Accor Aktie

Welcome to the Accor Half Year 2026 Results Presentation. Today's conference will be hosted by Mr. Bazin and Martine Gerow, Group CFO.

[Operator Instructions] Now I will hand the conference over to Mr. Bazin.

Well, good morning, everyone. Very happy to have you all for the first semester results. I'll do the conclusion. At the end, I'm going to let the floor to the best of us to Martine, Chief Financial Officer. She's going to guide you through the results and comments, and then we'll go straight conclusion and Q&A. But at least thank you so much, each of you to actually being on the phone with us.

Martine?

Thank you, Sebastien, and good morning, ladies and gentlemen. And again, thank you for attending our earnings call for the first half. So I will kick off on the financial highlights on Page 4. So following a very strong start of the year, the situation in the Middle East has impacted our trading in the second quarter, but to note that the performance in other regions remained very solid. We activated in March a profit protection plan, which has enabled us to largely offset the impact of the conflict and deliver a very steady set of results for the first half of '26.

The operating performance is contrasted across regions, but did improve throughout the quarter, adjusting for the hash calendar. Q2 RevPAR came in at minus 0.2%. Now that is a headline that match two very different situations outside the Middle East. Q2 RevPAR was up 3.3%, driven by both pricing and occupancy, which demonstrates the continued stress of demand and the attractiveness of our brands.

In the Middle East, RevPAR was down 29%, driven by the UAE, which was down 67% in the quarter. Other countries, which is Egypt and Saudi Arabia namely posted positive RevPAR growth in the mid-single digits. We exited the quarter with a marked improvement in the UAE and an acceleration in other regions, notably in Europe. This drove our H1 '26 RevPAR growth to 2.2% and 4.6% excluding the Middle East. Room revenue growth was driven by both business and leisure with individual leisure travelers and business groups growing in the mid-single digits.

Net unit growth was 3.2% on a last 12-month basis with limited openings in H1 and some churn in our Germany Revo portfolio as well as in China. Pipeline growth remained very healthy at 11.4% growth over the last 12 months, and supporting an acceleration of not going forward. Signings also grew at a strong pace.

Moving to financials. We adapted very quickly to the geopolitical events, producing a solid set of results. M&F revenue was up 4.8% at constant currency, reaching EUR 685 million. That's a solid performance. And M&F EBITDA was up by 9.1% at constant currency, which is a 280 basis points margin improvement. Total revenue was up 3% at constant currency and 4.8% on a like-for-like basis when we adjust for some disposals in Paris Society. And total EBITDA was up by 6.5% at constant currency and 7.4% on a like-for-like basis adjusting for scope. FX had a negative 2 points impact on group revenue and 4 points on EBITDA and was concentrated in the first quarter. Based on current rate, we expect EBITDA to turn positive in the second half.

Scope impacted revenue by 2 points in the first half and EBITDA by 1 point. Recurring free cash flow reached EUR 194 million. That's up 42% versus prior year. And we delivered strong shareholder return year-to-date at EUR 541 million, which equates to a 4.8% return, bringing total return to shareholders over the last 3.5 years to EUR 2.6 billion. Actually, by the end of 2026, when we factor in our second tranche of share buyback, we will have returned EUR 2.8 billion to shareholders with dividends and share buyback in the first 4 years, which puts us in line of sight of the EUR 3 billion return, which had earmarked in our Capital Market Day almost a year ahead of schedule.

Let's now move on to the second quarter RevPAR for each division on Slide 5. PM&E posted a flattish RevPAR growth of 0.1%, driven by pricing. In the quarter, average rate was up 1% and occupancy rate was down 1 point at 68%, driven by the Middle East. Excluding the Middle East, RevPAR was actually up 1.1%.

In ENA, RevPAR was also flattish at 0.2%, driven by pricing, stable occupancy year-over-year. Our three largest countries report actually very different trends. France and the U.K. posted low single-digit RevPAR growth, while Germany was negative. Now we did note that trading improved in June in all three markets with RevPAR in the low single digit to mid-single digits.

In France, in the second quarter, RevPAR was in line with the first quarter, although more driven by the provinces with strong and steady leisure demand. In the U.K., demand was also sustained, notably in London, confirming a low -- confirming sorry, a solid low single-digit RevPAR growth. In Germany, demand softened in April and May, but improved in June with a positive RevPAR in June, driven by a more supportive event calendar. In MEA APAC, Q2 RevPAR was down 1.1%, impacted by the conflict with significant decline in occupancy and rates in the UAE. Excluding Middle East, RevPAR would be up 1.9% driven by UAE, Egypt and Saudi Arabia were up in the mid-single digits.

Southeast Asia remains a growth engine for the region with RevPAR in the mid-single-digit territory with notably good performance in Japan, in Vietnam and in Indonesia. Pacific slowed down somewhat versus the fourth quarter, reporting a flattish RevPAR growth due to lower international traffic and lower consumer and business confidence.

In MEA, obviously, impact of the conflict. MEA was down in the low teens in the quarter. The negative performance, again, attributable to the UAE. The UAE RevPAR decreased in April in the mid-80s, but improved since the decline in June in the UAE was only in the 40s. Saudi, Egypt and Turkey continued to perform well.

China stayed in low single-digit negative territory. Supply growth is leveling off. So the industry should be at or near the bottom of the cycle. But RevPAR recovery is actually highly uneven and there is clear underperformance of the mid and eco segment, which is where most of our portfolio sits in China. To note that recovery is already well in place in luxury since the fourth quarter and continuing through the second quarter with positive RevPAR growth. Americas posted mid-single-digit growth with Q2 RevPAR up 4.8%. Region remains driven by Brazil.

Turning to Luxury & Lifestyle. Q2 RevPAR decreased by 1.4% led by occupancy and rent decline in the Middle East. Excluding the Middle East, Luxury & Lifestyle RevPAR would actually be up by 9.4%, which is in line with the first quarter and confirms the healthy demand for this segment bar the conflict. Luxury reported a positive RevPAR growth of 2.5%. Excluding Middle East, it would be up 9.1%. All brands, all regions, again, reporting growing RevPAR outside of the Middle East. Europe and NorAm demand were particularly robust with excellent performance in NorAm in Fairmont and Raffles.

Lifestyle is a segment which is the most impacted given its larger exposure to the UAE, which weighed down on RevPAR, which is down 11.3% in the quarter. Excluding Middle East, RevPAR would be up 10.3% for Lifestyle. And within Lifestyle resorts were the most affected. Lifestyle Collective was actually only slightly down due to its large presence in the Europe and U.S.

Let's now turn to Slide 6, which breaks down our portfolio and pipeline by division. PME grew its network by 2.6%. The pace of openings remained steady and pipeline grew a stellar 12.7%, reaching 28% of the PME network, which is up 3 points from prior year, and confirming again the attractiveness of our brand. PME signings grew by 10%. The sequential slowdown of the NUG results from, as I mentioned in my introduction, some churn in the Revo portfolio in Germany as well as the Accor segment in China. Where we see some hotels actually closing down due to the lower activity level, particularly in the second and third-tier cities.

On the right, Luxury & Lifestyle portfolio grew by 6.8%. That's driven by Ennismore pipeline growth picking up from the first quarter at 7.4%. Now we did transfer the JO&JOE portfolio in H1, which impacted the NUG of Luxury & Lifestyle by about 1 point. So if you look at the underlying Luxury & Lifestyle growth, it's closer to 8% on an LTM basis when you adjust for that transfer. It was marginal, obviously, on PM&E, which is a larger network.

There were fewer openings in the first quarter -- sorry, in the first half. They are more concentrated in the second half. Some openings in the Middle East were actually pushed to the second half. As we expected, churn was lower compared to prior year. Some notable openings of the second quarter includes Raffles Jeddah and Orient Express in Venice. Pipeline still very healthy, stands at 46% of the network. That's also up 1 point from prior year, and signings grew by 39% in volume.

At group level, net unit growth reached 3.2% over the year with an active mix. Newly opened hotels will generate fee per room, which is approximately twice as high to 2x as fees generated by churn hotels over the last 12 months, as you can see on the box at the bottom of the slide. Versus last year, pipeline is up 11.4% at group level in volume and group signings in volume are up 13%. And conversions still represent more than 55% of our openings. That's quite in line with last year.

Now let's turn to Slide 7 with revenue by segment. The revenue by segment and by division is actually provided as we always do in the appendix and in the press release. The group revenue reached EUR 2.76 billion in the first half. That's up 3% at constant currency, and it's up 4.8%, adjusting for the scope effect from the disposal of Paris Society tested. Again, FX and scope impacted revenue by a negative 2 points each, lowering the reporting growth to 0.6%. FX impact concentrated in Q1 and again, expect FX impact to be positive from Q2 onwards.

M&F revenue growth, up 4.8% at constant currency. That's in line with the algorithm at group level. Hotel Assets and other revenue was down 5.4% at constant currency and up 0.8% adjusting for scope. Paris Society, recast restaurant activity in Dubai was highly impacted in the first month of the conflict, although trading significantly improved in the later part of the second quarter. SMDL, which is sales, marketing and distribution and loyalty revenues were up 4.7% at constant currency, which is pretty much in line with M&F revenue. And to note that our loyalty contribution was up almost 4 points in the first half year-over-year, and we reached 121 million members as of June.

Turning to management and franchise revenue by segment on Slide 8, which grew at 4.8% in the first half. Q2 M&F revenue was up 1.6% at constant currency, impacted by lower incentive in the Middle East as well as flip to franchise, the point we have commented in the previous quarters. Residential fees were stable in the first half as we expected. PME, M&F revenue was up 0.7% at constant currency, slightly higher distortion related to the switch from management to franchise as we've called out before, which is about a 1 point negative impact on growth and also lower incentives due to the conflict in the Middle East.

And as a result, the distortion is more pronounced in the second quarter than in the first quarter. Luxury & Lifestyle M&F revenue grew at 12% at constant currency. That's slightly above RevPAR. Q2 M&F fees were up a solid 9%. That segment is also impacted by the lower incentives in the Middle East. But we also had, as we called out, some termination fee in the first quarter, which helped offset.

Now let's turn to EBITDA on Slide 9. The group EBITDA reached EUR 563 million. That's up 6.5% at constant currency and up 7.4%, adjusting for scope. We showed adaptability. We showed strong reactivity to navigate what is a challenging global environment. The reported EBITDA growth at 2.1% includes a negative FX impact of EUR 23 million, again, concentrated in Q1, and we expect FX to turn positive in the second half.

As for M&F, where more detail by division are provided in the appendix, EBITDA of 9.1%, strong margin improvement resulting from the profit protection measures implemented as of March and to a lesser extent, some termination fee. We expect the full year M&F EBITDA margin improvement to be above our annual guidance of 100 basis points. Both divisions improved their M&F margins. As for Hotel Assets and other, EBITDA growth is impacted by the conflict in the Middle East, combined with scope, which accounted for a negative 7 points in the first half.

As for SMDL, EBITDA was up 8.3% at constant currency, benefiting also from profit protection measure with an 8% margin. And we expect SMDL EBITDA to be balanced between H1 and H2, and we expect full year margin to be above our 6% plus guidance. And finally, to note, cost of our holding are down slightly with again strong cost containment measure.

Moving on to the P&L on Slide 10. In H1, we achieved an adjusted net profit of $231 million and an adjusted EPS of $0.83, flat versus prior year. Other income and expenses at a negative EUR 113 million in H1 included amongst primarily a EUR 44 million valuation adjustment on our S&D stake, which reflects the time value of the earn-out, which we expect in this transaction, and I'm sure you've all seen the press release we just issued. And EUR 37 million restructuring costs, this is mainly in the European region, and that is to support the move to a more franchise model.

D&A was flat in the first half. Share of net profit of associates in the JV, minus EUR 37 million, slightly more than half of the loss related to S&D, which has reported lower capital gains on disposal and high impairment losses in the first half. Net financial expense driven primarily by a high gross debt. The cost of debt remains very reasonable. Income tax expense is flat. ETR is also flat if you adjust for nonrecurring items, which carry a significant lower taxation both in '25, and in '26. We expect the full year ETR to be broadly flat. Minority interests are down year-over-year, and this is due to the lower profits in the Middle East in Ennismore.

Turning to cash flow on Slide 11. Recurring free cash flow reached EUR 194 million. That's up 42%, reflecting a 34% cash conversion, which is about 9 points above prior for our main highlights. Cash interest increased as we expected, driven by the increase in debt level, but notably an additional bond we issued in '25 with the first coupon paid in H1 of '26 as well as lower interest income.

So H1 is pretty, I would say, representative of what the second half will be. Cash has decreased from EUR 121 million to EUR 85 million, mainly driven by a tighter monitoring on installments between H1 and H2, and we did accelerate refunds in France. And we expect our full year '26 cash tax to be broadly stable versus prior year. Recurring investments were below last year at EUR 93 million. We control CapEx in what is a challenging geopolitical environment. The key money was also lower in the first half.

For the full year, we continue to expect an increase of the CapEx in line with the guidance provided in the CMD, probably closer to EUR 250 million for the year. Working capital is stable year-over-year. And finally, net debt, which is EUR 3.5 billion at the end of June. As a reminder, that's about EUR 400 million up from December. Main movement in H1 being recurring free cash flow, which, as you know, is seasonal and more accruing to the second half, return to shareholders and hybrid coupon.

To conclude and before I turn it over to Sebastien, let me now introduce our guidance on Slide 12. RevPAR like-for-like growth is expected between 2% and 2.5%, depending on the pace of recovery in the UAE. The RevPAR guidance includes a second half scenario for the UAE, which is pretty much between where we are in June, which is around minus 40% to minus 20%. Net unit growth is expected at circa 3.5%, in line with FY '25, and it's a notch below my comments from last February, taking into account a few things: one, some delay in openings in the Middle East as well as the impact of the Revo bankruptcy and some churns in the China Eco hotel given the economic situation. That being said, as we -- as I commented before, the fee per room of the new openings is about twice the fee per room of the closures.

Recurring EBITDA is expected between EUR 1.260 billion and EUR 1.285 billion. That includes a negative FX impact of EUR 10 million, and it represents an EBITDA growth year-over-year between 6% and 8%.

And this concludes my opening remarks, and I will now turn over the floor to Sebastien for some closing remarks.

Martine, thank you so much. We're going to go into at least the H1 takeaways, the way we look at them. The first is you probably heard me many times, I guess, it's being confirmed probably every quarter passing for the last 3 years now. It's ability of Accor to navigate through the storms. And of course, we have storms in many different countries over the last few years and the last one has been the Middle East impact between Iran and GCC countries. I was telling the Board a couple of days ago that I guess Accor has an enormous granularity on its cost. We have an enormous control on operating metrics all over the different geographies.

The CEOs, the head of business department have a total grip on what they conduct, which actually permits us to navigate, to evaluate, to actually get into action, to build buffers against countries in which we have not expected unforeseen events. And I never had seen that before in this company in terms of actually ability to get close enough to results, if not on the results, even though it's not going according to plan. And that's something which actually gives us an enormous comfort to actually be in front of you this morning.

The number two, why are we able to build buffers is because we need to take actions on what we call PPP, you heard Martine, profit protection plan. It's really putting together a lot of different initiatives, a lot of different decisions impacting a lot of different people in different countries in terms of hiring freeze, travel freeze and a lot of actually investment no longer being made, not to the detriment of Accor moving forward. But that plan has been put into action early March. You've seen the results quickly up until the first semester. That plan will not let go. We're going to be continuing deploying it as long as necessary, certainly for the second semester.

The third is a very different nature, which is all about loyalty partnerships. And I'm going to go in it in a minute on the next page. But it's something which is extremely important in our ability through all membership deployment, which is going at a very fast pace, as you know, probably 15 million to 20 million additional members every year, is trying to actually incorporate a lot of actually daily use of the all loyalty program, and we've signed deals and I'm going to go back to it in a minute. But it is a 15% to 20% growth per year, both on revenues and on EBITDA, which is basically a faster growth that we can build -- that the one we can benefit from, from operation, which is this 9% to 12%.

And finally, very proud. You know about it because it was announced 4, 5 days ago. Extremely proud for the team to have had the ability to sign Essendi, which is a very, very large transaction, probably by far, the largest hotel transaction in Europe for the last 10 years. I think the first one -- the last one was Booster at the time we put this EUR 8 billion asset portfolio together. But that is today also one of the largest. It's still a EUR 7.5 billion hotel portfolio in which we invited in Blackstone to come in alongside Colony. So very happy, very proud for the team. It's going to give us enormous flexibility moving forward on cash deployment.

On the next page, I just want to tap upon two minutes on Uber, Amex, Indigo, and I'm going to talk about H, which is Huazhu. The one on the left is a very different nature. And the one we really didn't dwell with before over the last few years, which is really going -- trying to go into enhanced travel experience. It's all about kind of actually using different car, different partnerships into your daily use. And with Uber, all the members of Uber will be able to go -- members of Accor, will be able seamlessly to go on Uber Mobility, Uber food deliveries through the app or Accor digital ecosystem from their home or from any hotel stay.

So that's going to be done every day. People are going to be earning points. It's being announced with Uber in April. It is launched in H2. So you haven't seen the benefit of it yet. It is being launched at the end of August. That will be made available to all the Accor members, Uber users in France, Germany, Poland, and then we'll go not on the food yet, but on the Uber service on UAE, Saudi Arabia, Qatar and Morocco and more coming with Uber. It's -- we won the RFP against many of our peers, very happy to go hand-in-hand with Uber Group.

Amex, different nature. Amex is all about Elite status match for the card members. So Centurion Amex holders will go and receive all Accor Platinum status. Amex non-Centurion Platinum Card members will be eligible to gold status. That also is launched in H2. So you haven't seen the benefit of it yet. It was signed in May, and that's going to be displayed in 12 countries, Australia, Austria, Canada, France, Germany, Hong Kong, Italy, Japan, Mexico, Singapore, U.K. and New Zealand. And that also is going to improve a lot of actually daily usage between Amex Group and Accor.

And the third, IndiGo, I'll talk about India in a minute. IndiGo, we are going hand-to-hand with IndiGo Airlines, as you know, which is the largest airline carrier in India, which is probably today 64% to 65% market share with well over 400 airplanes in India. And that's going within the domestic Indian travelers within the Indian traveling outside of India, mostly to Southeast Asia, to Middle East and to Africa. H World is huge.

H World, you know of our partnership, a very trusting one with Chairman Ji Qi, the Founder and CEO and largest shareholder of what is today the second largest hotel group in China, likely to be the first hotel group in China in a few years because of the pace of growth. We decided to put together their 310 million members with our 115 million members on trying to get reciprocity, not only on and earning points, but we actually went one step further on web distribution.

So starting in August again. We're going to have all the Steigenberger hotel, intercity, basically all the H World acquisitions outside of China, are mostly from Deutsche Hospitality acquired in 2019. All of those are going to be available on all.com platform. As a reciprocity, you're going to have the Accor Premium and luxury hotels, Pullman, MGallery, Sofitel brand in China, 130 of them will be available directly on H World booking channels. So that also going to be launched in H2, and that encompasses China, Europe and the Middle East. So it's just a confirmation of our ability to sign global deals and to be able to confirm the pace of 15% to 20% growth in partnerships and EBITDA coming from loyalty members.

On H2 priorities, -- the first one, you could not be surprised, it's whatever we've done rightly, let's continue and let's do it even better if we could, which is the profit protection plan, the discipline, the rigor that I guess, Accor has been conducting over the last few years has to remain. It has to be the main focus and has to be basically our compass to move forward because the context is not going to get better in terms of actually challenging environment, and we have actually very little control on geopolitical events. So we might as well actually control what we do internally.

The number two is go for the growth, reshuffle your own organization, and I'm talking about India here. Some of you know we are restructuring a lot of different holdings we had in India into one common vehicle with our partner, Indigo Airlines, which is actually the mother company of IndiGo Airlines called InterGlobe. That is in the making. It should be finished by the first quarter of 2027.

We have changed the CEO of India. A woman is coming from Marriott, Ranju, she is extraordinary. She came 6 months ago. Pace of growth signing within only 9 months have tripled the pace of signing and growth we had over the last few years. And in both directions, which she is very confident, certainly on Fairmont, Raffles, Sofitel on the luxury side, but it's also actually growing much faster for ibis, Novotel and Mercure.

So a lot to talk about in India, and we'll be able to actually give you better granularity coming next time we meet with me in March or February for the year-end results.

Number three, yes, we should be extremely focused, disciplined on cash allocation. So there's no better use of cash today, accelerating the pace of share buyback. We finished the first tranche. We are already starting to launch the second tranche of EUR 225 million, and we are confirming to you that the first day we get cash in from Blackstone Colony on the buyout of our 30% of Essendi, confirming to you that this additional EUR 500 million share buyback will proceed day after closing, which is likely to be at the end of this year.

And four is just to confirm, we're still spending a lot of time at the management level, at the Board level on entertaining a final decision or whether or not any small listing is appropriate, which is also a game changer in terms of accelerating the pace of any small growth visibility, credibility and probably ability to penetrate great markets such as America. So that's where we are on the -- on my kind of actually comments to you.

Why don't we leave floor now to many of you with your questions. Thank you.

[Operator Instructions] the next question comes from Jaina Mistry from Barclays.

Three questions, if I may. The first question is on net unit growth. I know you're guiding to 3.5%, which is slightly short of what you communicated at the full year results. Could you quantify the drivers of how much is coming from Revo? How much is from the Middle East? How much is from China? And then how much of that should shift into next year? And are you still confident in hitting the 4.7% NUG next year?

My second question is around cost savings. Would you mind quantifying how much in cost savings you delivered in H1? And how much you expect to deliver for the full year? And should we expect these costs to come back next year? Or are these permanent savings? And then very lastly, I know you mentioned your Middle East scenarios in H2. But could you just give us a bit more commentary on how you expect the recovery to pan out and kind of what you're seeing on the ground in the UAE?

Martine, why don't you go and then I'll have a comment on at the end.

Good Morning Jaina. So sure. So on net shedding growth, Revo is about 40 basis points, in fact, in our guidance. So that's basically the bulk of the gap versus what we had signaled in February. Middle East, yes, we have delays from H1 to H2, but on net unit growth and there's a bit from China. And in China, it's really hotels that are actually closing down as opposed to switching to another brand. On cost savings, so profit protection plan, it's EUR 40 million in the first half. The full year amount, frankly, will depend on the pace of recovery in the UAE. But if it doesn't recover, we're looking for EUR 70 million as a full year amount.

In terms of the recovery in the UAE, and those costs, by the way, and I'll give the same answer I gave last year when we also had a profit protection plan to cover some of the FX impact. The cost won't come back unless the revenue comes back and probably not all of it will actually come back next year.

And in terms of -- sorry, because I didn't answer your question on the NUG. So [indiscernible] impact, the pace of openings, actually, we expect to be up double-digit growth in our openings this year. And therefore, we are -- and the signings, as you've seen, the pipelines are very strong. So we expect definitely to be above 4% in 2027 and closer towards the higher end of our guidance, but more on that when we actually come to that next year.

In terms of recovery, pace of recovery, look, the UAE in June was minus 40%, minus 45%. April was actually minus 80%. So you can already see the pace of recovery. And the way you should think about the guidance is if we stay where we are in June, which is, call it, minus 40% for the second half, then basically, that gets you to the low end of the guidance, both in RevPAR and in EBITDA, assuming again, some further profit protection plan. If we assume some recovery in the Middle East from where we are in June, not full recovery, but give or take half, so around minus 20% for the second half and progressively, then you'd be at the midpoint.

The one thing, Jaina, to add on the Middle East, which is worth noting, the booking notice when people go to Middle East today is 7 days. And of course, people want to know better on the environment. But it's been in the past kind of actually 15 days.

So the way we look at it is, as you know, the months of June, July and August have been always extremely low in terms of activity because of the heat. We need greater visibility in terms of peace being put together agreement between different countries, probably by the 10th of October, the end of September, that's plenty enough for us to have a very robust month of November and December. So that's really where we should be having a greater granularity and better read will be basically at the end of September and early October. Until then, it doesn't change much. The sooner, the better, of course. But we have that ability to basically wait until that date.

The next question comes from Jamie Rollo from Morgan Stanley.

Three questions as well, please. First, starting with M&F second quarter revenue. Just can we talk a little bit about the gap between the constant currency revenue growth and the sum of net unit growth and RevPAR because obviously, you've got the drop in incentive fees. So could you please quantify that? But also you talked about some additional termination fees. I thought those were Q2, but Martine, maybe you said Q1. But again, if you could quantify both those two numbers, IMF and termination fees, just the sort of change year-on-year.

Secondly, on SMDL, so yes, looking at a more even split this year, but that would still imply about EUR 112 million of EBITDA, so up 20% or so year-on-year. What is the partnership income, please, behind that? So what really accrues to Accor? And when do you see the margins going back to 6%, if ever?

And then finally, on Ennismore, thank you for giving us the first half EBITDA of EUR 84 million. It would be helpful to get the year-on-year change. I know your minorities have halved, but obviously, that's amplified by leverage and so on. So just be helpful to get what the EBITDA was for Ennismore. And also when -- in terms of timing, when do you think we might hear more about the New York listing process?

Sure. So on M&F revenue, the termination fee was in the first quarter, so it doesn't impact the second quarter algo. The second quarter algo is fundamentally reflects the activity. It's stronger in the Luxury & Lifestyle division because you have basically stronger network growth, but also Fairmont and Raffles performed extremely well in the North America, which helped compensate the impact of incentives. Therefore, incentives impact are actually lower for Luxury & Lifestyle than it is for PME and PME, it's basically about 1 point of flip to franchise and give or take, 2 points on the incentives.

So for the quarter, give or take, about 1 point on flip to franchise and 2 points on -- on SMDL revenue, you're right, it's about -- it is balanced. Therefore, your number is correct. What's driving that is essentially the distribution and the partnership revenue. What we said on partnership and subscription EBITDA because we're really looking at both is that our expectation was that, that EBITDA would double by basically 2029, 2030. Currently, it's around $50 million if you take the two together on a full year basis. So that gives you an estimation.

Look, we gave a guidance of 6% plus for SMDL because we want to make sure that we keep a balance between growing our profits and reinvesting in the business. So the 6% plus guidance is still appropriate. Obviously, in the years where we have a more challenging situation, we also activate leverage in that segment. And Ennismore EBITDA is EUR 84 million in the first half. But I think your question was how does it compare to the first half of 2025. It's actually slightly down a couple of points.

On the timing of the Ennismore decision, it's way before the end of the year. So we probably should make a decision by the end of the third quarter and then to decide to go or no go on the potential listing of Ennismore and you're right to say, which is of no surprise to any of you listening to us that if we were to list Ennismore, you're correct, it will be listed in America.

The next question comes from Leo Carrington from Citi.

Could I ask firstly on the -- some more details on the composition of the pipeline signings in H1, both in terms of the region and also PME versus Luxury & Lifestyle? And would it be fair to assume given the very high level of your pipeline growth, does this indicate more new build ground-up hotels moving into the pipeline as you sign them rather than conversions?

And second, Final question. I mean very curious to see that positive and healthy gap between fees from additions well ahead of those from churn hotels. Can this gap be sustained as the PME churn normalizes down as the China closures slow down? Or does the two converge eventually?

So on the composition of the pipeline, I mean, basically, if we look at PME, the pipeline is still -- #1 region is still MEA APAC, but you have to remember that in MEA APAC, Saudi Arabia and Egypt, there's a very low share of our product that's actually in the UAE, both for PM&E and Luxury & Lifestyle, so primarily KSA and Egypt.

And then we have our sales pipeline in China and Asia and Europe and North Africa. So European region for -- and the pipeline is actually more skewed towards premium and mid-scale than Eco. For Luxury & Lifestyle, pretty much the same thing. It's, again, MEA APAC. The Americas region is stronger from a pipeline perspective for Luxury & Lifestyle than for PM&E, but MEA APAC is still the largest region when it comes to pipeline, and it's true for growth.

I mean actually, we haven't seen a slowdown in signing in the Middle East. I mean -- but again, mostly KSA and Egypt. With regards to your question on new build conversion, no, I mean, the mix of conversion is 55%. That's pretty steady with where we've been. We've been between 50% and 60%. And frankly, we don't intend -- or we don't -- sorry, we don't expect that mix to change the -- and I'm sorry, can you repeat your last question, I'm not sure I got that.

China, difference between the churn being of a lower fee level versus additional rooms being signed on the fee stream. And how is China? Is it China is going to get better, going to get worse? Just on China minute since I'm actually -- Huazhu kind of actually expert. It's too strong, but actually it's very close to the situation. Huazhu is opening well above 2,000 hotels a year now, and they're closing 500 to 600 hotels. So they're actually every year passing, they're cleaning their own network, and we are impacted because of this.

A lot of the ibis is developed 7, 8 years ago with us having basically closing certainly in secondary tertiary cities. It doesn't occur into primary cities within China. But Chairman Ji Qi is really looking for a better product in those different cities at the expense of an older product, which is fine. All of that is done in total coordination with us. So you are absolutely correct. Whatever we lose out of those ibis closing in China on tertiary cities, it's very, very low fee stream for us. And we are much better off for him to open a better product in that [ sense ] of a greater quality.

So which is why we're not -- we don't have any visiting factor, which is also why -- and some of you -- I sound like a broken record here, but I've been really putting a lot of sensibility to each of you on the fee per room on the net unit growth is one thing. But what matters to me 10x more is what is the absolute level of fees that we get every year compared to the year before. And I can confirm to you, 2026, we've got a much better absolute fee stream from all the hotel we opened this year versus the hotel we've opened last year and the year before.

So yes, NUG and the churn sounds to be probably heavy. But all of that, if not 80% of that is volunteering both on accepting what's being done in China and finishing the job, as we said to you, on the pure project, which is the detractors of many of our brands closing. Revo clearly that's we -- that was not in the plan, and we have to accept it. That's an unforeseen event. But yes, I'm encouraging each of you to look at the fees per hotel being opened versus the fees per hotel being closed, and that should give you an enormous comfort.

The next question comes from Kate Xiao from BofA.

First question, can you just -- a follow-up to an earlier question on signings. Mike, can you give some color on signings growth? Was it -- you mentioned it was strong. Was it above or below that 10% or 11% pipeline growth lately? Just want to get a sense of latest signings growth there, especially in the Middle East region.

Second question, on free cash flow -- recurring free cash flow conversion. Obviously, that's down quite a bit in the first half. How should we think about it for the full year? Would you say probably around the same level of conversion for the full year from EBITDA? And my third question, Sebastien, I wanted to ask you, obviously, congratulations on the Essendi transaction. What, in your mind, is the next focus of the asset-light and simplification journey? Anything else you can kind of point to for us to understand what's the next focus for you?

Thanks for your question, Kate Xiao. So on signings at group level, they're up 13%. So that's 2 points above the pipeline growth. And there's -- the signs are pretty much in the regions where the pipeline is. And again, no slowdown in the Middle East. With respect to free cash flow, you have to -- our free cash flow is seasonal. So when you actually look at the cash flow conversion in the first half, it was 34%. So yes, it is less than the full year cash conversion, but it's actually up 9 points from last year. Last year was 25%.

So it's just seasonality in our cash flow on a full year basis, we're probably going to be slightly below where we were last year just because we have a bit higher CapEx, but still good -- still very strong cash flow generation. And I will let Sebastien answer the question on...

Actually that was -- I almost wanted to say job is done in terms of SMDL being closed. It's -- we're going to be less than 1.5% asset light. There is Mantra is probably what we need to clean up, but we've done 2/3 of the job over the last couple of years. We still have some small lease obligation in Australia, and we're tackling it not an easy environment today, but not an impactful at a group level, but we need to finish that last 1/3. The rest that we have like a very performing lease on Cairo, a very big Sofitel and very happy to keep it as it is.

And it's probably what you're going to be noticing as probably the greatest exposure to leases happens to be Paris Society on the restaurant angle, which is very, very profitable for us. And on the management model, we're going on the restaurant model, we're going more and more on management contract, but those are a much lesser profitability in terms of EBITDA contribution. Margin is obviously better, but EBITDA contribution. So per Society through anymore will continue probably doing half and half between signing leases and management control -- management contract.

I'll give you a very small example, which is very, very telling. Gigi, which is one of the most robust brand in restaurant. We signed a lease in boardroom actually at the Mandarin hotel where they've been looking after having Gigi in their own premises. It's an extraordinary success for the last 1.5 months and for the summer. And you're talking millions of EBITDA compared to maybe hundreds of thousands of euros had we done a management contract. So it's rewarding. It's done in a very controlled manner. We don't take much risk on basically what we signed, but it is part of the any small food and beverage model, and we should not be departing from it.

The next question comes from Jarrod Castle from UBS.

Also three from me. There was a EUR 44 million write-down in the P&L linked to Essendi on the earn-out. And just thinking forward, I mean, is this a one-off? Or I guess, what assumptions changed? I know you mentioned it time value of money, but if you can just give a bit more color around that write-off. And then also really good control and I think, decent cash conversion.

But one of the items you mentioned is you're pretty tight on your investments. And you also mentioned key money. I'm just wondering what's going on with key money. It seems like you don't have to spend as much or -- which is a bit surprising given your signings and your pipeline growth. So any color on key money, please? And then maybe one for you, Sebastien. I guess, pre-COVID, you undertook an agreement with Air France on loyalty point sharing, et cetera. And you're obviously expanding a lot of partnerships. And I just want to get some color from you in terms of how you think that's gone and the opportunity for more signings like this.

Sure. Jarrod, thanks for your question. So on Essendi -- so basically, we put this stake as an asset held for sale. When we do that, we need to basically put the assets at fair value. And that means taking the earn-out, so taking a view on the potential earn-out and taking the NPV of that earn-out. And fundamentally, the way you should think about that $44 million, it is the time value of that earn-out. So when that earn-out is paid, essentially that $44 million is a noncash item, if you wish. In terms of the -- and it's a one-off.

In terms of the CapEx, so the reason there's not a ton of key money in the first half is just because we haven't had a lot of openings in the first half. Typically, they're more skewed to the second half. We haven't seen -- and I think we haven't seen pressure on key money per se, and we're still within exactly the trajectory we had at the CMV, which is IQOS CapEx will grow from 200 million to 300 million between '23 and '27 and '26 will obviously be, therefore, up from '25 due to key money, but it's more related to the pace of openings and the actual key money per assets.

And I'll let Sebastien...

So on the -- it's going better than we expected when it comes to when we signed with Air France on Flying Blue, we have now double dipping in between the two companies on earning miles when they stay at Accor Hotel, and we earned all points when you fly with Air France scale. And the volume is better than we expected and the price is actually very profitable for Accor.

The -- what we're doing with the airline industry is we're going actually further ahead on two fronts, which is interesting. The first front, which we started 7 years ago with Qantas in Australia is on Accor being a participant on what I talked about, which is enhancing the travel experience. So Qantas, we signed with them. Accor on white label is fully responsible for managing the first-class business class lounges of Qantas all over the world. We are doing it, and we are conducting the same kind of analysis with a lot of actually Emirates carriers.

So are we with U.S. carrier looking at us for their first-class landers in which Accor could be the service operator. And on the Elite match status, we're also progressing on many of those airlines on giving cross benefit, not only earning point and burning, but actually on status match. So it's -- I think on scale of 10, we already -- we're only at 3 or 4, and you're going to see visible action and initiatives being confirmed to you likely in the next 12 months of significance.

So that has to do with the display of the $150 million of Accor in so many geographies and so many hubs. So -- and Uber is also part of it because since you can actually have your airline partnership and then when you get to the airport, you can through the all.com, get to Uber services. All of that comes together, between the airspace and when you actually get on the floor. That's where we are.

But it's a big priority for us because as some of you came and talked about it, that partnership revenue doesn't cost Accor much, and it's extremely rewarding part of SMDL EBITDA, and that permits to get that 15% to 20% growth a year. And there's no reason why we should not be accelerating on those.

The next question comes from Alex Brignall from Rothschild & Co Redburn.

I'll go for three as well then. Two relatively simple ones and then one which is an opinion one really. On China, you obviously talked about higher churn rates and then churn coming down just for the overall portfolio. How do we think about the churn in China within that? Is this a sort of pull forward of churn that you broadly expected with Huazhu? Or is this just sort of different to the cadence of churn that you had talked about historically?

On Ennismore, could you just reiterate, I think, Martine, you've told me directly in the past that you would never go below a controlling interest in Ennismore. Could you just talk about what the options are potentially with an IPO? And then the third one is its owner costs, something I've had an interest in for a while, but it seems like Marriott's let the cat out of the bag a little bit on economic balance between franchisors and franchisees with their credit card deal.

Could you just talk a little bit about your relationship with your owners, the fees that you're paying? You obviously make materially less credit card fees than Marriott does, but also the fees that they pay for the administration of marketing funds and loyalty funds and how those relationships going?

Yes. On China, it's -- I should have said it earlier, you may think of it, Alex. Let's not underestimate the impact of the real estate prices in India -- in China. Most of the wealth of families in China happen to be in real estate. And that real estate has been going fast for the last 2.5 years, which is why you have an enormous GDP slowdown, and since those guys have less wealth, they travel less. And the most impacted segment is the lower economic segment and lower mid-scale, which is why ibis is kind of actually going from tertiary cities to actually capital cities in which there is more wealth.

So when you're going to see a recovery, when and if you're going to see a recovery on the real estate depending economy, you're probably going to have a lesser churn in ibis segment within China. However, I really believe that if World will continue basically improving their network with better quality premises as opposed to the one opened 12 or 15 years ago. So it's still going to be significant. But as I told you, and I -- again, I'm so draconian on this one, it is fine, absolutely fine. It has no financial impact on us of significance if they were to close more ibis' hotel in China. As long as the ibis brand continue to be open, with a better fee stream, it's fine.

I know it bugs you on the net unit growth percentage, but please go deep into it, dive in and then you understand that yes, it is very much nonmaterial at the Accor level.

On Ennismore, it's -- I can't say too much. One is because decision has not been made. What I can actually confirm to you, which is very, very true is there is no scenario in which Accor will go underneath 51% of Ennismore. We have today 60%. If we were to do a transaction, that diamond has to be preserved within the Accor consolidated EBITDA. It is the fastest growth EBITDA machine of Accor. It is impacted by the Middle East this year. But Middle East has been super, super robust for the last 10 years and will be very robust for the next 10 years. So we're very happy of the Middle East footprint, both for Accor and for Ennismore. So it is a vital crucial subsidiary of Accor, and we should preserve that control over the growth and a lot of decision-making of Ennismore.

And on the owners' cost, we have absolutely no debate whatsoever on the relationship on who gets what. And everything is fully transparent. We have so-called marketing fund. Everything is done. We have a very, very good relationship with the largest franchise association in Europe, actually better and better every year passing. I was with them 2 weeks ago in a big forum.

The one thing I'm going to talk about, and it's surprisingly enough, none of you asked the question so far is because that is part of the ongoing discussion for the last 6 months with the owners is AI is what they're looking at Accor as a guide, as basically the curator, the Ocus creator is how could we, Accor level, incorporate AI automation within the premises of theirs. Can we actually help them reduce their costs, likely 15% to 30% over the next 12 to 18 months.

How could we actually have a better personalized itinerary journey, knowledge database of the old members, not all members? How could we actually deliver a better service? How could Accor incorporate AI on anything which is PMS, CRS, CRMs. Those are the bulk, if not 2/3 of our conversation as it should be with our owners over the last 12 months and will be probably 90% of our conversation in the next 12 months. Has nothing to do with who gets what on the fees. It's how could we be better both for them on the margin and net in their pocket and for us as a better orchestrated distributor.

So -- and that's really the -- and it's a very open and constructive discussion because there's a lot of savings to be made and a lot of actually RevPAR to the gain. That's the relationship stand.

The next question comes from Simon LeChipre from Jefferies.

I've got three as well, please. First of all, on Hotel Asset and others. Could you quantify the revenue performance of Paris Society and Rikas for H1? And how much cost savings came to offset this revenue drop?

Secondly, on branded residences, if you can give us an update. I think total fees last year were around EUR 50 million. So how much do you expect for this year? And also, how should we think about next year, if there is any delay in construction and openings on the back of the conflict given the Middle East exposure there?

And lastly, coming back on your question on the, looking at Luxury & Lifestyle, I think it was up 7.2% in H1, 7.5% last year. So quite impressive, but still slightly short of your medium-term target of 8% to 10%. So can you explain where is the gap coming from? And also if you can give us some color on the churn versus the growth openings in Luxury & Lifestyle.

Sure. So on HA and other, if you look at the first half results and most of the impact is really in Society and retail business. I mean, basically, the way you should think about it is there's about a EUR 10 million EBITDA impact on H1 from -- in HA hotel assets and other, and that's basically the impact on the restaurant business. And that's net of the profit protection obviously. Residence, branded residents should be a bit lower in terms of fee this year because we're going to have some -- potentially some delays in the openings going into next year. But we're still very optimistic about this business.

We're not seeing cancellations really of projects. And what we are doing very, very actively is actually diversifying the portfolio of branded residences and moving to European and U.S. and Mexican markets. And so we're quite comfortable with the fact that we will continue to grow our fees in branded residences.

On the Lux Lifestyle, on the pace of growth of 6.5% to 7.5% versus 8% and 10%. It's mostly due to Sofitel and Fairmont and depend on the year. Fairmont was actually good last year. It's actually much lower this year. It is 8% if you exclude the JO&JOE transfer. So I guess, closer today than 10%.

But it varies depending on the year, I'll give you an example. Fairmont Raffles, a bit slower today in terms of opening, but it's going to be much faster in the next 12 to 18 months. We've been signing big Raffles, Fairmont in Paris, in Lake Como, in [indiscernible] and many great places in Jaipur and other in India. So -- and Sofitel has a great pipeline in terms of development. The brand has been totally established by most SO and MGallery. So it is not as robust for the years '26, -- '25, '26, probably because they spend more time in basically looking after the detractors, basically trying to get a lot of the hotels being redeveloped and not money being spent.

Nothing to worry about. The Lux Lifestyle are on the dot in terms of -- the lifestyle on the dot and what they need to do. I'm just saying something which is evident to you is we have to be also cognizant, I guess, the guys and the management level of Ennismore, they have to face the Middle East crisis and they have to work their a** off on whether it is more could be public, that looks -- that basically implies a lot of different filings in terms of actually administration, bureaucracy, disclosure and so forth.

Yes, they're trying to do everything at the same time. But I guess let's actually not be asking too much of them. They cannot be on the road developing the same time they actually with us on trying to get the best decision ever. So nothing to worry about. And we're going to be between the 8 and the 10 certainly moving forward, and we are today the 8.2 with JO&JOE not having been transferred.

So I don't know whether we probably should have a last question because then we need to get going.

Maybe there was no last question then.

Well, again, so it's -- well, I shouldn't have said what I said because you have no further question. I'm again, very thankful for you connecting. We're going to go on the road with Jean-Jacques, which is across the table. I mean, Martine and the team, very much looking forward to meet some of you in the next 4, 5 days, and we keep fighting. We keep fighting, and we're going to end up where we need to be to be on the mark for the year-end numbers.

Thank you, everyone.

Ladies and gentlemen, good morning, and thank you so much for joining us for this year's AGM concerning the results for the year 2025. We have a lot to talk about. But beforehand, I'd like to say a few words to you about the company's business. I propose that we take a look at what's been happening over the last 12 months while the last 12 months of 2025 and how better to do that than by video.

[Presentation]

Besma, speaking of emotions, could you tell us about the legal formalities for today?

Thank you, Sebastien. Ladies and gentlemen, dear shareholders, good morning, and welcome to today's AGM. I'm going to begin with the Bureau, which will be comprised of Sebastien Bazin, who will chair the AGM; Ugo Arzani, who representing Qatar Investment Authority; and David Manfield representing Kingdom Hotel Limited. The gentlemen will act as tellers for today's AGM. This is a role that is played by the shareholders present representing either by themselves or in proxies, the largest number of shares.

I will be acting as Secretary for today's AGM. As is the case every year, this AGM is webcast. It will also be available on replay on our website. The last 30 minutes of today's AGM will be devoted to questions and answers, including questions sent in by shareholders before the AGM as well as questions raised directly either from shareholders in the room or by people following us online. This AGM gave rise to a notice of meeting and the convocation published in the legal bulletin, respectively, on the 22nd of April and 6th of May 2026. The notice of meeting was also published in the legal gazette on the 6th of May 2026.

At your disposal here on the desk, we have all the documents and reports submitted for the purposes of the AGM as provided by law. And so far as they've been available to shareholders before the AGM. And in order to leave more time for discussion, we propose not to read these documents. The documents to which shareholders are entitled have also been at your disposal at the head office of the group. These same documents have been sent to shareholders who so requested. Finally, concerning the attendance sheet, this is currently being totaled, but we know as of now that more than 1/4 of the share capital is represented as a result of which the AGM can duly conduct its business.

I also propose to dispense the bureau with a reading of the agenda, which has been sent to you in advance. In a few minutes, I would tell you about the proposed draft resolutions. We did not receive any request for draft resolutions to be included from any shareholders. I'd also like to draw your attention to an important change concerning how shareholders are convened at the AGM. In compliance with law, the company for all AGMs from the 1st of July 2026 can send out convocations by electronic e-mail without any prior authorization.

Next year, we'll be using this to check your e-mail addresses. The documents accompanying your convocation will no longer be sent by post, but will be available online on the company's website. This switch over to electronic convocation will enable you to receive your documents more rapidly and give you access to all documentation available on our digital platform on digital and thus reducing our use of postal services and the consumption of paper.

Thank you, Besma. Martine, I think it's up to you to tell us about the financial results for 2025. Thank you.

Thank you, Sebastien. Thank you, Besma. Dear shareholders, good morning to you all. I'm very happy to be with you again to present the group's results. I'm going to begin with the highlights of 2025. In a geopolitical context that has been unstable with the high volatility of currency, we have for the first or the third consecutive year, produced results that are in line with our medium-term commitments, thanks to the very good performance of our business in the second half year and good control of our costs.

And we ended 2025 with a very good business level in Q4. RevPAR reached 7%, which is our best quarter of 2025 for both divisions. This performance was once again driven by prices and the occupation rate improved by 1%. This enabled RevPAR to post a strong growth of 4.2% higher than the upper end of the bracket of our guidance, thus confirming the advantages of our geographic and sectoral diversification. Revenue growth of our hotels was driven by business clients, but also leisure clients. They proved to be very resilient. The net unit growth accelerated to 3.7%, in line with our forecasts with a record number of openings, 24,000 rooms no less in Q4.

The pipeline progressed at a sustained pace by over 10% with signatures up 28%. That is a sliding annual rate, which confirms our ability to increase the net unit growth in the medium term. So this is part of our medium-term growth. The revenue of management and franchise rose 6% at constant exchange rates by comparison with the previous year, reaching a total of EUR 5.64 billion. Recurring EBITDA rose 13% at constant exchange rates, rising to EUR 1.2 billion, which is above the higher end of the bracket of our guidance.

The operational leverage was solid with an improvement of 100 basis points in our EBITDA margin. We also saw our reported EPS rise by 16%. That's our adjusted earnings per share. Available recurring net cash flow reached EUR 632 million. That's a conversion rate of 53%. And finally, another year of high returns to shareholders totaling EUR 743 million, which is a yield of -- the equivalent yield of 6.5%. Let's now move on to the P&L. We decide that from 2025, we would introduce 2 new indicators, the adjusted net income and adjusted earnings per share, adjusted EPS because we feel that these indicators give you a more coherent, more legible, understandable understanding of our performance.

The adjusted elements are as follows: other income and expenses, share of profit and loss arising from minority shares in Essendi, which is mainly the losses and gains on disposal of assets. In 2025, we achieved an adjusted net income of EUR 504 million, up 19% on the previous year and an adjusted EPS of EUR 1.84, that's per share, of course, up 16%. In 2024, we had a calendar that was favorable to the payment of our hybrid coupons, which had an impact of 8 basis points on the earnings per share of 2025.

Let me now draw your attention to the highlights of the profit and loss account. Other income and expenses totaling a loss of 63% included the booking of a provision for commitments made in a joint venture, but also expenses relating to the transformation of our technological platforms and the restructuring costs. Depreciation and amortization down slightly to EUR 330 million in 2025, and our share of equity affiliates totaled EUR 7 million, mainly Essendi, whose net income totaled EUR 3 million in 2025 after EUR 184 million in 2024, period during which substantial capital gains from the disposal of assets.

The increase in net financial expenses were due to a higher level of debt, a slight increase in the average cost of debt at 3%. In addition, 2024 saw favorable exchange rates with a benefit of EUR 16 million. Tax burden was contained and down substantially. In 2024, we had an exceptional tax burden of EUR 24 million due to the restructuring of the group into 2 divisions. Minority interests were stable at EUR 50 million. We now take a closer look at our balance sheet and the return to shareholders. We continue to manage our debt wisely. In 2025, we issued 2 senior bonds for a total of EUR 1.1 billion, with a maturity of 8 years.

As a result, the average duration of our debt was lengthened by an extra 7 months to total 4 years with a well-balanced maturity profile and well-contained cost of debt at 3%. The return to shareholder, as you can see on the slide, shows regular yields and progressing over time. Over the last 3 years, we have paid a total of EUR 2.1 billion to our shareholders. That's an average aggregate yield of 34% -- I should say an aggregate yield of 34% since January 1, '23. So we finished the year with a good performance, as you can see on the screen, that is perfectly in line or even better than our medium-term commitments, but higher than the guidance we gave in February for 2025.

I'd now like to move on to the performance in the first quarter 2026. The strong dynamics we observed in Q4 of 2025 continued into the first quarter of '26 with higher RevPAR and good performance in all our regions up until February. This bears witness to how attractive our brands are and how strong our diversified portfolio is. Despite the conflict in the Middle East, which affected our performance in certain countries as early as March, RevPAR in the first quarter grew by a good 5.1%, driven by an increase in the occupancy rate and a 3% occupancy -- a 3% price effect, I should say.

The RevPAR in March was positive at 1.6%. The net unit growth on a sliding average achieved 3.8% and the pipeline was also up over 10%. As for revenue, management and franchise progressed 8.3% at constant exchange rates, in line with the combined growth of RevPAR and the net unit growth. The group's revenue increased by 2.3% at constant exchange rates and by 3.8% on a like-for-like basis. In a more difficult and more uncertain macroeconomic and geopolitical context, we remain focused on compliance with our commitments as notified to you at the -- in February 26.

On the 1st of April, we announced the signing of a memorandum of understanding concerning the sale of our stake in Essendi for a maximum of EUR 975 million, including EUR 675 million to be paid immediately upon the signing of the transaction. On the 2nd of April, we launched the first tranche of our share buyback plan worth EUR 225 million, a total share buyback plan of EUR 450 million. The impact of the conflict in the Middle East has been mainly felt in the United Arab Emirates, which represents 3% of our portfolio. Saudi Arabia and Egypt are resisting well and demand in other regions has remained good.

That said, we are keeping a close eye on how the conflict is developing and have taken measures to contain our costs in order to limit the impact of the conflict on our financial statements. Moving on to RevPAR in Q1 2026 by division. PME posted very strong growth at up 5%, 4.5%. Prices were up 3% and the occupancy rate was up 1%. Europe and North Africa saw its RevPAR increase by 2.7%, mainly driven by the occupancy rate. France and the U.K. posted similar growth to the fourth quarter of 2025. In the Middle East and Africa, Asia Pacific, RevPAR was up 5.5%, mainly driven by price increases.

As for the Americas, Americas recorded yet another very good quarter with RevPAR up 9.1%. As for Luxury & Lifestyle, RevPAR grew by a very good 6% Prices rose on average by 4% and the occupancy rate also rose by 1 percentage point. The Luxury segment continues to perform extremely well with RevPAR up 6.8% in Q1. The Lifestyle segment saw its RevPAR rise by a very good 4.2%. This segment was more affected by the conflict because of its geographic mix, even though we've seen traffic redirected and demand redirected towards Egypt and Turkey.

Let's move on to the breakdown of our hotels portfolio. PM&E saw its net unit growth progressed by 3% over the last 12 months and its transition towards franchises saw 53% of its hotels under franchise. That's up 2 percentage points on the first quarter of 2025. As often the case in the first quarter, the rhythm was moderate in the first quarter. The pipeline continued to accelerate, up 12% over the last 12 months, largely driven by Middle East, Africa and Asia Pacific. Luxury & Lifestyle accelerated its net unit growth by 8.8% over the last 12 months.

The growth of the Lifestyle network was extremely dynamic, boarding on 20% increase over the last 12 months. Let's now look at the share price of our company. After a very good 2025, the share price was severely affected by the conflict in the Middle East in proportions that are well in excess of the weighting of this region in our portfolio. The reassuring publications of Q1 enabled the share price to pick up, but performance is still volatile and affected by developments in the situation in the Middle East. By way of conclusion, the good performance of 2025 enable us to propose for your approval a dividend of EUR 1.35 per share.

This is a 7% increase on the previous year, and it's perfectly consistent with our policy of paying out a dividend equal to 50% of the net recurring available cash flow. Thank you for your attention. I now give the floor back to Sebastien Bazin for the remainder of the presentation. Thank you.

Thank you very much, Martine. Let's zoom out a little bit. There are a number of themes that I would like to explore with you. And this is probably the most important theme. Why am I saying that? On the 16th and 17th of March this year, I was in the Middle East at a time when it wasn't a very popular destination because Dubai, Abu Dhabi, Doha and many other cities in the Middle East were being hit by missile strikes. And yet that is the time we chose to meet our teams there. We have nearly 50,000 artists working in the Middle East.

So, it is in times of crisis that it is most important to go talk to your employees, talk to them, engage with them and extend your warmest thanks to them. That was not my only reason for going to the Middle East. Now all of our teams were gathered at the 25Hours Hotels, which is one of our managed hotels there. So the other reason why I was there is because I wanted to learn more about the risks, the decisions that needed to be made and also who are the governments that can best help us, the United Arab Emirates, Qatar and the like.

So this was a very powerful and busy time. We got to meet members of the government, and they thanked us for being there. They thanked us for always keeping our door open. And also, they gave us a very deep sense of strength and resilience. We sense great wisdom, a great vision and an amazing ability to bounce back. Not too much anxiety. Clearly, our discussion partners wanted things to go as well as possible. So I got back there last week. I got to meet with some of the teams again. So I believe that I show you this slide every single year -- well, every single year over the past 12 years.

So international travelers, how many people cross borders to find out more about new countries, new cultures. And of course, they need a place to stay because they're not home anymore. So they could spend some time at an Airbnb or on a friends catch. So we're now back to 1.5 billion. And we're headed towards 2 billion international travelers. There's one thing we don't know. How steep is this slope. See here in red, the impact of the Middle East and the conflict there in 2026. But without this scenario, we would see 5% to 6% growth per annum in terms of international traveler numbers. Now on the right-hand side, you see something that's really interesting, a metric of the impact in Iran and the Middle East, I'm not forgetting Israel and the U.S.

Now the first block called the world. In December 2025, Oxford Economics, a third party expected 8% growth. This was scaled back by 2 points, which makes sense from 8% down to 6%. If we look at who benefits. And if we look at the losers, well, Europe is going to benefit. We're looking at a jump from 6% to 8%. We're seeing this in bookings this summer in a number of countries, particularly in Southern Europe. North America, 0 impact. This doesn't come as a surprise. The U.S. is far removed from the conflict in the Middle East or very few people are going to switch destinations. Latin America, same thing. They are far removed from the Middle East.

Asia, a slight dip because of the systemic impact on oil. Air travel is more and more expensive. plane capabilities have been scaled back. So the main beneficiary when it comes when it comes to Asian destinations is Vietnam contrary to Thailand. Thailand is in distress. Africa, 7%, now moving closer to 8%. So are the main African countries that are winning Morocco and Egypt. Those countries are expecting to fill up their capacity. So we have a strong presence in Morocco and have a growing presence in Egypt.

So in both countries, we are the leading hospitality operator. Africa, 7%, 8% growth. I was there last week as well. This continent is extremely complex, but there are countries such as Nigeria, Senegal or Rwanda, who are now -- who now have growing appeal as destinations. Now there are countries where expectations of increased growth are now turning to a downward shift. And if the war were to stop now, we would see a dip of 32%. If it stopped later, the situation will be much worse. So every year, we show you photos, pictures, openings in our various hotel ranges, we are very happy that we have a new hotel in Celvy.

Hamilton is a brand beautifully managed by Mood and her teams. It's a boutique hotel. It's very cozy. Usually, we're looking at existing hotels and they need support from big brother from the Accor Group to beef them up. So -- and Civil Marlow is a local but well-known brand in Australia. We opened it up in Sydney. We have a Mercure hotel in Vietnam. We have an Astel hotel opening up in Belgium, Movenpick in Greece. Also, we worked hard to kickstart our business in Greece, and we're happy we did that 2 years ago because, like I said, Greece now is a sustainable winner. And we have a new Novotel in Dubai in the United Arab Emirates.

So if I were to talk to you about L&L, Luxury & Lifestyle, I would talk to you about the new Raffles in Santos. We have the historical Raffles in downtown Singapore, one of the top 5 hotels in the world, all brands combined. Well, its little brother is in -- is just 12 minutes away in Singapore. We have a major owner that opened it up there, mostly Villas. -- high luxury villas. We were a little concerned that this would overshadow the older brother, which is 140 years old. This hasn't happened at all. So the Fairmont Hotel in Prague, probably the most beautiful hotel in Prague at the moment. We trusted it to the Fairmont brand. I strongly encourage you to go. And we have a new hotel in the

Philippines, which I don't know yet, the 25Hours Hotel in Sydney. It's the first time that the 25Hours brand is moving to Asia. It started in Hamburg. It grew its presence in the Middle East. It's a huge success in Dubai. And for the first time, it's moving to Australia. So 10 such openings in Asia Pacific. So Emblem in Copenhagen is the new boutique hotel brand, high luxury brand usually in the hands of rich families. It's a legacy that they seek to protect. They invested quite a bit in it, and they needed help in terms of distribution. And our latest opening dates back to 12 days ago, the Delano iconic Adeco Hotel on Miami Beach. It reopened 2 days ago, huge success after 3 years of work by the owner.

So this is a very attractive brand. It's very attractive to many of our owners, and you will find this brand in many different capital cities across the world. So a lot of you are French, and I would be remiss if I didn't spend a minute or 2 on this amazing launch. The Orient Express ship I will show you 2 videos. The first one is really short. It's about the launch on April 24, less than a month ago in Saint-Nazaire. And while I keep talking, you will see a number of photos of the inside of this ship. But I will continue talking so that we don't spend too much time on this. Roll video, please.

[Presentation]

Why am I showing you this film? Well, the main reason is that we -- it's a huge source of pride for all of us. We were so proud on April 24 at the launch. It was a solemn time the government was represented by Catherine Chabaud, Minister of the Sea and all of the prefects were there. It's unprecedented in terms of innovation, in terms of artistry, in terms of technology. This reminds me of the Concord in the late 1960s or even the France cruise liner. Not since then has France built such a huge facility, which now applies the oceans of the world.

It's a mixture of artistry, technology, commercial excellence and operational excellence as well. It took 24 months to build it between the first steel cutting operation and the actual launch. So over the past 2 weeks, since the launch in Saint Nazaire, I would say that it is important. It is important for a French group such as ours, but it wasn't just us actually. LVMH was there as well. We have a Franco Swiss partner as well. It was important for us to show the French flag and to also showcase French fine dining, French craftsmanship and also have French offices there to basically showcase French innovation.

So these opportunities are few and far between. And it is the Accor Group that was the artisan, the architect of this opportunity. It surprised everybody that we were able to go so far so high so quickly while keeping things under control. So we will show you additional pictures. This ship is difficult to see. It's in Marseille today. Tomorrow, it will be in Saint-Tropez because it's been registered to the Marina Saint-Tropez. And the first customer privatized it for the next weekend between -- and will travel from Saint-Tropez, Portofino in Cain. So I suggest you keep watching those beautiful pictures on the screen while I continue with my slides.

All right. When it comes to the loyalty program and the partnership program, it's important to talk about that because it is probably one of the top 3 growth engines. We changed the name of this program. Now we called it Accorhol program. So over 110 million members. So basically, an additional 15 million to 17 million new members every year. Before the launch, only 3 million or 4 million new members back between 2010 and 2019. At the time of the launch, we had 20 different partnership agreements. This program will create about 3x more customer returns. If you have a loyalty card, you're 3x more likely to come back to our hotels. And so you come in more often and you stay longer.

And that's good. That's good because they get to spend more, an additional 10% per night. So this means additional revenue for the Accor Group. So this program grows by 45% a year, 36% when it comes to our loyalty recognition, and we have partnership revenue. I can't give you the exact figures because of the competition with our American friends, but revenue and cash from this partnership has already tripled. And we signed a new agreement 10 days ago. We have a common app, a joint app, digital app with Uber Transport in 6 countries, and we're just getting started.

Now let me take you on a trip. Let me discuss our first growth engine, and that's our employees. We've been calling each other hardest. And I love that name for us. 380,000 employees across the world today, 100,000 new hires in 2026, which is on a par with 2023, 2024, between 90,000 and 110,000 new hires per annum. I'd like to remind you that we shed between 60,000 and 70,000 employees every year. They go off to greener pasts and do other things with their lives. And this means we have to hire between 50,000 and 70,000 new people for the new hotels that are opening. So do the math.

If you look at that last box, 62% of group employees do not have a higher education rather beyond their high school diploma. So basically, Accor is the school of life and 100,000 people per annum and 2/3 of them never got a secondary education, and they get to learn a trade instead. So this is the hallmark of our group. This is the meaning that we breathe into our work every day. And this is a message that I'd like to hone every single year. Since Paul Gerard, we've been encouraged to be bold -- so responsible hospitality, Caroline will tell you more about that, everything we're doing in terms of sustainable development.

And we wish we could listen to them more often. And I know that you will show the same amount of passion and generosity. Let me wrap up on our priorities. I don't just mean my priorities. I mean the group's priorities that I have the honor of leading. Many different priorities, which should come as no surprise. They're pretty much the same as what I tell you every year, what we've implemented since 2023, 2026, 2027. So rigor and discipline, we have to execute the strategic road map, maintain our financial discipline as approved by the Board of Directors.

So financial discipline is even more important today. Martine will tell you more about it also. when you don't have sufficient revenue, you have to cut down costs. That's what I mean by financial discipline. We've announced an MOU. We need to see it through, and we need to bring in cash so we can generate sufficient returns to shareholders. Now India will be the top hospitality market in the next 15 to 20 years. It was the U.S. for 20 years and then Europe and then China. Now it's India's turn. And we're spending a lot of energy working with the right partners in India.

We'll tell you more about it over the next few months. Ennismore is a nugget. We're deploying it. It is the fastest-growing segment. I'm talking about lifestyle here. So we need to ask and answer the right questions so we can move faster with this company. AI must be intelligrated. It's quite a challenge. It's important in terms of streamlining and also generating economies of scale, ensuring data reliability and accessibility. AI is all good. But there may be downsides when it comes to employees, jobs.

And so we may need to ask employees who may be made relevant because of AI to actually spend more time front-facing with customers. Now none of this will come as a surprise to you. Now I don't think this is going to take a whole lot of time. But let me tell you how much I love AGMs. I just love Annual General Meetings. Why? Because it is the only time a year when we get to meet the owners of our company. It is the only time where you get to ask questions, and I get to answer them. Questions about where we're headed and how are we moving forward and what kind of resources we have available, a host of other questions.

But this is also an opportunity to explore different themes, themes that are important to the group. The sequence of it, the timing of it must be perfectly under control, and it's something that we need to discuss. And there is one topic that doesn't feature into this road map, not because it's too, not at all. It's probably one of the most important topics for discussion for me and for the group alike. I'm talking about succession planning. who will take over from me? Fear not there's nothing to worry about. Now let me be clear. I was clear with the Board of Directors and the Board was equally clear with me, this will be my last term.

And because it will be my last term, and everybody agrees with that, now is the time to get to work. Now it is the time to lay the groundwork in terms of succession planning. It's important to talk about succession. It's talk about to -- it's important to agree or not on the profile of my successor, find the right talents. We have many talents in this company. We need to grow those talents. Upskilling is absolutely key. And the Board of Directors will have the final say. We may be able to find additional talents outside the company. But let me tell you, let's turn this hurdle into an opportunity.

This is the time. This is the opportunity for the group to ask itself the right questions, do it in the right order in full transparency. The decision will not be mine. The Board has final say, and it's a good thing. This is probably the biggest responsibility Board could have, finding the next leader of the company that they are in charge of. So what's the top priority? That's what it is because it is the CEO that will chart a course and have his strategy or their strategy approved by the Board. So let's not fear. Let's have an open discussion. But there's one thing that is absolutely important. I'll still be around tomorrow. I'll still be around tomorrow morning.

And this means that as we discuss succession planning, we should also continue to manage our day-to-day, execute our strategic road map, make the right decisions regarding Ennismore, deploy our business in India. So the 2 go hand in hand. The earth doesn't stop spinning. We will not stop making the right decisions, and we will keep putting our heads together and do it openly. And we're working under the aegis of the Board and the VP of the Board as Lead Director. And because she's right here with me, and she spent a whole lot of time over the past 6 months.

I'm talking about Isabelle Simon. Many thanks, Isabelle, for all your hard work for spending so much time working for this company. Thank you. Thank you to all of the various committee chairs, including Bruno Pavlovsky, who's in charge of the appointments and Committee and all of the directors. Please understand us. These discussions are taking place at Board level and only at Board level with support from external consultants whenever necessary. We've needed external consultants in the past before. And I will chart a course, and I will make sure we reach our destination. Thank you so much.

Dear shareholders, I'd like to begin by talking about an issue of capital importance. This is our indefectable rejection of the sexual exploitation of children. In March 2026, Accor was campaigned against by a speculative American fund called Grizzly Research. Their report implicated our group in the field of sexual exploitation of children. Confronted by these allegations and in compliance with our deepest commitments, we took action immediately and transparently. We implemented a disciplined and detailed process to assess our protection systems. We -- our objectives, our goals were twofold.

First of all, to use an internal audit to check the content of the allegations leveled against us by the Grizzly Research report. Secondly, we appointed an independent adviser, internationally renowned advisers called -- good Corporation, who are specialists in business ethics in order to conduct an external audit. The target was to review the robustness of our prevention procedures and the fight against secret exploitation at group level. We needed to review every stage of the customer experience, including areas not covered in the report to ensure that our arrangements are completely efficient.

This approach, I think, bears witness to our commitment to guaranteeing a safe and protective environment for one and all everywhere where Accor has operations. The outcome of this internal audit confirmed that there is no systemic deficiencies in our existing procedures. I'd like to clarify a few matters concerning the report and the reality of how things happen in our hotels. Contrary to what the initial report claimed, our audit revealed a sales reply without specifying the necessary prerequisites. It was only in the case of 12 hotels out of 197. This figure, I think, shows that there is a gap between the allegations and the reality in the field.

Furthermore, I think it's essential to point out that the initial report focused solely on requests for proposals. These are price requests. No stay, no reservations were made or confirmed according to these tests. Internal audit also highlighted major methodological biases in how the results were interpreted. For instance, discussions were cut short voluntarily by hotels when there was anything suspicious about requests or anything demanding any requests required the presentation of identity papers and proof affiliation. These are areas that were counted as final acceptations by Grizzly.

Finally, sending out simple price lists, which does not in any way guarantee availability or a booking were also interpreted in the same way by Grizzly. This shows that our teams are alert and that our procedures, though maybe they get improved, but do not have any systemic shortcomings. In order to complete this internal audit, we also called on the expertise of good Corporation, which is an independent specialist in the field of business ethics. Their audit was highly rigorous. The target was to confront our procedures with the operational reality, covering a representative sample of 255 hotels across 56 countries using 4 different common booking methods, e-mail, telephone, online reservations using Accor and using third-party platforms.

This audit also included visits to 88 hotels in 16 different countries among our key markets. The audit enabled us to identify areas that could be improved upon and the concrete application of our procedures and more specifically, a commercial proposition without warning signals were sent by 25 hotels, all means of communication combined. The implementation of our Watch program, which is our vigilance program proved to be variable from one country to another and depending on how the hotels were operated. Finally, 9 hotels did not react to warning signals and 12 hotels took measures that were deemed insufficient. We are taking these observations very seriously and we will fully include them in our plan of action.

On the back of these audits, Accor is reasserting, restating its commitment to fight against the sexual exploitation with children. These concrete measures, which I'll explain, once again reflect our commitment to providing a safe, protective environment in all our establishments, while continuing to play an active role as a leader in the global fight against this problem. These measures are articulated in 3 main areas. First of all, we are making our training courses more operational, reinforcing the fact that these training programs will be compulsory to ensure that all our employees take part in the program.

They include practical cases that enable staff to identify, manage and signal or notify suspicious situations. They cover the whole customer experience to show that every point of contact will be once again an area where we are very watchful. Secondly, we're setting up a stricter legal framework and follow-up framework. This means that we will be more demanding in our standards in our brands, in our contracts with our owners. We are also going to intensify the way we monitor hotels who do not abide by Accor's standards in this field, applying sanctions that are clear and well applied.

Finally, we are reinforcing our coordinated approach with industry and the NGOs. For instance, we're working hand-in-hand with ECPAT, which is an internationally recognized organization, but with professional associations like the AHLA and the WSHA as well. This cooperation is essential if we are to share best practices to raise awareness and work together. These measures, which are part and parcel of our approach to human rights are also proof of our deep and sustainable commitment to the protection of children and responsible hospitality.

We will be doing this to fight against every form of exploitation. I'd now like to take time to share with you the progress made in 2025 in the field of the environment and social aspects. Our sustainability strategy is based on 4 pillars. First of all, to anticipate for the future. This means working hand-in-hand with owners to anticipate climate risk, implementing standards for renovation, more responsible renovation, continuing to decarbonate while reducing our consumption of water, energy and waste. Secondly, to activate the potential of every single town with a great focus on human rights, ethics, diversity and training. The third pillar consists in making the customer experience more meaningful.

And finally, to work with our ecosystem, including our suppliers and local communities. These commitments have generated outcomes, and I'm very happy to share with you now. We have not only reached, but we've actually exceeded all our goals, which is, I think, evidence of the very strong dynamics in our group. For instance, we've reduced our water consumption by rental room by 5%, which was in excess of our 4% target. The proportion of eco-certified hotels reached 57%. That's in excess of the 55% we are hoping to achieve, which confirms Accor's position as a leader in the field of sustainable labels. We've also reduced food waste to 149 grams per client. And 41% of the women in management positions.

This is evidence that we have throughout the world in all our hotels. This progress, I think, has also been acknowledged by key players in the field of finance who have, I think, paid tribute to our achievements in climate -- our CDP score has improved from C to B. At S&P Global, we have improved by 11 percentage points to 63 out of 100, which enables Accor to join the Dow Jones Best-in-class World Index for the very first time, ranking us among the 10% most efficient companies in the world. We can claim this level of performance now because Accor sustainability is a fundamentally collaborative approach in-house. First of all, thanks to the Heartist Volunteering Program launched in March 2025.

We've carried out 1,800 voluntary assignments with local associations, ranking Accor among the really good performers in the market in this field. On the client side, we have mobilized clients directly via a loyalty program, which has enabled us to raise over EUR 500,000 for environmental and social causes. And finally, decarbonization would not be possible without our suppliers. We are working with some very large groups capable of investing in this transition, but also with a very large number of small SMEs, local SMEs. In 2025, we accompanied over 1,000 suppliers in their efforts to reduce carbon emissions.

The commitment of our entire ecosystem is there. The challenge is now to accelerate it in order to reach a new milestone. We are preparing this new stage for 2030 and the name is Hosting Change. This is a very simple conviction in Accor. We are not withstanding or subjected to transformation. We are taking them on to appropriate them. This is in the continuity of what we've done in the past with a rollout on scale from 2027. Thank you for your attention, and I'm delighted to have had the opportunity to come and talk to you and do the same again next year.

Thank you, Coline. Let's give the floor to Besma on the issue of governance.

Thank you, Sebastien. Thank you, Coline. We're going to begin with the composition of the Board. which is currently comprised of 13 directors, including 2 representatives of our employees. 55% are independent and 64% are women on our Board of Directors. This year, we'll be reviewing the term of office of Anne-Laure Kiechel and Bruno Pavlovsky, respectively, Chair of the Audit and Risk Committee and Chair of the Nominations and Compensation Committee Iris Knobloch term of office is about to expire. At the end of today's AGM and subject to approval of the resolution resolutions, the number of directors will be 12, including 2 representatives of the employees, bringing the number of independent directors to 60% of the total.

Let's now review the work of the Board. This year, the Board met 8 times in all with an average participation rate of 85%. This year, it authorized the share buyback program and various projects, in particular, the launch of the sale of Accor's participation in Essendi. As you know, the Board of Directors is supported by 5 specialized committees. First of all, the Audit, Compliance and Risk Committee, which met 4 times in 2025 with a participation rate of 100%. This committee prepared the annual and half yearly accounts, but also reviewed the sustainability report, the implementation of the compliance program and the various measures taken in the field of cybersecurity.

The Nominations and Compensation Committee met 4 times with an attendance rate of 79%. It reviewed various projects, acquisitions and disposals, in particular. The International Strategy Committee met twice in 2025 with an attendance rate of 100%. In particular, it reviewed the geopolitical situation and the impact of the situation on the group. Finally, the ESG Committee met 4 times during the year with an attendance rate of 79% on average. This committee reviewed the ESG commitments of the management and reviewed the group's CSR policy, the Commitments Committee met 4 times during the year with -- I propose to show you a short video by Bruno Pavlovsky, the Chair, who is unable to attend today and who will be reporting to you on the findings of his committee. Thank you for your attention.

Ladies and gentlemen, dear shareholders, as I am unfortunately unable to be with you today, I'm very happy to be able to talk to you by video to present the work of the Nominations and Compensation Committee as well as the compensation of the corporate officers. During the 2025 fiscal year, the committee's work focused on 3 main areas. First of all, in the field of governance, the committee reviewed the criteria for director independence, discussed the diversity policy and debated the results of the evaluation of how the Board and its committees function.

Secondly, concerning appointments, the committee reviewed the composition of your Board, its committees and recommended the renewal of the term of office of Anne-Laure Kiechel, who is Chair of the Audit, Compliance and Risk Committee as well as the renewal of my own term of office. We are both qualified as independent directors. The committee also conducted an in-depth review of the succession plan for directors and for the Chairman and CEO. Third area concerning compensation. The committee determined the levels of achievement of Sebastien Bazin's performance objectives for 2025 and reviewed the compensation policy concerning him for 2026.

I will now present the items submitted to you for your vote. Information regarding the compensation and benefits paid or granted to all corporate officers during and in respect of the past fiscal year and more specifically, on the compensation and benefits paid during the past fiscal year or granted in respect of the same fiscal year to our Chairman and Chief Executive Officer, Sebastien Bazin. These are 2 votes known as the ex-post say-on-pay votes. Concerning directors' compensation, in 2025, a total of EUR 1,371,689 was distributed among the directors based on their attendance at Board and committee meetings.

Regarding the compensation of our Chairman and CEO Sebastien Bazin fixed compensation remains unchanged since January 2016 at EUR 950,000. His annual variable compensation was determined based on the extent to which the objectives we jointly established were met. As a reminder, the quantitative objectives were the current EBITDA, free cash flow, net growth of the number of rooms as well as 3 ESG criteria, namely reduction in water consumption, the percentage of company-owned, managed and franchised hotels that were eco-certified; and thirdly, the percentage of women holding positions at least equivalent to the level of Vice President according to the group's internal classification.

In addition, there were qualitative objectives related to communication and the implementation of our '25-'28 road map as well as talent development. After the committee assessed the level of achievement of each of these objectives, -- the Board of Directors set Sebastien Bazin's variable compensation at EUR 1,556,577 gross, representing 111.2% of the reference amount of EUR 1.4 million. The maximum, may I remind you, is set at 150% of this reference amount. Your Chairman and CEO was also awarded performance shares in 2025 in accordance with the compensation policy, subject to a holding period and performance conditions described in the universal registration document that you have had the opportunity to review.

In addition, as part of the ex anti say-on-pay process, you are asked to vote on the compensation policy for corporate officers for the coming year. Concerning the compensation policy for directors, it remains unchanged for 2026. Concerning the compensation policy for our Chief Executive Officer, I would like to emphasize that the Board has engaged in an active dialogue with shareholders since the last AGM and that their comments have been taken into account. As a result, it has been decided to adjust the 2026 compensation policy in certain areas, namely fixed compensation for 2026 will remain unchanged once again, as does the reference amount for variable compensation of EUR 1.4 million.

As a reminder, variable compensation may range from 0% to 150% of this reference figure depending on the achievement of performance targets. Quantitative objectives, which represent 80% of the variable compensation are on the one hand, financial, that's EBITDA and free cash flow and nonfinancial, namely network growth and 3 ESG criteria reflecting the group's priorities, the reduction in water intensity, the percentage of subsidiary managed or franchised hotels that are eco-certified and finally, the percentage of subsidiary managed hotels that have conducted analysis of compliance with accessibility criteria.

The qualitative objectives, which account for 20% of the variable annual compensation are based on changes in the organization and work methods with a view to supporting the strategy of accelerating franchise growth and developing top leadership. Concerning the long-term variable compensation of Sebastien Bazin. Sebastien Bazin is eligible to receive performance shares representing up to 280% of its gross annual base salary. structure of performance criteria has changed in 3 ways for 2026 in direct response to shareholder expectations. Firstly, the weighting of total shareholder return, that is relative performance of Accor's share price compared to a peer hotel index increases from 20% to 30% in return.

The weighting of the current EBITDA or recurring EBITDA condition reduced from 40% to 30%. And this rebalancing strengthens the alignment of long-term compensation with shareholders' interests. The second change is that the trigger threshold for meeting the current or recurring EBITDA and free cash flow conditions increases from 75% to 90%. The maximum achievement threshold for recurring EBITDA conditions raised from 102% to 105%. This plan is thus more demanding. Finally, the third change, in exchange for this increased requirement, more stringent requirement, the maximum vesting period is raised from 130% -- vesting percentage is raised from 130% to 150% for all conditions.

Final vesting may thus represent up to 150% of the number of shares initially granted, which preserves the incentive aspect of this mechanism. Just for the record, the 5 performance criteria for long-term variable compensation are as follows: recurring EBITDA, which is now at 30%, down from 40% in 2025; free cash flow, which remains unchanged at 20% the reduction in greenhouse gas emissions at 10% the percentage of women in the, what we call VP population and above, 10% and total shareholder return with a weighting of 30%, up from 20% the previous year.

Finally, in response to requests from shareholders, the Board has sought to establish more specific guidelines for the exceptional bonus. This bonus would only be payable in the event of a major transformative transaction that increases value for shareholders. Its cap has been raised to 100% of the total target annual short-term compensation as fixed and reference variable components. If applicable, this would be communicated and explained to shareholders. The Board has sought to make a relevant compensation tool aligned with shareholders' interests yet again.

Ladies and gentlemen, dear shareholders, as you can see, your Board has taken steps to update the compensation policy of our Chief Executive Officer, taking into account feedback from our shareholders with a constant focus on aligning our actions with your interests. Thank you for your attention.

Thank you, Bruno. I no other... Bruno has probably listened to us in the U.S. if he is awake at this hour of day, let me just say a word about something who's been alongside us in the Board of Directors for 13 years and who's listening to us, too. This is Iris Knobloch. Iris was the Vice Chair, also a senior independent shareholder. Iris has been with us virtually since I was appointed as Chairman and CEO.

She's done everything. She's been terrific. We've been very assiduous. In fact, she has brought a very international prism to Iris is Americo, German has lived in Britain. She's a lawyer by training, brought a lot of discipline to our work. But she's also given us a different view of the world of cinema, music, the media -- as you know, she is the very happy President of the Cannes Festival, where she has been appointed as President, as I've said. So I think she's sorry to leave us. And I'm very sorry that she's no longer alongside us, but I think it was the right time for her and maybe for us after 13 years. And I'd like to extend heartfelt thanks to Iris for everything she's done. Let's now hear from our statutory auditors.

Thank you, Chair. Ladies and gentlemen, dear shareholders, good morning. On behalf of the statutory auditors, Price PricewaterhouseCoopers and Deloitte, I am pleased to report on our engagement for fiscal 2025. Our reports on the parent company consolidated financial statements as well as the related party agreements that you will find in the notice of meeting. All of our reports can be found in the URD for fiscal 2025.

The page numbers are displayed on the screen. As is our want, I suggest that I simply summarize the main items. Regarding our report on the financial statements, I'd like to remind you that the goal of our engagement is to obtain reasonable assurances regarding the fair and true representation of the facts, making sure that there are no material abnormalities. We looked at the different businesses and the group's international organization. We verify not just standard operations and also one-off items, and we have implemented due diligence in accordance with applicable French standards.

We have shared our findings with the financial departments of the different entities as well as the group's finance department during our regular conversations. We have reported on how we've organized our work and our findings to the Audit Committee as well as the Board of Directors of your company. Let me start with the report found on Pages 489 prepared in accordance with French GAAP. We have certified these accounts without any reservations and no technical observations have been made in terms of the ANC 2002 regulation.

Now evaluation of equity securities is a key item of our audit, and we've included in our reports our various due diligence work. With regard to our report on the consolidated financial statements in accordance with IFRS as adopted by the EU, which you can find on Pages 455 to 458. -- no reservations and no observations. Intangible assets and evaluation thereof is a key audit matter. And therefore, we have described in our report specific verifications performed on this issue. Lastly, we made sure that the management report does include the information as required by the law. We have also issued a special report on related party agreements found on Page 379 to 381 of the URD.

We have not been notified any related party agreement to be submitted to the approval of this AGM. Our report also includes related party agreements whose performance continued on through 2025, which had already been approved by previous AGMs. With regard to implementation of the CSRD directive, we also have issued report on sustainability. This information can be found in Chapter 3 on corporate social responsibility in the URD of the company. This report can be found on Pages 290 to 293.

On the basis of the verifications made, we have not found any emissions, inconsistencies or material errors in terms of compliance of the -- in terms of the compliance of Accor with applicable law in terms of double materiality requirements and also sustainability presentations and also the sharing of metrics in connection with the EU Taxonomy. On the basis of such verifications, we have no material misstatements to report. So there is, however, one observation, but this does not challenge the findings of the report. We simply like to attract the readers' attention to the uncertainty intrinsic to food waste. You will find this information in the URD. Ladies and gentlemen, dear shareholders, thank you very much for your kind attention.

Thank you, Julian. Well, you get more applause than some of us. Without further overdue, handing over back to Besma, who will present the draft resolutions.

Thank you, Sebastien. I will now walk you through the resolutions submitted for your approval, after which we will move on to the Q&A session. Resolutions 1 to 3 relate to the approval of the parent company and consolidated financial statements for fiscal 2025, together with the appropriation of earnings and the payment of a dividend of EUR 1.35 per share. Resolutions 4 and 5 concern the renewal of directors' terms of office. As we said before, shareholders are being asked to renew the mandates of Anne-Laure Kiechel and Bruno Pavlovsky, both of whom are considered independent directors.

Resolutions 6 to 9 relate to the remuneration of corporate officers. Resolutions 6 and 7 concern the so-called expost say-on-pay votes relating to the 2025 remuneration of the directors and of Sebastien Bazin as presented by Mr. Pavlovsky. And Resolutions 8 and 9 seek your approval of the remuneration policies applicable to the Chairman and CEO and to the directors for 2026. These are the ex-anti say-on-pay resolutions. So Resolution 10 asks shareholders to acknowledge the conclusions of the statutory auditor's special report, which confirms that no new related party agreements were entered into during the year and identifies those entered into in prior years that remained in effect during 2025.

Resolution 11 seeks to renew the authorization, allowing the company to implement a share buyback program, including for the purpose of share cancellation. The authorization would cover up to 10% of the share capital at a maximum purchase price of EUR 80 per share. Finally, Resolution 12 relates to powers for formalities. Thank you for your attention. Thank you very much.

Thank you Besma. Let's start the Q&A session, one of my favorites. Let's start with written questions. Yes. So these are questions received in writing. This is a quick reminder that I'd like to make for the people in attendance or whoever wants to ask questions online. In order to ensure smooth operations, please state your name before asking your question. Shall we start with the number of shares -- how do you want to do this? All right.Let's turn to the questions from the Shareholder Advisory Committee. What measures have you put in place to mitigate the cyber risk of data theft? Well, what kind of measures have we implemented? We have an important committee in the hands of Helene Auriol-Potier and they're looking at the cybersecurity situation and all governance issues. We have an annual audit that we perform internally. It is verified every 2 years by a third party. And we have a cybersecurity team that works 24/7. They work day and night. And this came as a surprise when I met them the first time. Part of their job is to actually attack us.

So basically, they're attacking -- they're trying to breach the company's own cybersecurity system to make sure there are no loopholes and no way in for black hat hackers. So to patch the holes before they are exploited by foreign mlevalent actors. Potential ways in could be the booking system or the loyalty program. So whenever a hole is detected, we try to patch it up. So Alix Boulnois is in charge of distribution, is in charge of IT as well. And the Board is reminded of that twice a year at the very least.

More often when additional work is necessary. It is probably one of the most significant risks that we've mapped, and we need to make sure we do enough. We have allocated resources. The team is in place to ensure proper cybersecurity and the report to the management team as well as to the Board of Directors. We have a crack team. Let me tell you, I've been here 12 years, and I hope that nothing will change. knock on wood, so far, no major threat. Well, we haven't failed to contain any major threat. And there are many threats. And that's why we need to work on this 24/7.

Second question from the Shareholder Advisory Committee. What are the group's expectations regarding the development of the new Emblem and Orient Express collections? Well, expectations are high, as always. And whenever we do something, we try to do our absolute best, but these are 2 different case scenarios. The Emblem collection is the crown jewel that we were missing. We needed an iconic brand. So very often, these are dream hotels, small castles older structures that belong to rich families who never thought of hyphenating their name with a hospitality brand. So we want to make sure that the locations identity remains unchanged.

But via this Emblem connection, those families know that they're protecting the legacy, the nature, the identity of the hotel, and they are protected by this Emblem collection. So there's only 30 to 60 hotels. We'll never have as many as 150, 160 hotels. Now the Orient Express collection is very different. We bought this brand 7 years ago. We have a partnership with the LVMH Group, and it is the epitome of travel luxury since 1883. So this is a broad ranging, a very deep brand. It addresses train enthusiasts, travel lovers, Lalique lovers, people who are -- who have a passion for perfume fragrances, yachting. So we are growing all out. over the next 5, 7 years, we have regular exchanges with LVMH.

And every time we agree on the new direction. So we are very proud of La Minerva. It's a beautiful hotel that opened up just last year in Rome. We're also very proud of the Palazzo Dona Giovannelli, which opened up last month in Venice, huge success. We're very proud of La Dolce Vita in Italy, and we're busy renovating the original Orient Express train from 1908. We own 17 cars, which will be entirely overhauled updated and the train will be available between the end of '27 and the beginning of '28.

Thank you, Sebastien. We have also received a number of written questions, which will post -- we will post the answers on the company website. Let's take 2 of the many questions received. One question from Jean-Mate. As part of developing its luxury activities, is Accor planning to assign Orient Express Resources to helping to showcase the fine dining and other tourism assets of underrepresented regions. Not so far. It's probably a laudable goal. There are many beautiful landscapes in regions and hot beds of fine dining in France.

But let's focus on our core business. Let's continue overhauling the 17 cars. We have a business model. But our business model is different than simply hopping from one European capital city to the next. So maybe in the future, but not right now. And also nudge nudge, wink wink, there are people who are really good at that. [indiscernible] has the answer to your question. And we designed a train, which will explore French culture and fine dining, and we wish them every success. The management team and the Board, do they still believe in standardized AB-style hotels what's -- what are the highlights for 2025? And what about your prospects for the upcoming years? Well, 2 main figures I'd like to share with you because we don't talk about it enough.

First figure, easy to remember, ibis, Novotel, Mercure accounts for about 50% of the group's total number of rooms. And also, that's the whole group's history. That's what helped the group diversify and branch out. So 1/3 of new openings worldwide belong to those brands, ibis, Novotel, Mercure. So it's the mainstay of our growth and has been since the beginning. Those countries that have little or no hospitality structure who have an emerging middle class, the need low-income and mid-scale, mid-level hotels. That was true for Latin America and Europe also in the 1980s. It was the case in China. It is the case in India and will be the case in Sub-Saharan Africa.

So it's a market segment that helps us to grow faster and helps us to grow the easiest in regions of the world such as developing countries. Now let's take questions from the audience.

My name is [indiscernible]. I'm an individual shareholder. Thank you. This beautiful presentation is a journey through the world of luxury. I look forward to seeing your prospects, your outlook materialize. I enjoyed hearing about your plan, but I do have a question of a financial nature. I noticed a dip in investments. I'm also seeing increased debt. I would also like to thank you for your TSR performance. So when it comes to those adjustments, are we seeing less D&A? Are we seeing less investment? That's my question. But many thanks for your TSR policy.

Thank you. I'll ask Martine to answer that question.

Well, in 2024, we had the Paris Olympics where we amortized broadcasting rights. Not that we've reduced our CapEx is actually up, but 2024 was a year where that was exceptionally high because of the Paris Olympics. That's the explanation. As for the level of debt, well, the way we manage our debt is on the basis of a leverage. And our leverage is at 3, which is unchanged by comparison with 2024. So our debt has not progressed any more rapidly than other criteria. In fact, approximately 7% of the capital is returned to shareholders every year in the form of dividends or share buybacks.

But because of the cost of debt, cost of debt is much lower than we expected than the yield you expect on your investment. So we can give you 6% to 7% of the value of the company every year. And with additional debt, we can pay the debt that we've decided to pay out.

Number 4, please. Yes. The gentleman with the cap.

Good morning, and thank you for your presentation. Congratulations on the Orange Express, by the way. I have 2 questions. Would you...

I'm Sebastien Bazin.

What's your name Ali [indiscernible]. So thank you for everything. I have 2 questions. Firstly... You get about 80% of recurring phone calls at reception. What do I mean by recurring calls? Well, these are requests of all sorts, very varied. But secondly, your RevPAR is approximately 29%, as you explained last year. I get the impression that this percentage could be substantially improved. we're talking about AI, artificial intelligence. What's your take on the do you have a chatbot, but also digitalization among clients and the people in different hotels without losing that human touch. So if you could give us your take on that. Secondly, I have a start-up that's less than 2 months old.

I visited various hotels and I've met a number of different hotel managers. And I have to say they're very interested in doing a pilot test. That said, they have told us that our start-up or our module, as we like to call it, for it to be for it to be implemented within Oracle Hospitality. That's what we call the Oracle Hospitality Integration platform. I say this because you're undergoing a deep transformation with Opera. Would it be possible to have maybe 10 minutes with possibly Mrs. Benoit, my IT manager and myself. Would it be possible to have 10 minutes to present this module and maybe be referenced.

We have one hotel already running a test for us in the north of France for the last 48 hours. It's a very hot off the press. But I'm hopeful that by August or September, we could expand that. I see you haven't come by chance.

So what we'll do is, as you're here, we will introduce you to -- I don't think Alix is here today. I think she's traveling, but we will introduce you to a member of Alex's team. And you're right, we're undergoing a deep change in our booking system, of course, as we announced on -- with our friends at Amadeus, we are changing a lot of our technological tools. Now without going into your particular case in point, but what I can tell you is that you have mentioned something very relevant, artificial intelligence.

AI is not going to change everything. But we'll probably change maybe half of the so-called admin and repetitive functions. It's true of review management. It's true of accounting. It's true of taxation. It also applies to HR. So AI will enable us to be more efficient. to have better, more reliable training programs and make better decisions. That's the good news. But AI is also going to change our customer relations. What we did on Google with Keywords will now happen on what we call user generative content. This is what people say about you, what people feel about your brand.

And our customers of this -- at least half of our customers will ask the chatbot, where should I go on holidays? 2 children, 2 parents, where should we go on holidays? They're going to ask ChatGPT, Gemini or others. Here's my budget. I want sea front, I want good food. I have my 2 children aged, whatever. What are the destinations you would recommend what hotel brands would meet my requirements. And of course, the chatbot will have all your former data. So we need to be present on those technological tools because they're going to be a formal prescription. The tools that still cost, you have to subscribe to them. So there was a time when we used to buy keywords when moving on to something more sensorial, and we have to be there.

So we're running tests with just about everybody. If anything, we're ahead of the curve. But as I said, it's in our interest to be ready, and we are. We're prepared to adapt. The only area, probably the most difficult one to manage is not the benefits of the tool. I think that's been self-evident. It's the impact on the group's employees. We and my colleagues all need to be on board with AI without resistance. These are tools that exist and that are going to invade us. So we have to be prepared for that. We're going to see how we're going to have to move the lines. This is something that we're perfectly -- have been perfectly open about for 1.5 years. I apologize if my reply was a little bit lengthy, but that's what I wanted to say.

I'm an individual shareholder. Thank you for your presentations. All interesting, of course, but 2 things I'd like to mention. You talked about the acceleration of Ennismore. Could you tell us a little bit more about Ennis Mall? Secondly, on Egypt, I'm pleasantly surprised to hear that the bookings are good for the next few months. It wasn't what I heard from -- this might give some country where I've spent 4 years of my life. But on the Egypt, could you tell something about the end of the whole cataract and Winter Palace, these emblematic hotels that are Ennismore.

Okay. Ennismore more is the segment with the highest growth in the group. Ennismore more has 17 brands, Mondrian, SLS, SO, managed quite independently with 2 head offices in Dubai and London. Its growth is accelerating in Asia, but also in the U.S. It's a very refined, very complex segment because over 50% of the revenue stems from food and beverage. 80% of people come just to dine because they live nearby. So this is aimed at international, regional and even local people. So it's a complex combination, hinges largely on the attitude of employees, the design, the way the space has been orchestrated. That's a very significant part of our thinking. We have a crown jewel in our hands because I think we understood this segment before others.

We're ahead of the pack, particularly with the American players. It's essential that we endow Ennismore with further means to accelerate the market share it has, particularly in the U.S. and elsewhere. So the management of Ennismore has asked us to step up the pace. We're prepared to do that. We need to find the best possible answers to help develop Ennismore, develop and sustain its future. So working in 2 -- we have 2 members on the Board of Directors of Ennismore and on -- we have 2 of theirs on our Board at Accor. So -- moving on to Egypt. I know you lived there, but the part of Egypt that is expanding most rapidly is Sharm El Sheikh.

That's where there's more and more hospitality capacity despite the conflict between Israel and Gaza, which is only 240 kilometers away. And despite that, the hotels are always full. These are all-inclusive hotels in which we are very, very good, thanks to the Ichthys brand. These are people who come from abroad, mostly from Northern Europe and Eastern Europe as well with all-in packages. They don't know what they're paying for the hotel, what they're paying for the flight, but it's an all-in package. These are loyal customers that keep coming back for the gastronomy, for the seafront and for the sun.

These are people who need to be catered for. And at Accor, we've opened 4,000 rooms in Egypt. And of course, safety and security of our employees are essential. But you're right. That's not true of Cairo, for instance, but it is true of [indiscernible]. Finally, with the -- all Act and Winter Palace in Luxembourg, it's a sad situation. This is the end of a contract. We've been together 25 or 50 years. There was a call for tenders as often happens at the end of a contract. We were in the -- shortlisted, but we didn't win. We were not prepared to pay the same amount as Mandarin to be awarded the contract.

The economic reality didn't justify it. So it's a sad situation because there were 2 jewels in the crown, but the economics were not right.

Good morning Anabel Jones.I'd like to know what your projects are for India.

Well, we have huge projects for India, which I hinted at earlier on. It will take a long time to tell you what we intend to do, but it's easy to grasp this. In India, we have what we call 5,000 hotels with more than 20 rooms. In India -- in China, rather, the figure is 50,000. So with no doubt, we have more hotels in Europe than in India. We've been in India for 25 years. I don't think we gauge the dimensions properly. We decided to enter into a partnership with a well-known company called InterGlobe. InterGlobe is the founding shareholder of India, which is the biggest airline in India with a market share of 62%.

So together, we've decided to put all our eggs in one basket, not the airline, of course, but we do have a stake. But the teams from InterGlobe and Accor will work together to develop our 48 brands with specific case of Fairmont Raffles. All others will be master franchises in India. It took us 25 years to open 70 hotels. Since that decision less than a year ago, we now have 70 hotels in the pipeline. So we've doubled the last 25 years in the space of 6 months, and our intention is to be one of the leaders in India over the next 20 years. For that, we needed to trust our Indian counterparts rather than send European expats. They are better than us in India.

To my left, #3, I think. And after that, we'll have 3 or 4 minutes left. Well, then very briefly.

Good morning. Abdu Belgum, my name. I've come to this AGM because I have a message that has been well thought through. First of all, this is about governance. I'm a historical witness to my thoughts for Paul Dubrule and Gerard Pelisson. This is a governance problem. It's a statutory problem, by the way. Nobody is indispensable. Chairman Gerard Pelisson used to say the things that I've shared with you. He used to say that at a turning point, and when we know there's going to be a deep changes in our industry, which is the biggest industry in the world in terms of employment and wealth with over 10% of global GDP.

Accor is way behind the top 10, yet we are ranked seventh surrounded by giants, China, the U.S.A., among others, Intercontinental, among others. I believe that the energy that's been deployed at the group service, and I'm not a partisan supporter of Sebastien Bazin. I am a supporter, but maybe I'm speaking with a certain degree of wisdom when I say here at today's Annual General Meeting of Shareholders, let's avoid the dogma. We're not in Africa where we need to impose repetitively somebody for that person to continue to be the leader. I'm a simple shareholder and with freedom of mind, and I would like to say to ask everybody here to think.

But why not? So far, he has announced in a very subtle way that this was the end of his term of office, which he announced beforehand. In a violent and brutal geopolitical environment, which will have implications at all levels, in particular, in our industry, would it not be an idea to at least consider is to consider with a view to all these upcoming events that will create so much turmoil, and I can guarantee you that. because when you live in a world where you're listening to people all over the world, when we're talking about education and training, I think it would be a mistake not to think and review certain statutory dogmatic positions. Thank you.

I'm going to answer you with a lot of sincerity. The upheavals you're talking about exist. The decisions to be taken through the -- maybe there are turning points. But for the right decisions to be taken and implemented, it takes time. I had time on my side for 12 years. I thought about this group. I increased the number of brands from 13 to 48. We became #1 everywhere, except in China and the U.S. We've ventured into segments where nobody expected us. And we did that because I had time on my side. I time on my side and I had the trust of the majority of shareholders and the Board of Directors. You need time. I would not have time on my side if I were to stay.

And I'm sure that within the group, you will find somebody who is -- will better than -- be better than me in having time on his side. Let me add to that. I'm not the person with the best understanding of the technological world. I understand it, but I'm not capable of anticipating it. I hope that my successor will have a much better grasp of the world of technology and that, that will enable him or her to take the right decisions. So there's no question of stepping backwards. But thank you for your question. And I do not for second want anybody to take this group down a different route than the one we've taken.

Thank you for your question. Maybe we can leave it at that for the questions. It sounds a bit like a funeral. I'll be here until May 2028. If we find the right person beforehand, if the Board of Directors finds the right person beforehand, maybe we can conclude my term of office, but we have time. Okay. Let me thank you all for attending. Let me thank you all. It's good to see you, and we'll see you again next year. Sorry, yes, we've got a few resolutions to vote.

Okay. Of course, we have a vote. My apologies. Besma, you have the floor for the resolutions, all yours.

Before proceeding to the vote on the resolutions, I would like to provide the shareholder participation figures for this AGM. 6,383 shareholders are present, represented by proxy or have voted remotely, representing a total of 11,182,000 shares out of the 284 million, approximately, shares are carrying voting rights of a quorum, therefore, stands at 81.68% and the meeting is duly constituted and may validly conduct its business.

As you know, shares that have been held in registered form for more than 2 years benefit from double voting rights. I would also remind you that abstentions as well as blank or invalid ballots are not counted as votes against the resolution and are excluded from the vote count. Finally, in accordance with the applicable requirements, shareholders were able to vote on resolutions either remotely or online, 6,161 shareholders representing 161 million. 612,000 representing that many voting rights chose to vote using these methods.

In light of the presentation already given, we propose that the meeting waive the full reading of each resolution. And before we begin the voting process, I would like to draw your attention to the electronic voting system that will be used during the meeting. We invite you to watch a short instruction of video before voting commences.

[Presentation]

Now let's proceed with the vote on the resolutions. Resolution 1, approval of parent company financial statements for fiscal 2025. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 2, approval of consolidated financial statements for fiscal 2025. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 3, appropriation of earnings for fiscal 2025 and determination of the dividend. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 4, renewal of Anne's term of office as a Director of the company. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 5, renewal of Bruno Pavlovsky term of office as a Director of the company. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 6, approval of the information on the remuneration of all corporate officers referred to in Article L. 22-10-9 of the French Commercial Code. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 7, approval of the fixed variable and exceptional components of the total remuneration and benefits paid or awarded to Sebastien Bazin, Chairman and CEO in respect of FY 2025. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 8, approval of the remuneration policy for the Chairman and CEO. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 9, approval of the directors' remuneration policy. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 10, acknowledgment of the special report of the statutory auditors on related party agreements governed by Articles L225-38 and related provisions of the French Commercial Code. Please vote.

[Voting]

Time's up. Resolution carried. Resolution 11, authorization granted to the Board of Directors to trade in the company's shares. Please vote. Resolution carried. Resolution 12 powers for formalities. Please vote.

[Voting]

Time's up. Resolution carried. All of the resolutions have been approved. Thank you very much.

Thank you so much, Besma. For real this time, many thanks to all of you for being here. We look forward to seeing you again next year. And we look forward to continuing the discussion with you kind sir, on your start-up companies. And we're looking forward to seeing you all again. And please don't switch to other brands, stay with Accor. Thank you.

Welcome to the Accor Q1 2026 Revenue Presentation. Today's conference will be hosted by Martine Gerow, Group CFO. [Operator Instructions] Now I will hand the conference over to Mrs. Gerow. Please go ahead.

Good evening, everyone, and thank you for joining Accor's first quarter trading call. And so I'll start with the highlights on Page 3. So we entered 2026 keeping pace with the fourth quarter of 2025 with RevPAR in the mid- to high single digits and all regions performing well through February, which demonstrates the attractiveness of our brands and the strength of our diverse portfolio. Despite the conflict in Iran, which impacted our business starting in mid-March, in some of the GCC countries, we delivered a strong RevPAR in the first quarter, and we picked up the pace on net unit growth.

Q1 RevPAR rose a solid 5.1%. March for RevPAR remained positive at 1.6% despite the Iran conflict with all the regions, again, except some of the GCC performing above our expectations. The performance in the quarter was mostly driven by price for about 2/3 with occupancy rate improving by 1 point. From a business versus leisure, standpoint, individual business and group leisure were the most dynamic segments in the quarter.

Net unit growth reached 3.8% on a last 12-month basis. That's up from 3.7% at the end of 2025. Pipeline continues to grow at a healthy double-digit growth, plus 10% in the first quarter on an LTM basis and that is consistent with our goal of accelerating NUG towards the higher end of our 3% to 5% midterm guidance.

Turning to revenue. Management and franchise revenue grew at 8.3% at constant currency, which is in line with the RevPAR plus NUG growth algorithm. Group revenue increased by 2.3% at constant currency and 3.8% at constant scope and constant currency. And as always, we remain laser-focused on meeting our commitments in what is certainly a tougher macro and geopolitical backdrop.

On April 1, we announced the signing of an MOU on the sale of our stake in Essendi for a consideration of up to EUR 975 million, with EUR 675 million to be received upfront and up to EUR 300 million in earnout in subsequent. Having cleared the insider information pursuant to that transaction, we launched on April 2, a first tranche of EUR 225 million of the EUR 450 million 2026 share buyback program. The impact of the conflict in the Middle East is so far mostly felt in the UAE, which accounts for 3% of our network. Saudi and Egypt are holding up and demand in the other regions remains healthy. Nevertheless, we're closely monitoring the conflict and have already taken measures to both minimize the impact of our results but also redirecting traffic towards the higher-growth market.

Let's now turn to Slide 4 and Q1 RevPAR by division. Starting with PME, which posted a very resilient RevPAR growth of plus 4.5%. Rate was up 3%, and occupancy rate was up 1 point at 62%. ENA posted a solid 2.7% RevPAR. That's an acceleration from the fourth quarter of 2025, and that was driven by occupancy and exceeded our expectations for the first quarter with France and the U.K. posting growth in line with the fourth quarter. In France, Paris grew RevPAR in the mid-single digit, demonstrated the continued attractiveness of the destination and the province was also solid. In the U.K., demand remained solidly in the low single digit in both London and the region. In Germany, RevPAR turned slightly negative over the quarter with demand highly correlated to events and fair activity with the calendar that was weaker in the first quarter.

In MEA APAC, Q1 RevPAR rose 5.5%, nearly all driven by rates. The impact of the conflict was again concentrated in the UAE in March. Southeast Asia accelerated in the first quarter with RevPAR in the high single digit as Thailand and Indonesia returned to positive territory, bouncing back from last year's demand softness. Singapore and Japan also posted solid RevPAR growth. MEA posted a positive mid-single-digit RevPAR growth overall in the first quarter with March RevPAR turning negative in the high single digits. UAE was down high single digit in the first quarter, while Saudi remained positive. Pacific maintained its strong momentum with a high single-digit RevPAR growth in the first quarter. China continues to sequentially improve, posting a negative low single-digit growth in the quarter as our portfolio in China is mostly eco mid-scale. Americas posted another strong quarter with RevPAR up 9.1%. The areas mostly driven by Brazil, as you know, which continued to post low double-digit RevPAR growth in the period.

Turning to Luxury & Lifestyle. RevPAR growth was a solid plus 6% with rate up 4% in the first quarter and occupancy up 1 point at 61%. Luxury continued to outperform in the segment with first quarter RevPAR at plus 6.8% with rates up 5% and occupancy up 1 point, with all brands exceeded our expectation in the first quarter despite the slowdown in March. Demand was particularly strong in the Americas and Europe. Lifestyle grew RevPAR by 4.2% with rates up 4% and occupancy flat. This segment was more impacted by the conflict given the geographic mix, although we have started seeing some demand being redirected to Egypt and Turkey in late March and early April. Lifestyle collective hotels posted a high single-digit RevPAR growth in line with the fourth quarter of 2025.

Turning to Slide 5, which breaks down our hotel portfolio and pipeline by division. PME sustained its 3% network growth on an LTM basis in the first quarter. and continued its move to franchise with 53% of its portfolio franchise in the first quarter, which is up 2 points from the first quarter of 2025. As usual, for first quarter, Q1 '26 pace of opening was moderate, but included 2 notable large openings in Saudi Arabia in March. Pipeline continued to pick up pace, up 12.4% on an LTM basis, mostly driven by the MEA APAC region. Notable signings included the Grand Mercure in Phu Quoc in Vietnam and ibis Bradfield City Hotel in Australia. The M&F revenue per room was stable in The quarter at EUR 1,200 per room.

Luxury and Lifestyle accelerated its network growth at 8.8% on an LTM basis with both segments picking up pace from last year. benefited in particular from the lower churn as we expected. To note that lifestyle network growth approached 20% on an LTM basis in the quarter. Pipeline for Luxury & Lifestyle grew 3.7% and stands at 44% of the network, which is up 1 point from December 2025. And the M&F revenue is also stable at EUR 4,000 per room. At group level, therefore, NUG reached 3.8% on an LTM basis, which is again slightly above where we finished the year. Conversions represented 67% of opening in the first quarter, again, demonstrating the strength of our brands and geographies. And for the group, again, the pipeline was up double digit at 10.3% in volume, with again a record level of signings in value in the quarter.

Now let's turn to Slide 6 with revenue by segment. As always, you will find the details of the revenue by segment and by division in the appendix as well as the press release. The group's revenue reached EUR 1.313 billion in the first quarter, up 2.3% at constant currency versus prior. The reported decrease at minus 2.7% is negatively impacted by FX, notably the U.S. dollar, which represents about 50% of the FX impact in the quarter but we also had a negative scope effect of 1.4% from the disposal of our Paris Society, festive and events businesses. And so on a like-for-like basis, revenue in the quarter was up 3.8%.

Management & Franchise revenue grew by 8.3% at constant currency, again, in line with the expected algorithm from RevPAR and NUG. Revenue in hotel assets and other was down 4.4% at constant currency. The solid trading activity in Australia and Brazil within PME was more than offset by the disposal that I just referred to as well as the lower activity in our recast restaurant portfolio in Dubai, obviously, highly impacted since the beginning of the content. If we exclude the disposal, hotel assets and other revenue on a like-for-like basis, at constant scope and constant currency was up 3.3%.

SMDL, which stands for sales, marketing, distribution and loyalty, revenue was up 6.2% at constant currency and to note that we had an exceptionally strong first quarter last year. Reimbursed costs are flat. And as a reminder, this is absolutely a pure pass-through with no impact on EBITDA.

Turning to Management & Franchise on Slide 7. Again, plus 8.3% in the first quarter. Thanks to a strong performance in Luxury & Lifestyle, as you can see here, it was 15%, we were able to absorb in the first quarter the impact of the flip to franchise in PME as well as a more prudent approach to incentives. As for M&F fees, incentives accounted for 31% of our fees in the quarter. PME Management & Franchise revenue was up 4.3% at constant currency. The distortion is mainly related to the switch from management franchise contract, which impacted the first quarter by about 1 point. Now that is half of what we had experienced in 2025, where the impact was 2 points and in line with what we had shared with you, but also a more prudent approach to incentives given the uncertainty around the Middle East. Luxury & Lifestyle M&F revenue grew at 15% at constant currency. That's in line with the growth algorithm from RevPAR and NUG and the cautiousness or prudence regarding the development of the conflict and therefore, incentives was offset in the quarter by some termination fees.

And to conclude this presentation and before we move to Q&A, on Slide 8, our business weathered the storm in the first quarter, thanks to the resilience of our portfolio and an excellent start of the year. Outside of the UAE, the demand was solid in March and trending in line with actually January and February. Clearly, the situation is very fluid, but the demand remains structurally healthy. And just to note that more recently, schools have reopened in the UAE and air traffic is also increasing in the GCC.

In light of the situation, nevertheless, we have reacted very quickly, both redirecting our investments towards more supportive markets and active beginning March, a group-wide profit protection plan to protect margin and to mitigate the impact of lower trading on our EBITDA. We accelerate development in growth markets, notably in India, which you know is a priority market for Accor. And just to share with you that the pipeline in India has gained significant momentum in the last 6 months, with 46 hotels that we have signed or under MOU across the PME and the luxury portfolio in the last 6 months, which is 63% of the existing network in India. So clearly, accelerating the pace of development in a very strategic market.

And finally, as a reminder, we launched the first tranche of the 2026 share buyback on April 2, as I said in my introduction. And I will now turn the floor over to you for the Q&A session.

[Operator Instructions] The next question comes from Jarrod Castle from UBS.

Maybe 3 from me. Can you say anything in terms of your kind of medium-term EBITDA guidance of 9% to 12%, if you're still happy with that and what you're seeing at the moment? Secondly, obviously, the pipeline is up, but the portfolio was actually down versus the year-end. Is this just kind of seasonality where there's a lot of churn? Or is there anything else going on? It was only very slightly down, but if you can just kind of give a bit of color why it was slightly down, broadly flat. And then just lastly, you obviously launched the buyback. Can you just give a quick update how much you've done? And should we expect a follow-on sometime in July with the half year results?

Thanks, Jarrod, for your question. So as you know, we do not communicate annual guidance until the July when we release our first half results. So with respect to the midterm guidance for '23, '27, that guidance is still there. And we'll give you more precisions in July. What I will say though is that at this point in time, I'm comfortable with where the consensus is on RevPAR and EBITDA.

With respect to the pipeline, I mean, Q1 is always very soft, right? Because we have very -- as you know, our openings are mostly in the second half, and actually a lot of them are in the fourth quarter. So you always have a very low, if not flattish growth in the first quarter. Actually last year, in the first quarter of 2025, we were negative. And with respect to the buyback, yes, we have started the buyback. And as of so far, we have bought EUR 41 million, which is about 900,000 share at about EUR 44 price. And yes, we have committed to a EUR 450 million share buyback program. And so as we usually do, we tend to do the first half in the first semester and second half in the second semester.

The next question comes from Jaina Mistry from Barclays.

Three questions from me, if I may. The third question is around RevPAR. TUI reported kind of softer summer bookings when they reported yesterday. And I know you said other markets were holding up outside the Middle East, but have you seen any cracks in bookings or in RevPAR in Europe or Asia from your -- on the books? And then the second question is around EBITDA. Just in light of the significant RevPAR downgrade or RevPAR declines in the Middle East, your restaurants are shut. Do you expect EBITDA in H1 to grow?

And then for full year EBITDA consensus. I know you mentioned you're comfortable with consensus. Now I was quite surprised by that. Could you maybe walk us through why you are happy with consensus, where you see consensus and just the drivers of operating leverage, quantify the cost savings. Just help us understand the moving parts here because there are some very big moving parts given geopolitics.

Jaina, with respect to your first question on do we see any cracks in demand? We don't see any cracks in demand. When we look at the -- and as you know, obviously, there's not a ton of visibility with respect to -- given the booking windows. However, when we look at the room on the books, we don't see any crack in demand outside of, again, the Middle East, in particular, the UAE. So the -- actually, if anything, so ENA, I mean, Europe is holding up. Actually, within Europe, we see a pickup in the Med. So Spain, Italy, Portugal, Greece, Morocco is another country where we're seeing pickup.

Similar to TUI, we do see a lower pickup in Cypress, Turkey mainly, but that's a very slight. And again, this is not a -- and this is a very small very small part of our portfolio. But it's minor. It's really flattish to low single digit. But the rest of the ENA and actually ENA overall is a positive in terms of pickup with room on the books. Asia is still performing quite well. America is performing quite well. Canada is really performing very well when we look at the room on the books. And the U.S. is also performing well. So really no cracks in demand.

With respect to the consensus, I think the consensus on RevPAR is 2.3%, right? So if you take consensus plus the consensus on NUG, which is around, I think, 3.9%, that gives you basically a 6% plus total, which should translate into M&F revenue growth. And therefore, given our profit protection plan, which we have, again, initiated in March. So you take a bit lower RevPAR, which is about 1 point, right? If you look at consensus versus the low end of the guidance and you take the profit protection plan, basically, that means that we'll be able to reach that consensus, which is about on a reported basis, I think that's about a 6% growth in EBITDA at current rates.

And then on the question around H1 EBITDA, do you expect that to grow?

We don't guide on H1 EBITDA, but it will be up.

Okay. Would you mind quantifying the cost protection plan?

No, I'm not going to -- I'll just say that given -- I'll tell you that. You may recall last year that we had a profit protection plan, right, that we initiated in the second half. The profit protection plan, we are activating or have activated. We started obviously earlier. So that gives you a sense for what that could be.

The next question comes from Muneeba Kayani from BofA.

Just on the Middle East, so thank you for pointing out March RevPAR. Would it be possible for you to indicate to us what you're seeing in April and May based on your bookings and so far? Then secondly, also on the Middle East, in terms of development activity, what are you seeing right now on the ground? And then just on the kind of the report that was on the hotel network and you'd announced that you'd started internal and external investigations. Is it possible to give a little bit more color on what you've learned so far?

Muneeba, I'll actually start with the last question. So we're still conducting the internal and external investigations. And here we expect to be completed with those investigations sometime in May. And as we communicated, we'll share the conclusions of those -- not just the investigations, but also any actions that we feel we would need to take going forward to reinforce this.

With respect to the Middle East, so what we see in April, frankly, is a greater impact in the UAE because the UAE in March, because basically tourists couldn't come home, the impact was not 100% felt in March. But what we see is we see Egypt and Saudi really holding up to where we had expected them. So it's just really the UAE and the UAE is, obviously, with a lower occupancy rate in the, let's call it, 20% to 30% in April.

Now the good thing is -- or the encouraging thing is that the UAE has -- the Emirates have decided to reopen the school. And we're seeing we're seeing also a reopening of the air space, which should encourage traffic to the region and hopefully through the region as well. And with respect to NUG, I think it's which early to tell whether that will have an impact or not. You should keep in mind that with respect to our openings, they're mostly in Saudi and in Egypt. So we actually have very, very few openings in the Emirates this year. And most of our openings -- actually, most of our openings, 2/3 of our opening are usually in the fourth quarter, and 2026 is no different.

And one thing I also would like to -- maybe would like to point out back to Jaina's question. You have to keep in mind that the activity in the Middle East is the strongest. The big quarters are the first quarter and the fourth quarter, right? So we essentially run through the first quarter. And I think our -- if we assume that the tensions are going to ease sometimes around the summer, then that should protect the fourth quarter in that region.

The next question comes from Estelle Weingrod from JPM.

I've got 2 questions. The first one, there are some concerns on potential jet fuel shortages and potential fly cancellations and so on into the summer. I'd like to know what's your take on this. If we get there, is Europe perhaps more sustained or resilient versus other regions like Southeast Asia? And my second question is on branded residential, given the ongoing events in the Middle East. How likely is it to see some of these projects being postponed?

Estelle, so with respect to the jet fuel shortages, you have to recall that -- when it comes to source of travel or source of traffic, if you look at the Europe region, over 80% is within Europe region. And if you look at Southeast Asia, over 70% is again within the region. So to some extent, that protects us from, let's say, what could happen to fuel shortages or airline prices for that matter. And again, when we look at room on the books in the summer, we're really not seeing any signs of lower demand in any region, frankly, obviously, bar the -- some of the GCC markets.

With respect to the branded residences, again, probably too early to tell. Could there be some of those openings that move into the 2027? Frankly, it's too early to tell at this point. And again, a lot of these are in the fourth quarter. I mean, sorry, in the second half.

The next question comes from Alex Brignall from Rothschild and Co Redburn.

I just have one really on Essendi. Could you just go into a little bit of detail as to where we are sort of contractually with that transaction. I know at the time it was not specifically binding, but if you could talk about where you are, what the things are that need to be completed before we'll get the sort of completed announcement and what you said Q3 for time frame, but whether we would hear anything else before then.

Alex, well, look, we're still in the same place that we were when we released the -- our press release. Obviously, the fact that we released a press release on an MOU was a sign of our confidence in getting that transaction across the line, which we hope to do sometimes with a signed MOU in the -- sometime in the second quarter. And then we'll have to go through regulatory approvals, that should take us in the third quarter.

The next question comes from Sabrina Blanc from Bernstein.

Two questions from my part. The first one is regarding the measures that you have taken. Can you provide more clarity to provide example? And just to understand what you have put in place since the beginning of the year compared to what has been done in the second part of 2025? Because I understood that [ a part of cost ] had been postponed at the time in 2025. And the second question is regarding the switch of hotels from managed to franchise. You have mentioned 1% impact this quarter. Could you go more in detail for the remaining part of the year excluding Essendi? And after that, reminding us the impact for Essendi?

Good evening, Sabrina. Sure. So in terms of the measures, I mean, there's really 2 broad categories, right? One, obviously, measures in the impacted markets. So I would say that about half of the plan is in those impacted markets, and half of the plan is, frankly, in other parts of the group. The measures are very, I would say, similar to what we did in the second half of 2025. So essentially constraining the constraining the cost and constraining the investments. But we are also very careful of still maintaining investments in the markets where we have good demand. And actually, we have redirected some of the investments away from the Middle East into other markets.

With respect to the flip to franchise, we expect about 1 point of distortion in 2026, which is again half of what we experience in 2025, Essendi will not impact 2026, given the timing of the transaction. And as we indicated in the -- I think in the press release, the impact of the move to franchise of the Essendi portfolio is going to be gradual over several years. And again, as we indicated, in -- when we announced that MOU, it does not, in any way, impact our ability to meet our midterm algorithm as it was factored in that algorithm.

The next question comes from Jaafar Mestari from BNP Paribas.

Two questions, please. The first one on Middle East, if you could please recap the current trends. Obviously, March was impacted gradually. Then in April, there's also a positive Ramadan calendar shift, if I'm correct. So for as long as this continues in the current state, what revenue impact you assume for the UAE, please? I heard you say a minus 20% number. I'm not quite sure minus 20%, minus 30%, what you were referencing. And then Turkey and Saudi is it flattish right now?

And then second question, once we have that, your published EBITDA sensitivity, if I'm correct, is EUR 7 million to EUR 8 million for each point of group RevPAR. Obviously, it's a lot more difficult to offset these big numbers and the Middle East has a skew to higher ADRs and to management contracts as well within. Can we still more or less use the EUR 7 million to EUR 8 million? Or can we not use it, but thanks to the profit protection plan we can. What's the logic there?

Sure, Jaafar. So the minus -- so the 20 to 30s that I was referring to is the occupancy rate in the UAE, so in Dubai essentially in April. With respect to the...

Occupancy. And so total RevPAR please will be extremely useful.

Yes, yes, total RevPAR is down much more in the UAE. It's actually -- you're right. I mean KSA, it very much depends on when the Ramadan is. What I will say on KSA, so Saudi, is that the Ramadan activity was as we expected it, and we see the drop-off from Ramadan frankly, as per seasonality. So no change there. Egypt actually, we see occupancy, again, as we expected. There's some redirecting of traffic actually from the lifestyle resorts into Egypt. In Turkey, we haven't talked about Turkey, but actually, Turkey, we're starting to pick up from seasonality, again, as we expect. So it's really the UAE that keeps, let's say, that stays impacted. And obviously, we'll be more in April than it was in March given the timing of the conflict. And with respect to the algorithm, that algorithm is -- you're right, it's an average algorithm, but given the profit protection plan that we have in place that algorithm stands.

Super. So just we don't need to use something different, but equally, we shouldn't double count.

Correct.

EUR 7 million to EUR 8 million and then...

Correct.

The next question comes from Simon LeChipre from Jefferies.

The next question comes from Jamie Rollo from Morgan Stanley.

Two please. First of all, can I just double check in the context of your full year EBITDA commentary that you're still expecting SMDL margins of around 6%. I know they were a bit higher last year, but you're not factoring in a big upward surprise on that line are you? And then secondly, I may have missed it, apologies, are you still expecting net unit growth to begin with a 4% at the full year this year?

Jamie, yes, on SMDL, I confirm that we hold to the 6%-plus margin. And with respect to NUG, as I said, it's really too early to say whether -- because, again, 2/3 of our opening are in the fourth quarter, which is good news. Because hopefully, by then, the tensions will have eased considerably.

Simon LeChipre, [Operator Instructions], please go ahead.

Yes. Three, please. First is the pricing strategy with the rise in oil price and going up. Do you expect the industry to react with some pricing curve to sort of stimulate demand into the summer? Secondly on the Middle East, I think a meaningful part of your hotel asset is exposed to the region with your restaurant business. So can you remind us how much of the division is exposed to Middle East? And my understanding is that the restaurants are still open, but I think there's probably not much activity. So what sort of drop-through from the revenue should we expect? And you're able to reduce your cost base and you get any support from the government? And last one, if you can update us on the FX impact that you expect for the full year?

Simon, so with respect to rates, the only, frankly, rate pressure we see is really in the UAE where rates are clearly down. We're not seeing that pressure elsewhere, frankly. And we're not seeing that as we go into the -- when we look at the summer bookings thus far. In terms of the Middle East, the -- our restaurant business in the Middle East, which is gas is about 10% of the hotel assets and other revenue for the group total, right? So 10% of the group hotel assets and other revenue. And with -- and obviously, this is a business actually that is because of where it's located, which is in Dubai, you can actually take the cost down very quickly because essentially, you can dismiss staff quite quickly as well. Our restaurants are open. Interestingly enough, our restaurant's actually doing fairly well during the weekends. It's a bit slower during the week. But since in the last week or so, traffic has actually picked up in those restaurants because people in Dubai are actually starting to go back into the malls and on the streets.

And with respect to FX, we -- FX seems to be a bit more of our friend this year than it was last year, mainly because of the AUD, Australian dollar, which actually is a bit stronger. And therefore, we expect the FX impact to be less than the EUR 30 million that we had shared with you in February. But assuming that, of course, rates stay at the current level.

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

Thank you. Well, again, thank you for attending the call, and I wish everyone -- thank you for your questions. And I wish everyone a good evening.

Good morning everyone. Thank you so much for joining the year-end release for Accor. So I'm going to start pretty short and sweet, if I may. So you have the first slide in front of you, those looking at us or looking at your screen. Four things, 4 takeaways for the group. The first is we are -- yes, we are 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 believed 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 3 years, will be the case for the next probably 10 years and certainly for the next 2 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.

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 a numbers of geography. You probably have seen the number with over 15 million new members last year. That 15 million being 12 million the year before, it's probably going to be between 15 million and 20 million this year.

So that program, the benefit of the program, the credibility and authority 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-RevPAR revenues increasing year after year, which is what we've been asking for and plan for the last 3 years.

And finally, our 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, EUR 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 1.5 hours.

So I'll turn it over to Martin on getting deeper on all the different numbers.

Thanks, Sebastien, and good morning, everyone. So I'll start with the highlights. for the full year financial. For the third year in a row, Accor'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 have 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 net unit growth, which bodes well for 2026.

RevPAR 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 1 point year-over-year. This drove full year RevPAR 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, net unit growth accelerated to 3.7%, which is in line with the 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 EUR 5.639 billion. Recurring EBITDA grew at 13% at constant currency, reaching EUR 1.201 billion. That is above the high end of the guided range. And 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 earnings growth. It is defined as reported EPS, excluding nonrecurring 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 EUR 632 million or a 53% cash conversion. And as we heard from Sebastien, we delivered yet another year of strong shareholder return at EUR 743 million, which equates to 6.5% of the market cap. That brings the total shareholder returns in the last 3 years to EUR 2.1 billion.

Let's now turn to the fourth quarter RevPAR on Slide 7. TME posted a very solid RevPAR 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 point at 68% ENA rebounded in the fourth quarter with a RevPAR growth of 3.3%, equally driven by occupancy and rates. Our 3 biggest markets, which are France, Germany and the U.K. 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 U.K., the rebound we observed in the third quarter was sustained in the fourth quarter with RevPAR growth in the low single digit. In Germany, RevPAR was back in positive territory in the mid-single digits after 3 quarters of negative growth. In MEAPA, 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 2 points and RevPAR was up 10.4% in that region. MEAT continued to be a strong growth drivers with all large destinations, including Saudi, Dubai, reporting RevPAR 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 RevPAR 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 EcoMI. Actually, we saw an almost neutral RevPAR for the full year in our luxury portfolio for China with the fourth quarter that was up 6% for the luxury. Americas posted double-digit RevPAR 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 Belem, where we have 8 hotels. If we turn now to Luxury & Lifestyle, RevPAR growth was 9.5%. That is the strongest quarter of the year for Luxury & 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 RevPAR up 9.4%, and all brands and regions contributed to this performance. That confirms the structurally supportive demand for the segment of the hospitality. Lifestyle also had a very strong RevPAR, up almost 10% in the quarter. Results continued to perform very well with RevPAR growth in the mid-teens and Lifestyle Collective posted their strongest quarter of the year.

Turning to Slide 8, 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 2 large hotel openings, the Handbritton in Las Vegas and the Ibis Budget Haida Tower in Macau. Churn also slightly -- churn also started to slightly recede towards the end of the year. MEPA continues to be the growth engine over the period, representing 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 2 points from last year. And that confirms the attractiveness of the PME brands. The M&F revenue per room was stable at EUR 1,200.

On the right, Luxury & Lifestyle portfolio grew by 7.5%, driven by Ennismore, 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 & Lifestyle include the Faina and Delano in New York City, the Orient Express in Rome and the Emblem in Lotcknam. The pipeline in Luxury & Lifestyle continued to grow at a sustained pace and signings grew in the mid-teens. Pipeline stands at 34 -- sorry, 43% of the network, and that's also up 2 points from prior year.

And finally, the M&F revenue per room is stable at EUR 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 maintained 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 3x 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. The group revenue reached EUR 5.639 billion. That's up 4.5% at constant currency versus prior year, and it's a clear acceleration from the third quarter year-to-date. The reported growth at 0.6% is negatively impacted by the FX scope effect in 2025 was negligible. 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 midterm 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&B activity at our Paris Society and Ricasstaurant. 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 RevPAR growth, a partial effect from the net unit 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 full 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 & Lifestyle M&F revenue grew at 13% on a constant currency basis, which is in line with the growth of the RevPAR and the NUG. And the phasing of churn and openings, especially in Lifestyle, explains a slight negative distortion on the M&F growth algorithm. Now let's turn to EBITDA on Slide 12. Again, the group EBITDA reached EUR 1.201 billion. That's up 13.3% at constant currency, that is above our 11% to 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 EUR 68 million, slightly above our initial estimate of EUR 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 EUR 1 margin improvement in line with our operating leverage target. Both divisions improved their margin, although operating leverage was strongest in Luxury & Lifestyle. PME margin was negatively impacted in the second half by a provision on outstanding receivables of Bevo, which is an owner mostly in Germany that has filed for insolvency proceedings in January of this year. If we adjust for that, then CME margin would also have improved over 100 basis 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 SMB 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 1/3 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 nonrecurring tax-related items. In '25, we achieved an adjusted net profit of EUR 504 million. That's up 19% year-over-year and an adjusted EPS of EUR 1.84, that's up 16% versus prior year.

In '24, we benefited from a favorable timing on the payment of our hybrid coupons, which obviously impacts the 2025 EPS growth by about 8 points. The EUR 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 EUR 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 EUR 7 million. In 2025, Ascendi reported far fewer capital gains than it did in 2024 with a net profit for S&D that stood at EUR 3 million in 2025 as opposed to EUR 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 noncash favorable FX change of about EUR 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 2 divisions. And in '25, corporate income tax is favorably impacted by the evolution of our transfer pricing model. Now moving on to cash flow on Slide 14. Recurring free cash flow reached EUR 632 million in '25 as compared to EUR 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 '26, we expect cash interest to be in the EUR 100 million area, driven by the increase in debt level mainly. Cash tax increased from EUR 169 million to EUR 202 million, and that is due to higher taxable profits, but also some nonrecurring remittance taxes mainly in Brazil. We expect our cash taxes to be broadly stable in 2026. Recurring investments remained under control at EUR 230 million versus EUR 221 million, sorry, in '24. And this is in line with our midterm guidance, and that reflects the group's acceleration in Luxury & Lifestyle, which requires slightly higher key money to support its faster pace of development. The working capital change is a negative EUR 20 million in '25, 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 we'll collect in '25, then cash conversion actually would be close to 55%. And finally, net debt reached EUR 3.64 billion at the end of December.

And as a reminder, net debt was EUR 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 non-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, Accor issued 2 bonds, senior bond, one in March, which is actually an 8-year bond to extend the maturity of our debt and one in September, which is a 7-year bond. And as a result, the average debt maturity increased from 3.3 years to 4 years at the end of '25 with a very well-balanced 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 rating -- 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 3 years, we have returned EUR 2.1 billion to our shareholders, which includes in '25, again, a return of EUR 743 million or 6.5% of the market cap at the beginning of the year.

Our policy, as you are familiar with, is to distribute an ordinary dividend equal to 50% of our recurring free cash flow, and we will, therefore, propose to the Annual General Shareholder Assembly a dividend of EUR 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 3 goals. We reduced our water intensity by 5%. At the end of 2025, we had 57% of our hotels. We achieved an eco-label certification, and we had -- 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 are 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 midterm guidance.

I will now turn it back to Sebastien for concluding remarks.

Thank you so much, Martin. 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 are 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 in the first 3 years, but we're going to do it again in the remaining 2 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 is you need to accelerate on the net unit growth and you need to accelerate on trying to get some non-RevPAR revenues from loyalty partnerships and others. The one thing which is striking, and Martin was talking about it, the NUG has been 3.7% last year, which is roughly 50,000 rooms being open, which is kind of a record number ever for Accor. We're certainly looking for overachieving that 50,000 rooms marker, and we know where we're going. Why do we know? It's because we've been 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 our 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 a great job, 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 2 things.

Number one, it's proven by many other operators and by us as well. But 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 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 Accor 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 the share buyback of EUR 450 million in '26. That's a bit larger than '25, almost the same number at '25. So -- and fifth is S&D. I'm sure we're going to have a question on the current discussions with Ascend, we will and we must close the Ascend transaction in '26. We're not late exactly at the same time last year when the question was asked. Martin and I and Jean-Jacques actually answered, it is a 12- to 18-month 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, 9:00 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 going to ask Jean-Jacques to come next to us. So we're going to make space for him.

[Operator Instructions]

The next question comes from Jaina Mistry from Barclays.

Three questions from me, if I may. Number one, on Ascendi, you just mentioned it now. I mean the book value is roughly 850. Your net profit from Ascendi was significantly down. How should we think about disposal proceeds? Is that book value roughly the right potential proceeds this year? My second question is around net unit growth and then just on one-off [indiscernible]

Thank you so much for your question. We're going to go actually to 3 of us. I'm going to start with Ascend, then JJ is going to add something because JJ is the front runner when it comes to the negotiations. It's -- 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 EUR 843 million book value for [indiscernible] 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 time line about 1 year ago, and we mentioned at a point in time that this is what it would take us 12 to 18 months. It's -- the answer I gave when I gave that time line 1 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 we are faced with, sophisticated investor, you may recall who they are, 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 a complex transaction, but in line with the parameter that we were anticipating the discussions to take in terms of the discussions, but also the time line. So no surprise here. No surprise.

On the net unit growth, it's really -- and I'm going to speak 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 unit 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 we are the owners, the counterparties. We know the brand, of course. We know the pace. So -- and we also know that there is 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 hotels that we had on luxury and on premium is mostly behind us. We probably have another 1.5 years 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 churn. And again, I don't know whether you want to add something on PME.

Just maybe a couple of illustration. I mean the brands have not been as strong as they are today. And this is the work that all the team has done since the Capital Market Day to 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 1 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 Sebastien has been sharing with all of you on the net unit growth and how we're going to progress.

Martine, you take the...

Yes, I'll take. And just to complement on the net unit growth. So our algorithm midterm is 4% to 5%. And again, given the strength of the signings, the brands diversification, we're confident in our ability to move towards that high end of the range. We will obviously communicate our '26 guidance as we do usually always in the -- with the first half results. And all I can say that 2026 not will start with a 4 handle.

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

Your question was RevPAR, right? -- was that on...

EPS...

EPS. Well, let me answer -- so all I'll say on EPS and adjusted EPS is that we want that algorithm from RevPAR, net fleet growth, revenue, EBITDA to also cascade all the way through adjusted EPS. So our expectation is that adjusted EPS will grow at double-digit rate in 2026.

The next question comes from Jamie Rollo from M.

I have 3 questions, please. First on the fourth quarter, very strong revenues [indiscernible] lifestyle up 33%. That looks pretty good versus RevPAR and just wanted to the one-off income line reverse out next year. On the managed I know you some nonrecurring items line on foreign exchange -- so any guidance on the P&L impact or even on those lines would be very helpful.

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

Yes. So 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 -- so we will have some -- obviously some impact in the fourth quarter of '26 as a result. But if you look at Luxury & Lifestyle M&F revenue, the growth rate in the fourth quarter is still 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...

Net interest line.

Net 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 investments. That's a one-off that 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 Jamie, 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&F continue to increase, and we've demonstrated that over the last 2 years since the Capital Market Day, increasing, in fact, the profitability by about 100 basis points per year. And you should expect that the fit to franchise does not change anything on the commitment that we've got on EBITDA in the regions concerned because fundamentally, it's less of top line, but it is a better profitability. And we're going to make sure that in the end, the EBITDA volume, which is generated remains something which is within the parameter of the Capital Market Day. 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 complement 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 2-point impact on the Flip2 franchise in PME. So because we have a good RevPAR 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 6% to 10%.

The next question comes from Nikunj Kash from Red...

It's Alex Brignall. Just quickly on As, thank you for the detail you've given. [indiscernible] it relates to Jamie's question there. [indiscernible] believe that related -- could you possibly give us some indication of what.

JJ, do you want to...

I think I'll just repeat what I went through with Jimmy, which is that you should expect the EBITDA, which is generated by the regions like ENA, which is the most impacted regions to be well in line with the Capital Market Day guidance.

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 an 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 [indiscernible] 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, which stay in the plan.

You want to go on the loyalty fees?

I can take that one.

Please.

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

The next question comes from Sabrina Blanc from Bernstein.

I have 3 questions from my part. The first one is regarding the beginning of 2026. You have provided RevPAR 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 [indiscernible] but more on the IPO side. Do you have any view on that point? And the third point regarding the share buyback program. It is mentioned that you could resume the program as soon as the insider information are done regarding SMB. Can -- when could we expect to have the share buyback relaunch, please?

Okay. I'll take the first question on the current trading. 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 kind of well advanced. We had a very, 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. MEAPA continues to perform well, so does Brazil and Luxury & Lifestyle continues to perform also extremely well. So no signs of softness thus far.

Sabrina, on Ennismore, what we -- there's no change from what we told you in October '25. We said that, I guess, we the Board of Accor 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 a potential listing of Ennismore on any market, which if we were to do so, will certainly enhance visibility, notority, liquidity and maybe flexibility of Ennismore. What's certainly no change is Ennismore 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 it's -- 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 a greater clarity if and when we make that decision on listing.

Share buyback...

You want me to take that one? 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 Jaafar Mestari from BNP.

I have 3 questions, if that's all right. Firstly, on sales, marketing, digital and loyalty, you're already at EUR 94 million EBITDA. You're already at 7% margin. And I think you just said you expect revenue to double over the next 3 years. So just to confirm, this means SMDL EBITDA goes to just below EUR 200 million in 3 years. That's something like EUR 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 yes, do you expect EUR 90 million, EUR 100 million ancillary growth over the next 3 years? And what's driving it because it's not as simple as we spoke to JPMorgan 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 Rivo administration? What would have been EBITDA 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's the scenario you've modeled?

Okay. So I'll take the SMDL question. So it's -- the portion of the SMDL EBITDA -- revenue, not EBITDA that we expect to double over the next 3 or 4 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 2, 3, 4 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 unit growth, I'm not sure I completely understood your comments. So maybe you want to refer.

What he was saying, Martin, that I guess he's implying a 0.5% churn from last year because he said like you would be 4.2% minus 0.5% to be at 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 2022, it's going to be diminishing. And of course, the net opening will be increasing, so which is why you're going to have lesser churn, greater net opening, i.e., a greater net unit growth in '26, and that will repeat itself in '27. But it is greater than the 0.5% you alluded to.

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 Sebastien was -- and Martin were showing in the general presentation. So it is something that we wanted, and it is something that we control.

And Geoff, so the -- 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 about a point higher churn than we should have. Jean-Jacques mentioned some of the reasons, that gap will close over the next 2, 3 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.

Just on churn to clarify, obviously, total churn is 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're reviewing, 100% -- sorry, 100 of them had exited. The remaining, you were still in discussions. 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 remembered 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, that was very much one-off in PM&E is clean NUG not already at 4.2%...

Yes. Let me take that one. You may recall that was in the Capital Market Day 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, Modi 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 just use that example to say that it is a much deeper and wider issue. And on those 400 hotels, we today have resolved 3/4 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're going to replenish every year. So there is an element in what you say, which is right. Is that answering your question?

Yes, it's still ongoing. You still have 100 space.

But not all of the 100 will churn. That's the point.

The next question comes from Kate Xiao from Bofa.

I have 2 quick follow-ups. The first one is on buybacks. You've announced for this year is going to be $450 million. You did $400 million in 2024, $450 million in 2025 before pausing or delaying a relaunching of a new tranche because of Ascend. 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, Hence, it's a bit delayed, even though you could have more upside to that number? The second question is on on your pipeline on Slide 8, for Luxury & Lifestyle, your net unit growth was 7.5%. Pipeline growth was lower at 5.9%. I guess if you could give a little color or elaborate on why the slower growth of pipeline there, maybe break down Luxury & Lifestyle and how you look at 2026 pipeline growth for this segment?

So I'll take the share buyback question. 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 EUR 450 million is certain. And obviously, that does not include any share buyback that would be related to the sale of our stake in SND when completed and what we have indicated to yourself and investors 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 were -- they didn't need to catch up. So Jean-Jacques has done 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 the industry. in any of our peers. This is much greater than anybody else. It is a much greater number for anymore because then it's more of a smaller base.

So it's more in the 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 a couple of years lag in between fixing the problems, reestablishing the brand, which is now behind us and then getting the appetite from new investors. So -- and it's actually very different between Fairmont. And Fairmont had a greater pace of opening in '25. Sofitel is going to have a greater pace of opening in '26. So it varies, but we are we are very comfortable with the pace with the opening and with the quality of the fee stream coming from each of the brand in 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 2.5 to 3.5 years. If it's a conversion, it's 1.5 to 2 years.

And just to complement on Sebastien's answer, the signings for Luxury & Lifestyle were up 14% year-over-year. So what you see in the growth of the 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 & Lifestyle.

The next question comes from Andre Juillard from Deutsche Bank Equity Research.

Three questions, if I may. First one about RevPAR. 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 a 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 basis points in '25. Even if we take the 9% to 12% CAGR growth, could you give us some more color about the 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 EUR 100 million share buyback program that you were obliged to delay in '26. Is it part of the EUR 450 million? Or is it coming over that when you will be able to start that?

Yes, I'll take the questions. So on the RevPAR, 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 & 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, you -- in some sense, you could do the math. Luxury & Lifestyle, we would expect 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 M&F EBITDA margin, and that is consistent with the 6% to 10% M&F revenue growth and 9% to 10% overall EBITDA growth. And on your last point on share buyback, the EUR 100 million is within the EUR 450 million. And again, our strong intent is to restart this program as soon as possible.

If I may just complement on what Martin is saying and just to take a little bit of credit on the work that has been done for the last 3 years. When we had the Capital Market Day, we said we would work on pricing. You may recall, we showed the table where we were 20% of the network with a revenue management system and RMS install. We today have reached a level of 80%, right? And while it is obviously difficult to measure within the increase or 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 our RevPAR is strong and maybe stronger than -- or stronger than what you may see in some of our competitors within the same vicinity. 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 3 years ago and that are paying off. We are talking a lot about the SMDL profitability. And that's another illustration, whether it is net unit growth, SMDL profitability, the overall M&S improvement and the pricing and all of that, it just comes together. That was my 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, closing, first, thank you so much for all of you attending and asking the questions. I -- 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 have still a lot to do on finishing the job on getting [indiscernible] basically back and in stronger hands in terms of action governance, which means we're going to have additional resources to basically provide additional returns to the shareholders, additional resources to Accor. We engage very quickly in AI. We -- 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 a testing advertising, basically AI travel agent, whatever conversational thank you with ChatGPT, and we'll have the results from the test probably in the next 6 to 7 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 Mistr AI. So we're not -- we're not late, but I guess we are certainly ahead of the game 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 2 things: be on the date, be basically where you want it to be in terms of performances and do better to get better traction on behalf of our investors. Mercy, thank you so much for attending. Bye-bye.

Thank you.

Welcome to the Accor Q3 2025 Revenue Presentation. Today's conference will be hosted by Martine Gerow, Group CFO.

[Operator Instructions]

Now I will hand the conference over to the speakers. Please go ahead.

Thank you, and good evening, everyone, and thank you for joining Accor's third quarter trading update call. And without further ado, I will start with the key highlights on Slide 3 of the presentation. In an environment which continues to evolve, we have made solid strides since our last call, towards: one, accelerating the network growth; and two, mitigating the impact of FX, which leads us to upgrade our EBITDA guidance by 2 points. Starting with RevPAR despite a challenging comp base in the ENA region in the month of July and August, Q3 RevPAR like-for-like remained positive at plus 0.8%, equally driven by price and occupancy, softness in France due to the Olympic baseline and Germany was more than offset by solid growth in other geographies. And we were pleased to see the rebound in September with a 3% RevPAR growth, which was driven by ENA, which returned to positive growth. Other geographies remain very solid.

As we anticipated, NUG accelerated to 2.5% on an LTM basis, and our pipeline remains very healthy with a growth rate of 8.2% over the same period, benefiting from a very robust flow of signings. At constant currency, our management and franchise revenue increased by 3.1%, outpacing RevPAR growth in the quarter. Group revenue overall was flat versus prior year at constant currency due to some asset disposals in the quarter and the Olympics value in kind service revenue in prior year. Those two together impacted revenue by about 3 points in the quarter.

As highlighted during our July call, the euro appreciated both rapidly and significantly against most currencies and in particular, against the U.S. dollar. And as a reminder, our FX exposure is predominantly in currencies which move with the U.S. dollar. What we noted in the third quarter is that the euro was actually broadly stable versus other currency. And as a result, we still expect to have a negative full year impact of EUR 60 million on EBITDA due to FX.

Now against this backdrop, we secured profit protection measures of more than EUR 20 million in the second half, which combined with a confident outlook for the fourth quarter, leads us to upgrade our full year EBITDA guidance. Therefore, recurring EBITDA guidance at constant currency has increased by 2 points from 9% to 10% growth to 11% to 12% growth for the fiscal year 2025. And again, at reported rates, recurring EBITDA is expected to be impacted by a negative FX impact of EUR 60 million.

As a point of update, we have completed the second tranche of the 2025, EUR 440 million share buyback program, driving the total shareholder return since the beginning of the year to EUR 743 million, which is roughly 6.5% of the market cap at the beginning of the year. And I am pleased to announce that we have decided to launch a new tranche of share buyback of EUR 100 million during the fourth quarter of 2025 to take advantage of the current market conditions.

Let's now turn to the RevPAR for the third quarter on Slide 4. Starting with PM&E, which posted a third quarter RevPAR decrease of 1.1% versus '24. Occupancy was actually slightly up to 71% in the quarter with sustained demand. Prices were down, and that's really what drove the RevPAR decline in PM&E and that is really reflective of the high Olympic comp base in ENA. In ENA, RevPAR was down 4.6% driven by France primarily, Demand was sustained with occupancy reaching 74% in the third quarter, which is a 1 point gain versus prior year, but obviously, less constrained stays in France than during the Olympics period, resulted in the rate decrease, which you see here.

In France, again, RevPAR was basically mechanically down high single digit from last year driven by Paris. Provence RevPAR was slightly negative over the same period, but again, September saw a rebound from July and August, although the activity remains soft in the context of political uncertainty, which has an impact on business confidence.

In the U.K., RevPAR rebounded from the second quarter and was up mid-single digit, both in London and the regions, thanks to what was a supportive leisure and corporate event calendar. In Germany, which is a market primarily driven by business demand, RevPAR was down high single digits in the third quarter as the country is facing persistent economic challenges. Sequentially September did improve from July and August, but still negative and October is expected to be slightly improved due to a more supportive fair activity calendar.

Turning to MEA APAC, where the RevPAR in the third quarter was up 2.7%, primarily driven by Middle East and Pacific regions. China, still negative high single-digit RevPAR growth, which continues to weigh on the region. If we exclude China, MEA APAC RevPAR is up 5.3% in the third quarter, driven by price.

Starting with Middle East, the region rebounded strongly, posting a low double-digit RevPAR driven by solid UAE as well as Saudi Arabia, which had a very strong pilgrimage season. Southeast Asia, flattish due to security concerns in Thailand as well as the worsening of travel conditions in Indonesia. Pacific RevPAR strengthened again in the third quarter with mid-single-digit growth in China, which was still negative high single-digit growth in the quarter, actually improved sequentially during the quarter with a better September RevPAR, still negative but much -- at a much lower rate than July and August.

Americas continues to post solid growth with Q3 RevPAR up 7% versus prior year, primarily driven by Brazil, with very solid pricing and corporate demand.

If we turn now to Luxury & Lifestyle on the right side, RevPAR growth was a solid 5% versus prior year, driven by pricing for 2/3 in occupancy for 1/3. Occupancy was up 1 point in the period. Luxury RevPAR was 4.3%, driven by both price and occupancy with solid momentum across all brands, particularly Fairmont and Raffles. Lifestyle posted a very solid 6.9% RevPAR growth, primarily -- driven by price primarily with some occupancy gain and despite geopolitical tensions, resorts in Turkey and the Middle East had again a very strong quarter with RevPAR up in the low teens.

Moving on to Slide 5, which breaks down our hotel portfolio and pipeline by division. So at group level, net unit growth on an LTM basis reached 2.5%, which is an acceleration from June and in line with our expectation. And again, pipeline growth LTM is 8.2% versus prior year, which supports further acceleration.

Starting with PM&E on the left. NUG on the last 12-month basis was up 2%, again, accelerating from H1 as we expected, as we have lapped over the opening of the Daiwa portfolio, in the second quarter of 2024. And we expect PM&E to continue to accelerate now in the fourth quarter.

Notably, we have 2 large hotel openings planned in the fourth quarter. The hand written in Las Vegas and the Ibis Budget [indiscernible] Tower. PM&E pipeline also very healthy, 194,000 room, up 9.5% over the last 12 months and representing 26% of the portfolio.

Moving to the right. L&L network growth also accelerated, reaching 5.3% on an LTM basis with a more favorable phasing of opening and churn than was the case in the first half. The pipeline was up 4% with the pipeline representing 44% of the existing network, which obviously provides solid visibility for the future growth of NUG. And among the most notable openings planned in the fourth quarter, we have a Delano in New York City, Fairmont in Hanoi and Hoxton in Dublin.

Now turn to Page 6. We have decided to provide greater visibility into services to own revenue and EBITDA by breaking what is known as STO down in 2 components, which you see here on Page 6. These 2 components are reimbursed costs on one hand, on the right side, and SMDL, which stands for Sales, Marketing, Distribution & Loyalty on the left side. And I'll start with SMDL on the left. Group's activity, which are expected to grow at a faster pace and generate at least a 6% margin over the midterm, and they can be further divided in 2 blocks.

Sales and marketing, where activities are funded by fees received from hotel owners and fundamentally should be EBITDA neutral. And distribution and loyalty, which regroups EBITDA-generating activities, including distribution, loyalty, partnership and subscription, both expecting to contribute meaningfully to EBITDA growth.

Over the midterm, we expect revenue growth for SMDL to outpace the growth of net unit growth plus RevPAR and this is driven by gaining distribution in feeable channels, increasing loyalty penetration and expanding non-RevPAR revenue from partnership and subscription. Reimbursed costs, on the other hand, are a pure pass-through. For Accor, there are mostly staff costs incurred on behalf of owners, primarily in North America with Fairmont. And as a result, that revenue line should fundamentally grow in line with the growth of the payroll cost in North America, so net wage inflation plus network variation and again, pure pass-through no EBITDA impact.

And in order to provide better visibility into EBITDA generating revenue streams, we've chosen to present reimbursed costs separately from division revenue, as you will notice in the next slide.

So turning now to Slide 7, revenue by segment. The revenue by segment and by division is provided in the appendix. So this is in overall group revenue summary. Group revenue, as I was saying in my introduction, reached EUR 1.369 billion in the third quarter, flat to prior year at constant currency and down 4.6% at current rates.

We continue to be impacted by the weakening of the U.S. dollar and related currency with FX negatively impacting our revenue by almost 5 points in the third quarter. Scope effect was also slightly negative in the period, and I'll come back to that.

As expected, management and franchise revenue growth picked up in the third quarter, growing at 3.1% at constant currency, which is basically in line with the growth of the RevPAR and the NUG. Hotel assets and other revenue was down 3.1% at constant currency, reflecting the high Olympics comps for our catering business [indiscernible] with as well as some disposal, mainly the festive business of Paris Society where the focus going forward is on the development of the restaurant platform. On a positive note, the PM&E hotel assets and other was up 4.4% at constant currency, mostly driven by Australia.

You see here SMDL, which is, again, Sales, Marketing, Distribution & Loyalty revenue, down 1.6% at constant currency. Now in the third quarter of '24, we recognized $26 million of value-in-kind revenue related to services provided to the Olympic Games Organizing Committee, which had no EBITDA impact. If we adjust for this accounting revenue recognition, SMDL revenue would actually be up 6% at constant currency in the quarter, reflecting RevPAR and better distribution mix.

Turning to Slide 8. Management and franchise revenue by segment, which grew again at 3.1% at constant currency, which is more than 2 points above RevPAR growth in the quarter, down 0.9% at current rate, and this is the impact of FX. Starting with PM&E. M&F revenue was down 1.2% at constant currency. That's in line with RevPAR. The decline in ENA, which is really what drove the decline for the PM&E division mainly reflects the negative RevPAR growth as we've seen, and to a lesser extent, the conversion of some contracts to franchise as we have called out since our first quarter call. MEA APAC is quite impacted by FX. At constant currency, M&F revenue is up 2.9%, slightly above RevPAR.

Turning to Luxury & Lifestyle. M&F revenue grew at a healthy rate of 11.7% at constant currency, almost 7 points above RevPAR. At current rate growth was 6%. Both segments, Luxury & Lifestyle reflect solid revenue conversion from NUG and RevPAR. And in addition, ENA as expected, lifestyle revenue grew at a higher pace, benefiting from a more favorable phasing of residence fees.

I will now turn to our guidance on Page 9. We confirm our guidance for like-for-like RevPAR growth at between 3% and 4%. As we anticipated, Q3 was our weakest quarter, and we expect a rebound in Q4, which is confident by the Q3 exit rate with the September RevPAR at plus 3%. Net unit growth is still expected at circa 3.5% as we continue to pick up pace in the fourth quarter with a high volume of openings planned, but as well as lower -- churn, sorry, than in prior year in the fourth quarter. Now based on current production -- projections, as I stated in my introduction, we still expect FX to have a negative full year impact of EUR 60 million. So consistent with what we shared with you in July, and against this backdrop, we have secured additional profit protection measures of more than EUR 20 million, which combined with a confident outlook for the fourth quarter, enables us to upgrade our full year '25 recurring EBITDA growth guidance by 2 points to a growth which is now between -- expecting between 11% and 12% at constant currency.

And I will conclude this presentation with an update on Ennismore on Slide 10. As you may recall, Ennismore was created in 2021 with Accor joining its lifestyle brands with Hoxton. Today, Ennismore is a leading player in the fast-growing lifestyle hospitality segment with 192 hotels and over 500 restaurants and bars. Today, the Accor Board approved the evaluation of a potential listing of Ennismore. Such a listing would enhance liquidity for minority shareholders and provide additional flexibility to support any small growth platform. Now in the event a listing would take place, Accor would remain the controlling shareholder of Ennismore. And at this juncture, there's no certainty that a transaction will be completed and obviously, we will inform the market of future development as appropriate. And thank you for your listening, and I will now open the floor to questions.

[Operator Instructions]

The next question comes from Jamie Rollo from Morgan Stanley.

Three questions, please. Just on the Managed and Franchised division, it's obviously encouraging to see the revenue growth back to positive territory in constant currency terms. But as you call out, there are some benefits from the termination fees in the Americas and some residences income. Could you please quantify those? It looks like it's about EUR 5 million or EUR 6 million combined. Secondly, clearly, also positive to get the EBITDA guidance upgrade, that 2% that you say is all on efficiencies. Should we then annualize that next year, is that an extra 2%? Or is it maybe just a one-off for this year?

And then finally, just on Ennismore. So just to clarify, the Board is evaluating the possibility of this IPO, you're not obviously announcing an IPO. But could you please just talk a bit about the process when you might hear about the decision? And any other factors we need to think about in sort of judging the likelihood of it happening.

Jamie. So on the Americas, yes, you're right. That's the order of magnitude. On the profit protection plans, no, you should not double that. What that EUR 20 million plus is really a combination of delaying some -- and reducing some hirings and as well as reprioritizing some projects. So you should not -- you should not expect that EUR 20 million to become EUR 40 million next year, but you should expect that EUR 20 million to be sustainable next year.

And with respect to Ennismore, you're right. Right now, we have started a process of evaluating a potential listing that will obviously take a number of steps and we'll probably be -- if indeed it is completed at least a 12-month process.

So presumably, the S&D disposal comes first. But any update there?

Correct. The S&D disposal should come first. The process is ongoing. We expect to receive offers during the month of November. And we still expect the transaction to be completed by the end of the second quarter next year.

The next question comes from Jarrod Castle from UBS.

Also three for me. Can you just spend a little bit of time just telling us how the residence phasing has gone in the second half? Obviously, it was a little bit slow in the first half. So any thoughts there? Secondly, EUR 100 million buyback. It sounds like it could complete in 4Q. What made you decide now was the right time rather than, let's say, February time. And then just thirdly, a very strong pipeline. NUG obviously lagging about behind. But how should we think about net unit growth going forward from '26 onwards just given this pipeline growth?

Jarrod, thanks for your question. So in terms of residents, what we say is that overall residents will be slightly up year-over-year and the growth will all take place in the second half, mostly in the fourth quarter. With respect to the buyback program, we'll start the buyback in the fourth quarter. Our view is that last -- last year, we started the -- sorry, this year, we started the share buyback after our full year '24 earnings call. So in March, we felt that given where the share price is today, it was appropriate to have a bit more of a regular share buyback and be active in the market on a more regular basis and not have to wait for our full year '25 earnings release. And with respect to the NUG going forward, yes, we are obviously pleased with the growth in the pipeline and our expectation. Our CMD calls for an acceleration of the NUG towards the upper range of that 3% to 5%. This year, we are circa 3.5% and the expectation for '26 is to improve from that level and gradually move towards by '27, the upper range of that range.

Okay. And it doesn't sound like there's any economic headwinds, which is impacting the pipeline or NUG currently at the moment?

No, there isn't. No. And you have to recall that most of our -- the majority of our pipeline sits actually in the Middle East and Asia Pacific, very little actually sits in the U.S., which is obviously more constrained. And the -- we have a very high conversion rate about -- '24 was about 60% of our opening door conversions. Through September, we're running at 56%.

The next question comes from Muneeba Kayani from Bank of America.

The STO breakdown, that's really helpful. You've given the revenue breakdown for 3Q. Just in terms of details going forward, will you be giving more breakdown at an EBITDA level on STO as well? And if you ask -- could you maybe share something on how this would be for 1H if you had given it to us, it is indicative that would be thoughtful. And then just a bit on this Ennismore listing, like why now is the Board looking at it? And what is really being kind of evaluated in this process. And you said Accor would still remain a controlling shareholder. So kind of you would be selling into a listing? How would that work, if you could just talk about that?

Sure. So on STO, actually, the EBITDA that was reported in the first half is the EBITDA for SMDL, right? Because the reimbursed cost is pure pass-through. So that has 0 EBITDA. So all of the EBITDA that was reported in the first half is SMDL. And so going forward, we'll continue to isolate revenue from reimbursed cost, again, 0 EBITDA for that block and SMDL revenue and EBITDA.

And in terms of Ennismore, Ennismore has minority shareholders, those minority shareholders had certain liquidity clauses, which were essentially exercisable during a certain time frame. We've reached a time frame, and therefore, this is why we're now considering and evaluating a potential listing of Ennismore and it's yet to be decided if Ennismore was to be listed, how that liquidity would be composed of, but there's an expectation that all shareholders probably would have to contribute to that liquidity. But again, Accor will remain the controlling shareholder of Ennismore.

What are other options if you don't -- if the Board decides not to do a listing?

Status quo.

The next question comes from Leo Carrington from Citi.

If I could ask two questions. Firstly, on these profit protection measures. Could you also elaborate it further on the remarks earlier on delayed hiring and reprioritization. Is this purely reactions of currency headwinds? Or did market conditions change that these investments were no longer so pressing. And in terms of where these fits, will be more visible in STO or management from franchise EBITDA? Second question, just on the STO breakdown, thank you for splitting out the reimbursed costs. It felt like some of the discussion of H1 implies more disclosure was being considered in terms of the SMDL categories. Is this something that's still under consideration?

So with respect to the profit protection plan, no, it is not related to a change in market conditions. It's really our intention to cover part of that foreign exchange impact. And that's really what's driving the, let's say reprioritizing of projects of hiring and up-spending, generally speaking. In terms of where those savings are coming from, they're relatively balanced, a bit more coming from STO, SMDL than from M&F, but relatively balanced. And in terms of splitting further SMDL. No, we do not intend to put further SMDL than what we have -- than what we're reporting currently, really just isolating reimbursed costs from SMDL.

The next question comes from Estelle Weingrod from JPMorgan. The next question comes from Jaafar Mestari from BNP Paribas Exane.

Actually, can I just start by making you repeat, one thing you said on the profit protection program, what I heard is, you should not assume an extra EUR 20 million next year but you should assume the EUR 20 million if sustainable into next year, just to confirm.

That's correct, Jaafar.

I guess on SMDL, first question, apologies for asking for more detail and you're not going to split it further down. But can you help us with some granularity because presumably marketing, even if you don't have contractual obligations to spend it like some of your U.S. peers. Within the SMDL marketing you're pretty much 0 margins. So how much is marketing, how much is sales and distribution, I guess, low margins? And then how much right now is loyalty memberships partnerships, which presumably is 30% plus margins, please?

So you're right, Jaafar. Sales and marketing is fundamentally breakeven, 0 plus, 0 minus, depending on the years, but it's fundamentally a breakeven. So where the EBITDA comes from is from loyalty distribution partnership and subscription. And within that, it's really distribution that is the major driver of that EBITDA.

Okay. And then the conversion of some contracts from managed franchise. I don't think you've quantified them explicitly so far. Presumably, they were still work in progress, but you're getting closer to the end of the year. Do you have an estimate on the revenue impact for full year '25? And then my last question is on Ennismore. When you say provide additional flexibility to support growth, what does that mean in the context of a pure asset-light business where you've been saying that the requirements for key money are not increasing?

Sure. So on management franchise, so what we -- I think what we called out in the first quarter was that we expected the impact to be roughly 2 points of M&F revenue for PM&E, slightly above 1 point at group level, and it's really in the ENA region. With respect to Ennismore, you're absolutely right. We don't intend to go asset heavy in Ennismore, but Ennismore historically has grown through acquisitions, and this is potentially something that could be on that road map going forward. And that's where the flexibility comes in.

The next question comes from Estelle Weingrod from JPMorgan.

Is it working this time?

Yes.

Yes. Okay, cool. Perfect. First question on RevPAR. We've seen an inflection in September as you pointed to, but also in Q4 in the last STO data. Are you confident this regained momentum can be sustained over the quarter?

And also a question on France. I mean there's lots of things going on there likely having an impact on consumer sentiment perhaps as we've seen in the Q3 data. How is it evolving at the moment? Any color, I don't know, on the books into the year-end? And also a question, last one on Ennismore as well. I mean I always thought that could be some potential dis-synergies in terms of cost duplication and that could be an issue. Can you explain what's driving the announcement today in that regard? And clearly, it's been talked about for a little while, but I thought maybe it will be something to be considered at the end of the CEO mandate, perhaps.

Sure. So yes, in terms of RevPAR, I mean we're encouraged by the month of September, and you argue today is that we should sustain that rate of growth pretty much in the third quarter. October probably will be our strongest month in that quarter. And so far, October is looking good. With respect to France, frankly, our view on France right now is that it's a relatively flattish environment. That's what we've seen in September, and we don't see any particular change or factor that would change that. I mean it's basically very -- it's basically a soft environment for the reasons you can imagine.

Now on Ennismore, what -- we do not -- again, we will remain the controlling shareholder of Ennismore and Ennismore will continue to benefit from the platforms that Accor is on mainly loyalty. So actually, any potential listing of Ennismore would not, in and of itself, create dis-synergies from what Ennismore is today. And in terms of the timing, again, the timing has to do with some liquidity windows that minority shareholders had and that we had to essentially abide by.

[Operator Instructions]

The next question comes from Alex Brignall from Rothschild and Co Redburn. The next question comes from [indiscernible] from BlackRock.

[Operator Instructions]

The next question comes from Andre Juillard from Deutsche Bank Equity Research.

I had more or less the same question that Estelle asked you about Ennismore. Just wanted to understand -- to better understand what you are thinking about in terms of potential spinoff or independent listing. But what it would imply in terms of shareholding because saying that you want to keep the majority stake in Ennismore means that you would keep 50.1% or more considering that you have 62%? And what about the other shareholders? What about the idea behind that considering that Ennismore is not a really independent group at the moment?

Did you hear the answer of the speaker, please, can you tell us. Can you tell us if you hear the answer of the speaker.

Yes, yes. I hear you.

But did you hear the answer to your question?

Thank you.

The next question comes from Alex Brignall from Rothschild and Co Redburn.

Can you hear me this time?

Yes, I can hear you well, Alex.

I think it might be using Teams. I'll tell people not to use Teams in future. I'm on [indiscernible] now. So the first question, H1 or Q2. One of the big questions I think Jamie brought it up was on revenue timing against RevPAR and NUG. They broadly matched this quarter. And you've obviously -- you talked about residence fees already, but there's probably a suggestion that a bit of the unwind and the negative timing of H1 would come through. Is that really the same answer with the resident fees and so should Q4 sort of give back some of the miss on the timing of that came through in Q2?

And then the second question is on the reimbursed costs obviously incredibly helpful to now have that detail. One of the big areas of difference that happened during COVID was the sort of STO piece or what ENA had back then. Obviously had a big negative during COVID, whereas for the U.S. groups, they've broadly stayed even. So I guess my question is, did the negative impact from that line item during COVID, was that all the SMD LPs. Was reimbursed costs kind of -- do you always run it exactly to 0 every year? Or is there still times when it wouldn't? And should we kind of think of that outside of adjusted EBITDA as the U.S. groups reported.

And then the third question, if I dare, conversion, Hilton talked a lot about that they've got a new conversion product that they're pushing and they talked a lot about really the opportunity outside the U.S., which can be diagnosed as a lack of growth opportunity in the U.S. But as it relates to your own growth, which is obviously a lot of it is not in the U.S. How are you feeling about the brand mix and the conversion versus new build dynamics?

Thanks, Alex. So on your first question, yes, I think what we shared our H1 call was that, again, those timing elements that obviously were headwinds in the first half would reverse in the second half. And so resident fees again will be slightly up on a full year basis and all the growth will be in the second half. In terms of the reimbursed cost in SMDL. So during -- reimbursed costs fundamentally are EBITDA activity. If you don't have the payroll cost, basically, you don't have those revenue, neither you have those -- neither do you have those costs. So during COVID that line was also at 0 and all the STO loss that took place during COVID was really the SMDL activities. And going forward, which is why we provided that midterm guidance. We do expect SMDL EBITDA to be contributing to the overall growth of the EBITDA for Accor.

And on your last question, conversions are a very important part of our growth. Again, 56% year-to-date, 60% last year. And therefore, we believe that the conversions will continue to be the majority of our openings.

With respect to the brands, we already have some conversion brands in the portfolio and we think we have the right, let's say, basket of brands to drive those conversions going forward. We have a brand, which is hand written, which is actually a good example of a conversion brand that we are going to push probably more aggressively going forward. And this is actually the brand that will be on the Las Vegas property that is scheduled to open in the fourth quarter.

And [indiscernible], we are going to answer back to your question because apparently you did not listen to it -- you didn't hear it, sorry.

Okay. So I believe your question was on Ennismore. So when I say is that one -- obviously, it's -- we're evaluating the potential of listing Ennismore. We will remain a controlling shareholder. If that transaction were to take place, there would be -- there's an expectation that all shareholders would contribute to that transaction. And I'm not going to comment further on what that would mean for Accor in particular.

[Operator Instructions]

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

Well, thank you, everyone. Thank you for your questions, and thank you for listening into this third quarter call from Accor, and I wish everybody a good rest of the day. Thanks.

Thank you. The conference is over. You may now disconnect.