EX-99.1 2 a07-1479_1ex99d1.htm JANUARY 11, 2007 SLIDE PRESENTATIONS AT INVESTORS' MEETINGS IN NEW YORK CITY

























 

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Orient-Express Hotels

January 2007

 

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Orient-Express Hotels

 

Overview

 

2006 Highlights

 

Major investments in 2006

Acquisitions

Expansions

 

Real Estate Update

 

2007 Outlook

 



 

[LOGO]

 

Orient-Express Hotels

 

             Global hospitality and leisure company

              Exclusive focus on deluxe luxury market

              39 Hotels, 2 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

 



 

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Global and Expanding Acquisitions since 2002

 

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

             Hôtel de la Cité, France

 

S.E ASIA

 

             The Governor’s Residence, Yangon,

             La Résidence d’Angkor, Siem Reap

             La Résidence Phou Vao, Luang Prabang

             Jimbaran Puri Bali

             Ubud Hanging Gardens, Bali

             Napasai, Koh Samui, 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

 

Dark red:Added since 2002

 



 

Highlights in 2006

 

             Good financial results

              Q3 EBITDA up 25% on q3 in 2005;

              Q3 EBITDA margin up 300 bps on q3 in 2005

 

             Asian Hotels acquisition complete

              6 properties, 270 keys

              2006 EBITDA $3m

 

             Major Refurbishments completed

              Reids, Madeira

              Copacabana Palace, Rio de Janeiro,

              Caruso, Ravello, Italy

 



 

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

 



 

Acquisitions in 2006

 

Acquisitions:

 

 

 

 

 

    Maroma, Mexico, 100% ownership & land

 

Jan 2006

    Casa Sierra Nevada, Mexico : Keys 33

 

February 2006

    Jimbaran Puri – Bali : Keys 41

 

July 2006

    Ubud Hanging Gardens – Bali : Keys 38

 

July 2006

    La Residence d’Angkor – Cambodia : Keys 55

 

July 2006

    La Residence Phou Vao – Laos : Keys 34

 

July 2006

    The Governor’s Residence – Myanmar : Keys 48

 

July 2006

    Napasai, Koh Samui – Thailand : Keys 55

 

July 2006

 



 

Napasai

 

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Casa de Sierra Nevada

 

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Investments in 2006

 

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

 

Q4 2006 start

    Copacabana Palace, Brazil – grand ballrooms

 

Complete

and refurbishment of 36 suites

 

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

 



 

Investments planned in 2007

 

Investments planned

 

 

 

 

 

 

 

 

 

El Encanto Hotel

 

Full refurbishment

 

Completion scheduled for Q2 2008

Grand Hotel Europe

 

120 room refurbishment

 

Underway, completion Q2 2007

Casa de Sierra Nevada

 

Phase 1 refurbishment

 

Underway

Mount Nelson Hotel

 

Spa

 

Scheduled completion Q3 2007

Inn at Perry Cabin

 

Spa

 

Scheduled completion Q2 2007

Windsor Court Hotel

 

Club Rooms

 

Underway

 



 

Real Estate Development

 

             Major new business line

              OEH existing properties as a “launch pad”

              OEH brand strategy ideal for expansion

 

             Should be significant EBITDA generator:

 

•   2007 estimate

-

$15-20m

•   2008 estimate

-

$20-25m

•   2009 and beyond

-

$25m + p.a.

 

             Plus value of recurring income

              Industry norm 10-12% of one-time gain

 



 

Major Planned Real Estate Development

 

 

 

 

2006

 

2007

 

2008

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

2

 

3

 

4

 

1

 

2

 

3

 

4

 

1

 

2

 

3

 

4

 

1

 

2

 

3

 

4

 

 

La Samanna

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

i

French Villas

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ii

Cupecoy Phase 1

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

iii

French Phase 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

iv

Cupecoy Phase 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

Maroma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

Bora Bora Lagoon Resort

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

X

 

X

 

Koh Samui

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

i

Phase 1

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ii

Phase 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

X

 

Keswick Hall Report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

i

Phase 1

 

X

 

X

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ii

Phase 2

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

 

 

 

 

 

 

 

 

 

 

 

 

 

iii

Phase 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

X

 

X

 

X

 

X

 

X

 

X

 

 



 

Cupecoy Yacht Club

 

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Cupecoy Development

 

             Revenue          $110 - 125m

 

             EBITDA          $40 - 50m

 

             Key statistics:

              169 condominiums

              Construction complete end 2008

              Accounting on percentage completion

              Key release periods, 2007 H2 and 2008 H1

              Balance (20%) released in 2009

 

Anticipated annualised phasing 40% 2007, 60% 2008

 



 

La Samanna Villas – French-side

 

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La Samanna development

 

             Revenue          $38 - 45m

 

             EBITDA          $13 - 15m

 

             Key statistics:

              8 villas

              Construction complete early 2008

              Accounting on actual basis

              Aim to sell one per quarter, first sold in 2006 Q4

 



 

Keswick Estate

 

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Keswick Hall Hotel

 

    2006 Sales

 

Plots sold 11;

EBITDA $3.2m

 

 

    2007 Anticipated Sales

 

Plots to be sold 9;

EBITDA $2 - 3m

 

 

    2008 and Beyond

 

Plots to be sold 36;

EBITDA $17m

 



 

Koh Samui

 

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             Phase 1

              14 villas

              6 sold pre-acquisition

              4 to be sold in Q4 2006

              P&L impact minimal, due to fair value accounting

 

             Phase 2

              40 villas in land behind hotel

              Average sale price $750,000

              Margin 40%

              Anticipated start date, end 2008

 



 

Villas at Maroma

 

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Maroma

 

             27 Units

 

             Average sale price between $2.5m and $3m

 

             Margin 40-45%

 

             Project scheduled between mid 2008-mid 2009

 



 

Outlook - 2007

 

             Key Drivers

              Demand growth continues

              Demographics continue to favour industry

              Limited supply

              Bookings 7% ahead for Q1

              Disruption free year

 



 

Summary

 

             Solid Performance in 2006

              Financial performance

              Acquisitions and Expansions

 

             Encouraging Outlook for 2007

              Industry outlook positive

              Strong demand, limited supply addition

              Bookings pace currently ahead 7%

              Margin recovery

 

             Continuing Opportunities

              Real Estate program gathering pace

              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, uncertainty of negotiating and completing proposed capital expenditures and acquisitions, 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.