EX-99 2 a2159051zex-99.htm EXHIBIT 99

 

 

 

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Exhibit 99

 

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Orient-Express Hotels

June 2005

 

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Orient-Express Hotels

 

                  Global hospitality and leisure company

                  Exclusive focus on deluxe luxury market

                  38 Hotels, 3 Restaurants, 6 Trains, 2 River Cruise Operations

 

                  Distinguished luxury brand names

                  Orient-Express, Hotel Cipriani, Copacabana Palace ‘21’ Club, Windsor Court, The Ritz

 

                  Benefits of ownership

                  Irreplaceable assets, high barriers to entry

 

 

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Distinguished Luxury Brand Names

 

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Physical and brand related barriers to entry

 

 

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Cipriani, Italy

Copacabana Palace, Brazil

 

 

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Venice Simplon-Orient-Express

‘21’ Club, New York

 

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Global and Expanding

 

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N. America

 

      ‘21’ Club, New York

      Windsor Court Hotel, Louisiana

      Charleston Place, South Carolina

      The Inn at Perry Cabin, Maryland

      Keswick Hall, Virginia

      El Encanto, Santa Barbara

      La Samanna (Caribbean)

      Maroma Resort and Spa (Mexico)

 

Europe

 

      Hotel Cipriani & Palazzo Vendramin, Italy

      Hotel Splendido & Splendido Mare, Italy

      Villa San Michele, Italy

      Hotel Caruso, Italy

      Grand Hotel Europe, Russia

      The Ritz, Madrid, Spain

      La Residencia, Mallorca, Spain

      Reid’s Palace, Madeira, Portugal

      Lapa Palace, Lisbon, Portugal

      Le Manoir aux Quat’Saisons, England

      Harry’s Bar, England

      Hôtel de la Cité, France

 

 

S.E Asia

 

      The Governor’s Residence, Yangon,

      La Résidence d’Angkor, Siem Reap

      La Résidence, Luang Prabang

      Jimbaran Puri Bali

      Ubud Hanging Gardens, Bali

      Napasai, Koh Samu, Thailand

 

Rest of the world

 

      Copacabana Palace, Brazil

      Mount Nelson Hotel, South Africa

      Orient-Express Safaris, Botswana

      The Westcliff, South Africa

      The Observatory Hotel, Australia

      Lilianfels Blue Mountain, Australia

      Hotel Monasterio, Peru

      Machu Picchu Sanctuary Lodge, Peru

      Miraflores Park Hotel, Peru

      Bora Bora Lagoon Resort, South Pacific

      La Cabaña, Argentina

 

Trains & Cruises

 

      Venice Simplon-Orient-Express, Europe

      British Pullman, UK

      Northern Belle, UK

      Royal Scotsman, UK

      Eastern & Oriental Express, Asia

      Road To Mandalay, Myanmar (River Vessel)

      Peru Rail, Peru

      Hiram Bingham Train, Peru

      Afloat in France

 


Dark red: Added since 2002

 

 

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Orient-Express Upside

 

                  Recovery Potential

                  Margin Recovery

                  Occupancy Recovery

                  Limited Supply

 

                  Continued investment during downturn

                  Expansions and Improvements

                  New Acquisitions

 

                  Property Development

 

 

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Upside: Margin Recovery

$30m shortfall in EBITDA versus 2000 margins

 

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* Excludes gain on sale of hotel Quinta do Lago

 

 

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Margin Recovery

 

SS RevPAR – Local Currency

EBITDA Margin Improvement

 

 

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[CHART]

 

1% improvement is $4m impact on annual EBITDA

 


* Excludes gain on sale of Hotel Quinta do Lago

 

 

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Occupancy Recovering:  Space Still Available

 

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2005 bookings currently up 7% over prior year

 

 

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Limited luxury supply pipeline

 

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* Full service includes luxury upper-upscale and upscale

 

 

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Expansions and Improvements

$90m invested during downturn

 

 

 

 

 

$m

 

Major Projects

 

 

 

 

 

Maroma

 

Refurbishment and expansion

 

8

 

Inn at Perry Cabin

 

Expansion

 

25

 

Caruso

 

Under construction

 

20

 

Lilianfels

 

Refurbishment, pool and spa

 

7

 

 

 

 

 

60

 

Other Projects

 

 

 

 

 

Cipriani, Splendido

 

New suites, spas

 

 

Westcliff

 

Conference facility

 

 

Miraflores

 

Total refurbishment

30

 

Bora Bora

 

Pool, spa, refurbishment

 

 

La Residencia

 

New suites

 

 

Keswick Hall

 

Pool, golf course and restaurant

 

 

 

 

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Acquisitions:  OEH Competitive Edge

 

                  Global experience and ability to close

                  Compelling track record

                  E.g. Peru, Spain, Russia

 

                  Attractive buyer

                  Reputation for excellence

                  Brand preservation

 

                  Strong financial relationships

 

 

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Investing During the Downturn

 

Year

 

Property

 

Structure

 

Value Trigger

 

Initial
Investment

 

 

 

 

 

 

 

 

 

($m)

 

2002

 

La Residencia, Mallorca

 

6.7 x EBITDA purchase

 

Virgin Atlantic cash squeeze (9/11)

40

 

 

 

Le Manoir aux Quat’Saisons

 

6.7 x EBITDA purchase

 

Virgin Atlantic cash squeeze (9/11)

 

 

 

 

 

 

 

 

 

 

 

2003

 

The Ritz Madrid

 

50/50 JV

 

Meridien melt-down (9/11)

 

25

 

 

 

 

 

 

 

 

 

 

 

2003

 

Pansea

 

 

 

 

 

8

 

 

 

The Governor’s Residence, Yangon

 La Résidence d’Angkor, Siem Reap

 La Résidence, Luang Prabang

 Jimbaran Puri Bali

 Ubud Hanging Gardens, Bali

 Napasai, Koh Samui, Thailand

Convertible loan Agreement to purchase rest at 8 x EBITDA

 

SARS flu

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

Afloat in France

 

50% acquired,

agreement to purchase

 

Iraq: US-based tourists shun Europe and France

 

4

 

 

 

Royal Scotsman

 

rest at 6 - 7 x

EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2004

 

El Encanto, Santa Barbara

 

Acquisition for less then $300K per key

 

Family inheritance

 

26

 

 

 

 

 

 

 

 

 

 

 

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The Ritz, Madrid

Napasai, Thailand

 

 

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La Residencia, Mallorca

Afloat in France

 

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Major 2005 investment: Grand Hotel Europe

 

                  301 rooms, prime location in St Petersburg

                  $270 ADR, 64% occupancy

                  $33m revenue, $17m EBITDA

 

                  Strong growing market

                  5 million population, 4th largest city in Europe

                  Good leisure/business mix

 

6x EBITDA purchase multiple:  Strongly accretive

 

 

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Grand Hotel Europe, St. Petersburg

 



Property Development

 

                  Active

                  Keswick Hall

                  La Samanna

 

                  Future

                  Maroma

                  Bora Bora

                  Inn at Perry Cabin

 

A high profit activity for other players

 

 

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La Samanna, St. Martin

 

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                  French side

                  10 villas

                  20 more planned

 

                  Dutch side

                  169 condominiums

                  Retail (60,000 sq ft), 3 restaurants

                  Marina (7 mega-yacht berths)

 

… residual land for further development

 

 

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Financial Highlights

 

Financial Results for Fiscal Years Ending December 31

 

 

 

$’m

 

 

 

2000

 

2001

 

2002

 

2003 (1)

 

2004

 

Revenue (2)

 

276

 

261

 

289

 

330

 

369

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

84

 

69

 

67

 

65

 

79

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Earnings

 

40

 

30

 

25

 

20

 

28

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS ($)

 

1.43

 

0.97

 

0.82

 

0.62

 

0.82

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA Margin (%)

 

30

%

26

%

23

%

20

%

21

%

 


(1) Excluding gain on sale of Hotel Quinta do Lago

(2) Includes earnings from unconsolidated companies

 

 

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Financial Highlights

 

Balance Sheet – Hidden Equity

 

 

 

31 March, 2005

 

 

 

 

 

 

$’m

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

69

 

 

 

 

Current assets

 

102

 

 

 

 

Fixed assets and investments

 

1,108

 

Historical depreciated cost

 

 

Intangible and other assets

 

85

 

 

 

 

 

 

1,364

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

152

 

 

 

 

Debt

 

544

 

 

 

 

Other

 

18

 

 

 

 

Shareholder’s equity

 

650

 

 

 

 

 

 

1,364

 

 

 

 

 

 

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First Quarter Results:

Seasonally loss making quarter

 

$’m

 

Q1
2005

 

Q1
2004

 

Change
(%)

 

 

 

 

 

 

 

 

 

Revenue (1)

 

82

 

66

 

+24

%

 

 

 

 

 

 

 

 

EBITDA

 

9

 

6

 

+50

%

 

 

 

 

 

 

 

 

Net loss

 

(2

)

(5

)

+60

%

 

 

 

 

 

 

 

 

EPS($)

 

(0.04

)

(0.13

)

+69

%

 

 

 

 

 

 

 

 

EBITDA Margin (%)

 

11

%

9

%

 

 

 

 

Same store RevPAR

 

 

 

 

 

US Dollar

+17%

 

Local currency

+14%

 


(1) Includes earnings from unconsolidated companies

 

 

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Sea Containers

 

                  SC ownership reduces from 42% down to 25%

 

                  OEH free float increased by 50% (excluding SC owned shares)

 

                  No cross-guarantee or cross-default clauses

 

 

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OEH Upside:  Summary

 

                  Margin recovery potential

 

                  Improvements and expansions

 

                  New acquisitions

 

                  Competitive edge as purchaser

                  Grand Hotel Europe

 

                  Property development

 

 

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ORIENT-EXPRESS HOTELS LTD.

 

Management believes that EBITDA (net earnings adjusted for interest, tax, depreciation and amortization) is a useful measure of operating performance, for example to help determine the ability to incur capital expenditure or service indebtedness, because it is not affected by non-operating factors such as leverage and the historic cost of assets.  EBITDA is also a financial performance measure commonly used in the hotel and leisure industry, although the company’s EBITDA may not be comparable in all instances to that disclosed by other companies.  EBITDA does not represent net cash provided by operating, investing and financing activities under U.S. generally accepted accounting principles, is not necessarily indicative of cash available to fund all cash flow needs, and should not be considered as an alternative to earnings from operations or net earnings under U.S. generally accepted accounting principles for purposes of evaluating operating performance.

 

This presentation and the accompanying oral remarks by management contain, in addition to historical information, forward-looking statements that involve risks and uncertainties.  These include statements regarding earnings growth, investment plans and similar matters that are not historical facts.  These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements.  Factors that may cause a difference include, but are not limited to, those mentioned in the presentation and oral remarks, unknown effects on the travel and leisure markets of terrorist activity and any police or military response, varying customer demand and competitive considerations, realization of bookings and reservations as actual revenue, inability to sustain price increases or to reduce costs, fluctuations in interest rates and currency values, adequate sources of capital and acceptability of finance terms, possible loss or amendment of planning permits and delays in construction schedules for expansion projects, delays in reopening properties closed for refurbishment and possible refurbishment cost overruns, shifting patterns of tourism and business travel and seasonality of demand, adverse local weather conditions, changing global and regional economic conditions, and legislative, regulatory and political developments.  Further information regarding these and other factors is included in the filings by the company and Sea Containers Ltd. with the U.S. Securities and Exchange Commission.

 

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Orient-Express Hotels

June 2005

 

 

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