Accor S.A.

Europe's leading lodging group, with a growing presence in the Americas and Asia-Pacific. Strong and diversified brand portfolio in the economy, midscale, and luxury segments. Exposure to the inherent cyclicality of the lodging sector, and to event risks, including terrorism. Predominantly asset-light operating model, with a focus on managing and franchising hotels after the sale of a 55% stake in hotel owner AccorInvest by mid-2018. Proceeds of €4.4 billion from the sale of a 55% stake in AccorInvest, which will result in moderate leverage over 2018-2019. Substantial exposure (45%) to highly leveraged, lease-intensive AccorInvest. A financial policy of compliance with a reported leverage target of up to 2.5x net debt to EBITDA. We believe that Accor may releverage up to

...Business Risk: Satisfactory Financial Risk: Modest + Europe's leading lodging group, with a growing presence in the Americas and Asia-Pacific. + Strong and diversified brand portfolio in the economy, midscale, and luxury segments. + Exposure to the inherent cyclicality of the lodging sector, and to event risks, including terrorism. + Predominantly asset-light operating model, with a focus on managing and franchising hotels after the sale of a 55% stake in hotel owner AccorInvest by mid-2018. + Proceeds of 4.4 billion from the sale of a 55% stake in AccorInvest, which will result in moderate leverage over 2018-2019. + Substantial exposure (45%) to highly leveraged, lease-intensive AccorInvest. + A financial policy of compliance with a reported leverage target of up to 2.5x net debt to EBITDA. We believe that Accor may releverage up to this level using its surplus cash to fund investments and acquisitions....

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