EX-99.1 2 a06-13183_1ex99d1.htm EX-99

















 

Searchable text section of graphics shown above

 


 

Orient-Express Hotels

 

Overview

 

2005/6 Highlights

 

Major investments in 2005/6

 

Acquisitions

 

Expansions

 

Real Estate Update

 

2006 Outlook

 

[LOGO]

 


 

Orient-Express Hotels

 

[LOGO]

 

•                  Global hospitality and leisure company

•                  Exclusive focus on deluxe luxury market

•                  39 Hotels, 3 Restaurants, 6 Trains, 2 River Cruise Operations

 

•                  Distinguished luxury brand names

•                  Orient-Express, Hotel Cipriani, Copacabana Palace, ‘21’ Club, Mount Nelson, The Ritz

 

•                  Benefits of ownership

•                  Irreplaceable assets, high barriers to entry

 


 

Global and Expanding

Acquisitions since 2002

 

[GRAPHIC]

 

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)

•                  Casa Sierra Nevada

 

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 Mountains, 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

 


 

2005/6

 

Highlights

 


 

Highlights in 2005/6

 

•                  Good financial results

 

•                  EBITDA up 37%;  Net earnings up 44%

 

•                  EBITDA margin up 3%

 

•                  Grand Hotel Europe acquisition

 

•                  $17.4m EBITDA in 2005

 

•                  Acquired at 6x multiple

 

•                  Overhang and free float

 

•                  SC shareholding reduced to 0% from 42%

 

•                  Free float increased 2x from 19.9m to 39.3m

 


 

US$ REVPAR GROWTH

(2005 v 2004)

 

[CHART]

 


 

Margin Recovery

1% improvement is $4m impact on annual EBITDA

 

[CHART]

 

2006 EBITDA margin on track for 27% (up 300bp)

 

* Excludes gain on sale of Hotel Quinta do Lago

 


 

Major Investments

 

in 2005/6

 


 

Major Investments in 2006

 

Acquisitions/Openings:

 

 

• Grand Hotel Europe, Russia

 

February 2005

• Hotel Caruso, Ravello, Italy

 

June 2005

• Hanging Gardens, Ubud, Bali (Pansea)

 

July 2005

• Maroma, Mexico, 100% ownership & land

 

Jan 2006

• Casa Sierra Nevada, Mexico

 

February 2006

• Napasai - Thailand

 

May 2006

Recovery work from hurricanes

 

 

• Windsor Court Hotel, USA – re-opened

 

November 2005

• Maroma, Mexico – re-opened

 

February 2006

 


 

Major Investments in 2005/6

 

Investment Opportunities:

 

 

• Grand Hotel Europe, Russia – 120 Rooms refurbishment

 

Complete

• La Residencia, Mallorca – 8 luxury suites/ Restaurant/ Bar

 

Construction underway

• Ritz Hotel, Madrid – Foyer & restaurant,

 

Complete

• Monasterio, Cusco – 54 key expansion

 

Q3 2006 start

• El Encanto – Full renovation

 

Q4 2006 planned start

 

 

 

• Copacabana Palace, Brazil – grand ballrooms and spa 36 suites

 

Completion Q3 Complete

• Reid’s Palace, Madeira – spa and pool

 

Complete

• Mount Nelson Hotel – Oasis wing

 

Complete

• La Samanna – New suites/bathrooms

 

Complete

• Villa San Michele, Florence – 2 suites

 

Complete

 


 

Real Estate Update

 


 

Major Planned Real Estate Development

 

[CHART]

 

 

 

2006

 

2007

 

2008

 

2009

 

Initial Projects

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

Q1

 

Q2

 

Q3

 

Q4

 

La Samanna

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

i.

 

French Villas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ii.

 

Cupecoy Phase 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iii.

 

French Phase 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iv.

 

Cupecoy Phase 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maroma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bora Bora Lagoon Resort

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Koh Samui

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

i.

 

Phase 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ii.

 

Phase 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Keswick Hall Hotel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

i.

 

Phase 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ii.

 

Phase 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iii.

 

Phase 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Outlook - 2006

 


 

Outlook - 2006

 

•                  KEY DRIVERS

 

•                  Demand growth continues

 

•                  Demographics favour industry

 

•                  Limited supply

 

•                  Year on year bookings ahead by 5% (as at April 2006)

 


 

Q1 2006 Results

 

$’m

 

March 31
2006

 

March 31
2005

 

Revenue (1)

 

82

 

82

 

EBITDA

 

9

 

9

 

Net earnings

 

(7.6

)

(1.6

)

EPS ($)

 

(0.19

)

(0.04

)

EBITDA Margin (%) (2)

 

14.3

%

11.8

%

 

(1) Includes earnings from unconsolidated companies

(2) Excluding Reids/La Residencia

 

Same store RevPAR

 

US Dollar

 

+10%

Local currency

 

+12%

 

 


 

Balance Sheet

 

 

 

31 March, 2006
($’m)

 

Assets

 

 

 

Cash

 

39

 

Current assets

 

143

 

Fixed assets and investments

 

1,173

 

Intangible and other assets

 

106

 

 

 

1,461

 

Liabilities

 

 

 

Current liabilities

 

225

 

Debt

 

534

 

Other

 

35

 

Shareholder’s equity

 

66

 

 

 

1,461

 

 


 

Summary

 

•                  Solid Performance in 2005

 

•                  Financial performance

 

•                  Acquisitions and expansions

 

•                  Free float

 

•                  Encouraging Outlook

 

•                  Q1 performance – no surprises

 

•                  Strong demand, limited supply

 

•                  Bookings pace strong

 

•                  Continuing Opportunities

 

•                  Acquisition and Expansion

 


 

ORIENT-EXPRESS HOTELS LTD.

 

Management believes that EBITDA (net earnings adjusted for interest expense, foreign currency, 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 hotel bookings and reservations and planned property development sales 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 or development projects, delays in reopening properties closed for repair or refurbishment and possible cost overruns, shifting patterns of tourism and business travel and seasonality of demand, adverse local weather conditions, uncertainty of collecting insurance claims for property damage and lost earnings, 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 with the U.S. Securities and Exchange Commission.