COVIVIO HOTELS (EPA:COVH) - Sharp growth in Foncière des Murs turnover as at the end of September 30, 2010

Transparency directive : regulatory news

04/11/2010 18:14

Paris, 04.11.10

Sharp growth in Foncière des Murs turnover as at the end of September 30, 2010

Total consolidated turnover

EURm                9 M 2009    9 M 2010    Change (%)  Like-for-like
                                                        change (%)

Hotels                85.7        88.8       + 3.5%         + 7.4%
Restaurants           19.7        20.2       + 2.5%         + 2.5%
Health                20.2        19.3       - 4.2%         + 2.6%
Leisure               22.7        24.0       + 5.9%         + 0.2%
     Total           148.3       152.3       + 2.7%         + 5.0%

Foncière des Murs consolidated turnover for the first 9 months of the year
amounted to EUR152.3 million, up 2.7% compared to 2009 or a 5.0% increase on a
like-for-like basis. This was largely due to the excellent performance of the
hotels portfolio.

Turnover includes the impact of 2009 asset sales, particularly in health sector,
2010 sales in the hotel sector, and 2009 investments in the leisure sector both
in Belgium and Portugal.

The change in consolidated turnover arose primarily due to:
- 7.4% turnover growth posted by Accor hotels compared to the same period
   last year amounting to a EUR6.0 million impact
- Rental increases with respect to investments in the leisure sector
   amounting to a EUR1.3 million
- Stepped and indexed rental increases in the health, restaurant and leisure
   portfolios, amounting to a total EUR1.0 million impact
- 2009 asset sales with a negative EUR2.0 million impact
- Lastly, 2010 asset sales with a negative EUR0.9 million impact

The average residual term of the leases is 9.0 years with the occupancy rate
remaining at 100%.

Significant events for the period

Development transaction

Foncière des Murs signed two agreements:

- One for the acquisition of 48 Accor hotels in France, Germany and Belgium in
  partnership with Predica, Foncière des Murs having a 20% stake in the
  transaction, amounting to some EUR70 million and an equity investment of
  EUR35 million. The rent paid by Accor based on a percentage of the sold
  hotels' turnover,

- The other for the acquisition of 19 B&B hotels in France and Germany.
  Foncière des Murs' investment in this deal amounts to EUR85 million. The rent
  paid by B&B is fixed and indexed.

Capital increase

Foncière des Murs carried out a EUR97 million capital increase which was taken
up by all the company's institutional shareholders and was successfully
completed on October 22 for settlement on November 2.

Disposals

Since the beginning of the year,Foncière des Murs has sold 5 hotels for EUR28.8
million. Furthermore, sales agreements for 6 other hotels have been signed,
amounting to EUR71.6 million.

Outlook

Backed by the good results of the Accor hotels and the reduction in interest
charges, Foncière des Murs is forecasting an increase in 2010 recurring net
income per share.

Next financial event

10.02.11: Publication of the 2010 annual results

About Foncière des Murs

Foncière des Murs, subsidiary of Foncière des Régions, is a listed property
investment company under France's SIIC regime (Société d'Investissements
Immobiliers Cotée) and specialises in business premises, especially in the
hotel, restaurant, healthcare and leisure sectors. The company's investment
policy is focused on building partnerships with leading operators in each sector
to provide its shareholders with a recurring return on their investment.
Foncière des Murs is listed in compartment B of the NYSE Euronext regulated
market in Paris (FR0000060303-FMU).

Press contacts

Analyst and investor relations: Mr. Dominique Ozanne - Deputy Chief Executive
Tel.: + 33 (0)1 58 97 54 20 - dominique.ozanne@fdr.fr

See this press release at www.foncieredesmurs.fr

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COVIVIO HOTELS (EPA:COVH) - Sharp growth in Foncière des Murs turnover as at the end of September 30, 2010

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