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Ladies and gentlemen, welcome to the AccorHotels first quarter revenue conference call. I now hand over to Jean-Jacques Morin, Chief Financial Officer. Sir, please go ahead.
Good morning, ladies and gentlemen. Thanks for being with us for this Q1 2018 revenue call.You will see in the course of the presentation that we're adapting our reporting going forward, and I'll go into some detail on that. But without further delay, let's start the presentation on Page 3. So Page 3, an overview of the Q1 2018 achievements. I'm very happy to report that 2018 got off to a good start, consistent with 2017 trends. The revenue was up, a strong 9.5 like-for-like percent, and it was supported by a 5.3 like-for-like systemwide RevPAR growth and last year development. And you could see that across the majority of the region. Larger [ plans ] were confirmed with more pricing power, price contributed for 40% of the RevPAR increase in the quarter.Development continued at a sustained base. We have 61 hotels opened over Q1, representing 10,000 rooms, which is the all-time record for first quarter.Now if we move to the Booster projects. So concerning Booster, we expect to close the deal in Q2. The work counsels have rendered their opinion. The final share purchase agreement was signed today. The closing is subject to the approval by the [indiscernible] financial line investment review board, which is ongoing, and we will have a consultative shareholder vote next Friday, so on the 20th of April during our AGM, as it is recommended by the French market authority, also called AMF.If we move to merger and acquisition. So on Mantra, where we received all clearances from competition and foreign investment authorities. The Mantra shareholder meeting is now planned for May 18, and subject to this approval, the closing is expected in Q2. As you most certainly saw also in the press, we announced 2 acquisitions in April. One is ResDiary, which is a leading platform for restaurant reservation and table management, and this comes as an addition to our ecosystem in food and beverage. The other acquisition we did was Mantis, where we acquired over 50% stake. This will allow us to diversify our offering to guests in the niche segment of luxury nature properties, notably in Africa.So if we move to Slide 4, you'll find on this slide the breakdown of our pipeline and network per region. As already mentioned, Q1 inorganic was at a record level and we notably opened our largest Fairmont in the U.S.A., in Austin, Texas, which account for more than 1,000 rooms. Notable also is the fact that Asia Pacific is now representing more of 50% of our total pipeline, and this is the first time ever.The pipeline stands at 153,000 rooms. This is a 7,000-room decrease in the pipeline versus December, and some of it is coming from timing effect as we had recalled opening in Q1. And also related to the special situation of Macau, where due to stringent market condition, one owner decided to cancel some projects to the tune of 5,000 rooms. You will see also that in Q1, we experienced a bit more churn than what we have normally over a full year. And so the churn number was [ divided ]. Part of it is just the normal phasing of a given fiscal year.Moving now to Slide 5. So you see on the table a slide that we showed during our financial year 2017 results, which describes or summarizes the main impact of IFRS 15 in our financial statement, IFRS 15 dealing with revenue recognition. The impact for us is mostly related to hotel cost reimbursements. What it does is that it increases our Q1 revenue pro forma 2017 by about EUR 200 million. And this reimbursed costs are related to management contract where AccorHotel deploys staff in hotels and is reimbursed, penny for penny, by the owner. So this is mainly a zero-sum game and is a practice that you find in North America and, to a lesser extent, in Asia Pacific.So it does not impact the absolute amount of EBITDA, EBITDA cash but it obviously has an effect on margin percentages as you are increasing percent base.So to account for this change and ease going forward comparison with our peers, we are adapting our reporting as is presented in the next slide.So moving to Page 6. On this one, you've got on the table what we used to do in 2017 and what we will do as a comparison in 2018. Basically, what we are doing is regrouping by nature the competence of HotelServices that were, before, in the other activities. And we are creating, in fact, a division, a dedicated division, which is called services to owner, and the remainder is moved to hotel assets. So you see that with a little owl. So the bottom line of it is that HotelServices is now made of 2 different distinct line. One is management and franchise, where we account for franchise, base, incentive, management fees as well as remuneration of some of our procurement activities. And then you have a second bucket which is called services to owners, which gathers all the services for which the group spends what it receives from hotel owner. And this is largely -- it says marketing, distribution and royalty. This is where you will find the hotel cost reimbursement that we were mentioning before and, to a smaller extent, shared services.So as a consequences, we move from specific businesses in Asia Pacific to hotel assets and other, which accounted for about EUR 100 million of revenue and EUR 20 million of EBIT in financial year 2017. And namely, I'm talking of AccorPlus, which is a pay to join loyalty program; Accor Vacation Club, which is the timeshare business we have in Australia; and Strata, which is our management letting right, MLR, so-called MLR in Australia, which you may recall [ multi ] is also in that business. So post closing, [ multi ] MLR will also be included in that bucket.Concerning the reporting that we will provide by geography, we've merged France, Switzerland with the rest of Europe because, as you may recall, we now have one person who's responsible for that whole region whose name is [ Bongervi ].And last, as we had said last year, we will allocate the worldwide structure to each of the region. So as a reminder, after Booster close, there won't be any more intercompany between AccorHotel and AccorInvest because they are going to be 2 separate legal structure, and this will add about EUR 550 million of revenue on a full year basis to the group. So nothing different but just as a reminder.If we move to Page 7, you are -- here, the transition between the reported revenue and the like-for-like revenue. So the like-for-like revenue is a 9.5% increase, which I quoted before. The reported revenue growth is a 0.6% increase. Now what explains it is, to a little extent, perimeter but the large part of it is coming from currency effect and to the tune of 10 points or EUR 63 million. And this is essentially due to the appreciation of the euro against most of the other currency on the planet. And notably the USD, with an appreciation of 15%; the Australian dollar, with an appreciation of 11% as well as the Brazilian real with an appreciation of 19%.So very significant currency effect in the quarter.Moving now to Page 8 where we have the overview of the Q1 revenue by business line. So as for HotelServices, the growth business volume grew by 9% at constant rate to EUR 4 billion, and this is driven by RevPAR growth and development. The revenue itself of HotelServices was posted at EUR 553 million, of which EUR 195 million is management and franchise and EUR 358 million is services to owner. The growth is 7.5% in like-for-like and the difference between the 7.7% growth like-for-like and the RevPAR, which is up 5.3% on HotelServices, comes from a very strong development that we've been experiencing last year in this quarter, and partly offset by some renovation in larger set. And last year, you may recall the closing of F-1. As for new businesses, we posted 14.5% growth like-for-like, gaining some momentum. And this is on the basis of Fastbooking, onefinestay and John Paul only since we are talking like-for-like.As for Hotel asset and others, we recorded a sound performance with a 7.5% growth, thanks to sustained activity in Eastern Europe, which enjoyed an 8% RevPAR growth and some recovery in Brazil -- some significant recovery in Brazil, which is now up 13% in RevPAR.As a reference, and to lean back to the comment I was making earlier, both Booster, and after the integration of the intercompany, the group revenue would have been of EUR 745 million. And we give that so that we guide you properly going forward.Moving now into a little bit more detail on what's happening in terms of RevPAR. You have, on Page 9, an overview of the dynamic of the RevPAR over the last 3 years by quarter. And so you find here that Q1 grew by 5.3%, with all regions being in positive territory except for Middle East and Africa. So this is overall driven by occupancy but also with an increased portion coming from pricing. Pricing is, today, 40% of the increase of RevPAR in the quarter. You see that very well on the table. The other quotable point is that all segments are following the same patterns. So it's across the region and it's across the segments. We've, notably, in luxury, a very positive effect in Asia Pacific coming from Chinese New Year and strong activity in North America.We will now detail a bit more the 2 key regions in the business, which are Europe and Asia Pacific. Both of them accounting for 70% of the management and franchise fees that we collect. So I am moving to Page 10. So on Page 10, talking of Europe. You see in the quarter a RevPAR of 4.6%, 50% driven by price. France continues on a very positive trend with a RevPAR which is at 5.2%. International travel increased in Q1 after the record level of 89 million visitors that France enjoyed in 2017, and this is notably driven by Japan, the U.K. and the U.S., which are all double-digit.If you drill down in Paris, the RevPAR is an 8% total number, and again, driven by the recovery of leisure, which is increasing by 15% quarter-on-quarter, and is now going back to a level which is above the pre-attack level of 2015.Provence was solid at 3%. And then the point I'd like to make is that concerning strike, we didn't see at this juncture any material increases of cancellation, any effect on our members but it's obviously a point that we monitor carefully.If we talk of Germany, despite of a sluggish calendar and an unfavorable Easter timing, the RevPAR in Germany was stable and with a sound macroeconomics. 2018 GDP is forecasted to be at 2.6% and the second under return more favorable for the rest of the year. So Germany, as usual, is a good student.In the U.K., the situation was very much comparable to what we saw in Q4 2017, with a negative RevPAR in London, minus 2%, and some impact coming from the increase of leisure and bad weather in London but the bottom line is that it was negative. Still, London is at 77% of occupancy rate, so quite a nice number overall.Moving to Eastern Europe. I mentioned an 8% RevPAR increase in Eastern Europe, so that also help. And America was very solid 7% RevPAR despite Catalonia.So if we now shift to Asia Pacific. You see an overall RevPAR increasing by 5.3% against a fund driven by price. What we experienced in Asia is Chinese New Year, which had a very positive effect. And we notably saw an increase of 12% on domestic China and 6% of outbound travel from China. So this kind of ones hold the region. And so China in itself was strong at 8.5% RevPAR but then Southeast Asia did benefit and was up 5%. And notably, in Thailand and also in Vietnam, I mean, quotable is the fact that in Vietnam, we see today our international travel growing by 29% year-on-year -- or quarter-on-quarter.Australia was okay at 2%, and [ knocked out ] by eastern vacation timing just like Germany.If we move now to the next slide. And here, what we try to do is give you a focus of the management and franchise revenue across region, which we were not providing before. And again, to make us totally transparent and comparable to what the competition is producing.So you see here that the overall Q1 stands at EUR 195 million, which is up 7.2% in like-for-like. I mean, in reported number, it would be an increase of 2% because of foreign exchange. If we deep dive, you see that Europe is up 6% versus the 4.6% RevPAR we had discussed the page before, and this is affecting the development. You see Asia Pacific, which is up 10.4% versus the 5.3% RevPAR that we just talked of the previous page. And this is, again, a very strong development that the region has been experiencing. Middle East and Africa ends up recording a 3% growth in management, 1.5. And that despite the negative 1% RevPAR. Here, part of it is again coming from development and the difficulty that we have in the region is the fact that the Gulf continues to be, just like it has been last year, affected by oil price, geopolitical tension, and notably, in Saudi, where we have large presence. And also, a disjuncture by some temporary supply in Dubai and Riyadh which put some pressure on prices. On the other hand, we have good results in Egypt and Morocco like we had last year.North, Central American, Caribbean, we see the M&F, the management and franchise grew by 8.9% and this is very much in line with the 8.4% RevPAR growth that the region experienced. Very good results in Canada, in the U.S., with strong demand and good weather conditions.South America recorded a 6.7% like-for-like growth, which is lower than the RevPAR which went up by 13.9%. So here, we see very different situation in Brazil with the quantity of oil recovering. But Rio is still suffering from the postal [ in peak of our ] supply and the social tension and the gap between the RevPAR and the M&F growth is coming from some hotel renovation, and also because the hotel remains below incentive level as the [ inner ] business has not fully recovered. So we are not getting the incentive part of [ your fees ].If we move to the conclusion of this presentation. So overall, a good start in -- following a good 2017 and this is across market, across segment. And so positive momentum here. Quotable is the recovery of Brazil, which confirms what we saw in Q4. Euro appreciation and euro strength as vicinity being -- impacting us significantly. And then the expansion as being good at organic level, very good at organic level. And we confirm that we -- our objective for this year is to break last year record in terms of gross opening. And so we monitor the churn as we progress in the year.Overall, as a punchline, we expect the starting operating time to carry on in Q2 with Germany, which will be benefiting from a better calendar. And we will obviously monitor very closely what are trends in France, what are trends in Middle East and Africa and what are trends also in London. But all in all, some traction, which is expected to carry on.So with all of this, I'd like to thank you for your attention. And the floor is now yours for questions.
[Operator Instructions] We have our first question from Mr. Julien Richer from Kepler.
Two questions for me, please. The first one about Paris. You talked about the increase in prices. Have you noticed an impact of the increased regulation against Airbnb in the city? And if yes, do you have an idea of the impact on your RevPAR growth? Second one, on the new business growth that was steady in Q1. It was volatile last year. How do you see the shape of 2018 for the new businesses? And if we want to split Q1 performance between site bookings, OSS and John Paul, where is the growth driver and which one is lagging, please?
In term of Paris and Airbnb, and all of that, I mean, there is right now quite a lot of press around Airbnb because in an article or in something that came out in the month of April, it was found that 80% of the stock is, in fact, not respecting the rules in term of declaration that they've got to do. So this is obviously not helping them much but I would say that overall, just like we saw in 2017, there is not a lot of changes on the Airbnb appreciation of what it does to our business versus what we had seen 2 years ago. So it's still this 5% to 10% kind of friction on the business that we disclosed back 1.5 years ago, which is what we discussed internally in the operational area. So there is not a lot that we've seen which has been changing. But I would say that what happened in the month of April is definitely something that will have repercussion and so we'll know more as we progress. In terms of the Q1 new businesses. The growth is, in Q1, of about 15%, a bit less than 50%. It's across-the-board. It is across-the-board. So it's across all the businesses with a little bit of [indiscernible] there but it's across-the-board. The one thing that we monitor is on onefinestay, the same regulation that the one that you've got on Airbnb, so kind of the, if you will, mirror of all of these regulations are evolving and it did have an effect on us that we are offsetting with other actions. But I would say that's the only thing that I would comment on that. So the rest, it's like Sébastien said in the earnings call at the end of December or the one that we had in February on the December result which listed these businesses which are supposed to grow at 30%.
Next question from Monique Pollard from Citigroup.
A few questions for me, please. Firstly, on the rooms growth, obviously, on a gross basis, you're expecting to accelerate like what we did last year. Obviously, as you mentioned, the churn was very high in 1Q. So should that moderate during the rest of the year? And then secondly, will you be maybe, post the spinoff closing at the interim results, giving sort of longer term to medium term target and guidance for the HotelServices business? And then finally, maybe you can just give us a quick update on this ResDiary acquisition you completed in April. Your rough idea of size, how it fits in with the group and your strategy and whether the company is very much [ broken ] in to the current actual existing management structure.
Okay. So on the churn, as I mentioned, you're right, the number is high in the first quarter. If you just step back and if you look at the last 6 years, and if you were to make statistics over the last 6 years, our churn has been between 1.5% and 3% over the last 6 years. So it's typically a number which is in the ballpark of 2% to 2.5%. This quarter, it was high because there is [ a fitting ] which is Q1. And again, since we are only looking at 3 months, there is a couple of things that happened, notably in China and did impact us, obviously. The idea is not that we get that kind of things every quarter. So I wouldn't derive too much from the better point of Q1 but it is what it is. I think that's one. On ResDiary. ResDiary, the idea here -- we purchased some time ago Potel & Chabot and we purchased some time ago Noctis. And the idea there has been strategically thinking, too, for the customer that go into a hotel. Make sure that we provide them an ecosystem into which they want to spend something around the pure hotel room. We can service them. And so there is beside -- behind ResDiary and food and beverage as being a strategy by which you can attack and develop, in fact, some stickiness with your customer independently from making revenue. Besides ResDiary is such that it is a very significant, in fact, player because it is making 25 million reservation in 1 given year. And as you know, we've developed that business -- or you may not know, sorry. In Asia Pacific, we've developed quite significantly that business and ResDiary is making 50% of its business in Asia Pacific. So they also immediately have synergy here by linking it to what we already do with program like AccorPlus, and creating even more, in fact, business stickiness, which is what the current -- the AccorPlus account is intending to do by providing an even more focused tariff. So that's all what is behind this acquisition of ResDiary.On the long-term guidance, we -- on this one, the one long-term guidance that we provided is that we will double EBITDA within 5 years by 2021, which is already some kind of a long-term guidance of significance. We cannot give some ideas of what we would do on elements like cash return on the dividend and CapEx during last year results announcement. And we probably will go for Capital Markets Day once Booster is finished and we'll go into more detail around all of that. So I think that's what I would say there.
Next question, from Vicki Stern from Barclays.
A few questions. Just going back on the Q2 outlook. Firstly, you mentioned, obviously, no impact of the strike so far. Just what are your expectations there if those do continue at the current pace? And then just more broadly, I guess, about the French RevPAR across the rest of the quarter given the May bank holidays, lack of air show, et cetera. And then across other countries you called out, obviously, Germany has easy comps. But anything else we should be just looking out for Q2? Secondly, just coming back on the room growth. So what was the organic net room growth? It's not so easy to work it out given that there are obviously some acquisitions in the reported numbers but clearly, you're talking about the higher churns. So if you could just tell us what the churn was and what you then expect really for the full year?
Yes. So on France, you're absolutely right, Vicki. The Q2 is -- won't be a great quarter for France because of the 2 reason that you gave, which is a month of May where you have a lot of nonwork day, if I can think like that, of bridges and vacation. And also, the air show that won't be there. There will be other fare but net-net, it won't be a great quarter from that perspective. I think the one thing that we need to monitor for France is only one thing, which is what will happen with the strike. So far, I see nothing in my numbers. I really see nothing in my numbers. And to the best of my knowledge, talking to some of the people in the industry, they have not seen in France either numbers, and I'm talking about hotel industry. But it is something that we need to monitor and see how it evolves. So I think that's on France. And then you had a question on the churn versus the development. If you were to do the computation, the math, and you realized, in fact, the number, the opening organic would be at 6.5% and the churn would be at 4.4%. So the net system goals would be at 2%, which is derived from the 5%. That is the number that we have been mentioning during the year-end results, and which is the number that we have done over the last year. So again, I would answer the same way as I have answered in the previous question. It is what it is. These are the numbers. It's one quarter. We need to monitor that and see how it goes but there was a couple of things that happened. And so this is nothing that points to anything else at this juncture.
Just coming back. Any sense then as to -- I appreciate it's one quarter and quarters can be volatile but what that should normalize to, that 2.2 on a full year basis? And then, I'm sorry, part of my first question was just any other color for Q2 for the other regions outside, obviously, Germany having easy comps?
Yes. I mean, on the normalization, I think what we said is that we target 5% net system growth. So the number should normalize at 5% net system growth. If we don't do that, we don't do what we said we were going to do. So -- and it fits the number which, again, as I've said, we've done that historically for many, many years. So then in term of the other regions, I mean, you've seen the dynamic in Asia Pac. They've been doing great in the quarter. They've been doing great all last year, and I don't see why this is going to change. And notably, not in view of the way the pipeline has been growing and the size of the pipeline in Asia. So this is going to go in the same direction. If you look at the rest of Europe, because Asia Pac and Europe are basically 70% to 80% of what we do, okay? So if you look at the rest of Europe, I mean, Orbis, and anything we do in Eastern Europe is being very good and very steady for now, 2 years. Again, I don't see any reason for why that would change. London is a place to monitor. We had been calling that back in Q4 and it happened that it turned into negative. It has not significantly shifted from where we were in Q4, in Q1. It's about the same kind of numbers. But again, here, it's a situation which, overall, is good but is still declining. So that's one thing that we need to monitor. Granted that the U.K. is at, say, less than 6% of the total business in the new world. So we need to put things in perspective. And then -- what else do we have which is significant? America, as you know, has been double-digit for the last 2 years. Was a good number, close to 7%, despite what has only happened in Catalonia in Q1. So again, here -- and we are far from the peaks. So again, here, there is no reason for why that would change. Brazil is improving. So again, they're coming from so poor basis that it can only be good. And I would say that in Q2, what you will have is that as an overall number, you will benefit from an easier comp because you may recall that Q2 last year was a low number because the Q2 the year before was an absolute great number because of the football cup, as you recall. So I think Q2, overall, we know what we have been seeing should be a good quarter.
Next question from Jarrod Castle from UBS.
Maybe just one at a time. Just coming back to the pipeline. Obviously, it's gone back within your given reasons. But when you kind of looking ahead and also factoring in new hotel room delivery, I mean, do you think the pipeline will see an uptick by the end of the year? Will it be higher than the 153,000 rooms? Are findings coming through?
The answer is yes. The answer is yes. It should go up. It will go up.
Okay, good. And then just kind of not revenue related but just generally, when you're looking across the business, I mean, are you seeing any pressure in terms of wages that are having any impact on the business at the moment in terms wage inflation?
I mean, the wage inflation used to be a big deal when we were AccorHotels, the old one. I mean, as you know, in the U.K., I mean, we went with series of legislation that did impact the bottom line very significantly. It is still true but to a much lesser extent into our new business model. So is it something that comes on the table and is highlighted as being one issue today in the operation? The answer is no. What the question is, by the way, is in places like, for example, the U.K., right, with what you're doing on Brexit. Clearly, there is a question not so much on the wages increase but on the nature of the people that provide service because there is a lot of those jobs which are done by people who are not English. And so if you were to basically restrict who can work in the U.K., then most definitely, it will have, I think, a significant effect -- or an effect on the business of the hotel. That's for sure because today, you have those kind of phenomenon. So it's mostly those phenomenon, much more than wage increase per se that I can see.
Okay. And just a last one. Just coming back to the share buyback. Is there any timing in terms of beginning and ending? Or is it kind of wait-and-see?
No, no. We will work -- we will -- I mean, first off, I need to get the cash out. So that's the typical offer I'll make but that's now coming shortly. So we'll start it over summer. We'll start it over summer. We are working on it, it's a 2-year program. And so we'll launch it as soon as we have the cash of -- coming from the investors because I mean, just look at it the opposite way. I'm not going to carry billions of euro on the balance sheet at the negative item.
Next question from Jamie Rollo from Morgan Stanley.
A couple of financial questions, please. Just on the currency impact, 10% in Q1, could you give us a ceiling for what that would be for the full year if the spot rates carry on. And then I have a question on IFRS 15. What is the EBIT dollar impact from the key money reclassification from amortization to revenue reduction? Do you have that figure on a full year basis, please?
Yes. So on foreign exchange, I mean, the euro has been consistently strong. And it's not a question of this quarter, it was also true last year. And so I'm not quite sure on how to answer your point except that today, I don't see why this would change much. And if you look at the rate forward, I don't think it is changing much. So will we take into account what we know and if I knew all currency would move, I would be a rich man and not answering 6 p.m. questions on result. But everything being equal, there will be an important effect coming from FX and translation for the full year. So on key money, the effect is less than EUR 10 million.
Sorry, the question on currency, it wasn't a prediction, it was just -- obviously, you had some of this impact in the second half of last year but you don't give us the currency split by revenue. So I was just wondering, that -- obviously, that 10% wouldn't be as bad in the second half of the year, will it? I was wondering what your full year currency translation impact is in U.K.
We give you a little bit of the currency state in the table. We tell you each quarter what are the currency that are affecting us. Maybe another way to try answering your question, and feel free to interject if I don't, is to say that in the new business model, going forward, the U.S. dollar is a much more important currency than what it was before because I'm using the asset base. The asset base was euro-based, as you know. I mean, Booster is an 85% European and close to 90% European business. And so what I have now is I have business in Asia Pacific. And many of the currency in Asia Pacific are pegged to the USD. And then I've got my FRHI business which is largely a North American business. Not only, but a North American business. So I think you'll see that much more significantly in our results there.
Next question from Tim Ramskill from Crédit Suisse.
A couple of questions for me, please. Two questions for me, please. So just again on the new accounting changes and obviously, it isn't true but beware, IHG provided some information in the last few days. Where you've got OTA commission costs that are basically being passed through the business. Does that feature as part of the sales marketing and distribution line? Which is sort of a yes or no question. And then I suppose in terms of the hotel assets business which has performed again well in the quarter, just help us out because it's quite an opaque business. How would you best think about how to model that, how to expect it to grow in the medium term?
I'm sorry, you broke up on your second question. What was your second question, sorry?
So hotel assets, where like-for-like growth was very healthy in the first quarter. How do you help us think about the growth expectations for that business should be going forward? It's a little bit difficult to sort of see inside it. So how should we think about it?
Yes, okay. So the OTA doesn't flow through our numbers, so the short answer is no, if it is at the hotel level that you see it. Then on your second answer, I mean, hotel asset is 2 things. One is Orbis and the other one is the lease on EBITDA that we've got in Brazil. And then there is a couple of one-off, I said, that didn't get through, like I think we mentioned that like the Sofitel [indiscernible] and the Sofitel [indiscernible] but these are, obviously, much smaller numbers. So I think the way to model it is that on the one side, you've got Orbis which essentially is very much, and this is public data because it is a traded entity. It's very much, I said, that they own. And so the way to model it is the same way that you used to model HI, i.e, if it's a set that you own and so if the RevPAR is good, you got a lot of leverage and it flows very nicely to the bottom line. And if it doesn't go well, you've got the exact opposite effect. And on the lease on EBITDA with Brazil, I mean, they're going to improve because the situation in Brazil improve. But this is not a business, as you know, onto which you make very significant amount of EBIT.
We don't have any questions for the moment. [Operator Instructions] We have a new question from Najet El Kassir from Berenberg.
Just 2 questions, please. Could you please give us a bit of more color about AccorInvest performance in terms of RevPAR and in terms of revenue growth?
Sure. I must admit I look less and less at that since I am in IFRS 5 discontinued operation but I would say that the performance of AccorInvest has been very much in line with what you saw last year, and very much in line with, obviously, the European RevPAR. So because the European RevPAR was good, you did have some positive effect. On the other hand, you may recall this last year was impacted by some renovation that were ongoing and there were some in Latin America and there were some in Asia, and there were some in France. So this is going the opposite way. But as the overall RevPAR of Europe was good, the performance of AccorInvest was good.
We don't have any question for the moment. [Operator Instructions] We don't have any question for the moment.
Okay. So ladies and gentlemen, thank you very much for your attention and your time. And I really look forward to seeing you soon. Bye-bye.
Ladies and gentlemen, this concludes today's conference call. Thank you all for your participation. You may now disconnect.