financial discipline. Our development pipeline remains strong and secured with 47 projects, i.e. over 6,300 rooms, which gives us fuel for growth in upcoming quarters. I'm convinced that we can expand further also through M&A activities benefiting from our solid cash position. All that proves that Orbis will empower its strong position in the region." - summarized Gilles Clavie.

Financial and operating results

Orbis Hotel Group	9M 2018	9M2017	change
Operating like-for-like
Occupancy rate %	73,8%	75,0%	-1,2 p.p.
Average Room Rate without VAT in EUR	61,2	58,6	4,5%
Revenue per Available Room in EUR	45,2	43,9	3,0%
Financial m EUR
Revenue like-for-like	253,8	246,0	3,2%
EBITDAR	94,1	97,8	-3,8%
EBITDA operating like-for-like	84,1	81,9	2,7%
Income before tax	348,4	231,8	50,3%

Kontakt

Biuro Prasowe Orbis SA T. [phone]

About Orbis Hotel Group:

The Orbis Hotel Group is the largest network of hotels in Poland and in Eastern Europe. Orbis comprises 128 hotels and is the sole licensor of all AccorHotels brands in 16 countries including Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia. It offers almost 21,000 rooms. The hotels operate under the brand names Sofitel, MGallery by Sofitel, Pullman, Novotel, Mercure, adagio, ibis, ibis Styles and ibis budget. These brands, recognized throughout the world, provide a quality of service to various standards, ranging from luxury 5-star to budget 1-star hotels.

Since 1997 Orbis SA is quoted on the Warsaw Stock Exchange.

Orbis' strategic partner is

About AccorHotels:

AccorHotels is a world-leading travel & lifestyle group and digital innovator offering unique experiences in more than 4,600 hotels, resorts and residences across 100 different countries.

With an unrivaled portfolio of internationally renowned hotel brands encompassing the entire range from luxury to economy, from upscale to lifestyle and midscale brands, AccorHotels has been providing savoir-faire and expertise for more than 50 years.

In addition to its core hospitality business, AccorHotels has successfully expanded its range of services, becoming the world leader in luxury private residence rental with more than 10,000 stunning properties around the world. The Group is also active in the fields of concierge services, co-working, dining, events management and digital solutions.

Relying on its global team of more than 250,000 dedicated staff, AccorHotels is committed to fulfilling its primary mission: to make every guest Feel Welcome. Guests have access to one of the world's most attractive hotel loyalty programs - Le Club AccorHotels.

AccorHotels plays an active role in its local communities and is committed to promoting sustainable development and solidarity through PLANET 21 Acting Here, a comprehensive program that brings together employees, guests and partners to drive sustainable growth.

From 2008, the AccorHotels Solidarity Endowment Fund has acted as a natural extension of the Group's activities and values, helping to combat the social and financial exclusion experienced by the most disadvantaged members of society.

Accor SA is publicly listed on the Euronext Paris Stock Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACRFY) in the United States.

For more information or to make a reservation, please visit accorhotels.group or accorhotels.com.

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