EX-99 2 a11-23181_1ex99.htm EX-99

Exhibit 99

 

Contact:

 

Martin O’Grady

Vicky Legg

Vice President, Chief Financial Officer

Director, Corporate Communications

Tel: +44 20 7921 4038

Tel: +44 20 7921 4067

E: martin.ogrady@orient-express.com

E: vicky.legg@orient-express.com

 

FOR IMMEDIATE RELEASE

August 2, 2011

 

ORIENT-EXPRESS HOTELS REPORTS SECOND QUARTER 2011 RESULTS

 

Second Quarter Earnings Summary

 

·                  Second quarter total revenue, excluding Real Estate, up 23% to $177.4 million

·                  Revenue from Owned Hotels up 25% to $145.2 million

·                  Same store RevPAR up 20% in US dollars, up 14% in local currency

·                  Adjusted EBITDA before Real Estate up 28% to $41.1 million

·                  Adjusted net earnings from continuing operations for the quarter of $7.5 million, compared to $3.3 million in the second quarter of 2010

 

Key Events

 

·                  Announced the planned opening in summer 2012 of Palacio Nazarenas, a 55 key all suite hotel in a former palace and convent in Cuzco, Peru

·                  Reopened Napasai, Koh Samui, following a one month closure to create a new seven acre lagoon and nature reserve

·                  Hotel Caruso, Ravello, ranked Top Resort in Europe in Travel + Leisure (US) World’s Best Awards 2011 readers’ survey

·                  Maroma’s Kinan Spa voted best spa in Mexico & Central America by readers of Condé Nast Traveler (US)

·                  Completed the €18.0 million ($26.1 million) refinancing of loans secured on La Residencia, Mallorca, with maturity of three years

·                  Completed sale of Hôtel de la Cité, Carcassonne, on August 1 for €9.0 million ($12.9 million)

 

1


 

Hamilton, Bermuda, August 2, 2011.  Orient-Express Hotels Ltd. (NYSE: OEH, www.orient-express.com), owners or part-owners and managers of 49 luxury hotel, restaurant, tourist train and river cruise properties operating in 24 countries, today announced its results for the second quarter ended June 30, 2011.

 

“Orient-Express performed well in the second quarter, reflecting continued positive momentum in the luxury leisure travel market and the solid performance of our iconic properties as well as our train, cruise and other assets,” said Bob Lovejoy, Chairman and Interim Chief Executive Officer.  “Revenue excluding Real Estate grew by 23% compared to the prior year period, driven by strong performance in Europe, particularly our Italian properties.  Adjusted EBITDA before Real Estate increased by 28%, compared with the second quarter of last year, and we delivered our sixth consecutive quarter of RevPAR growth.”

 

“Looking forward, we are encouraged by signs of continued recovery in our market — including favorable booking trends.  In addition, we see substantial potential to grow revenue through disciplined capital expenditure programs and our marketing and brand-building initiatives, as well as opportunities to enhance profitability through continued operational improvement.  Orient-Express has a deep team of seasoned operating professionals implementing the Company’s long-term strategy, and we are keenly focused on profitable growth and building long-term shareholder value.”

 

Business Highlights

 

Revenue, excluding Real Estate, was $177.4 million in the second quarter of 2011, up $33.3 million or 23% from the second quarter of 2010.

 

Revenue from Owned Hotels for the second quarter was $145.2 million, up $29.0 million or 25% from the second quarter of 2010. On a same store basis, Owned Hotels RevPAR was up 20% in US dollars and up 14% in local currency.

 

Trains and Cruises revenue in the second quarter was $25.3 million compared to $21.9 million in the second quarter of 2010, an increase of 16%.

 

Adjusted EBITDA before Real Estate was $41.1 million, up 28% compared to $32.1 million in the prior year. The principal variance was in the Italian hotels, where EBITDA was up $9.0 million from the same period in the prior year, led by Hotel Cipriani, Venice (up $4.0 million), Grand Hotel Timeo, Sicily (up $1.9 million) and Hotel Splendido, Portofino (up $1.1 million). Other variances include the Copacabana Palace Hotel, Rio de Janeiro (up $1.5 million), Reid’s Palace, Madeira (up $1.0 million), Grand Hotel Europe, St Petersburg (up $0.8 million), The Royal Scotsman (up $0.8 million) and share of

 

2


 

earnings from Peru hotels (up $0.6 million), offset by The Westcliff, Johannesburg (down $2.4 million), Mount Nelson Hotel, Cape Town (down $1.3 million) and share of earnings from PeruRail (down $2.6 million).

 

Adjusted net earnings from continuing operations for the second quarter were $7.5 million (adjusted net earnings of $0.07 per common share), compared with $3.3 million ($0.04 adjusted net earnings per common share) in the second quarter of 2010.  Net earnings for the second quarter were $5.2 million (reported earnings of $0.05 per common share), compared with a net loss of $0.8 million (reported loss of $0.01 per common share) in the second quarter of 2010.

 

Property Portfolio Highlights

 

During the quarter the Company announced that Palacio Nazarenas, its sixth hotel in Peru, is planned to open in early summer 2012. The three year restoration of this 55 key all suite hotel in a former palace and convent, next door to the Company’s Hotel Monasterio in Cuzco, has been carried out under the guidance of eight full time archaeologists and the supervision of Peru’s National Institute of Culture, with over 318,000ft³ of earth excavated by hand and each stone numbered and recorded. The total cost of renovation for the hotel, which is owned through the Company’s Peruvian joint venture, is expected to be $14.1 million.

 

Features of this high altitude urban retreat will include oxygenated suites crafted by local artisans, a full service spa offering an indigenous product range, iPads in every room pre-loaded with insider city guides, a mobile phone for each room with reception in Cuzco and the surrounding area, Cuzco’s first outdoor heated swimming pool, insightful tours to Machu Picchu and surrounding cultural sites, and an all day dining experience showcasing contemporary Andean cuisine.

 

In addition, Napasai, Koh Samui, reopened at the end of the quarter following a month long closure, during which a crystal clear lagoon and nature reserve accessible directly from the resort’s beach was created under the supervision of the local marine authority.  Dead coral and underwater rocks were removed, producing a seven acre natural haven for tropical fish and a diversity of corals which will attract divers and snorkelers to the resort.

 

On August 1, the Company concluded the sale of Hôtel de la Cité, Carcassonne. The property was free of debt and the disposal of this non-core asset delivers €9.0 million ($12.9 million) cash proceeds to the Company, less any associated fees.

 

3


 

Two of the Company’s hotels recently received significant awards.  In June, Condé Nast Traveler (US) voted Maroma’s Kinan Spa the #1 Spa in Mexico and Central America, with an overall score of 96.6 out of a possible 100, in its widely-followed annual list of the 250 Best Spas in the United States, Mexico, Caribbean and Canada.  In July, Hotel Caruso took home the coveted Top Resort in Europe award in Travel + Leisure’s (US) World’s Best Awards 2011 readers’ survey.

 

In June, UNESCO designated as a World Heritage Site the Tramuntana mountain range around Deià in Mallorca, home to La Residencia.  Each World Heritage Site has a cultural or natural significance that, according to UNESCO, “is so exceptional as to transcend national boundaries and of importance for present and future generations of humanity.”

 

Regional Performance

 

Europe:

 

In the second quarter, revenue from Owned Hotels was $76.7 million, up $22.1 million or 40% from $54.6 million in the second quarter of 2010. Second quarter revenue at the Italian hotels increased by $15.7 million or 54%, led by strong demand from the UK and US markets.  Same store RevPAR was up 36% from the prior year in US dollars (up 28% in local currency). EBITDA for the quarter was $28.8 million compared to $17.0 million in the second quarter of 2010, which represents an $11.8 million increase. This improvement arose largely from the Italian hotels where the impact of refurbishments at Hotel Cipriani and the effect of the Biennale art exhibits in Venice generated EBITDA growth of $4.0 million. Compared with the second quarter of 2010, the Company’s two hotels in Sicily achieved year on year EBITDA growth of $2.6 million based on a full quarter of operations in 2011.

 

North America:

 

Revenue from Owned Hotels for the quarter was $31.2 million, up 7% from $29.2 million in the second quarter of 2010, due to rate driven increases in revenue at La Samanna, Saint Martin and a combination of occupancy and rate driven growth at Charleston Place, Charleston, offset by a decline at Maroma Resort & Spa in Mexico, where security concerns continue to impact market demand generally to the country. Same store RevPAR in the region increased by 8% in US dollars (up 7% in local currency). EBITDA was $5.8 million compared to $5.4 million in the second quarter of 2010.

 

Rest of World:

 

Southern Africa:

 

Second quarter revenue was $6.2 million, compared to $9.2 million in the second quarter of 2010.  Same store RevPAR was down 43% in US dollars (down 48% in local currency). EBITDA was a loss of $1.0 million, compared to a gain of $2.5 million in the second quarter of 2010. The decrease was largely the result of the football World Cup played in

 

4


 

South Africa in 2010, although EBITDA has also been negatively impacted by new competition in both Cape Town and Johannesburg and a stronger Rand, resulting in pressure on rates and margins.

 

South America:

 

Revenue increased by 38% to $21.7 million in the second quarter of 2011, from $15.7 million in the second quarter of 2010. Year on year revenue increased at Hotel das Cataratas, Iguassu Falls, by $1.5 million or 70% following the major refurbishment that was completed in November 2010. Year on year revenue increased at Copacabana Palace by $4.3 million or 37%, driven by strong ADR and US guest growth. Same store RevPAR in the region increased by 27% in both US dollars and local currency. EBITDA was $4.6 million, compared to $3.0 million last year, an increase of 53%. Local inflationary pressures and a stronger Real impacted margins in the quarter.

 

Asia Pacific:

 

Revenue for the second quarter of 2011 was $9.4 million, an increase of $1.9 million or 25% year over year, reflecting growth at all properties except Napasai, Koh Samui, where there was a temporary closure for beach works. Same store RevPAR increased by 26% in US dollars (increase of 29% in local currency). EBITDA was $1.4 million compared to $0.8 million in the second quarter of 2010.

 

Additional Information

 

Hotel management and part-ownership interests:

 

EBITDA for the second quarter of 2011 was $2.5 million compared to $2.2 million in the second quarter of 2010. The improvement was largely attributable to the Company’s share of results from Peru hotels, as the second quarter of 2010 was negatively impacted by flooding and landslides in the country. The quarterly result also included $0.3 million of costs relating to the Company’s initiative to enter the Management Contract business.

 

Restaurants:

 

Revenue from ‘21’ Club, New York, in the second quarter of 2011 was $4.1 million compared to $3.8 million in the same quarter of 2010. EBITDA was a loss of $0.4 million compared to a gain of $0.5 million in the same quarter of 2010 due to a $1.0 million accrual against a contingent liability.

 

Trains and Cruises:

 

Revenue increased by $3.4 million to $25.3 million in the second quarter of 2011 from $21.9 million in the prior year, an increase of 16% year over year. EBITDA was $6.1 million compared to $6.8 million in the same quarter of 2010 due to a decrease in share of results from PeruRail of $2.6 million. Both revenue and EBITDA from PeruRail in the second quarter of 2010 included insurance income of $2.8 million.

 

5


 

Central costs:

 

In the second quarter of 2011, central costs were $8.7 million compared with $5.7 million in the prior year period. The increase was largely due to litigation settlement gains recognized in the prior year ($1.1 million) and non-cash stock option costs ($0.6 million) and legal and other professional service fee increases ($0.4 million) in the current quarter.

 

Real Estate:

 

In the second quarter of 2011, there was an EBITDA loss of $2.0 million from Real Estate activities, primarily related to Porto Cupecoy, Sint Maarten, compared with a loss of $1.4 million in the second quarter of 2010. During the quarter, the Company recognized $1.7 million of revenue from three units transferred to customers.  Cumulatively, at the end of the quarter, 114 units or 62% of the total had been sold and the legal title of 104 units had been transferred.

 

Depreciation and amortization:

 

The depreciation and amortization charge for the second quarter of 2011 was $11.7 million compared with $11.4 million in the second quarter of 2010.

 

Interest:

 

The interest charge for the second quarter of 2011 was $11.3 million, up from $7.4 million in the second quarter of 2010 principally due to a $1.7 million one-time write-off of deferred financing costs on debt repayment, higher rates on refinanced debt and interest capitalized in the second quarter of 2010 of $1.9 million.

 

Tax:

 

The tax charge for the second quarter of 2011 was $10.0 million, compared to a charge of $7.4 million in the same quarter in the prior year. The second quarter of 2011 included a deferred tax charge of $1.0 million arising in respect of fixed asset timing differences following the appreciation of local currencies against the US dollar, compared to a deferred tax benefit of $0.3 million in the same quarter in the prior year.

 

Investment:

 

The Company invested $14.9 million during the quarter, including $1.1 million at Hotel Cipriani, $1.5 million at El Encanto, Santa Barbara, $1.4 million at the two Sicilian properties, $1.1 million at Hotel Splendido, $1.0 million at La Residencia, Mallorca, and routine capital expenditure at other properties.

 

6


 

Balance Sheet

 

At June 30, 2011, the Company had long-term debt (including the current portion and debt of consolidated variable interest entities) of $703.4 million, working capital loans of $0.7 million, and cash balances of $128.1 million (including $15.1 million of restricted cash), giving a total net debt of $576.0 million compared with total net debt of $610.2 million at the end of the first quarter of 2011. The decrease in net debt reflects the $25.5 million proceeds received in April 2011 following the assignment of the New York hotel project.

 

Undrawn amounts available to the Company at June 30, 2011 under short-term lines of credit were $4.6 million and undrawn amounts available to the Company under secured revolving credit facilities were $12.0 million, bringing total cash availability (excluding restricted cash) at June 30, 2011, to $129.6 million.

 

At June 30, 2011, approximately 58% of the Company’s debt was at fixed interest rates and 42% was at floating interest rates. The weighted average maturity of the debt was approximately 3.4 years and the weighted average interest rate (including margin and swaps) was approximately 4.5%.

 

At June 30, 2011, excluding revolving credit facilities of $28.0 million which are available for redrawing, the Company had $48.5 million of debt repayments due within 12 months. These are expected to be met through a combination of operational cash flow, refinancing the facilities and utilizing available cash.

 

During the quarter, €30.0 million ($43.5 million) of debt secured on La Residencia, maturing in September 2011, was refinanced with an €18.0 million ($26.1 million) facility maturing in 2014.

 

The Company’s balance sheet as at December 31, 2010 has been restated to correct an understatement of non-current deferred income tax liabilities. The prior period increase to non-current deferred tax liabilities of $6.0 million (and a corresponding decrease to retained earnings) does not affect the Company’s net losses or losses per share for the year ended December 31, 2010.

 

* * * * * * * *

 

7


 

Reconciliation and Adjustments

 

 

 

Three months
ended

 

Six months ended

 

 

 

June 30

 

June 30

 

$’000 — except per share amounts

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

37,068

 

31,074

 

37,788

 

28,320

 

Real Estate

 

1,990

 

1,439

 

3,108

 

2,779

 

EBITDA before Real Estate

 

39,058

 

32,513

 

40,896

 

31,099

 

Adjusted items:

 

 

 

 

 

 

 

 

 

Gain on disposal (1)

 

86

 

—

 

(520

)

—

 

Legal costs (2)

 

—

 

(279

)

—

 

(170

)

Grand Hotel Timeo & Villa Sant’Andrea (3)

 

—

 

497

 

—

 

1,640

 

Cipriani litigation (4)

 

—

 

(788

)

—

 

(788

)

‘21’ Club reserve (5)

 

1,000

 

—

 

1,000

 

—

 

Management restructuring (6)

 

975

 

173

 

1,516

 

1,122

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA before Real Estate

 

41,119

 

32,116

 

42,892

 

32,903

 

 

 

 

 

 

 

 

 

 

 

Reported net earnings/(loss) attributable to Orient-Express Hotels Ltd.

 

5,154

 

(820

)

(9,753

)

(13,828

)

Net earnings attributable to non-controlling interests

 

(67

)

(38

)

(294

)

(207

)

Reported net earnings/(loss)

 

5,221

 

(782

)

(9,459

)

(13,621

)

Discontinued operations net of tax

 

(24

)

1,608

 

689

 

(2,737

)

Net earnings/(loss) from continuing operations

 

5,197

 

826

 

(8,770

)

(16,358

)

Adjusted items net of tax:

 

 

 

 

 

 

 

 

 

Gain on disposal (1) 

 

56

 

—

 

(338

)

—

 

Legal costs (2)

 

—

 

(279

)

—

 

(170

)

Grand Hotel Timeo & Villa Sant’Andrea (3)

 

—

 

359

 

—

 

1,225

 

Cipriani litigation (4)

 

—

 

(788

)

—

 

(788

)

‘21’ Club reserve (5)

 

650

 

—

 

650

 

—

 

Management restructuring (6)

 

780

 

173

 

1,255

 

933

 

Loan financing costs (7)

 

1,148

 

—

 

1,148

 

—

 

Interest rate swaps (8)

 

497

 

(22

)

516

 

(5

)

Foreign exchange (9)

 

(856

)

3,001

 

(1,517

)

230

 

 

 

 

 

 

 

 

 

 

 

Adjusted net earnings/(loss) from continuing operations

 

7,472

 

3,270

 

(7,056

)

(14,933

)

 

 

 

 

 

 

 

 

 

 

Reported earnings/(loss) per share

 

0.05

 

(0.01

)

(0.09

)

(0.15

)

Reported earnings/(loss) per share from continuing operations

 

0.05

 

0.01

 

(0.08

)

(0.18

)

Adjusted earnings/(loss) per share from continuing operations

 

0.07

 

0.04

 

(0.07

)

(0.17

)

Number of shares (millions)

 

102.47

 

90.80

 

102.45

 

89.32

 

 

(1)          Gain on disposal of New York hotel project.

(2)          Legal costs incurred in defending the Company’s class B common share structure, net of awards or claims for reimbursement.

(3)          Non-recurring costs and purchase transaction costs incurred in relation to Grand Hotel Timeo and Villa Sant’Andrea.

(4)          Cash received in excess of costs incurred following settlement of “Cipriani” trademark litigation.

(5)          Non-recurring contingent liability.

(6)          Restructuring and redundancy costs.

(7)          Amortization of deferred financing costs on repayment of debt.

(8)          Charges on swaps that did not qualify for hedge accounting.

(9)          Foreign exchange is a non-cash item arising on the translation of certain assets and liabilities denominated in currencies other than the reporting currency of the entity concerned.

 

8


 

Management evaluates the operating performance of the Company’s segments on the basis of segment net earnings before interest, foreign exchange, tax (including tax on unconsolidated companies), depreciation and amortization (EBITDA), and believes that EBITDA 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 historical 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 US generally accepted accounting principles (US GAAP), 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 US GAAP for purposes of evaluating operating performance.

 

Adjusted EBITDA and adjusted net earnings of the Company are non-GAAP financial measures and do not have any standardized meanings prescribed by US GAAP.  They are, therefore, unlikely to be comparable to similar measures presented by other companies, which may be calculated differently, and should not be considered as an alternative to net earnings, cash flow from operating activities or any other measure of performance prescribed by US GAAP.  Management considers adjusted EBITDA and adjusted net earnings to be meaningful indicators of operations and uses them as measures to assess operating performance because, when comparing current period performance with prior periods and with budgets, management does so after having adjusted for non-recurring items, foreign exchange (a non-cash item), disposals of assets or investments, and certain other items (some of which may be recurring) which management does not consider indicative of ongoing operations or which could otherwise have a material effect on the comparability of the Company’s operations.  Adjusted EBITDA and adjusted net earnings are also used by investors, analysts and lenders as measures of financial performance because, as adjusted in the foregoing manner, the measures provide a consistent basis on which the performance of the Company can be assessed.

 

This news release and related oral presentations by management contain, in addition to historical information, forward-looking statements that involve risks and uncertainties.  These include statements regarding earnings outlook, investment plans, debt reduction and debt refinancings, asset sales 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 news release and oral presentations, unknown effects on the travel and leisure markets of terrorist activity and any police or military response, varying customer demand and competitive considerations, failure to realize hotel bookings and reservations and planned property development sales as actual revenue, inability to sustain price increases or to reduce costs, rising fuel costs adversely impacting customer travel and the Company’s operating costs, fluctuations in interest rates and currency values, uncertainty of negotiating and completing proposed asset sales, debt refinancings, capital expenditures and acquisitions, inability to reduce funded debt as planned or to agree bank loan agreement waivers or amendments, 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, changing global and regional economic conditions in many parts of the world and weakness in financial markets, legislative, regulatory and political developments, and possible new challenges to the Company’s corporate governance structure.  Further information regarding these and other factors is included in the filings by the Company with the U.S. Securities and Exchange Commission.

 

******

 

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Orient-Express Hotels will conduct a conference call on Wednesday, August 3, 2011 at 10.00 hrs EDT (15.00 BST) which is accessible at +1 888 935 4575 (US toll free) or +44 (0)20 7136 6283 (Standard International).  The conference ID is 9270647.  A re-play of the conference call will be available until 7pm (EDT) Wednesday, August 10, 2011 and can be accessed by calling +1 866 932 5017 (US toll free) or +44 (0)20 7111 1244 (Standard International) and entering replay access number 9270647#.  A re-play will also be available on the company’s website: www.orient-expresshotelsltd.com.

 

10


 

ORIENT-EXPRESS HOTELS LTD.

Three Months ended June 30, 2011

SUMMARY OF OPERATING RESULTS

(Unaudited)

 

 

 

Three months ended
June 30

 

$’000 — except per share amounts

 

2011

 

2010

 

 

 

 

 

 

 

Revenue and earnings from unconsolidated companies

 

 

 

 

 

Owned hotels

 

 

 

 

 

- Europe

 

76,684

 

54,607

 

- North America

 

31,197

 

29,215

 

- Rest of World

 

37,324

 

32,382

 

Hotel management & part ownership interests

 

2,853

 

2,182

 

Restaurants

 

4,097

 

3,794

 

Trains & Cruises

 

25,273

 

21,942

 

Revenue and earnings from unconsolidated companies before Real Estate

 

177,428

 

144,122

 

Real Estate

 

1,660

 

27,414

 

Total (1)

 

179,088

 

171,536

 

 

 

 

 

 

 

Analysis of earnings

 

 

 

 

 

Owned hotels

 

 

 

 

 

- Europe

 

28,817

 

16,989

 

- North America

 

5,836

 

5,367

 

- Rest of World

 

4,909

 

6,313

 

Hotel management & part ownership interests

 

2,530

 

2,182

 

Restaurants

 

(409

)

493

 

Trains & Cruises

 

6,122

 

6,834

 

Central overheads

 

(8,661

)

(5,665

)

EBITDA before Real Estate and Gain on disposal

 

39,144

 

32,513

 

Real Estate

 

(1,990

)

(1,439

)

EBITDA before Gain on disposal

 

37,154

 

31,074

 

Loss on disposal

 

(86

)

—

 

EBITDA

 

37,068

 

31,074

 

Depreciation & amortization

 

(11,714

)

(11,426

)

Interest

 

(11,310

)

(7,353

)

Foreign exchange

 

1,176

 

(4,040

)

Earnings before tax

 

15,220

 

8,255

 

Tax

 

(10,023

)

(7,429

)

Net earnings from continuing operations

 

5,197

 

826

 

Discontinued operations

 

24

 

(1,608

)

Net earnings/(losses)

 

5,221

 

(782

)

Net earnings attributable to non-controlling interests

 

(67

)

(38

)

Net earnings/(losses) attributable to Orient- Express Hotels Ltd.

 

5,154

 

(820

)

Net earnings/(losses) per common share

 

0.05

 

(0.01

)

Number of shares — millions

 

102.47

 

90.80

 

 

(1)   Comprises earnings from unconsolidated companies of $2,198,000 (2010 - $4,725,000) and revenue of $176,890,000 (2010 - $166,811,000).

 

11


 

ORIENT-EXPRESS HOTELS LTD.

Three Months Ended June 30, 2011

SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS

 

 

 

Three months ended
June 30

 

 

 

 

2011

 

2010

 

 

Average Daily Rate

(in US dollars)

 

 

 

 

 

 

Europe

 

798

 

720

 

 

North America

 

335

 

325

 

 

Rest of World

 

331

 

327

 

 

Worldwide

 

489

 

441

 

 

 

 

 

 

 

 

 

Rooms Available (000’s)

 

 

 

 

 

 

Europe

 

86

 

80

 

 

North America

 

68

 

68

 

 

Rest of World

 

117

 

113

 

 

Worldwide

 

271

 

261

 

 

 

 

 

 

 

 

 

Rooms Sold (000’s)

 

 

 

 

 

 

Europe

 

54

 

41

 

 

North America

 

48

 

46

 

 

Rest of World

 

60

 

55

 

 

Worldwide

 

162

 

142

 

 

 

 

 

 

 

 

 

RevPAR (in US dollars)

 

 

 

 

 

 

Europe

 

506

 

375

 

 

North America

 

238

 

221

 

 

Rest of World

 

170

 

158

 

 

Worldwide

 

294

 

241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change %

 

 

 

 

 

 

 

Dollar

 

Local
currency

 

Same Store RevPAR

(in US dollars)

 

 

 

 

 

 

 

 

 

Europe

 

525

 

385

 

36

%

28

%

North America

 

238

 

221

 

8

%

7

%

Rest of World

 

172

 

163

 

6

%

1

%

Worldwide

 

293

 

245

 

20

%

14

%

 

12


 

ORIENT-EXPRESS HOTELS LTD.

Six Months ended June 30, 2011

SUMMARY OF OPERATING RESULTS

(Unaudited)

 

 

 

Six months ended
June 30

 

$’000 — except per share amounts

 

2011

 

2010

 

 

 

 

 

 

 

Revenue and earnings from unconsolidated companies

 

 

 

 

 

Owned hotels

 

 

 

 

 

- Europe

 

91,364

 

67,627

 

- North America

 

60,445

 

56,554

 

- Rest of World

 

82,267

 

70,792

 

Hotel management & part ownership interests

 

2,777

 

874

 

Restaurants

 

7,438

 

6,908

 

Trains & Cruises

 

32,831

 

26,914

 

Revenue and earnings from unconsolidated companies before Real Estate

 

277,122

 

229,669

 

Real Estate

 

5,191

 

31,108

 

Total (1)

 

282,313

 

260,777

 

 

 

 

 

 

 

Analysis of earnings

 

 

 

 

 

Owned hotels

 

 

 

 

 

- Europe

 

21,959

 

9,511

 

- North America

 

10,996

 

10,811

 

- Rest of World

 

16,464

 

17,397

 

Hotel management & part ownership interests

 

2,310

 

874

 

Restaurants

 

(261

)

636

 

Trains & Cruises

 

5,286

 

5,119

 

Central overheads

 

(16,378

)

(13,249

)

EBITDA before Real Estate and Gain on disposal

 

40,376

 

31,099

 

Real Estate

 

(3,108

)

(2,779

)

EBITDA before Gain on disposal

 

37,268

 

28,320

 

Gain on disposal

 

520

 

—

 

EBITDA

 

37,788

 

28,320

 

Depreciation & amortization

 

(23,021

)

(22,583

)

Interest

 

(20,625

)

(14,110

)

Foreign exchange

 

2,139

 

(218

)

Losses before tax

 

(3,719

)

(8,591

)

Tax

 

(5,051

)

(7,767

)

Net losses from continuing operations

 

(8,770

)

(16,358

)

Discontinued operations

 

(689

)

2,737

 

Net losses

 

(9,459

)

(13,621

)

Net earnings attributable to non-controlling interests

 

(294

)

(207

)

Net losses attributable to Orient-Express Hotels Ltd.

 

(9,753

)

(13,828

)

Net losses per common share

 

(0.09

)

(0.15

)

Number of shares — millions

 

102.45

 

89.32

 

 

(1)   Comprises earnings from unconsolidated companies of $1,433,000 (2010 - $1,868,000) and revenue of $280,880,000 (2010 - $258,909,000).

 

13


 

ORIENT-EXPRESS HOTELS LTD.

Six Months Ended June 30, 2011

SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS

 

 

 

Six months ended
June 30

 

 

 

 

2011

 

2010

 

 

Average Daily Rate

(in US dollars)

 

 

 

 

 

 

Europe

 

720

 

637

 

 

North America

 

351

 

349

 

 

Rest of World

 

340

 

327

 

 

Worldwide

 

432

 

397

 

 

 

 

 

 

 

 

 

Rooms Available (000’s)

 

 

 

 

 

 

Europe

 

134

 

127

 

 

North America

 

135

 

136

 

 

Rest of World

 

234

 

229

 

 

Worldwide

 

503

 

492

 

 

 

 

 

 

 

 

 

Rooms Sold (000’s)

 

 

 

 

 

 

Europe

 

68

 

55

 

 

North America

 

91

 

87

 

 

Rest of World

 

136

 

126

 

 

Worldwide

 

295

 

268

 

 

 

 

 

 

 

 

 

RevPAR (in US dollars)

 

 

 

 

 

 

Europe

 

369

 

275

 

 

North America

 

236

 

224

 

 

Rest of World

 

197

 

180

 

 

Worldwide

 

253

 

216

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change %

 

 

 

 

 

 

 

Dollar

 

Local
currency

 

Same Store RevPAR

(in US dollars)

 

 

 

 

 

 

 

 

 

Europe

 

371

 

279

 

33

%

25

%

North America

 

236

 

224

 

5

%

5

%

Rest of World

 

198

 

182

 

9

%

5

%

Worldwide

 

251

 

218

 

15

%

11

%

 

14


 

ORIENT-EXPRESS HOTELS LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

$’000 

 

June 30
 2011

 

December 31
 2010
(Restated)

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Cash

 

128,116

 

158,820

 

Accounts receivable

 

51,266

 

51,405

 

Due from unconsolidated companies

 

30,008

 

19,643

 

Prepaid expenses

 

25,549

 

23,663

 

Inventories

 

49,999

 

44,245

 

Other assets held for sale

 

36,217

 

32,844

 

Real estate assets

 

74,499

 

68,111

 

Total current assets

 

395,654

 

398,731

 

 

 

 

 

 

 

Property, plant & equipment, net book value

 

1,299,896

 

1,268,837

 

Property, plant & equipment, net book value of consolidated variable interest entities

 

187,270

 

188,502

 

Investments

 

58,889

 

60,428

 

Goodwill

 

184,909

 

177,498

 

Other intangible assets

 

20,272

 

20,007

 

Other assets

 

22,101

 

23,711

 

 

 

2,168,991

 

2,137,714

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

Working capital facilities

 

711

 

1,174

 

Accounts payable

 

39,737

 

25,448

 

Accrued liabilities

 

82,636

 

71,554

 

Deferred revenue

 

41,536

 

28,963

 

Other liabilities held for sale

 

3,207

 

2,792

 

Current portion of long-term debt and capital leases

 

74,694

 

124,805

 

Current portion of long-term debt of consolidated variable interest entities

 

1,764

 

1,775

 

Total current liabilities

 

244,285

 

256,511

 

 

 

 

 

 

 

Long-term debt and obligations under capital leases

 

537,272

 

511,336

 

Long-term debt of consolidated variable interest entities

 

89,653

 

90,529

 

Deferred income taxes

 

109,946

 

106,702

 

Deferred income taxes of consolidated variable interest entities

 

61,835

 

61,835

 

Other liabilities

 

37,096

 

43,906

 

Total liabilities

 

1,080,087

 

1,070,819

 

 

 

 

 

 

 

Shareholders’ equity

 

1,086,697

 

1,064,973

 

Non-controlling interests

 

2,207

 

1,922

 

Total equity

 

1,088,904

 

1,066,895

 

 

 

2,168,991

 

2,137,714

 

 

15