10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2017

OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to

Commission File Number 001-16017

BELMOND LTD.

(Exact name of registrant as specified in its charter) 

Bermuda	98-0223493
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

22 Victoria Street,

Hamilton HM 12, Bermuda

(Address of principal executive offices)(Zip code)

Registrant’s telephone number, including area code:  (441) 295-2244

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer x	Accelerated Filer o
Non-Accelerated Filer o	Smaller reporting company o
(Do not check if a smaller reporting company)	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o  No x

 As of November 3, 2017, 102,339,398 class A common shares and 18,044,478 class B common shares of the registrant were outstanding.  All of the class B shares are owned by a subsidiary of the registrant.

Table of Contents

		Page
	PART I—FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)	2
	Condensed Consolidated Balance Sheets	2
	Statements of Condensed Consolidated Operations	3
	Statements of Condensed Consolidated Comprehensive Income	5
	Statements of Condensed Consolidated Cash Flows	6
	Statements of Condensed Consolidated Total Equity	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3	Quantitative and Qualitative Disclosures About Market Risk	58
Item 4	Controls and Procedures	59
	PART II—OTHER INFORMATION
Item 1	Legal Proceedings	60
Item 1A	Risk Factors	60
Item 6	Exhibits	60
	Signatures	61

1

PART I — FINANCIAL INFORMATION

ITEM 1. Financial Statements

Belmond Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

	September 30, 2017		December 31, 2016
	$’000		$’000
Assets
Cash and cash equivalents	205,367		153,425
Restricted cash	6,368		1,830
Accounts receivable, net of allowances of $491 and $420	43,037		25,775
Due from unconsolidated companies	14,064		12,165
Prepaid expenses and other	13,352		12,262
Inventories	23,890		23,931
Assets held for sale	3,829		—
Total current assets	309,907		229,388
Property, plant and equipment, net of accumulated depreciation of $420,285 and $368,939	1,167,515		1,074,676
Investments in unconsolidated companies	83,074		79,327
Goodwill	125,088		113,343
Other intangible assets	20,306		13,877
Other assets	12,555		13,457
Total assets (1)	1,718,445		1,524,068
Liabilities and Equity
Accounts payable	16,274		16,366
Accrued liabilities	98,774		69,046
Deferred revenue	38,582		31,350
Liabilities held for sale	938		—
Current portion of long-term debt and obligations under capital leases	6,767		5,284
Total current liabilities	161,335		122,046
Long-term debt and obligations under capital leases	698,275		585,768
Liability for pension benefit	440		1,447
Other liabilities	1,040		5,366
Deferred income taxes	133,246		122,291
Liability for uncertain tax positions	428		318
Total liabilities (1)	994,764		837,236
Commitments and contingencies (Note 18)
Equity:
Shareholders’ equity:
Preferred shares $0.01 par value (30,000,000 shares authorized, issued Nil)	—		—
Class A common shares $0.01 par value (240,000,000 shares authorized):
Issued — 102,335,078 (2016 — 101,793,829)	1,021		1,018
Class B common shares $0.01 par value (120,000,000 shares authorized):
Issued — 18,044,478 (2016 — 18,044,478)	181		181
Additional paid-in capital	984,483		979,458
Retained earnings	43,046		58,313
Accumulated other comprehensive loss	(305,223	)	(352,339	)
Less: Reduction due to class B common shares owned by a subsidiary — 18,044,478 (2016 — 18,044,478)	(181	)	(181	)
Total shareholders’ equity	723,327		686,450
Non-controlling interests	354		382
Total equity	723,681		686,832
Total liabilities and equity	1,718,445		1,524,068

Belmond Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited) (continued)

(1) Included in Belmond Ltd.’s consolidated assets and liabilities are assets of consolidated variable interest entities (“consolidated VIEs”) that can only be used to settle obligations of the consolidated VIEs and liabilities of consolidated VIEs whose creditors have no recourse to Belmond Ltd. The Company’s only consolidated VIE at September 30, 2017 and December 31, 2016 is Charleston Center LLC. The assets and liabilities relating to this VIE at September 30, 2017 and December 31, 2016 are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Assets
Cash and cash equivalents	1,508	2,233
Accounts receivable, net of allowances of $Nil and $Nil	3,696	3,066
Prepaid expenses and other	1,306	365
Inventories	1,289	1,296
Total current assets	7,799	6,960
Property, plant and equipment, net of accumulated depreciation of $41,052 and $35,902	198,643	201,861
Other assets	1,303	1,455
Total assets	207,745	210,276
Liabilities
Accounts payable	2,773	4,558
Accrued liabilities	4,195	3,099
Deferred revenue	3,017	1,714
Current portion of long-term debt and obligations under capital leases	252	242
Total current liabilities	10,237	9,613
Long-term debt and obligations under capital leases	112,046	111,968
Other liabilities	—	40
Total liabilities	122,283	121,621

See further description in note 5, Variable interest entities.

See notes to condensed consolidated financial statements.

2

Belmond Ltd. and Subsidiaries

Statements of Condensed Consolidated Operations (unaudited)

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$’000		$’000		$’000		$’000
Revenue (1)	182,973		183,737		443,705		435,629
Expenses:
Cost of services	72,010		71,987		184,775		186,459
Selling, general and administrative	59,356		53,285		184,205		150,214
Depreciation and amortization	17,052		13,155		45,862		39,553
Impairment of property, plant and equipment	—		1,007		8,216		1,007
Total operating costs and expenses	148,418		139,434		423,058		377,233
Gain on disposal of property, plant and equipment	150		488		450		788
Earnings from operations	34,705		44,791		21,097		59,184
Gain on extinguishment of debt	—		—		—		1,200
Interest income	240		289		582		582
Interest expense	(8,993	)	(7,840	)	(24,536	)	(23,026	)
Foreign currency, net	(1,486	)	1,432		(2,727	)	9,161
Earnings/(losses) before income taxes and earnings from unconsolidated companies, net of tax	24,466		38,672		(5,584	)	47,101
Provision for income taxes	(20,732	)	(20,401	)	(17,608	)	(25,140	)
Earnings/(losses) before earnings from unconsolidated companies, net of tax	3,734		18,271		(23,192	)	21,961
Earnings from unconsolidated companies, net of tax provision of $2,026, $1,712, $4,079 and $3,943	3,939		4,618		7,789		7,712
Earnings/(losses) from continuing operations	7,673		22,889		(15,403	)	29,673
Net (losses)/earnings from discontinued operations, net of tax provision of $Nil, $Nil, $Nil and $Nil	(3	)	(4	)	125		51
Net earnings/(losses)	7,670		22,885		(15,278	)	29,724
Net losses/(earnings) attributable to non-controlling interests	96		(17	)	11		(57	)
Net earnings/(losses) attributable to Belmond Ltd.	7,766		22,868		(15,267	)	29,667
(1)  Includes revenue from related parties of $4,758,000, $4,563,000, $11,601,000 and $10,869,000 respectively

See notes to condensed consolidated financial statements.

3

Belmond Ltd. and Subsidiaries

Statements of Condensed Consolidated Operations (unaudited) (continued)

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017		September 30, 2016
	$	$	$		$
Basic earnings per share
Net earnings/(losses) from continuing operations	0.07	0.22	(0.15	)	0.29
Net earnings/(losses) from discontinued operations	—	—	—		—
Basic net earnings/(losses) per share attributable to Belmond Ltd.	0.08	0.23	(0.15	)	0.29
Diluted earnings per share
Net earnings/(losses) from continuing operations	0.07	0.22	(0.15	)	0.29
Net earnings/(losses) from discontinued operations	—	—	—		—
Diluted net earnings/(losses) per share attributable to Belmond Ltd.	0.08	0.22	(0.15	)	0.29

See notes to condensed consolidated financial statements.

4

Belmond Ltd. and Subsidiaries

Statements of Condensed Consolidated Comprehensive Income (unaudited)

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$’000		$’000		$’000		$’000
Net earnings/(losses)	7,670		22,885		(15,278	)	29,724
Other comprehensive income/(losses), net of tax:
Foreign currency translation adjustments, net of tax provision/(benefit) of $Nil, $(335), $Nil and $(335)	17,950		1,769		46,927		7,668
Change in fair value of derivatives, net of tax provision/(benefit) of $175, $235, $371 and $(313)	(1,065	)	748		(306	)	(967	)
Change in pension liability, net of tax provision of $32, $29, $97 and $87	162		121		478		386
Total other comprehensive income, net of tax	17,047		2,638		47,099		7,087
Total comprehensive income	24,717		25,523		31,821		36,811
Comprehensive losses/(income) attributable to non-controlling interests	122		(36	)	28		(178	)
Comprehensive income attributable to Belmond Ltd.	24,839		25,487		31,849		36,633

See notes to condensed consolidated financial statements.

5

Belmond Ltd. and Subsidiaries

Statements of Condensed Consolidated Cash Flows (unaudited)

	Nine months ended
	September 30, 2017		September 30, 2016
	$'000		$'000
Cash flows from operating activities:
Net (losses)/earnings	(15,278	)	29,724
Less: Net earnings from discontinued operations, net of tax	125		51
Net (losses)/earnings from continuing operations	(15,403	)	29,673
Adjustments to reconcile net (losses)/earnings to net cash provided by operating activities:
Depreciation and amortization	45,862		39,553
Impairment of property, plant and equipment	8,216		1,007
Gain on disposal of property, plant and equipment	(450	)	(788	)
Gain on extinguishment of debt	—		(1,200	)
Earnings from unconsolidated companies, net of tax	(7,789	)	(7,712	)
Amortization of debt issuance costs and discount on secured term loan	2,826		2,208
Share-based compensation	5,025		5,258
Change in provisions for uncertain tax positions	67		204
Benefit from deferred income tax	6,504		12,074
Other non-cash movements	1,472		1,773
Effect of exchange rates on net losses	541		(11,070	)
Change in assets and liabilities, net of effects from acquisitions:
Accounts receivable	(7,082	)	(4,004	)
Due from unconsolidated companies	(724	)	(816	)
Prepaid expenses and other	(1,113	)	701
Inventories	1,714		(375	)
Escrow and prepaid customer deposits	(4,168	)	(3,294	)
Accounts payable	(1,144	)	948
Accrued liabilities	29,351		11,555
Deferred revenue	4,182		4,057
Other liabilities	(5,622	)	(14,383	)
Other, net	866		(530	)
Other cash movements:
Dividends from equity method investees	3,180		3,018
Payment of swap termination costs	(2,145	)	—
Net cash provided by operating activities from continuing operations	64,166		67,857
Net cash provided by operating activities from discontinued operations	(10	)	51
Net cash provided by operating activities	64,156		67,908

See notes to condensed consolidated financial statements.

6

Belmond Ltd. and Subsidiaries

Statements of Condensed Consolidated Cash Flows (unaudited) (continued)

	Nine months ended
	September 30, 2017		September 30, 2016
	$'000		$'000
Cash flows from investing activities:
Capital expenditure to acquire property, plant and equipment	(43,012	)	(40,556	)
Acquisitions, net of cash acquired	(68,632	)	—
Release of restricted cash	7		43
Proceeds from sale of property, plant and equipment	—		2,746
Net cash used in investing activities from continuing operations	(111,637	)	(37,767	)
Net cash provided by investing activities from discontinued operations	—		—
Net cash used in investing activities	(111,637	)	(37,767	)
Cash flows from financing activities:
Repurchase of shares	—		(1,992	)
Exercised share options and vested share awards	3		17
Dividend to non-controlling interest	—		(7	)
Proceeds from borrowings	649,478		26,000
Debt issuance costs	(9,703	)	(414	)
Principal payments under long-term debt	(548,798	)	(12,552	)
Net cash provided by financing activities from continuing operations	90,980		11,052
Net cash provided by financing activities from discontinued operations	—		—
Net cash provided by financing activities	90,980		11,052
Effect of exchange rate changes on cash and cash equivalents	8,443		1,100
Net increase in cash and cash equivalents	51,942		42,293
Cash and cash equivalents at beginning of period (includes $Nil and $Nil of cash presented within assets held for sale)	153,425		135,599
Cash and cash equivalents at end of period (includes $2,000 and $Nil of cash presented within assets held for sale)	205,367		177,892

See notes to condensed consolidated financial statements.

7

Belmond Ltd. and Subsidiaries

Statements of Condensed Consolidated Total Equity (unaudited)

	Preferred shares at par value $’000	Class A common shares at par value $’000		Class B common shares at par value $’000	Additional paid-in capital $’000		Retained earnings $’000		Accumulated other comprehensive loss $’000		Class B common shares held by a subsidiary $’000		Non- controlling interests $’000		Total $’000
Balance, January 1, 2016	—	1,015		181	975,419		16,172		(334,542	)	(181	)	361		658,425
Share-based compensation	—	—		—	5,258		—		—		—		—		5,258
Exercised share options and vested share awards	—	5		—	12		—		—		—		—		17
Repurchase of shares	—	(2	)	—	(2,245	)	255		—		—		—		(1,992	)
Dividend to non-controlling interest	—	—		—	—		—		—		—		(179	)	(179	)
Comprehensive income/(losses):
Net earnings attributable to common shares	—	—		—	—		29,667		—		—		57		29,724
Other comprehensive income	—	—		—	—		—		6,966		—		121		7,087
Balance, September 30, 2016	—	1,018		181	978,444		46,094		(327,576	)	(181	)	360		698,340
Balance, January 1, 2017	—	1,018		181	979,458		58,313		(352,339	)	(181	)	382		686,832
Share-based compensation	—	—		—	5,025		—		—		—		—		5,025
Exercised stock options and vested share awards	—	3		—	—		—		—		—		—		3
Comprehensive income/(losses):
Net (losses)/earnings attributable to common shares	—	—		—	—		(15,267	)	—		—		(11	)	(15,278	)
Other comprehensive income	—	—		—	—		—		47,116		—		(17	)	47,099
Balance, September 30, 2017	—	1,021		181	984,483		43,046		(305,223	)	(181	)	354		723,681

See notes to condensed consolidated financial statements.

8

Belmond Ltd. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

1.    Basis of financial statement presentation

Business

The terms “Belmond” and the “Company” are used in this report to refer to Belmond Ltd. and Belmond Ltd. and its subsidiaries, unless otherwise stated.

At September 30, 2017, Belmond owned, partially-owned or managed 36 deluxe hotels and resort properties operating in the United States, Mexico, the Caribbean, Europe, Southern Africa, South America, and Southeast Asia, one stand-alone restaurant in New York, eight tourist trains in Europe, Southeast Asia and Peru, two river cruise businesses in Myanmar (Burma) and one canal boat business in France. In addition, there is one hotel, scheduled for a 2018 opening, Belmond Cadogan Hotel, in London, England. Subsequent to the balance sheet date, the Company sold the shares in Northern Belle Limited, the wholly owned subsidiary that owns the rolling stock, on November 2, 2017 and provided notice of termination to the owner of Belmond Orcaella in respect of its charter agreement in October 2017. See Note 24.

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reporting on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the management of the Company, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, operating results and cash flows for the interim period have been included in these condensed consolidated financial statements.

The interim results presented are not necessarily indicative of results that may be expected for any subsequent interim period or the fiscal year ending December 31, 2017.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. See Note 2 to the consolidated financial statements in the 2016 Annual Report on Form 10-K for additional information regarding significant accounting policies.

For interim reporting purposes, Belmond calculates its tax expense by estimating its global annual effective tax rate and applies that rate in providing for income taxes on a year-to-date basis. Belmond has calculated an expected annual effective tax rate, excluding significant or unusual items, and the tax effect of jurisdictions with losses for which a tax benefit cannot be recognized. The income tax expense (or benefit) related to all other items is individually computed and recognized when the items occur.

Reclassifications

In the first quarter of 2017, the Company corrected a prior period misstatement to reclassify an immaterial deferred tax entry related to a change of functional currency at the Company's Brazilian subsidiaries in 2014. As a result, opening Retained earnings increased by $5,562,000 and opening Accumulated other comprehensive income decreased by $5,562,000, with no net change in Total Equity. There is no impact on net earnings, EPS or cash flows in any period presented.

Accounting policies

The accounting policies used in preparing these condensed consolidated financial statements are the same as those applied in the prior year.

9

Accounting pronouncements to be adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the new guidance. In March 2016, the FASB issued additional guidance which amends the principal-versus-agent implementation guidance and illustrations in the original accounting pronouncement. In May 2016, the FASB issued an update that clarified guidance in certain narrow aspects of the topic. The guidance was originally effective for annual and interim periods beginning after December 15, 2016, however in July 2015 the FASB confirmed that the effective date would be deferred by one year, to annual and interim periods beginning after December 15, 2017. Early adoption is permitted only for periods beginning after December 15, 2016.

The Company intends to adopt the standard in the annual period beginning January 1, 2018 under the modified retrospective approach with a cumulative effect recognized in equity and no prior period restatement. The initial analysis identifying areas that will be impacted by the new guidance is substantially complete and has been conducted predominantly through a review of contracts with customers under the new five step model: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

We have substantially completed our assessment and do not expect the standard to materially affect the amount or timing of revenue recognition for rooms, food and beverage and other hotel level sales, which form the majority of the Company’s revenue. We are continuing to evaluate other possible impacts to our condensed consolidated financial statements, including the impact on our unconsolidated companies, management and incentive fees and real estate sales.

In February 2016, the FASB issued its new standard on accounting for leases, which introduces a lessee model that brings most leases on the balance sheet. A distinction between finance leases and operating leases is retained, with the result that the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous lease guidance. The guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Belmond is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

In August 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The new guidance will be applied on a retrospective basis where applicable. Belmond is currently evaluating the impact, if any, of the adoption of this guidance on its condensed consolidated financial statements.

In October 2016, the FASB issued new guidance which is intended to simplify the tax consequences of certain types of intra-entity asset transfers. The guidance is effective for annual periods ending after December 15, 2017, and interim periods thereafter, with early adoption permitted. The new guidance will be applied on a modified retrospective basis. Belmond is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

In November 2016, the FASB issued new guidance which clarifies the classification and presentation of restricted cash in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods therein, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In January 2017, the FASB issued new guidance to simplify the accounting for goodwill impairment by eliminating step 2 from the goodwill impairment test. A goodwill impairment will now be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance is effective for annual and interim impairment tests for periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. The new guidance will be applied on a prospective basis. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In January 2017, the FASB issued new guidance to clarify the definition of a business. The guidance is effective in annual periods beginning after December 15, 2017, including interim periods therein, with early adoption permitted. The new guidance will be

10

applied on a prospective basis. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In May 2017, the FASB issued new guidance on service concession arrangements. The guidance is effective on the same date the new revenue guidance is adopted, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In August 2017, the FASB issued new guidance to make improvements to hedge accounting requirements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods therein, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

2.     Earnings per share

The calculation of basic and diluted earnings per share including a reconciliation of the numerator and denominator is as follows:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Numerator ($'000)
Net earnings/(losses) from continuing operations	7,673		22,889		(15,403	)	29,673
Net earnings/(losses) from discontinued operations	(3	)	(4	)	125		51
Net losses/(earnings) attributable to non-controlling interests	96		(17	)	11		(57	)
Net earnings/(losses) attributable to Belmond Ltd.	7,766		22,868		(15,267	)	29,667
Denominator (shares '000)
Basic weighted average shares outstanding	102,327		101,752		102,114		101,534
Effect of dilution	1,656		1,541		—		1,409
Diluted weighted average shares outstanding	103,983		103,293		102,114		102,943
	$		$		$		$
Basic earnings per share
Net earnings/(losses) from continuing operations	0.075		0.225		(0.151	)	0.292
Net earnings/(losses) from discontinued operations	—		—		0.001		0.001
Net losses/(earnings) attributable to non-controlling interests	0.001		—		—		(0.001	)
Net earnings/(losses) attributable to Belmond Ltd.	0.076		0.225		(0.150	)	0.292
Diluted earnings per share
Net earnings/(losses) from continuing operations	0.074		0.222		(0.151	)	0.288
Net earnings/(losses) from discontinued operations	—		—		0.001		—
Net losses/(earnings) attributable to non-controlling interests	0.001		—		—		(0.001	)
Net earnings/(losses) attributable to Belmond Ltd.	0.075		0.222		(0.150	)	0.287

11

The total number of share options and share-based awards excluded from computing diluted earnings per share was as follows: 

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Share options	556,015	1,366,722	2,385,870	1,673,772
Share-based awards	—	—	1,333,089	—
Total	556,015	1,366,722	3,718,959	1,673,772

The number of share options and share-based awards unexercised at September 30, 2017 was 3,718,959 (September 30, 2016 - 4,028,279).

3.    Significant acquisitions

2017 Acquisitions

Cap Juluca

On May 26, 2017, Belmond acquired Cap Juluca, a 96-key luxury resort on the Caribbean island of Anguilla, British West Indies for a total transaction value of $84,791,000, including an aggregate cash purchase price of $68,652,000, acquisition-related costs of $14,032,000 and excluding a working capital credit of $2,107,000. On the same date, the Company assumed management of the resort, which had been independently managed, and began marketing the property under the name Belmond Cap Juluca. As one of the most recognized resorts in the Caribbean, Cap Juluca is a natural fit for the Belmond portfolio and enhances Belmond’s positioning in the global luxury resort market.

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The following table summarizes the consideration paid for the hotel and the preliminary allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed at the acquisition date. The acquisition has been accounted for in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, using the acquisition method of accounting whereby the total purchase price has been allocated to the acquired assets and liabilities as at May 26, 2017. The estimated fair values are preliminary and are subject to adjustment as the fair value analysis is finalized, which will be completed as soon as practicable, but no later than one year from the acquisition date.

	Fair value on May 26, 2017
	$'000
Consideration:
Agreed cash consideration	70,759
Less: Working capital adjustment	(2,107	)
Total purchase price	68,652
Assets acquired and liabilities assumed:
Cash and cash equivalents	20
Accounts receivable	112
Prepaid expenses and other	45
Inventories	108
Property, plant and equipment	59,159
Other intangible assets	6,100
Accounts payable	(595	)
Accrued liabilities	(360	)
Deferred revenue	(1,437	)
Goodwill	5,500
Net assets acquired	68,652

The purchase price of $68,652,000 was funded from existing cash reserves and $45,000,000 of borrowings under the Company’s prior revolving credit facility, which was repaid following the amendment and restatement to the credit agreement on July 3, 2017. See Note 10.

Acquisition-related costs which are included within selling, general and administrative expenses in the statements of condensed consolidated operations for the nine months endedSeptember 30, 2017 were $14,032,000, related to professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla.

Other intangible assets of $6,100,000 was assigned to trade names that are not subject to amortization. No other intangible assets were identified and recognized.

Goodwill arising on acquisition of $5,500,000 was assigned to the Owned hotels in North America segment and consists largely of profit growth opportunities the hotel is expected to generate. None of the goodwill recognized is expected to be deductible for income tax purposes.

At the same time, the Company entered into a 125-year ground lease for the property with the Government of Anguilla. The lease has been accounted for as an operating lease in accordance with ASC 840, Leases, with the annual rental expense recognized in selling, general and administrative expenses in the statements of condensed consolidated operations, and future rental payments committed as at September 30, 2017 disclosed in Note 18.

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The results of operations of the hotel has been included in the consolidated financial results since the date of acquisition. The following table presents information for Belmond Cap Juluca included in the Company’s statements of condensed consolidated operations from the acquisition date to the period ending September 30, 2017:

	2017
	$'000
Revenue	2,395
Losses from continuing operations	(14,996	)

Belmond is unable to provide pro forma results of operations for the nine months endedSeptember 30, 2017 and 2016 as if the acquisition had occurred on January 1, 2016 due to the lack of reliable historical financial information.

4.    Assets held for sale and discontinued operations

(a)    Results of discontinued operations

Belmond had been operating the hotel Ubud Hanging Gardens under a long-term lease arrangement with a third-party owner. The existing lease arrangement continues to 2030. Following the owner's unannounced dispossession of Belmond from the hotel in November 2013, however, Belmond was unable to continue to operate the hotel. Belmond believed that the owner's actions were unlawful and constituted a wrongful dispossession and has pursued its legal remedies under the lease. See Note 18. As Belmond is unable to operate Ubud Hanging Gardens for the foreseeable future, the hotel has been presented as a discontinued operation for all periods shown. The assets and liabilities of the hotel have not been classified as held for sale, as the hotel has not been disposed of through a sale transaction.

The Porto Cupecoy development was sold in January 2013, with the final unit disposed of in September 2014. Residual costs relating to the sale of Porto Cupecoy are presented within discontinued operations for all periods shown.

Summarized operating results of the properties classified as discontinued operations for the three and nine months endedSeptember 30, 2017 and 2016 are as follows:

	Three months ended September 30, 2017
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Losses before tax, gain on sale and impairment	—	(3	)	(3	)
Losses before tax	—	(3	)	(3	)
Net losses from discontinued operations	—	(3	)	(3	)

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	Three months ended September 30, 2016
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Losses before tax, gain on sale and impairment	—	(4	)	(4	)
Losses before tax	—	(4	)	(4	)
Net losses from discontinued operations	—	(4	)	(4	)

	Nine months ended September 30, 2017
	Ubud Hanging Gardens	Porto Cupecoy	Total
	$'000	$'000	$'000
Revenue	—	—	—
Earnings before tax, gain on sale and impairment	100	25	125
Earnings before tax	100	25	125
Net earnings from discontinued operations	100	25	125

	Nine months ended September 30, 2016
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Earnings/(losses) before tax, gain on sale and impairment	73	(22	)	51
Earnings/(losses) before tax	73	(22	)	51
Net earnings/(losses) from discontinued operations	73	(22	)	51

The results of discontinued operations for the nine months endedSeptember 30, 2017 included earnings of $100,000 due to the partial release of legal fee accruals in relation to Ubud Hanging Gardens, where Belmond is pursuing legal remedies following its dispossession by the owner in November 2013. See Note 18.

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(b)    Assets and liabilities held for sale

At September 30, 2017, the assets and liabilities of Belmond Northern Belle, part of Belmond’s Owned trains and cruises segment, were classified as held for sale as Belmond signed a Share Purchase Agreement (“SPA”) to sell the shares in Northern Belle Limited, the wholly owned subsidiary that owns the rolling stock, for a sales price of £2,500,000 (equivalent to $3,350,000 as at September 30, 2017). This sale closed on November 2, 2017. See Note 24.

Assets and liabilities of properties classified as held for sale consist of the following:

	September 30, 2017
	Northern Belle
	$’000
Current assets	259
Property, plant and equipment	3,570
Total assets held for sale	3,829
Current liabilities	(553	)
Other liabilities	(385	)
Total liabilities held for sale	(938	)

There were no assets or liabilities classified as held for sale at December 31, 2016.

5.    Variable interest entities

(a)    VIEs of which Belmond is the primary beneficiary

Belmond holds a 19.9% equity investment in Charleston Center LLC, owner of Belmond Charleston Place, Charleston, South Carolina. Belmond has also made a number of loans to the hotel. Belmond concluded that Charleston Center LLC is a VIE because the total equity at risk is insufficient for the entity to fund its operations without additional subordinated financial support, the majority of which has been provided by Belmond. Belmond is the primary beneficiary of this VIE because it is expected to absorb a majority of the VIE’s expected losses and residual gains through the subordinated financial support it has provided, and has the power to direct the activities that impact the VIE’s performance, based on the current organizational structure.

Assets of Charleston Center LLC that can only be used to settle obligations of the consolidated VIEs and liabilities of Charleston Center LLC whose creditors have no recourse to Belmond are presented as a footnote to the consolidated balance sheets. The third-party debt of Charleston Center LLC is secured by its net assets and is non-recourse to its members, including Belmond. The hotel's separate assets are not available to pay the debts of Belmond and the hotel's separate liabilities do not constitute obligations of Belmond. The assets of Charleston Center LLC that can be used only to settle obligations of Charleston Center LLC totaled $207,745,000 at September 30, 2017 (December 31, 2016 - $210,276,000) and exclude goodwill of $40,395,000 (December 31, 2016 - $40,395,000). The liabilities of Charleston Center LLC for which creditors do not have recourse to the general credit of Belmond totaled $122,283,000 at September 30, 2017 (December 31, 2016 - $121,621,000).

All deferred taxes attributable to the Company’s investment in the LLC arise at the investor level and are therefore not included in the footnote to the condensed consolidated balance sheets.

(b)    VIEs of which Belmond is not the primary beneficiary

Belmond holds a 25% equity investment in Eastern and Oriental Express Ltd., which operates the Eastern & Oriental Express luxury tourist train in Southeast Asia. Belmond concluded that the Eastern & Oriental Express joint venture is a variable interest entity because the total equity at risk is insufficient for it to fund its operations without additional subordinated financial support.

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Belmond is not the primary beneficiary of the joint venture because it does not have the power to direct the activities that most significantly impact the economic performance of the entity. The joint venture is accounted for under the equity method of accounting and included in earnings/(losses) before income taxes and earnings from unconsolidated companies in the statements of condensed consolidated operations.

The carrying amounts and maximum exposure to loss as a result of Belmond's involvement with its Eastern & Oriental Express joint venture are as follows:

	Carrying amounts		Maximum exposure
	September 30, 2017	December 31, 2016	September 30, 2017	December 31, 2016
	$’000	$’000	$’000	$’000
Investment	2,586	2,818	2,586	2,818
Due from unconsolidated company	6,681	4,771	6,681	4,771
Total	9,267	7,589	9,267	7,589

6.    Investments in unconsolidated companies

Investments in unconsolidated companies represent equity interests of 50% or less and in which Belmond exerts significant influence, but does not have effective control of these unconsolidated companies and, therefore, accounts for these investments using the equity method. As at September 30, 2017, these investments include the 50% ownership in rail and hotel joint venture operations in Peru, the 25% ownership in Eastern and Oriental Express Ltd, and the Buzios land joint venture which is 50% owned and is further described below.

In June 2007, a joint venture in which Belmond holds a 50% equity interest acquired real estate in Buzios, a beach resort area in Brazil, for a cash consideration of $5,000,000. Belmond planned to build a hotel and villas on the acquired land and to purchase the remaining share of the joint venture company when the building permits were obtained from the local authorities. In February 2009, the Municipality of Buzios commenced a process for the expropriation of the land in exchange for a payment of fair compensation to the joint venture. In April 2011, the State of Rio de Janeiro took over the expropriation process as part of a broader State plan to develop a coastal environmental park. Under applicable law, the State had five years to carry out the expropriation in exchange for fair value, which it failed to do by the April 18, 2016 deadline. As a result, the land returned unencumbered to the joint venture, although it is subject to expropriation again. The Company and its joint venture partner are assessing their options, including negotiation with or litigation against the State to seek a permanent resolution of the status of the land, but in any case, the Company expects to recover its investment in the project.

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Summarized financial data for Belmond’s unconsolidated companies are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Current assets	94,722	96,247
Property, plant and equipment, net of accumulated depreciation	307,383	295,662
Other non-current assets	29,153	29,442
Non-current assets	336,536	325,104
Total assets	431,258	421,351
Current liabilities, including $23,949 and $21,021 current portion of third-party debt	98,759	89,785
Long-term debt	147,424	153,876
Other non-current liabilities	28,106	27,545
Non-current liabilities	175,530	181,421
Total shareholders’ equity	156,969	150,145
Total liabilities and shareholders’ equity	431,258	421,351

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Revenue	59,085	54,345	153,685	140,697
Gross profit1	41,163	39,670	106,134	98,435
Net earnings2	7,567	8,980	15,115	15,071

¹Gross profit is defined as revenues less cost of services of the unconsolidated companies.

²There were no discontinued operations or cumulative effects of a change in an accounting principle in the unconsolidated companies.

Included in unconsolidated companies are Belmond’s hotel and rail joint ventures in Peru, under which Belmond and the other 50% participant must contribute equally additional equity needed for the businesses. If the other participant does not meet this obligation, Belmond has the right to dilute the other participant and obtain a majority equity interest in the affected joint venture company. Belmond also has rights to purchase the other participant’s interests, which rights are exercisable in limited circumstances such as the other participant’s bankruptcy.

There are contingent guarantees to unconsolidated companies which are not recognized in the condensed consolidated financial statements. The contingent guarantees for each Peruvian joint venture may only be enforced in the event there is a change in control of the relevant joint venture, which would occur only if Belmond’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred and is not expected to occur. As at September 30, 2017, Belmond does not expect that it will be required to fund these guarantees relating to these joint venture companies.

Belmond has contingently guaranteed, through 2021, $16,334,000 of debt obligations of the joint venture in Peru that operates five hotels and has contingently guaranteed the Peru rail joint venture’s obligations relating to the performance of its governmental rail concessions, currently in the amount of $9,899,000, through May 2018.

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7.    Property, plant and equipment

The major classes of property, plant and equipment are as follows:

	September 30, 2017		December 31, 2016
	$’000		$’000
Land and buildings	1,128,068		1,010,362
Machinery and equipment	182,532		179,537
Fixtures, fittings and office equipment	263,904		235,098
River cruise ship and canal boats	13,296		18,618
	1,587,800		1,443,615
Less: Accumulated depreciation	(420,285	)	(368,939	)
Total property, plant and equipment, net of accumulated depreciation	1,167,515		1,074,676

The depreciation charge on property, plant and equipment for the three and nine months endedSeptember 30, 2017 was $16,916,000 (September 30, 2016 - $13,038,000) and $45,458,000 (September 30, 2016 - $39,165,000).

The table above includes property, plant and equipment, net of accumulated depreciation, of Charleston Center LLC, a consolidated VIE, of $198,643,000 at September 30, 2017 (December 31, 2016 - $201,861,000).

In September 2017 the islands of Anguilla and St Martin were hit by Hurricanes Irma and Jose when both Belmond La Samanna on St Martin and Belmond Cap Juluca on Anguilla were closed for the season. While there is still great uncertainty associated with St Martin and the speed of its recovery, based on our preliminary assessment, we anticipate that Belmond La Samanna will re-open in the fourth quarter of 2018. Belmond Cap Juluca is undergoing planned renovations and we also currently expect to re-open the resort in the fourth quarter of 2018.

Both properties are included in Belmond’s global insurance program whichprovides a combined property damage and twelve month business interruption cover of$30,000,000, subject to a deductible.In addition, Belmond La Samanna has a separate property damage insurance policy of €4,900,000 (equivalent to $5,800,000as at September 30, 2017)covering the eight villas at the resort.

We have made preliminary assessments regarding the nature and extent of the damage sustained and we are preparing the insurance claim. While these assessments are fluid and will continue to be updated and reassessed, they are subject to a number of uncertainties related to such matters as the speed of the recovery of St Martin and Anguilla and the impact of the hurricane on fuel, transportation and labor prices over the coming year. Based on our preliminary estimate at this time, we anticipate that the property damage elements of the claim alone could absorb the available cover, which therefore would not be sufficient to cover business interruption claims of approximately $8,000,000 to $10,000,000 over the next 12 months.

Based on initial estimates of the level of property damage, the Company recorded a write-off to property, plant and equipment of$5,645,000and$2,937,000at Belmond La Samanna and Belmond Cap Juluca, respectively. Belmond expects that the recovery of property damage and site clean-up costs is probable; therefore it has recorded an insurance receivable for the same amount as the property damage that has been recognized in the three and nine months endedSeptember 30, 2017, reduced by the deductible of $1,278,000. No gain contingencies have been recorded to date as those amounts have not yet been realized.

Additionally, Belmond considered whether the significant adverse change in use and physical condition following the hurricanes indicated that the carrying amount of both businesses’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and a recoverability test was required. Under the fixed assets recoverability test, the sum of the undiscounted cash flows expected to result from the operations of Belmond Cap Juluca and Belmond La Samanna were in excess of their carrying value. As at September 30, 2017, Belmond La Samanna and Belmond Cap Juluca had a property, plant and equipment balance of $29,625,000 and $56,448,000, respectively.

Factors that could reasonably be expected to impact Belmond’s estimates of property damage and the sum of undiscounted cash flows of the asset groups include the outcome of negotiations of the Company’s insurance claims with the Company’s insurers,

19

the speed of recovery of island infrastructure, particularly the airport at St Martin, and the attractiveness of the Caribbean islands as a tourist destination.

The Company also believes this situation presents an opportunity to re-examine proposed capital expenditures for Belmond Cap Juluca and Belmond La Samanna, potentially increasing the scope of the projects but also increasing the impact of the ultimate build-outs.This re-examination, which will continue to be updated, is subject to a number of uncertainties, such as the speed of the recovery of St Martin and Anguilla and the impact of the hurricane on fuel, transportation and labor prices over the coming year.

In the nine months endedSeptember 30, 2017, Belmond considered whether the decline in performance of Belmond Road to Mandalay caused by increased competition in Myanmar indicated that the carrying amount of the business’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and an impairment test was required. The carrying value of assets was written down to management’s best estimate of the fair value based on an internally developed discounted cash flow analysis. The impairment charge of $7,124,000 is included within impairment of property, plant and equipment in the statements of consolidated operations.

Also in the nine months endedSeptember 30, 2017, Belmond considered whether the decline in performance of Belmond Northern Belle caused by a reduction in passenger numbers sourced mainly from regional markets in the U.K. indicated that the carrying amount of the business’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and an impairment test was required. The carrying value of assets was written down to fair value based on assumptions of potential market value. The impairment charge of $1,092,000 is included within impairment of property, plant and equipment in the statements of consolidated operations.

There was no capitalized interest in the three and nine months endedSeptember 30, 2017 and 2016.

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8.    Goodwill

The changes in the carrying amount of goodwill for the nine months endedSeptember 30, 2017 are as follows:

	At January 1, 2017							At September 30, 2017
	Gross goodwill amount	Accumulated impairment		Net goodwill amount	Goodwill on acquisition	Impairment	Foreign currency translation adjustment	Gross goodwill amount	Accumulated impairment		Net goodwill amount
	$'000	$'000		$'000	$'000	$'000	$'000	$'000	$'000		$'000
Owned hotels:
Europe	64,459	(14,202	)	50,257	—	—	5,493	69,952	(14,202	)	55,750
North America	66,101	(16,110	)	49,991	5,500	—	—	71,601	(16,110	)	55,491
Rest of world	20,581	(13,149	)	7,432	—	—	107	20,688	(13,149	)	7,539
Owned trains and cruises	6,325	(662	)	5,663	—	—	645	6,970	(662	)	6,308
Total	157,466	(44,123	)	113,343	5,500	—	6,245	169,211	(44,123	)	125,088

In the nine months endedSeptember 30, 2017, goodwill of $5,500,000 was recognized on the acquisition of Cap Juluca. See Note 3.

In the three months endedSeptember 30, 2017, Belmond considered whether the significant adverse change in use and physical condition following the hurricanes, indicated that it was more likely than not that the fair value of Belmond Cap Juluca was less than its carrying value. Under the first step of the goodwill impairment test, the fair value of Belmond Cap Juluca was in excess of its carrying value. Belmond Cap Juluca had a goodwill balance of $5,500,000 at September 30, 2017. The impairment test remains sensitive to changes in assumptions; factors that could result in an impairment and impact the fair value of the reporting unit include the outcome of negotiations of the Company’s insurance claims with the Company’s insurers, changes in the estimated costs of repair to the hotel, the future operating projections of the hotel, the speed of recovery of island infrastructure, particularly the airport at St. Martin, and the attractiveness of the Caribbean islands as a tourist destination. These assumptions involve a high degree of estimation and are based on preliminary information that is currently available. As new information becomes available these assumptions may need to change which may lead to changes in cash inflows or outflows that could result in a future impairment of goodwill.

In the three months endedSeptember 30, 2017, Belmond considered whether the fall in tourist arrivals in Myanmar due to negative perceptions of the country, indicated that it was more likely than not that the fair value of Belmond Governor’s Residence was less than its carrying value. While Belmond concluded that there was no impairment trigger in the three months ended September 30, 2017, it is carefully monitoring the situation. Belmond Governor’s Residence had a goodwill balance of $2,195,000 at September 30, 2017. The impairment test remains sensitive to changes in assumptions; factors that could reasonably be expected to potentially have an adverse effect on the fair value of the reporting unit include the future operating projections of the hotel, volatility in debt or equity markets that could result in changes to the discount rate, political instability, changes in future travel patterns or local competitive supply. Any failure to meet these assumptions may result in a future impairment of goodwill.

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9.    Other intangible assets

Other intangible assets consist of the following as of September 30, 2017:

	Favorable lease assets	Internet sites		Trade names	Total
	$'000	$'000		$'000	$'000
Carrying amount:
Balance at January 1, 2017	8,501	1,658		7,579	17,738
Additions	—	—		6,100	6,100
Disposals	—	(232	)	—	(232	)
Foreign currency translation adjustment	46	140		665	851
Balance at September 30, 2017	8,547	1,566		14,344	24,457
Accumulated amortization:
Balance at January 1, 2017	2,636	1,225			3,861
Charge for the period	279	125			404
Disposals	—	(232	)		(232	)
Foreign currency translation adjustment	16	102			118
Balance at September 30, 2017	2,931	1,220			4,151
Net book value:
At September 30, 2017	5,616	346		14,344	20,306
At December 31, 2016	5,865	433		7,579	13,877

Favorable lease intangible assets are amortized over the terms of the leases, which are between 19 and 60 years. Internet sites are amortized over a period of five to ten years. Trade names have an indefinite life and therefore are not amortized, but are assessed for impairment annually or when events indicate that impairment may have occurred.

In the nine months endedSeptember 30, 2017, trade name additions of $6,100,000 were recognized on the acquisition of Cap Juluca. See Note 3.

Amortization expense for the three and nine months endedSeptember 30, 2017 was $136,000 (September 30, 2016 - $117,000) and $404,000 (September 30, 2016 - $388,000). Estimated total amortization expense for the remainder of the year ending December 31, 2017 is $134,000 and for each of the years ending December 31, 2018 to December 31, 2021 is $539,000.

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10.    Debt and obligations under capital lease

(a)    Long-term debt and obligations under capital lease

Long-term debt and obligations under capital lease consist of the following:

	September 30, 2017	December 31, 2016
	$’000	$’000
Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of 21 months to seven years (2016 - two to five years), with a weighted average interest rate of 3.99% (2016 - 4.27%)	722,874	602,083
Obligations under capital lease	27	19
Total long-term debt and obligations under capital lease	722,901	602,102
Less: Current portion	6,767	5,284
Less: Discount on secured term loan	3,267	1,515
Less: Debt issuance costs	14,592	9,535
Non-current portion of long-term debt and obligations under capital lease	698,275	585,768

On July 3, 2017, Belmond amended and restated its credit agreement which had previously consisted of (a) a seven-year $551,955,000 term loan facility consisting of a $345,000,000 U.S. dollar tranche and a €150,000,000 euro-denominated tranche (equivalent to $206,955,000 at drawdown), scheduled to mature on March 21, 2021; and (b) a $105,000,000 revolving credit facility scheduled to mature on March 21, 2019.

The amended and restated credit agreement provides the Company with (i) a seven-year $603,434,000 secured term loan (the “Term Loan Facility”) that matures on July 3, 2024 and (ii) a $100,000,000 revolving credit facility (the “Revolving Credit Facility”) that matures on July 3, 2022 (together, the “Secured Credit Facilities”).

As at September 30, 2017, Belmond is financed with a $609,955,000 Term Loan Facility and a $100,000,000 Revolving Credit Facility.

The Term Loan Facility has two tranches, a U.S. dollar tranche ($399,000,000 currently outstanding) and a euro-denominated tranche (€178,553,000 currently outstanding, equivalent to $210,955,000 as at September 30, 2017). The dollar tranche bears interest at a rate of LIBOR plus 2.75% per annum, and the euro tranche bears interest at a rate of EURIBOR plus 3% per annum. Both tranches are subject to a 0% interest rate floor. The annual mandatory amortization is 1% of the principal amount.

The Revolving Credit Facility has a maturity of five years and bears interest at a rate of LIBOR plus 2.50% per annum, with a commitment fee of 0.4% to be paid on the undrawn amount. The Revolving Credit Facility is undrawn at September 30, 2017.

The Secured Credit Facilities are secured by pledges of shares in certain Company subsidiaries and by security interests in tangible and intangible personal property. There are no mortgages over real estate.

In June 2016, Charleston Center LLC amended its secured loan of $86,000,000 increasing the amount of the loan to $112,000,000 but retaining the original 2019 maturity. The interest rate on the new loan is LIBOR plus 2.35% per annum, has no amortization and is non-recourse to Belmond. The additional proceeds were used to repay a 1984 development loan from a municipal agency in the principal amount of $10,000,000 and accrued interest of $16,819,000. In connection with the early repayment of the loan, Belmond negotiated a discount that resulted in a net gain reported in the statement of consolidated operations during the year ended December 31, 2016 of $1,200,000 upon extinguishment of debt, including the payment of a tax indemnity to its partners in respect of their income from the discount arising on the cancellation of indebtedness.

23

The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at September 30, 2017, taking into consideration the execution of the amended and restated credit agreement on July 3, 2017:

	$’000
Remainder of 2017	1,691
2018	6,761
2019	118,783
2020	6,783
2021	6,548
2022	6,499
2023	6,499
2024 and thereafter	569,337
Total long-term debt and obligations under capital lease	722,901

The Company had guaranteed $609,955,000 of the long-term debt of its subsidiary companies as at September 30, 2017 (December 31, 2016 - $488,985,000).

The tables above include the debt of Charleston Center LLC of $112,919,000 at September 30, 2017 (December 31, 2016 - $113,098,000). The debt is non-recourse to Belmond and includes $112,000,000 which was refinanced in June 2016.

A loss on modification of debt of $575,000 (September 30, 2016 - $Nil) was recognized in the three and nine months endedSeptember 30, 2017. The loss consisted of unamortized debt issuance costs relating to the amended and restated credit agreement.

Debt issuance costs related to the above outstanding long-term debt were $14,592,000 at September 30, 2017 (December 31, 2016 - $9,535,000), including $621,000 at September 30, 2017 (December 31, 2016 - $888,000) related to the debt of Charleston Center LLC, a consolidated VIE, and are amortized to interest expense over the term of the corresponding long-term debt.

(b)Revolving credit and working capital facilities

Belmond had approximately $100,589,000 of revolving credit and working capital facilities at September 30, 2017 (December 31, 2016 - $105,525,000) of which $100,589,000 was available (December 31, 2016 - $105,525,000).

11.    Other liabilities

The major balances in other liabilities are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Interest rate swaps (see Note 20)	—	1,054
Deferred gain on sale of Inn at Perry Cabin by Belmond	900	1,350
Deferred lease incentive	140	162
Tax indemnity provision on extinguishment of debt (see Note 10)	—	2,800
Total other liabilities	1,040	5,366

The tax indemnity provision on extinguishment of debt, included within other liabilities at December 31, 2016, is classified within accrued liabilities for an amount totaling $2,644,000 at September 30, 2017. 

24

12.    Pensions

Components of net periodic pension benefit cost are as follows:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$’000		$’000		$’000		$’000
Service cost	—		—		—		—
Interest cost on projected benefit obligation	179		207		527		660
Expected return on assets	(249	)	(270	)	(736	)	(859	)
Net amortization and deferrals	195		148		576		471
Net periodic benefit cost	125		85		367		272

From January 1, 2003, a number of non-U.S. Belmond employees participated in a funded defined benefit pension plan in the United Kingdom called the Belmond (UK) Ltd. 2003 Pension Scheme. On May 31, 2006, the plan was closed for future benefit accruals.

Belmond (UK) Ltd., the plan sponsor and a wholly owned subsidiary of the Company (“Belmond UK”), was previously obligated to pay £1,272,000 (equivalent to $1,704,000 at September 30, 2017) annually to the plan under the U.K. statutorily-mandated triennial negotiation with the plan’s trustees. With a new triennial arrangement that came into effect June 2017, Belmond UK’s funding obligation was reduced from £106,000 to £24,320 (equivalent to $142,000 and $33,000 as at September 30, 2017) per month. Under the prior contribution level, the plan’s funding deficit was projected to be fully funded by the end of 2017. With the current funding level, Belmond UK is obligated to continue funding until the audited financials of the plan for the year ended December 31, 2018 are available. If no unfunded balance remains, Belmond UK shall be able to suspend further payments, but otherwise it will be expected to continue paying its monthly contribution, subject to any subsequent triennial negotiation with the plan’s trustees. However, once the plan is fully funded, Belmond UK will remain obligated to restore the plan to a fully funded balance over the remainder of the period through December 31, 2021 should its position deteriorate. During the three and nine months endedSeptember 30, 2017, contributions of $61,000 (September 30, 2016 - $442,000) and $856,000 (September 30, 2016 - $1,352,000), respectively, were made to the pension plan.

In May 2014, Belmond guaranteed the payment obligations of Belmond UK through 2023, subject to a cap of £8,200,000 (equivalent to $10,988,000 at September 30, 2017), which reduces commensurately with every payment made to the plan since December 31, 2012. As part of the recent triennial negotiation referred to above, Belmond has reinstated this guarantee effective July 1, 2017, for the period through 2026 and reset the cap from December 31, 2015 at £8,200,000, which as before will reduce with each payment made to the plan over the period.

13.    Income taxes

In the three and nine months endedSeptember 30, 2017, the income tax provision was $20,732,000 (September 30, 2016 - provision of $20,401,000) and $17,608,000 (September 30, 2016 - provision of $25,140,000), respectively. The movement in the tax provision and effective tax rate for the three and nine months endedSeptember 30, 2017 compared to the three and nine months endedSeptember 30, 2016 is mainly due to the jurisdictional profit mix of earnings from continuing operations, which have decreased compared to the prior year and have also been impacted by the costs associated with the Cap Juluca acquisition in May 2017. See Note 3.

25

14.    Interest expense

The balances in interest expense are as follows:

	Three months ended			Nine months ended
	September 30, 2017		September 30, 2016	September 30, 2017		September 30, 2016
	$’000		$’000	$’000		$’000
Interest expense on long-term debt and obligations under capital lease	7,653		6,965	21,863		20,413
Interest on legal settlements	(10	)	107	(153	)	405
Amortization of debt issuance costs and discount on secured term loan	1,350		768	2,826		2,208
Total interest expense	8,993		7,840	24,536		23,026

15.    Supplemental cash flow information

	Nine months ended
	September 30, 2017	September 30, 2016
	$’000	$’000
Cash paid during the period for:
Interest	22,750	34,020
Income taxes, net of refunds	11,037	12,862

To reflect the actual cash paid for capital expenditure to acquire property, plant and equipment, increases in accounts payable for capital expenditure are non-cash and excluded from capital expenditure, while decreases are cash payments and included. The change in accounts payable was a decrease of $18,000 for the nine months endedSeptember 30, 2017 (September 30, 2016 - increase of $113,000).

During the nine months endedSeptember 30, 2016, cash paid during the period for interest of $34,020,000 included the payment of accrued interest on a 1984 development loan from a municipal agency that was fully repaid by Charleston Center LLC in June 2016. See Note 10.

16.    Restricted cash

The major balances in restricted cash are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Cash deposits required to be held with lending banks as collateral	748	755
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy	6,012	1,341
Bonds and guarantees	356	489
Total restricted cash	7,116	2,585

26

Restricted cash classified as long-term and included in other assets on the condensed consolidated balance sheets at September 30, 2017 was $748,000 (December 31, 2016 - $755,000).

17.    Share-based compensation plans

At September 30, 2017, Belmond had two share-based compensation plans, the 2004 stock option plan and the 2009 share award and incentive plan. The compensation cost that has been charged to selling, general and administrative expense for these plans for the three and nine months endedSeptember 30, 2017 was $1,471,000 (September 30, 2016 - $2,109,000) and $5,025,000 (September 30, 2016 - $5,258,000), respectively. The total compensation cost related to unexercised options and unvested share awards at September 30, 2017 to be recognized over the period October 1, 2017 to June 30, 2021 was $7,865,000 and the weighted average period over which it is expected to be recognized is 28 months. Measured from the grant date, substantially all awards of restricted shares have a maximum term of up to four years, and substantially all awards of share options have a maximum term of ten years. There were no grants under the 2004 stock option plan during the nine months endedSeptember 30, 2017.

2009 share award and incentive plan

During the nine months endedSeptember 30, 2017, the following awards were made under the 2009 share award and incentive plan on the following dates. Estimates of fair values of share options and restricted shares with and without performance criteria were made using the Black-Scholes options pricing model.

2009 share award and incentive plan	Class A common shares	Date granted	Vesting date	Exercise price	Expected share price volatility	Risk-free interest rate	Expected dividends per share	Expected life of awards
Share options	40,900	June 11, 2017	June 11, 2018	$13.45	29%	1.50%	$—	2.5 years
Share options	40,900	June 11, 2017	June 11, 2019	$13.45	29%	1.50%	$—	3.5 years
Share options	40,900	June 11, 2017	June 11, 2020	$13.45	30%	1.77%	$—	4.5 years
Share options	40,900	June 11, 2017	June 11, 2021	$13.45	34%	1.77%	$—	5.5 years

During the nine months endedSeptember 30, 2017, the following restricted share awards were made under the 2009 share award and incentive plan on the following dates:

2009 share award and incentive plan	Class A common shares	Date granted	Vesting date	Purchase price
Restricted shares without performance criteria	56,390	June 11, 2017	June 11, 2018	$0.01
Restricted shares without performance criteria	48,872	June 11, 2017	June 11, 2020	$0.01
Restricted shares without performance criteria	11,278	June 11, 2017	On retirement	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2018	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2019	$0.01
Restricted shares without performance criteria	117,231	March 17, 2017	March 17, 2020	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2021	$0.01
Restricted shares with performance criteria	228,500	March 17, 2017	March 17, 2020	$0.01

27

18.    Commitments and contingencies

Belmond Copacabana Palace

In February 2013, the State of Rio de Janeiro Court of Justice affirmed a 2011 decision of a Rio state trial court against Sea Containers Ltd (“SCL”) in lawsuits brought against SCL by minority shareholders in Companhia Hoteis Palace (“CHP”), the company that owns Belmond Copacabana Palace, relating to the recapitalization of CHP in 1995, but the Court reduced the total award against SCL to approximately $27,000,000. SCL further appealed the judgments during the second quarter of 2013 to the Superior Court of Justice in Brasilia. SCL sold its shares in CHP to the Company in 2000. Years later, in 2006, SCL entered insolvency proceedings in the U.S. and Bermuda that are continuing in Bermuda. Possible claims could be asserted against the Company or CHP in connection with this Brazilian litigation that has to date only involved SCL, although no claims have been asserted.

As a precautionary measure to defend the hotel, CHP commenced a declaratory lawsuit in the Rio state court in December 2013 seeking judicial declarations that no fraud was committed against the SCL plaintiffs when the shares in CHP were sold to the Company in 2000 and that the sale of the shares did not render SCL insolvent. Pending rulings on those declarations, the court granted CHP an injunction preventing the SCL plaintiffs from provisionally enforcing their 2011 judgments against CHP, which judgment was subsequently reversed on appeal in May 2014. In September 2014, CHP sought reconsideration from the appellate court of this decision, but the court dismissed its request, resulting in the return of the declaratory lawsuit proceedings to the Rio State Court.

Management cannot estimate the range of possible loss if the SCL plaintiffs assert claims against the Company or CHP, and Belmond has made no accruals in respect of this matter. If any such claims were brought, Belmond would continue to defend its interests vigorously.

Ubud Hanging Gardens

In November 2013, the third-party owner of Ubud Hanging Gardens in Bali, Indonesia dispossessed Belmond from the hotel under long-term lease without prior notice. As a result, Belmond was unable to continue operating the hotel and, accordingly, to prevent any confusion to its guests, Belmond ceased referring to the property in its sales and marketing materials, including all electronic marketing.

Belmond believed that the owner's actions were unlawful and in breach of the lease arrangement and constituted a wrongful dispossession. Belmond pursued its legal remedies through arbitration proceedings required under the lease. In June 2015, a Singapore arbitration panel issued its final award in favor of Belmond, holding that the owner had breached Indonesian law and the lease, and granting monetary damages and costs to the Company in an amount equal to approximately $8,500,000. Since its receipt of the arbitral award, Belmond has been engaged in the process of enforcing this arbitral award in the Indonesian courts. Starting in April 2014, the Indonesian trial courts have dismissed six separate actions filed by the owner for lack of jurisdiction due to the arbitration clause in the parties’ lease. The owner has appealed these decisions, one of which was reversed by the Appellate Court in October 2014. Belmond appealed this case to the Indonesian Supreme Court, which in December 2016 affirmed the Appellate Court's decision. Belmond has sought review for reconsideration by the Supreme Court. In the meantime, Belmond filed with the Central Jakarta District Court in October 2017, as further support for the enforcement of Belmond’s arbitral claim, the decisions of three Indonesian trial courts enforcing the arbitration provision under the lease and ruling that the Indonesian courts had no jurisdiction over the parties’ 2013 dispute, along with three affirming decisions from appellate courts and two from the Indonesian Supreme Court.

Belmond does not believe there is any merit in the owner’s outstanding Indonesian actions and is vigorously defending its rights while it seeks to enforce the Singapore arbitral award. While the Company can give no assurances, it believes that it should ultimately be able to enforce its arbitral award. Given the uncertainty involved in this litigation, Belmond recorded in the year ended December 31, 2013, a non-cash impairment charge in the amount of $7,031,000 relating to long-lived assets and goodwill of Ubud Hanging Gardens and has not booked a receivable in respect of the award.

As supplemental proceedings to its arbitration claim, Belmond commenced contempt proceedings in the High Court in London, England, where the owner resided, for pursuing the Indonesian proceedings contrary to an earlier High Court injunction, and obtained against the owner in July 2014 a contempt order, which subsequently resulted in the court issuing a committal order of imprisonment for 120 days. The owner left England before the court order was issued and has not yet served the sentence.

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Belmond Hotel das Cataratas

In September 2014, the Brazilian Ministry of Planning, Budget and Management notified the Company that it was denying the Company's application to extend the term or reduce the rent under the lease for Belmond Hotel das Cataratas, which was entered into in 2007. Belmond had applied for the amendment in 2009 based on its claim that it suffered additional unanticipated and/or unforeseeable costs in performing the refurbishment of the hotel as required by the lease and related tender documentation in order to raise the standard of the property to a five star luxury standard.

Prior to August 2014, with the agreement of the Ministry, the Company had been paying the base annual rent without an annual adjustment for inflation as provided for in the lease, pending resolution of Belmond’s application. Throughout this period, the Company had expensed the full rental amount and has fully accrued the difference between the rental charge and the amount actually paid. Based on the Ministry’s decision denying any relief, the Ministry directed the Company that it would henceforth assess rent at the contractual rate, which has been included in the table of future rental payments as at September 30, 2017, and that it was required to pay the difference between the contractual rent and the rent that had been actually paid. On March 20, 2015, the Ministry provided notice to the hotel that an aggregate amount of approximately R$17,000,000 ($5,366,000) was due on March 31, 2015 as a result of its rejection of any relief sought by Belmond.

The Company appealed to the Ministry to reconsider its decision on both procedural and substantive grounds. Pending this requested reconsideration and exhaustion of administrative remedies, the Company did not pay to the Ministry the amount claimed. The Company filed a lawsuit in the Federal Court in Paraná State in August 2016 against the Government of Brazil regarding the Ministry’s failure to properly consider and modify the lease concession for Belmond Hotel das Cataratas. The Federal Court granted the Company’s request for an injunction against the Government enforcing its claim and granted the Company’s request for a 25% preliminary reduction in rent, pending a decision on the merits, which the Superior Court upheld on appeal in a decision rendered in September 2016. The Government appealed to a three-judge panel of the Superior Court, which upheld the decision of the Federal Court in favor of the Company in a judgment rendered in January 2017.

On October 17, 2017, the Federal Court issued a decision denying the Company’s claim for modification of the lease concession. The Court ruled although the lease is an administration agreement rather than a simple commercial lease, the Company had not overcome its burden of proof to show that a modification was justified. The Court further ordered that the Company must pay the stated rent in the lease rather than the reduced rent set by the original first instance Court in September 2016. The Court also revoked the injunction issued in September 2016 that had been subsequently affirmed on appeal prohibiting the Federal Government from pursuing a claim against the Company to recover the difference between the stated lease rent and the amounts the Company actually paid during the period from 2009 to 2014. As a result, the Federal Government could seek immediately to enforce its claim for allegedly unpaid lease obligations. The Company has reserved against this claim, and this accrual as at September 30, 2017 totaled R$24,368,000 ($7,692,000). The Company does not believe that any loss above the amounts accrued is likely. The Company intends to vigorously contest this ruling on appeal.

Belmond Miraflores Park

The Company is contesting a claim against Belmond Miraflores Park Hotel (“BMP”) by the municipality of Miraflores in Lima, Peru, where the BMP is located. The municipality alleges that BMP has generated noise and vibrations in violation of municipal nuisance ordinances resulting in the disturbance of certain apartment owners in an adjoining residential building. The local administrative court ruled in favor of the municipality, and levied a nominal fine and issued an order for injunctive relief that included the potential closure of BMP pending the elimination of the noise and vibrations. In March 2016, after the administrative court’s ruling was affirmed at the trial court and subsequently, the appellate court level, BMP appealed to the Supreme Court of Peru. Enforcement of the ruling of the appellate court has been stayed pending the Supreme Court appeal. On June 29, 2017, the Supreme Court issued a decision accepting BMP’s appeal rather than, as BMP had expected, summarily affirming the appellate court decision. Consequently, BMP expects that the Supreme Court will issue its opinion on this matter in the latter half of 2018. Management believes that the risk of closure of BMP is remote because BMP will have completed its remediation by the time the Supreme Court issues its decision and expects to be in compliance with municipal nuisance ordinances at that time. BMP has other alternatives that it could pursue to resolve this matter if BMP is not compliant by the time of the Supreme Court decision. Accordingly, management does not believe that a material loss is probable and no accrual has been made in respect of this matter.

“Cipriani” Trademark

In May 2010, after prevailing in litigation at the trial and appellate court levels, Belmond settled litigation in the United Kingdom for infringement of its U.K. and Community (European wide) registrations for the “Cipriani” trademark. Defendants paid the amount of $3,947,000 to Belmond in March 2010 with the balance of $9,833,000 being payable in installments over five years with interest. Belmond received the final payment in the amount of $1,178,000 in June 2015. Subsequent to Belmond’s success

29

before the U.K. courts, there have arisen a number of European trademark opposition and infringement cases relating to Belmond "Cipriani" and "Hotel Cipriani" Community trademarks. These include an ongoing invalidity action filed by Arrigo Cipriani in the European Trade Mark Office against Belmond’s "Cipriani" Community trademark. To date, Belmond has successfully rebutted this challenge at every level of administrative appeal, including before the EU General Court in Luxembourg which issued a decision on June 29, 2017 dismissing the Arrigo Cipriani appeal and ordering that appellant pay the costs of the court and the Company. Belmond has recently been successful in securing the cancellation in Portugal of a trademark application filed by an affiliated company of the Cipriani family for “Cipriani”. Belmond has also been successful in obtaining cancellations of "Cipriani" trademark applications made by the Cipriani family's corporate entity in Russia. In addition, there are a number of ongoing trademark disputes with the Cipriani family in Italy: in January 2015, the Cipriani family and affiliated entities commenced proceedings against Belmond in the Court of Venice, asserting that a 1967 agreement pursuant to which the family sold their interest in the Hotel Cipriani constituted a coexistence agreement allowing both the Company to use “Hotel Cipriani”, and the Cipriani family to use “Cipriani” and in August 2015, pursuant to a separate claim filed by the Cipriani family, the Court of Venice ruled in favor of the Cipriani family, determining that their use of their full name (rather than just an initial with their surname), would not constitute infringement of the Company’s registered trademark. The Court’s ruling purports to apply to hotels and restaurants on an EU-wide basis (other than the U.K.) rather than only Italy. The Company has appealed this decision. Final briefs were filed in October 2017 with the respective courts for each of these two Italian proceedings with the expectation that a decision in each case will be forthcoming in the first quarter of 2018. While Belmond believes that it has meritorious cases in all of these Italian proceedings, Belmond cannot estimate the range of possible additional loss to Belmond if it should not prevail in any or all of these cases and Belmond has made no accruals in these matters. Separate proceedings brought by Belmond in Spain to defend Belmond’s marks against a use by the Cipriani family and its affiliated entities of “Cipriani” to promote a restaurant have been stayed pending the outcome of the Venice appeal.

The Company and certain of its subsidiaries are parties to various legal proceedings arising in the normal course of business. These proceedings generally include matters relating to labor disputes, tax claims, personal injury cases, lease negotiations and ownership disputes. The outcome of each of these matters cannot be determined with certainty, and the liability that the relevant parties may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued for with respect to these matters. Where a reasonable estimate can be made, the additional losses or range of loss that may be incurred in excess of the amount recognized from the various legal proceedings arising in the normal course of business are disclosed separately for each claim, including a reference to where it is disclosed. However, for certain of the legal proceedings, management is unable to estimate the loss or range of loss that may result from these claims due to the highly complex nature or early stage of the legal proceedings. 

Belmond has granted to James Sherwood, a former director of the Company, a right of first refusal to purchase the Belmond Hotel Cipriani in Venice, Italy in the event Belmond proposes to sell it. The purchase price would be the offered sale price in the case of a cash sale or the fair market value of the hotel, as determined by an independent valuer, in the case of a non-cash sale. Mr. Sherwood has also been granted an option to purchase the hotel at fair market value if a change in control of the Company occurs. Mr. Sherwood may elect to pay 80% of the purchase price if he exercises his right of first refusal, or 100% of the purchase price if he exercises his purchase option, by a non-recourse promissory note secured by the hotel payable in ten equal annual installments with interest at LIBOR. This right of first refusal and purchase option are not assignable and expire one year after Mr. Sherwood’s death. These agreements relating to Belmond Hotel Cipriani between Mr. Sherwood and Belmond and its predecessor companies have been in place since 1983 and were last amended and restated in 2005.

Capital Commitments

Outstanding contracts to purchase property, plant and equipment were approximately $11,046,000 at September 30, 2017 (December 31, 2016 - $7,772,000).

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Future rental payments and rental expense under operating leases

Future rental payments as at September 30, 2017 under operating leases in respect of equipment rentals and leased premises are payable as follows:

	$’000
Remainder of 2017	3,191
2018	12,574
2019	11,208
2020	11,252
2021	11,756
2022	9,630
2023 and thereafter	143,711
Future rental payments under operating leases	203,322

Rental expense for the three and nine months endedSeptember 30, 2017 amounted to $3,917,000 (September 30, 2016 - $3,491,000) and $11,161,000 (September 30, 2016 - $9,604,000), respectively.

19.    Fair value measurements

(a)     Financial instruments recorded at fair value

The following tables summarize the valuation of Belmond’s financial instruments recorded at fair value by the fair value hierarchy at September 30, 2017 and December 31, 2016:

	Level 1	Level 2		Level 3	Total
September 30, 2017	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	154		—	154
Total assets	—	154		—	154
Liabilities at fair value:
Derivative financial instruments	—	(1,593	)	—	(1,593	)
Total net liabilities	—	(1,439	)	—	(1,439	)

	Level 1	Level 2		Level 3	Total
December 31, 2016	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	—		—	—
Total assets	—	—		—	—
Liabilities at fair value:
Derivative financial instruments	—	(3,364	)	—	(3,364	)
Total net liabilities	—	(3,364	)	—	(3,364	)

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During the three and nine months endedSeptember 30, 2017, there were no transfers between levels of the fair value hierarchy.

(b)    Other financial instruments

Certain methods and assumptions are used to estimate the fair value of each class of financial instruments. The carrying amount of current assets and current liabilities as disclosed on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of those instruments.

The fair value of Belmond's long-term debt, excluding interest rate swaps and caps, is determined using the contractual cash flows and credit-adjusted discount curves. The fair value of the debt is the present value of those contractual cash flows which are discounted at the current market cost of debt and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral.

The estimated carrying values, fair values, and levels of the fair value hierarchy of Belmond's long-term debt as of September 30, 2017 and December 31, 2016 were as follows:

		September 30, 2017		December 31, 2016
		Carrying amounts $’000	Fair value $’000	Carrying amounts $’000	Fair value $’000
Total long-term debt, before deduction of discount on secured term loan and debt issuance costs, excluding obligations under capital leases	Level 3	722,874	727,661	602,083	626,613

(c)    Non-financial assets measured at fair value on a non-recurring basis

The estimated fair values of Belmond’s non-financial assets measured at fair value on a non-recurring basis for the nine months endedSeptember 30, 2017 and 2016 are as follows:

		Fair value measurement inputs
	Fair value	Level 1	Level 2	Level 3	Total losses in the nine months ended September 30, 2017
	$’000	$’000	$’000	$’000	$’000
Property, plant and equipment	5,955	—	—	5,955	(8,216	)

		Fair value measurement inputs
	Fair value	Level 1	Level 2	Level 3	Total losses in the nine months ended September 30, 2016
	$’000	$’000	$’000	$’000	$’000
Property, plant and equipment	—	—	—	—	(1,000	)

Property, plant and equipment

In the nine months endedSeptember 30, 2017, property, plant and equipment at Belmond Road to Mandalay and Belmond Northern Belle with a combined carrying value of $14,173,000 was written down to fair value of $5,955,000, resulting in a non-cash impairment charge of $8,216,000.

In the nine months endedSeptember 30, 2016, property, plant and equipment at Belmond Orcaella with a carrying amount of $1,007,000 was written down to fair value of $Nil, resulting in a non-cash impairment charge of $1,007,000.

These impairments are included in earnings from continuing operations in the period incurred. See Note 7.

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20.    Derivatives and hedging activities

Belmond hedges its interest rate risk, ensuring that an element of its floating rate interest is fixed by using interest rate derivatives. Belmond designates these derivatives as cash flow hedges. Additionally, Belmond designates its foreign currency borrowings and currency derivatives as net investment hedges of overseas operations.

In connection with the Term Loan Facility, the interest rate derivatives associated with the previous term loan facility were terminated. See Note 10. The termination costs incurred were $2,145,000 during the three months endedSeptember 30, 2017. All amounts in other comprehensive income/(loss) relating to these derivatives will be amortized to interest expense over the remaining original life of the interest rate derivative under ASC 815 Derivatives and Hedging. New interest rate derivatives were entered into to fix an element of the floating interest rate on the Term Loan Facility.

Cash flow hedges of interest rate risk

As of September 30, 2017 and December 31, 2016, Belmond had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: 

	September 30, 2017		December 31, 2016
	’000		’000
Interest rate swaps	€	89,500	€	72,938
Interest rate swaps	$	243,000	$	210,756
Interest rate caps	$	17,200	$	17,200

Fair value

The table below presents the fair value of Belmond’s derivative financial instruments and their classification as of September 30, 2017 and December 31, 2016: 

		Fair value as of September 30, 2017		Fair value as of December 31, 2016
	Balance sheet location	$’000		$’000
Derivatives designated in a cash flow hedging relationship:
Interest rate derivatives	Other assets	154		—
Interest rate derivatives	Accrued liabilities	(1,593	)	(2,310	)
Interest rate derivatives	Other liabilities	—		(1,054	)
Total		(1,439	)	(3,364	)

Offsetting

There was no offsetting within derivative assets or derivative liabilities at September 30, 2017 and December 31, 2016. However, these derivatives are subject to master netting arrangements.

Other comprehensive income/(loss)

Information concerning the movements in other comprehensive income/(loss) for cash flow hedges of interest rate risk is shown in Note 21. At September 30, 2017, the amount accounted for in other comprehensive income/(loss) which is expected to be reclassified to interest expense in the next 12 months is $2,846,000. Movement in other comprehensive income/(loss) for net investment hedges recorded through foreign currency translation adjustments for the three and nine months endedSeptember 30, 2017 was a loss of $6,822,000 (September 30, 2016 - loss of $1,955,000) and a loss of $19,867,000 (September 30, 2016 - loss of $5,038,000).

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Credit-risk-related contingent features

Belmond has agreements with some of its derivative counterparties that contain provisions under which, if Belmond defaults on the debt associated with the hedging instrument, Belmond could also be declared in default in respect of its derivative obligations.

As of September 30, 2017, the fair value of derivatives in a net liability position, which includes accrued interest and an adjustment for non-performance risk, related to these agreements was $1,593,000 (December 31, 2016 - $3,364,000). If Belmond breached any of the provisions, it would be required to settle its obligations under the agreements at their termination value of $1,400,000 (December 31, 2016 - $3,370,000).

Non-derivative financial instruments — net investment hedges

Belmond uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. Belmond designates its euro-denominated indebtedness as a net investment hedge of long-term investments in its euro-functional subsidiaries. These contracts are included in non-derivative hedging instruments. The notional value of non-derivative hedging instruments was $210,955,000 at September 30, 2017, being a liability of Belmond (December 31, 2016 - $153,472,000).

21.    Accumulated other comprehensive income/loss

Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) are as follows:

	Foreign currency translation adjustments		Derivative financial instruments		Pension liability		Total
Nine months ended September 30, 2017	$’000		$’000		$’000		$’000
Balance at January 1, 2017	(337,053	)	(3,224	)	(12,062	)	(352,339	)
Other comprehensive income before reclassifications, net of tax (benefit)/provision of $Nil, $(341) and $97	46,944		(1,664	)	478		45,758
Amounts reclassified from AOCI, net of tax provision of $Nil, $712 and $Nil	—		1,358		—		1,358
Net current period other comprehensive income	46,944		(306	)	478		47,116
Balance at September 30, 2017	(290,109	)	(3,530	)	(11,584	)	(305,223	)

Reclassifications out of AOCI (net of tax) are as follows:

	Amount reclassified from AOCI
	Three months ended
	September 30, 2017	September 30, 2016
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for hedged debt instruments	379	707	Interest expense
Total reclassifications for the period	379	707

34

	Amount reclassified from AOCI
	Nine months ended
	September 30, 2017	September 30, 2016
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	1,358	2,118	Interest expense
Total reclassifications for the period	1,358	2,118

22.    Segment information

Segment performance is evaluated by the chief operating decision maker based upon adjusted earnings before interest, tax, depreciation and amortization (“adjusted EBITDA”).

For reporting periods prior to the quarter ended March 31, 2017, the Company disclosed certain disaggregated segment profitability information in its periodic reports in accordance with applicable U.S. GAAP accounting principles, ASC 280 Segment Reporting, in the form of earnings before gains/(losses) on disposal, impairments, central costs, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization, share-based compensation and gains/(losses) on extinguishment of debt (“segment profit/(loss)”). This is a measure of unadjusted EBITDA and, consistent with ASC 280, has represented the way management traditionally have evaluated the operating performance of each of the Company’s reportable segments. The format of the segment performance information provided to the chief operating decision maker for these purposes has evolved over time to focus primarily on adjusted EBITDA as the key measure of segment profitability. Adjusted EBITDA excludes gains/(losses) on disposal, impairments, restructuring and other special items, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization and gains/(losses) on extinguishment of debt. In order to better reflect management’s internal evaluation of segment performance under ASC 280, as of the quarterly reporting period ended March 31, 2017, Belmond has disclosed adjusted EBITDA in place of segment profit/(loss) as the primary metric used by the chief operating decision maker to evaluate segment performance. In management’s view, adjusted EBITDA allows the Company’s segment performance to be evaluated more effectively and on a consistent basis by removing the impact of certain items that management believes do not reflect the underlying operations. Belmond notes that adjusted EBITDA is not a term defined under GAAP. As a result, Belmond provides reconciliations to the GAAP number immediately following tables using this non-GAAP term.

Belmond's operating segments are aggregated into six reportable segments primarily around the type of service being provided—hotels, trains and cruises, and management business/part ownership interests—and are secondarily organized by geography for the hotels, as follows:

• Owned hotels in each of Europe, North America and Rest of world which derive earnings from the hotels that Belmond owns including its one stand-alone restaurant;

• Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns;

• Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; and

• Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages.

35

The following tables present information regarding these reportable segments.

Revenue from external customers by segment:

	Three months ended			Nine months ended
	September 30, 2017		September 30, 2016	September 30, 2017	September 30, 2016
	$’000		$’000	$’000	$’000
Owned hotels:
Europe	96,658		92,319	180,772	172,827
North America	32,956		30,577	115,239	108,235
Rest of world	26,767		37,045	88,605	96,578
Total owned hotels	156,381		159,941	384,616	377,640
Owned trains and cruises	23,674		19,218	50,583	47,120
Part-owned/managed hotels	(405	)	1,382	368	3,180
Part-owned/managed trains	3,323		3,196	8,138	7,689
Total management fees	2,918		4,578	8,506	10,869
Revenue	182,973		183,737	443,705	435,629

36

Reconciliation of consolidated (losses)/earnings from continuing operations to adjusted EBITDA:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$’000		$’000		$’000		$’000
Adjusted EBITDA
Owned hotels:
Europe	48,714		45,554		71,507		66,239
North America	2,245		3,226		21,790		21,794
Rest of world	3,544		11,301		15,899		24,892
Total owned hotels	54,503		60,081		109,196		112,925
Owned trains and cruises	5,342		3,332		5,289		4,127
Part-owned/managed hotels	2,502		2,424		5,266		4,744
Part-owned/managed trains	8,201		8,836		18,135		18,144
Total adjusted share of earnings from unconsolidated companies and management fees	10,703		11,260		23,401		22,888
Unallocated corporate:
Central costs	(6,911	)	(6,851	)	(24,822	)	(22,341	)
Share-based compensation	(1,471	)	(2,109	)	(5,025	)	(5,885	)
Adjusted EBITDA	62,166		65,713		108,039		111,714
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Earnings/(losses) from continuing operations	7,673		22,889		(15,403	)	29,673
Depreciation and amortization	17,052		13,155		45,862		39,553
Gain on extinguishment of debt	—		—		—		(1,200	)
Interest income	(240	)	(289	)	(582	)	(582	)
Interest expense	8,993		7,840		24,536		23,026
Foreign currency, net	1,486		(1,432	)	2,727		(9,161	)
Provision for income taxes	20,732		20,401		17,608		25,140
Share of provision for income taxes of unconsolidated companies	2,026		1,712		4,079		3,943
	57,722		64,276		78,827		110,392
Gain on disposal of property, plant and equipment	(150	)	(488	)	(450	)	(788	)
Impairment of property, plant and equipment	—		1,007		8,216		1,007
Restructuring and other special items (1)	4,315		918		7,414		1,103
Acquisition-related costs (2)	279		—		14,032		—
Adjusted EBITDA	62,166		65,713		108,039		111,714
(1) Represents adjustments for insurance deductibles and losses while Belmond Cap Juluca and Belmond La Samanna are closed following the impact of Hurricanes Irma and Jose, restructuring, severance and redundancy costs, pre-opening costs and other items, net.
(2) Represents professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla.

37

Earnings from unconsolidated companies, net of tax:

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Part-owned/managed hotels	747	794	1,213	1,022
Part-owned/managed trains	3,192	3,824	6,576	6,690
Total earnings from unconsolidated companies, net of tax	3,939	4,618	7,789	7,712

Reconciliation of capital expenditure to acquire property, plant and equipment by segment:

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Owned hotels:
Europe	4,269	1,646	17,043	8,850
North America	3,404	2,051	6,351	6,442
Rest of world	5,510	6,832	10,316	13,529
Total owned hotels	13,183	10,529	33,710	28,821
Owned trains and cruises	1,055	2,493	6,542	10,656
Unallocated corporate	1,359	458	2,760	1,079
Total capital expenditure to acquire property, plant and equipment	15,597	13,480	43,012	40,556

Revenue from external customers in Belmond’s country of domicile and significant countries (based on the location of the property):

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Bermuda	—	—	—	—
Italy	70,704	67,746	120,322	115,928
United Kingdom	19,089	16,950	43,572	44,568
United States	24,597	25,338	82,879	79,621
Brazil	11,994	24,025	41,910	56,232
All other countries	56,589	49,678	155,022	139,280
Total revenue	182,973	183,737	443,705	435,629

23.    Related party transactions

Belmond manages, under long-term contract, the tourist train owned by Eastern and Oriental Express Ltd., in which Belmond has a 25% ownership interest. In the three and nine months endedSeptember 30, 2017, Belmond earned management fees from Eastern and Oriental Express Ltd. of $1,000 (September 30, 2016 - $20,000) and $137,000 (September 30, 2016 - $147,000), respectively,

38

which are recorded in revenue. The amount due to Belmond from Eastern and Oriental Express Ltd. at September 30, 2017 was $6,681,000 (December 31, 2016 - $4,886,000).

Belmond manages, under long-term contracts in Peru, Belmond Hotel Monasterio, Belmond Palacio Nazarenas, Belmond Sanctuary Lodge, Belmond Hotel Rio Sagrado, Belmond Las Casitas del Colca, PeruRail and Ferrocarril Transandino, in all of which Belmond has a 50% ownership interest. Belmond provides loans, guarantees and other credit accommodation to these joint ventures. In the three and nine months endedSeptember 30, 2017, Belmond earned management and guarantee fees from its Peruvian joint ventures of $4,757,000 (September 30, 2016 - $4,543,000) and $11,464,000 (September 30, 2016 - $10,722,000), respectively, which are recorded in revenue. The amount due to Belmond from its Peruvian joint ventures at September 30, 2017 was $6,946,000 (December 31, 2016 - $6,907,000).

Belmond owns 50% of a company holding real estate in Buzios, Brazil. The amount due to Belmond from the joint venture at September 30, 2017 was $437,000 (December 31, 2016 - $372,000).

24.    Subsequent events

On September 27, 2017, Belmond signed a Share Purchase Agreement (“SPA”) to sell the shares in Northern Belle Limited, the wholly owned subsidiary that owns the rolling stock, for a sales price of £2,500,000 (equivalent to $3,350,000 as at September 30, 2017). The assets and liabilities of Northern Belle Limited have been transferred to held for sale as at September, 30 2017 as a binding agreement has been signed and a non-refundable deposit has been received. This sale closed on November 2, 2017. No gain or loss is expected to be recorded upon completion. See Note 4.

In October 2017, the Company provided notice of termination to the owner of Belmond Orcaella in respect of its charter agreement. The termination of this agreement is to be effective in early November. This business is operating at a loss and in the nine months endedSeptember 30, 2017, it had contributed an adjusted EBITDA loss of $800,000. The Company continues to own its Belmond Road to Mandalay vessel and to operate that cruise business in Myanmar.

39

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking statements

Forward-looking statements concerning the operations, performance, financial condition, plans and prospects of the Company and its subsidiaries are based on the current expectations, assessments and assumptions of management, are not historical facts, and are subject to various risks and uncertainties.

Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts, and often use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “goal”, “believe” or other words of similar meaning.

Actual results could differ materially from those anticipated in the forward-looking statements due to a number of factors, including those described in this Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 and in Item 1—Business, Item 1A—Risk Factors, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations, Item 7A—Quantitative and Qualitative Disclosures about Market Risk, and Item 12—Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Investors are cautioned not to place undue reliance on these forward-looking statements which are based on currently available operational, financial, and competitive information and as such, are not guarantees of future performance.  Except as otherwise required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

Introduction

Belmond currently owns, partially-owns or manages 47 properties (including one scheduled for a 2018 opening, Belmond Cadogan Hotel, in London, England). See Note 24 to the Financial Statements for information relating to Belmond Northern Belle.

Belmond has six reportable segments: owned hotels in (1) Europe, (2) North America (including one stand-alone restaurant) and (3) Rest of world, (4) Owned trains and cruises, (5) Part-owned/managed hotels and (6) Part-owned/managed trains.

Hotels represent the largest part of Belmond’s business with the vast majority of the Company's revenues in 2017 and 2016, respectively, derived primarily from the Europe, North America and Rest of world segments.

Hotels consists of 30 deluxe hotels which were wholly or majority owned by Belmond or, in the case of Belmond Charleston Place, owned by a consolidated variable interest entity. Eleven of the owned hotels are located in Europe, six in North America and thirteen in the rest of the world. In addition, Belmond owns and operates the stand-alone restaurant ‘21’ Club in New York which is included within the North America owned hotels segment. In May 2017, the Company acquired Cap Juluca, now rebranded as Belmond Cap Juluca, a 96-key resort on the Caribbean island of Anguilla, British West Indies. See Note 3.

Belmond's part-owned/managed hotels segment consists of six hotels which Belmond operates under management contracts in Peru and the United States. Belmond has unconsolidated equity interests in five of the managed hotels. In April 2017, the Company acquired Las Casitas del Colca, a 20-key hotel in Colca Canyon, Peru, through the Company’s existing Peru hotels joint venture.

In recent years, Belmond has sold to third parties a number of properties not considered key to Belmond’s portfolio of unique, high-valued properties as part of management's long-term strategy to reduce leverage and redeploy the capital in properties with higher potential returns.

Belmond's owned trains and cruises segment consists of four European tourist trains, one river cruise ship in Myanmar and one French canal cruise business. In August 2016, the Company commenced operations of Belmond Grand Hibernian, the first luxury overnight train traveling throughout the island of Ireland. See Note 24 to the Financial Statements for information relating to Belmond Northern Belle.

Belmond's part-owned/managed trains segment consists of three train businesses in Southeast Asia and Peru which Belmond operates under management contracts. Belmond has unconsolidated equity interests in each of these train businesses. In May 2017, the Company launched the Belmond Andean Explorer luxury sleeper train, located in Peru. 

Revenue per available room (“RevPAR”) is calculated by dividing room revenue by room nights available for the period. Same store RevPAR is a comparison of RevPAR based on the operations of the same units in each period, by excluding the effect of any

40

hotel acquisitions in the period or major refurbishment where a property is closed for a full quarter or longer. The comparison also excludes the effect of dispositions (including discontinued operations) or closures. Management uses RevPAR and same store RevPAR to identify trend information with respect to room revenue and to evaluate the performance of a specific hotel or group of hotels in a given period.  

Average daily rate ("ADR") is calculated by dividing room revenue by total rooms sold for the period. Management uses ADR to measure the level of pricing achieved by a specific hotel or group of hotels in a given period.

Occupancy is calculated by dividing total rooms sold by total rooms available for the period. Occupancy measures the utilization of a hotel’s available capacity. Management uses occupancy to measure demand at a specific hotel or group of hotels in a given period.

ADR and RevPAR are measures for a point in time (a day, month or year) and are most often compared across like time periods. Current ADR and RevPAR are not necessarily indicators of future performance.

Constant currency

Belmond analyzes certain key financial measures on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements. Measurement on a constant currency basis means the results exclude the effect of foreign currency translation and are calculated by translating prior period results at current period exchange rates.

41

Results of Operations

Operating information for Belmond’s owned hotels for the three and nine months endedSeptember 30, 2017 and 2016 is as follows:

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Rooms available
Europe	86,817	86,112	214,135	213,056
North America	66,872	62,986	198,270	192,752
Rest of world	94,392	94,944	280,818	282,008
Worldwide	248,081	244,042	693,223	687,816
Rooms sold
Europe	66,974	68,102	143,262	142,965
North America	43,210	42,246	134,914	132,518
Rest of world	43,767	46,985	144,944	152,872
Worldwide	153,951	157,333	423,120	428,355
Occupancy (percentage)
Europe	77	79	67	67
North America	65	67	68	69
Rest of world	46	49	52	54
Worldwide	62	64	61	62
Average daily rate (in U.S. dollars)
Europe	928	839	791	731
North America	383	359	432	418
Rest of world	376	479	378	390
Worldwide	618	603	535	512
RevPAR (in U.S. dollars)
Europe	716	664	529	490
North America	248	241	294	287
Rest of world	174	237	195	211
Worldwide	383	389	327	319

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Same Store RevPAR (in dollars)
Europe	716	664	529	490
North America	247	241	294	287
Rest of world	181	252	201	219
Worldwide	393	397	332	325

Same store RevPAR data for the three months endedSeptember 30, 2017 and September 30, 2016 excludes the operations of Belmond Cap Juluca, which was acquired in May 2017, and Belmond La Résidence d’Angkor, which closed for refurbishment in May 2016 and re-opened in November 2016.

42

	U.S. Dollars		Local currency		U.S. Dollars		Local currency
Same Store RevPAR (% change)
Europe	8	%	6	%	8	%	7	%
North America	2	%	2	%	2	%	3	%
Rest of world	(28	)%	(31	)%	(8	)%	(16	)%
Worldwide	(1	)%	(3	)%	2	%	—	%

Same store RevPAR data for the nine months endedSeptember 30, 2017 and September 30, 2016 excludes the operations of Belmond Cap Juluca, which was acquired in May 2017, and Belmond La Résidence d’Angkor, which closed for refurbishment in May 2016 and re-opened in November 2016.

43

Revenue

	Three months ended			Nine months ended
	September 30, 2017		September 30, 2016	September 30, 2017	September 30, 2016
	$ millions		$ millions	$ millions	$ millions
Revenue:
Owned hotels:
Europe	96.7		92.3	180.8	172.8
North America	32.9		30.6	115.2	108.2
Rest of world	26.8		37.0	88.6	96.6
Total owned hotels	156.4		159.9	384.6	377.6
Owned trains and cruises	23.7		19.2	50.6	47.1
Part-owned/managed hotels	(0.4	)	1.4	0.4	3.2
Part-owned/managed trains	3.3		3.2	8.1	7.7
Total management fees	2.9		4.6	8.5	10.9
Revenue	183.0		183.7	443.7	435.6

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Revenue was $183.0 million for the three months endedSeptember 30, 2017, a decrease of $0.7 million, from $183.7 million for the three months endedSeptember 30, 2016. Owned hotels revenue was $156.4 million for the three months endedSeptember 30, 2017, a decrease of $3.5 million or 2%, from $159.9 million for the three months endedSeptember 30, 2016. In constant currency, revenue for owned hotels for the three months endedSeptember 30, 2017 decreased $7.0 million or 4% from the three months endedSeptember 30, 2016, principally as a result of a decline in revenue of $13.5 million or 56% at the Company's two Brazilian properties. This resulted from a combination of the impact in the three months endedSeptember 30, 2017 of the political and economic instability in the country and exceptionally high revenue in the three months endedSeptember 30, 2016 due to the Summer Olympics held in Rio de Janeiro. This was offset by a $1.8 million or 3% revenue increase for the Company's Italian hotels and a $0.9 million or 11% increase at Belmond La Residencia, Mallorca, Spain. Revenue growth for the Company's Italian hotels was largely driven by the performances of Belmond Hotel Cipriani, Venice, Italy, which benefited from the Biennale Arts Festival that takes place every other year in Venice, and Belmond Hotel Splendido, Portofino, Italy, which saw an increase in rates year-over-year following the addition of balconies to twelve of its rooms in March 2017. Growth in revenue at Belmond La Residencia was primarily due to an increase in rates following the addition of six new suites. Additionally, the newly acquired Belmond Cap Juluca, Anguilla contributed $1.5 million in revenue in the three months endedSeptember 30, 2017 and Belmond Charleston Place, Charleston, South Carolina saw revenue growth of $0.7 million or 4% as it continued to benefit from group business and saw an increase in demand for leisure travelers attracted to the solar eclipse in August 2017. Revenue from owned trains and cruises was $23.7 million for the three months endedSeptember 30, 2017, an increase of $4.5 million, or 23%, from $19.2 million for the three months endedSeptember 30, 2016. In constant currency, revenue for owned trains and cruises for the three months endedSeptember 30, 2017 increased $4.9 million or 26% from the three months endedSeptember 30, 2016, primarily as a result of the Belmond Grand Hibernian train in Ireland, which commenced its first full year of operations in April 2017 and recorded $3.2 million of revenue in the three months endedSeptember 30, 2017. Additionally, the Belmond Royal Scotsman train in Scotland grew revenue by $1.1 million or 39% year-over-year as a result of high demand and the addition of a spa car and four new berths.

Nine months ended September 30,September 30, 2017 compared to nine months endedSeptember 30, 2016

44

Revenue was $443.7 million for the nine months endedSeptember 30, 2017, an increase of $8.1 million, or 2%, from $435.6 million for the nine months endedSeptember 30, 2016. Owned hotels revenue was $384.6 million for the nine months endedSeptember 30, 2017, an increase of $7.0 million or 2%, from $377.6 million for the nine months endedSeptember 30, 2016. In constant currency, revenue for owned hotels for the nine months endedSeptember 30, 2017 decreased $2.5 million or 1% from the prior-year period. The decrease in owned hotels revenue was primarily due to a $21.1 million or 37% decrease in revenue for the Company's two Brazilian properties due to a combination of the impact in the nine months endedSeptember 30, 2017 of continuing political and economic instability in the country and exceptionally high revenue in the nine months endedSeptember 30, 2016 due to the Summer Olympics held in Rio de Janeiro. This was offset by a $4.8 million or 4% increase for the Company’s Italian hotels and a $3.9 million or 7% increase at Belmond Charleston Place largely due to an increase in group business. The southern African hotels had strong revenue growth in the nine months endedSeptember 30, 2017 with a combined revenue increase of $3.9 million or 22% following refurbishment in 2016 and 2017. Revenue from owned trains and cruises was $50.6 million for the nine months endedSeptember 30, 2017, an increase of $3.5 million, or 7%, from $47.1 million for the nine months endedSeptember 30, 2016. In constant currency, revenue for owned trains and cruises for the nine months endedSeptember 30, 2017 increased $6.8 million or 15% from the nine months endedSeptember 30, 2016 which was largely due to a revenue increase of $3.9 million for the Belmond Grand Hibernian, as it commenced its first full year of operations. Additionally, the Belmond Royal Scotsman train grew revenue by $1.9 million or 39% year-over-year as a result of high demand and the addition of a spa car and four new berths. This was partially offset by a combined revenue decrease of $1.8 million at Belmond Road to Mandalay and Belmond Orcaella, the Company’s two river cruises in Myanmar, as a result of increased competition and the fall in tourist arrivals in Myanmar due to negative perceptions of the country.

45

Segment performance

Segment performance is evaluated by the chief operating decision maker based upon adjusted EBITDA, which excludes gains/(losses) on disposal, impairments, restructuring and other special items, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization and gains/(losses) on extinguishment of debt.

Segment performance for the three and nine months endedSeptember 30, 2017 and 2016 is analyzed as follows:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$ millions		$ millions		$ millions		$ millions
Adjusted EBITDA:
Owned hotels:
Europe	48.7		45.6		71.5		66.2
North America	2.3		3.2		21.8		21.8
Rest of world	3.5		11.3		15.9		24.9
Total owned hotels	54.5		60.1		109.2		112.9
Owned trains and cruises	5.4		3.3		5.3		4.1
Part-owned/managed hotels	2.5		2.4		5.3		4.7
Part-owned/managed trains	8.2		8.7		18.1		18.1
Total adjusted share of earnings from unconsolidated companies and management fees	10.7		11.3		23.4		22.9
Unallocated corporate costs:
Central costs	(6.9	)	(6.9	)	(24.8	)	(22.3	)
Share-based compensation	(1.5	)	(2.1	)	(5.0	)	(5.9	)
Adjusted EBITDA	62.2		65.5		108.1		111.6
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Earnings/(losses) from continuing operations	7.8		22.8		(15.4	)	29.6
Depreciation and amortization	17.1		13.2		45.9		39.6
Gain on extinguishment of debt	—		—		—		(1.2	)
Interest income, interest expense and foreign currency, net	10.2		6.2		26.7		13.3
Provision for income taxes	20.7		20.4		17.6		25.2
Share of provision for income taxes of unconsolidated companies	2.0		1.7		4.1		3.9
Gain on disposal of property, plant and equipment	(0.2	)	(0.5	)	(0.5	)	(0.8	)
Impairment of goodwill	—		—		—		—
Impairment of property, plant and equipment	—		1.0		8.2		1.0
Restructuring and other special items (1)	4.3		0.9		7.4		1.1
Acquisition-related costs (2)	0.3		—		14.0		—
Adjusted EBITDA	62.2		65.5		108.1		111.6
(1) Represents adjustments for insurance deductibles and losses while Belmond Cap Juluca and Belmond La Samanna are closed following the impact of Hurricanes Irma and Jose, restructuring, severance and redundancy costs, pre-opening costs and other items, net.
(2) Represents professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla.

46

Owned hotels - Europe

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Rooms available	86,817	86,112	214,135	213,056
Rooms sold	66,974	68,102	143,262	142,965
Occupancy (percentage)	77	79	67	67
Average daily rate (in U.S. dollars)	928	839	791	731
RevPAR (in U.S. dollars)	716	664	529	490
Same store RevPAR (in U.S. dollars)	716	664	529	490

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Revenue was $96.7 million for the three months endedSeptember 30, 2017, an increase of $4.4 million, or 5%, from $92.3 million for the three months endedSeptember 30, 2016. In constant currency, revenue for the region for the three months endedSeptember 30, 2017 increased $2.6 million or 3% from the three months endedSeptember 30, 2016 primarily due to a $1.8 million or 3% revenue increase for the Company's Italian hotels and a $0.9 million or 11% increase at Belmond La Residencia. Revenue growth for the Company's Italian hotels was largely driven by the performance of Belmond Hotel Cipriani, which benefited from the Biennale Arts Festival that takes place every other year in Venice, and Belmond Hotel Splendido, which saw an increase in rates year-over-year following the addition of balconies to twelve of its rooms in March 2017. Growth in revenue at Belmond La Residencia was primarily due to an increase in rates following the addition of six new suites. ADR in U.S. dollar terms for the European owned hotels segment increased to $928 in the three months endedSeptember 30, 2017 from $839 in the three months endedSeptember 30, 2016. Occupancy decreased to 77% in the three months endedSeptember 30, 2017 from 79% in the three months endedSeptember 30, 2016. Same store RevPAR increased by 8% in U.S. dollars to $716 in the three months endedSeptember 30, 2017 from $664 in the three months endedSeptember 30, 2016.

Adjusted EBITDA for the region for the three months endedSeptember 30, 2017 of $48.7 million represented an increase of $3.1 million or 7% from $45.6 million for the three months endedSeptember 30, 2016. In constant currency, adjusted EBITDA for the region for the three months endedSeptember 30, 2017 increased $2.8 million or 6% from the prior-year quarter mainly due to a $1.0 million or 13% increase in adjusted EBITDA at Belmond Hotel Cipriani, a $0.9 million or 8% increase in adjusted EBITDA at Belmond Grand Hotel Europe, St. Petersburg, Russia and a $0.6 million or 14% increased in adjusted EBITDA at Belmond La Residencia. As a percentage of European owned hotels revenue, adjusted EBITDA was 50% for the three months endedSeptember 30, 2017 compared to 49% for the three months endedSeptember 30, 2016.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

Revenue was $180.8 million for the nine months endedSeptember 30, 2017, an increase of $8.0 million, or 5%, from $172.8 million for the nine months endedSeptember 30, 2016. In constant currency, revenue for the region for the nine months endedSeptember 30, 2017 increased $7.0 million, or 4%, primarily due to a $4.8 million or 4% revenue increase for the Company's Italian hotels and a $2.1 million or 10% increase at Belmond Grand Hotel Europe. Revenue growth for the Company's Italian hotels was largely driven by the performance of Belmond Hotel Cipriani which benefited from the Biennale Arts Festival, which takes place every other year in Venice, and Belmond Hotel Splendido, which saw an increase in rates year-over-year following the addition of balconies to twelve of its rooms in March 2017. Belmond Grand Hotel Europe's year-over-year growth was primarily due to increased revenue during the annual St. Petersburg International Economic Forum coupled with the benefit of the 2017 FIFA Confederations Cup. ADR in U.S. dollar terms for the European owned hotels segment increased to $791 in the nine months endedSeptember 30, 2017 from $731 in the nine months endedSeptember 30, 2016. Occupancy remained flat at 67% in the nine months endedSeptember 30, 2017 compared to 67% in the nine months endedSeptember 30, 2016. Same store RevPAR increased by 8% in U.S. dollars, to $529 in the nine months endedSeptember 30, 2017 from $490 in the nine months endedSeptember 30, 2016.

Adjusted EBITDA for the region for the nine months endedSeptember 30, 2017 of $71.5 million represented an increase of $5.3 million, or 8%, from adjusted EBITDA of $66.2 million for the nine months endedSeptember 30, 2016. In constant currency, adjusted EBITDA for the region for the nine months endedSeptember 30, 2017 increased $4.7 million or 7% from the prior-year period mainly due to a $2.0 million or 30% increase in adjusted EBITDA at Belmond Grand Hotel Europe and a $1.9 million or

47

17% increase in adjusted EBITDA at Belmond Hotel Cipriani. As a percentage of European owned hotels revenue, adjusted EBITDA increased slightly to 40% for the nine months endedSeptember 30, 2017 compared to 38% for the nine months endedSeptember 30, 2016.

Owned hotels - North America

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Rooms available	66,872	62,986	198,270	192,752
Rooms sold	43,210	42,246	134,914	132,518
Occupancy (percentage)	65	67	68	69
Average daily rate (in U.S. dollars)	383	359	432	418
RevPAR (in U.S. dollars)	248	241	294	287
Same store RevPAR (in U.S. dollars)	247	241	294	287

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Revenue was $32.9 million for the three months endedSeptember 30, 2017, an increase of $2.3 million, or 8%, from $30.6 million for the three months endedSeptember 30, 2016. In constant currency, revenue for the region for the three months endedSeptember 30, 2017 increased $2.3 million or 8% from the prior year quarter primarily due to revenue growth of $0.7 million or 4% at Belmond Charleston Place, and $1.5 million from the newly acquired Belmond Cap Juluca in May 2017. Belmond Charleston Place continued to benefit from group business and also saw an increase in demand from leisure travelers attracted to the solar eclipse in August 2017. However, stronger year-over-year growth was negatively impacted by cancellations after the South Carolina Governor's declaration of a state of emergency in advance of Hurricane Irma reaching the state, resulting in $1.2 million in lost revenue. ADR for the North American owned hotels segment increased to $383 in the three months endedSeptember 30, 2017 from $359 in the three months endedSeptember 30, 2016. Occupancy decreased slightly to 65% for the three months endedSeptember 30, 2017 from 67% from the three months endedSeptember 30, 2016. Same store RevPAR increased by 2% to $247 for the three months endedSeptember 30, 2017 from $241 in the three months endedSeptember 30, 2016.

Adjusted EBITDA for the region for the three months endedSeptember 30, 2017 of $2.3 million represented a decrease of $0.9 million, or 28%, from $3.2 million for the three months endedSeptember 30, 2016. In constant currency, adjusted EBITDA for the region for the three months endedSeptember 30, 2017 decreased $1.0 million or 31% from the three months endedSeptember 30, 2016, primarily as a result of $0.7 million in anticipated losses at Belmond Cap Juluca in its seasonal quiet period prior to closure for renovation at the end of August 2017. As a percentage of North American owned hotels revenue, adjusted EBITDA decreased to 7% for the three months endedSeptember 30, 2017 from 11% for the three months endedSeptember 30, 2016.

Nine months ended September 30, 2017compared to nine months endedSeptember 30, 2016

Revenue was $115.2 million for the nine months endedSeptember 30, 2017, an increase of $7.0 million, or 6%, from $108.2 million for the nine months endedSeptember 30, 2016. In constant currency, revenue for the region for the nine months endedSeptember 30, 2017 increased $7.1 million or 7% from the nine months endedSeptember 30, 2016 primarily due to revenue growth of $3.9 million or 7% at Belmond Charleston Place; $1.3 million or 9% at Belmond El Encanto, Santa Barbara, California; and $1.1 million or 11% at ‘21 Club’ in New York City. Year-over-year revenue growth at Belmond Charleston Place and Belmond El Encanto was largely the result of increased group business, and revenue growth at ‘21 Club’ was primarily due to increased demand for the main restaurant and banqueting venues. Additionally, the newly acquired Belmond Cap Juluca contributed $2.4 million in revenue prior to its closure for renovation at the end of August 2017. Growth for these properties was partially offset by a $1.9 million or 11% decrease at Belmond La Samanna, St Martin, French West Indies, which was negatively impacted by a decline in visitation in the first eight months of the year. ADR for the North American owned hotels segment increased to $432 in the nine months endedSeptember 30, 2017 from $418 in the nine months endedSeptember 30, 2016. Occupancy fell to 68% for the nine months endedSeptember 30, 2017 from 69% for the nine months endedSeptember 30, 2016. Same store RevPAR increased by 2% to $294 for the nine months endedSeptember 30, 2017 from $287 in the nine months endedSeptember 30, 2016.

Adjusted EBITDA for the region for the nine months endedSeptember 30, 2017 remained consistent with the nine months endedSeptember 30, 2016 at $21.8 million. In constant currency, adjusted EBITDA for the region for the nine months endedSeptember 30, 2017 was also unchanged from the nine months endedSeptember 30, 2016. A $1.6 million or 9% adjusted EBITDA increase at Belmond Charleston Place and a $0.5 million adjusted EBITDA increase at ‘21 Club’ was offset by a $1.0 million adjusted EBITDA

48

decrease at Belmond La Samanna and $1.0 million loss at Belmond Cap Juluca. As a percentage of North American owned hotels revenue, adjusted EBITDA remained consistent at 19% for the nine months endedSeptember 30, 2017 and 2016.

Owned hotels - Rest of world

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Rooms available	94,392	94,944	280,818	282,008
Rooms sold	43,767	46,985	144,944	152,872
Occupancy (percentage)	46	49	52	54
Average daily rate (in U.S. dollars)	376	479	378	390
RevPAR (in U.S. dollars)	174	237	195	211
Same store RevPAR (in U.S. dollars)	181	252	201	219

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Revenue was $26.8 million for the three months endedSeptember 30, 2017, a decrease of $10.2 million, or 28%, from $37.0 million for the three months endedSeptember 30, 2016. In constant currency, revenue for the three months endedSeptember 30, 2017 decreased $12.0 million or 31% from the three months endedSeptember 30, 2016, principally as a result of a decline in revenue of $13.5 million or 56% at the Company's two Brazilian properties. This resulted from a combination of the impact in the three months endedSeptember 30, 2017 of the political and economic instability in the country and exceptionally high revenue in the three months endedSeptember 30, 2016 due to the Summer Olympics held in Rio de Janeiro. This was offset by an increase in revenue of $0.4 million or 13% at Belmond Safaris, Botswana which benefited from refurbishment in 2016 and 2017. Additionally, revenue at Belmond La Résidence d'Angkor, Siem Reap, Cambodia, contributed a $0.6 million increase in revenue following a full renovation of the property in 2016. ADR in U.S. dollar terms for the Rest of world owned hotels segment decreased to $376 in the three months endedSeptember 30, 2017 from $479 in the three months endedSeptember 30, 2016. Occupancy decreased to 46% for the three months endedSeptember 30, 2017 from 49% for the three months endedSeptember 30, 2016. Same store RevPAR decreased by 28% in U.S. dollars, to $181 for the three months endedSeptember 30, 2017 from $252 for the three months endedSeptember 30, 2016.

Adjusted EBITDA for the region for the three months endedSeptember 30, 2017 of $3.5 million represented a decrease of $7.8 million, or 69%, from $11.3 million for the three months endedSeptember 30, 2016. In constant currency, adjusted EBITDA for the region decreased $8.5 million or 71% from the three months endedSeptember 30, 2016 largely as a result of a combined $9.1 million adjusted EBITDA decrease for the Company's two Brazilian hotels, offset by a $0.4 million or 31% increase in adjusted EBITDA at Belmond Safaris. As a percentage of Rest of world owned hotels revenue, adjusted EBITDA was 13% for the three months endedSeptember 30, 2017 compared to 31% for the three months endedSeptember 30, 2016.

Nine months ended September 30, 2017compared to nine months endedSeptember 30, 2016

Revenue was $88.6 million for the nine months endedSeptember 30, 2017, a decrease of $8.0 million, or 8%, from $96.6 million for the nine months endedSeptember 30, 2016. In constant currency, revenue for the nine months endedSeptember 30, 2017 decreased $16.5 million or 16% from the nine months endedSeptember 30, 2016 principally as a result of a combined $21.1 million year-over-year revenue decrease for the Company's two Brazilian hotels which have been impacted by the political and economic instability in the country coupled with a comparison period when both hotels recorded exceptionally high revenue as a result of Rio de Janeiro hosting the Summer Olympics. Partially offsetting this decrease was revenue growth of $2.4 million or 21% at Belmond Mount Nelson Hotel, Cape Town, South Africa; $1.5 million or 24% at Belmond Safaris; and $0.9 million or 12% at Belmond Miraflores Park, Lima, Peru, all of which have benefited from the Company's project capital expenditure investments over the past few years. ADR in U.S. dollar terms for the Rest of world owned hotels segment decreased to $378 in the nine months endedSeptember 30, 2017 from $390 in the nine months endedSeptember 30, 2016. Occupancy decreased to 52% for the nine months endedSeptember 30, 2017 from 54% for the nine months endedSeptember 30, 2016. Same store RevPAR decreased by 8% in U.S. dollars, to $201 for the nine months endedSeptember 30, 2017 from $219 for the nine months endedSeptember 30, 2016.

Adjusted EBITDA for the region for the nine months endedSeptember 30, 2017 of $15.9 million represented a decrease of $9.0 million, or 36%, from $24.9 million for the nine months endedSeptember 30, 2016. In constant currency, adjusted EBITDA for the region decreased $11.4 million or 42% from the nine months endedSeptember 30, 2016 largely as a result of a combined

49

adjusted EBITDA decrease of $13.4 million for the Company's two Brazilian hotels. Partially offsetting this decrease was an adjusted EBITDA increase at Belmond Mount Nelson Hotel of $1.7 million, and $1.0 million at Belmond Safaris. As a percentage of Rest of world owned hotels revenue, adjusted EBITDA was 18% for the nine months endedSeptember 30, 2017 compared to 26% for the nine months endedSeptember 30, 2016 due to the lower margins earned at the Brazilian hotels.

Owned trains and cruises 

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Revenue was $23.7 million for the three months endedSeptember 30, 2017, an increase of $4.5 million, or 23%, from $19.2 million for the three months endedSeptember 30, 2016. In constant currency, revenue increased $4.9 million or 26% primarily as a result of the Belmond Grand Hibernian train, which commenced its first full year of operations in April 2017 and recorded $3.2 million of revenue for the three months endedSeptember 30, 2017. Additionally, the Belmond Royal Scotsman train grew revenue by $1.1 million or 39% year-over-year as a result of high demand and the addition of a spa car and four new berths.

Adjusted EBITDA for the three months endedSeptember 30, 2017 was $5.4 million, an increase of $2.1 million, or 64% from $3.3 million for the three months endedSeptember 30, 2016. In constant currency, adjusted EBITDA increased $2.2 million or 72% from the three months endedSeptember 30, 2016 largely due to adjusted EBITDA growth for Belmond Royal Scotsman and Belmond Grand Hibernian of $1.0 million and $0.7 million, respectively.

Nine months ended September 30, 2017compared to nine months endedSeptember 30, 2016

Revenue was $50.6 million for the nine months endedSeptember 30, 2017, an increase of $3.5 million, or 7%, from $47.1 million for the nine months endedSeptember 30, 2016. In constant currency, revenue increased $6.8 million or 15% primarily as a result of the Belmond Grand Hibernian train, which commenced its first full year of operations in April 2017 and contributed an increase in revenue of $3.9 million for the nine months endedSeptember 30, 2017. Additionally, the Belmond Royal Scotsman train grew revenue by $1.9 million or 39% year-over-year primarily as a result of generating higher-revenue charter business and the addition of a spa car and four new berths. Partially offsetting these revenue increases was a combined revenue decrease of $1.7 million for the Company’s two river cruises in Myanmar largely due to decreased demand.

Owned trains and cruises reported adjusted EBITDA of $5.3 million for the nine months endedSeptember 30, 2017 compared to $4.1 million for the nine months endedSeptember 30, 2016. In constant currency, adjusted EBITDA increased $1.5 million or 38% from the prior-year period largely due to adjusted EBITDA growth for Belmond Royal Scotsman and Belmond Grand Hibernian of $1.4 million and $0.6 million respectively, offset by a combined decline in adjusted EBITDA of $0.8 million for the Company’s two river cruises in Myanmar.

Part-owned/managed hotels 

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

In the three months endedSeptember 30, 2017, there was a decrease of $1.8 million in part-owned/managed hotels revenue from $1.4 million for the three months endedSeptember 30, 2016, largely due to a provision made against management and reservation fees at Inn at Perry Cabin by Belmond, Saint Michaels, Maryland in respect of an agreement entered into on April 7, 2017 pursuant to which Belmond agreed to guarantee specified budgeted EBITDA levels earned by the owner for each of the 2017 and 2018 fiscal years.

Adjusted EBITDA for Part-owned/managed hotels for the three months endedSeptember 30, 2017 of $2.5 million represented an increase of $0.1 million, or 4% from earnings of $2.4 million for the three months endedSeptember 30, 2016.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

Revenue was $0.4 million for the nine months endedSeptember 30, 2017, a decrease of $2.8 million, or 88%, from $3.2 million for the nine months endedSeptember 30, 2016, largely due to a provision made against management and reservation fees at Inn at Perry Cabin by Belmond in respect of an agreement entered into on April 7, 2017 pursuant to which Belmond agreed to guarantee specified budgeted EBITDA levels earned by the owner for each of the 2017 and 2018 fiscal years.

Adjusted EBITDA for Part-owned/managed hotels for the nine months endedSeptember 30, 2017 of $5.3 million represented an increase of $0.6 million, or 13% from earnings of $4.7 million for the nine months endedSeptember 30, 2016, primarily as a result of an increase in occupancy at the two hotels in Cusco.

50

Part-owned/managed trains

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Revenue was $3.3 million in the three months endedSeptember 30, 2017, an increase of $0.1 million, or 3%, from $3.2 million in the three months endedSeptember 30, 2016.

Adjusted EBITDA for Part-owned/managed trains for the three months endedSeptember 30, 2017 of $8.2 million represented a decrease of $0.5 million, or 6%, from $8.7 million for the three months endedSeptember 30, 2016, due to an adjusted EBITDA decrease of $0.6 million or 7% for the Company's PeruRail joint venture, as a result of increases in fuel costs and other operating expenses.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

Revenue was $8.1 million in the nine months endedSeptember 30, 2017, an increase of $0.4 million, or 5%, from $7.7 million in the nine months endedSeptember 30, 2016. The increase in revenue was primarily due to higher passenger sales for the Company’s PeruRail joint venture and higher tonnage transported from the Las Bambas mine.

Adjusted EBITDA for Part-owned/managed trains for the nine months endedSeptember 30, 2017 was consistent with the nine months endedSeptember 30, 2016 at $18.1 million.

Unallocated corporate costs

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Adjusted central costs were $8.4 million for the three months endedSeptember 30, 2017 (including $1.5 million of non-cash share-based compensation expense), a decrease of $0.6 million, or 7%, from $9.0 million for the three months endedSeptember 30, 2016 (including $2.1 million of non-cash share-based compensation expense), mainly due to the decline in share-based compensation expense. As a percentage of revenue, adjusted central costs remained consistent at 5% for the three months endedSeptember 30, 2017 and 2016.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

Adjusted central costs were $29.8 million for the nine months endedSeptember 30, 2017 (including $5.0 million of non-cash share-based compensation expense), an increase of $1.6 million, or 6%, from $28.2 million for the nine months endedSeptember 30, 2016 (including $5.9 million of non-cash share-based compensation expense), mainly due to increased development and other corporate headcount to support the strategic growth plan and greater information technology expenses. As a percentage of revenue, adjusted central costs were 7% for the nine months endedSeptember 30, 2017 and 6% for the nine months endedSeptember 30, 2016.

Depreciation and amortization

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Depreciation and amortization was $17.1 million for the three months endedSeptember 30, 2017, an increase of $3.9 million, or 30%, from $13.2 million for the three months endedSeptember 30, 2016, primarily as a result of the recent completion of several capital projects and accelerated depreciation expense to write-off assets that are expected to be replaced. Depreciation and amortization as a percentage of revenue was 9% for the three months endedSeptember 30, 2017 compared to 7% for the three months endedSeptember 30, 2016.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

Depreciation and amortization was $45.9 million for the nine months endedSeptember 30, 2017, an increase of $6.3 million, or 16%, from $39.6 million for the nine months endedSeptember 30, 2016, primarily as a result of the recent completion of several capital projects and accelerated depreciation expense to write-off assets that are expected to be replaced. Depreciation and amortization as a percentage of revenue increased slightly to 10% for the nine months endedSeptember 30, 2017 from 9% for the nine months endedSeptember 30, 2016.

51

Gain on extinguishment of debt

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

There was no gain on extinguishment of debt in the three months endedSeptember 30, 2017 and September 30, 2016.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

There was no gain on extinguishment of debt in the nine months endedSeptember 30, 2017. In the nine months endedSeptember 30, 2016, there was a gain on extinguishment of debt of $1.2 million. In June 2016, Charleston Center LLC refinanced its $86.0 million loan secured on its real and personal property with an amended $112.0 million loan. The additional proceeds of $26.0 million were used to repay a 1984 development loan from a municipal agency in the principal amount of $10.0 million and accrued interest of $16.8 million. In connection with the early repayment of the loan, Belmond negotiated a discount that resulted in a net gain reported in the statement of consolidated operations during the nine months endedSeptember 30, 2016 of $1.2 million upon extinguishment of the debt, including the payment of a tax indemnity to its partners in respect of their income from the discount arising on the cancellation of the indebtedness.

Interest income, interest expense and foreign currency, net

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Interest income, interest expense and foreign currency, net was an expense of $10.2 million for the three months endedSeptember 30, 2017, an increase of $4.0 million from an expense of $6.2 million for the three months endedSeptember 30, 2016. The increase in net expense was primarily due to a foreign exchange loss of $1.5 million that was recognized in the three months endedSeptember 30, 2017, compared to a foreign exchange gain of $1.4 million in the three months endedSeptember 30, 2016.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

Interest income, interest expense and foreign currency, net was an expense of $26.7 million for the nine months endedSeptember 30, 2017, an increase of $13.4 million from an expense of $13.3 million for the nine months endedSeptember 30, 2016. The increase in net expense was primarily due to a foreign exchange loss of $2.7 million that was recognized in the nine months endedSeptember 30, 2017, compared to a foreign exchange gain of $9.2 million in the nine months endedSeptember 30, 2016.

Provision for income taxes

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

The provision for income taxes was $20.7 million in the three months endedSeptember 30, 2017, an increase of $0.3 million or 1% from $20.4 million for the three months endedSeptember 30, 2016. The movement in the provision for income tax and the effective tax rate for the three months endedSeptember 30, 2017 compared to the three months endedSeptember 30, 2016 is mainly mainly due to the jurisdictional profit mix of earnings from continuing operations, which have decreased compared to the three months endedSeptember 30, 2016 and have also been impacted by the costs associated with the Cap Juluca acquisition in May 2017. See Note 3.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

The provision for income taxes was $17.6 million in the nine months endedSeptember 30, 2017, a decrease of $7.6 million or 30% from $25.2 million for the nine months endedSeptember 30, 2016. The movement in the provision for income tax and the effective tax rate for the nine months endedSeptember 30, 2017 compared to the nine months endedSeptember 30, 2016 is mainly mainly due to the jurisdictional profit mix of earnings from continuing operations, which have decreased compared to the nine months endedSeptember 30, 2016 and have also been impacted by the costs associated with the Cap Juluca acquisition in May 2017. See Note 3.

Gain on disposal of property, plant and equipment

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

A gain on disposal of $0.2 million was recorded in the three months endedSeptember 30, 2017 compared to a $0.5 million gain in the three months endedSeptember 30, 2016. The gain in the three months endedSeptember 30, 2017 and 2016 relates to the

52

recognition of the deferred gain following the March 2014 sale of Inn at Perry Cabin by Belmond, which Belmond has continued to manage under a management contract. The remainder of the 2016 gain relates to the gain on sale of the spa building at Belmond Casa de Sierra Nevada, Mexico in September 2016.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

A gain on disposal of $0.5 million was recorded in the nine months endedSeptember 30, 2017 compared to a $0.8 million gain in the nine months endedSeptember 30, 2016. The gain in the nine months endedSeptember 30, 2017 and 2016 relates to the recognition of the deferred gain following the March 2014 sale of Inn at Perry Cabin by Belmond, which Belmond has continued to manage under a management contract. The remainder of the 2016 gain relates to the gain on sale of the spa building at Belmond Casa de Sierra Nevada in September 2016.

Impairment of property, plant and equipment

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

There were no impairments of property, plant and equipment in the three months endedSeptember 30, 2017. A property, plant and equipment impairment charge of $1.0 million was recorded in the three months endedSeptember 30, 2016 which related to Belmond Orcaella.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

A property, plant and equipment impairment charge of $8.2 million was recorded in the nine months endedSeptember 30, 2017. This consisted of $7.1 million at Belmond Road to Mandalay as a result of increased competition and anticipated lower occupancy levels and $1.1 million at Belmond Northern Belle due to forecasted lower demand. There was a $1.0 million impairment of property, plant and equipment in the nine months endedSeptember 30, 2016 which related to Belmond Orcaella.

Earnings from unconsolidated companies

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

Earnings from unconsolidated companies net of tax were $3.9 million for the three months endedSeptember 30, 2017, a decrease of $0.7 million, or 15%, from $4.6 million for the three months endedSeptember 30, 2016. This was largely the result of reduced earnings from the Company’s PeruRail joint venture, as a result of increases in fuel costs and other operating expenses.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

Earnings from unconsolidated companies net of tax were $7.8 million for the nine months endedSeptember 30, 2017, an increase of $0.1 million, or 1%, from $7.7 million for the nine months endedSeptember 30, 2016.

Net earnings from discontinued operations

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

The earnings from discontinued operations for the three months endedSeptember 30, 2017 were $Nil, compared with earnings of $Nil for the three months endedSeptember 30, 2016.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

The earnings from discontinued operations for the nine months endedSeptember 30, 2017 were $0.1 million, compared with earnings of $0.1 million for the nine months endedSeptember 30, 2016. Earnings from discontinued operations for the nine months endedSeptember 30, 2017 and 2016 consisted largely of the reimbursement of overpaid legal fees in relation to Ubud Hanging Gardens, as Belmond is pursuing legal remedies following its dispossession by the owner in November 2013. See Note 18 to the Financial Statements.

Net earnings/(losses)

Three months endedSeptember 30, 2017 compared to three months endedSeptember 30, 2016

53

The net earnings attributable to Belmond Ltd. for the three months endedSeptember 30, 2017 were $7.8 million ($0.08 per common share) on revenue of $183.0 million, compared with net earnings of $22.9 million ($0.23 per common share) on revenue of $183.7 million for the three months endedSeptember 30, 2016. The year-over-year decrease was attributable in part to depreciation and amortization which were $3.9 million higher in the three months endedSeptember 30, 2017 compared to the three months endedSeptember 30, 2016 as a result of the recent completion of a number of capital projects and accelerated depreciation expense to write-off assets that are expected to be replaced. The decrease in net earnings was also the result of a foreign exchange loss of $1.5 million recognized in the three months endedSeptember 30, 2017 compared to a foreign exchange gain of $1.4 million that was recognized in the three months endedSeptember 30, 2016. In addition, the earnings of the Company’s two Brazilian hotels were significantly impacted by declining revenue as a result of political and economic instability in the country, coupled with exceptionally high revenue and earnings in the three months endedSeptember 30, 2016 due to the Summer Olympics in Rio de Janeiro.

Nine months ended September 30, 2017 compared to nine months endedSeptember 30, 2016

The net losses attributable to Belmond Ltd. for the nine months endedSeptember 30, 2017 were $15.3 million ($0.15 per common share) on revenue of $443.7 million, compared with net earnings of $29.7 million ($0.29 per common share) on revenue of $435.6 million for the nine months endedSeptember 30, 2016. The year-over-year decrease was largely attributable to $14.0 million of acquisition-related costs associated with Cap Juluca and an impairment charge of $8.2 million in relation to Belmond Road to Mandalay and Belmond Northern Belle, partially offset by improved operating results. Acquisition-related costs for Cap Juluca represent professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla. Additionally, the net loss was a result of a foreign exchange loss of $2.7 million recognized in the nine months endedSeptember 30, 2017 compared to a foreign exchange gain of $9.2 million recognized in the nine months endedSeptember 30, 2016. There was also a gain on extinguishment of debt of $1.2 million in the nine months endedSeptember 30, 2016 in connection with the early repayment of the development loan at Charleston Center LLC, compared with no gain on extinguishment of debt in the nine months endedSeptember 30, 2017.

Other comprehensive income: Foreign currency translation adjustments, net

Foreign currency translation adjustments for the nine months endedSeptember 30, 2017 were a gain of $46.9 million, compared to a gain of $7.5 million for the nine months endedSeptember 30, 2016, arising from the retranslation of the Company’s net investment in subsidiary accounts denominated in foreign currencies into the Company’s reporting currency of U.S. dollars.

The gain in the nine months endedSeptember 30, 2017 was due to the majority of Belmond's operating currencies appreciating against the U.S. dollar from the rate at December 31, 2016. In particular, the 12%, 9% and 5% appreciation of the euro, British pound and Russian ruble against the U.S. dollar, respectively, positively impacted the carrying value of Belmond’s net investments denominated in those currencies.

The gain in the nine months endedSeptember 30, 2016 was due to the majority of Belmond's operating currencies appreciating against the U.S. dollar from the rate at December 2015. In particular, the 20%, 15% and 3% appreciation of the Brazilian real, Russian ruble and euro against the U.S. dollar, respectively, positively impacted the carrying value of Belmond’s net investments denominated in those currencies.

Liquidity and Capital Resources

Overview

Belmond’s primary short-term cash needs include payment of compensation, general business expenses, capital commitments and contractual payment obligations, which include principal and interest payments on its debt facilities. Long-term liquidity needs may include existing and ongoing property refurbishments, potential investment in strategic acquisitions, and the repayment of long-term debt. At September 30, 2017, total debt and obligations under capital leases, including debt of consolidated variable interest entities, amounted to $722.9 million (December 31, 2016 - $602.1 million), including a current portion of $6.8 million (December 31, 2016 - $5.3 million). See Note 10 to the Financial Statements. Additionally, Belmond had capital commitments at September 30, 2017 amounting to $11.0 million (December 31, 2016 - $7.8 million).

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Belmond had cash and cash equivalents of $205.3 million at September 30, 2017, compared to $153.4 million at December 31, 2016. In addition, Belmond had restricted cash balances of $7.1 million, of which $6.4 million is classified as current restricted cash on the consolidated balance sheets and $0.7 million is classified in other assets (December 31, 2016 - $2.6 million, of which $1.8 million was classified in restricted cash and $0.8 million was classified in other assets). At September 30, 2017, there were undrawn amounts available to Belmond under committed lines of credit of $100.6 million (December 31, 2016 - $105.5 million), bringing total cash availability at September 30, 2017 to $305.9 million (December 31, 2016 - $258.9 million), excluding restricted cash. When assessing cash and cash equivalents within Belmond, management considers the availability of those cash resources held within local business units to meet the strategic needs of Belmond.

At September 30, 2017, Belmond had $6.8 million of scheduled debt repayments due within one year. Belmond expects to meet these repayments and fund working capital and capital expenditure commitments for the foreseeable future from cash resources, operating cash flow and available committed borrowing.

In order to ensure that Belmond has sufficient liquidity for the future, Belmond’s cash flow projections and available funds are reviewed with the Company’s board of directors on a regular basis.

Recent Events Affecting Belmond’s Liquidity and Capital Resources

On July 3, 2017, Belmond amended and restated its credit agreement. The amended and restated credit agreement provides the Company with (i) a seven-year $603.4 million Term Loan Facility that matures on July 3, 2024 and (ii) a $100.0 million Revolving Credit Facility that matures on July 3, 2022. The proceeds from the Term Loan Facility were recognized as cash and used to repay all outstanding funded debt including the $45.0 million that had been drawn under the prior revolving credit facility, but not the debt of Charleston Centre LLC, a consolidated VIE, or the debt of Belmond’s unconsolidated joint venture companies. A loss on modification of debt of $0.6 million (September 30, 2016 - $Nil) was recognized in the three and nine months endedSeptember 30, 2017. The loss consisted of unamortized debt issuance costs relating to the amended and restated credit agreement.

On May 26, 2017, Belmond acquired Cap Juluca, a 96-key luxury resort on the Caribbean island of Anguilla, British West Indies for a total transaction value of $84.8 million, including an aggregate cash purchase price of $68.7 million, acquisition-related costs of $14.0 million and excluding a working capital credit of $2.1 million. The acquisition was funded from existing cash reserves and $45.0 million of borrowings under the Company’s prior revolving credit facility, which was repaid following the amendment and restatement of the credit agreement on July 3, 2017. See Notes 3 and 10 to the Financial Statements.

In March 2015, Belmond’s board of directors approved a program authorizing the Company to repurchase its shares of class A common stock up to the value of $75.0 million. No shares were repurchased during the nine months endedSeptember 30, 2017. To date the Company has acquired 3,574,667 shares of class A common stock for consideration of $40.0 million.

Covenant Compliance

At September 30, 2017, Belmond was financed with a $610.0 million Term Loan Facility and a $100.0 million Revolving Credit Facility. The amended and restated credit agreement limits Belmond’s ability to incur additional debt unless certain covenants are met. These covenants are measured on the performance of the consolidated group. The amended and restated credit agreement removed the minimum interest coverage ratio covenant test and increased the net leverage ratio permitted in the covenant test. The maximum net leverage test is measured quarterly based on Belmond’s trailing 12 months results. In addition, there was debt held by consolidated variable interest entities of $112.9 million relating to Charleston Center LLC. One of the loans ($112.0 million) contained two financial covenants, a minimum interest cover test and minimum debt service ratio, both measured quarterly based on the trailing 12 months results of Charleston Center LLC. Belmond was in compliance with its covenants as at September 30, 2017.

Belmond continues to closely monitor projected covenant compliance under its amended and restated credit agreement, and if there was a possibility of non-compliance with a covenant, Belmond would proactively meet with the agent or lending bank or banks of the relevant facility to seek an amendment or waiver. Obtaining a waiver may result in additional bank fees or an increase in the interest cost.

If Belmond does not comply with its financial covenants and the banks that provide the Revolving Credit Facility declare a default and accelerate the repayment of their debt, this will cause an event of default under the amended and restated credit agreement. The cross default threshold in the amended and restated credit agreement to other debt that is recourse to Belmond is $25.0 million.

Based on its current financial forecasts, Belmond believes it will comply with all of the financial covenants in its amended and restated credit agreement.

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Working Capital

Current assets less current liabilities, including the current portion of long-term debt, resulted in a working capital surplus of $148.6 million at September 30, 2017 (December 31, 2016 - $107.4 million).

Cash Flow - Sources and Uses of Cash

At September 30, 2017 and December 31, 2016, Belmond had cash and cash equivalents of $205.4 million and $153.4 million, respectively. In addition, Belmond had restricted cash of $7.1 million (of which $6.4 million was classified as current restricted cash on the condensed consolidated balance sheets and $0.7 million was classified in other assets) and $2.6 million (of which $1.8 million was classified in restricted cash on the condensed consolidated balance sheets and $0.8 million was classified in other assets) as of September 30, 2017 and December 31, 2016, respectively.

Operating Activities. Net cash provided by operating activities for the nine months endedSeptember 30, 2017 was $64.2 million, compared to $67.9 million for the nine months endedSeptember 30, 2016.

The primary driver of operating cash flows is the result for the period, adjusted for any non-cash components. Net losses from continuing operations were $15.4 million for the nine months endedSeptember 30, 2017, a decrease of $45.1 million from net earnings of $29.7 million for the nine months endedSeptember 30, 2016. Non-cash items affecting the calculation of net cash provided by operating activities included an impairment of property, plant & equipment of $8.2 million relating to Belmond Road to Mandalay and Belmond Northern Belle recorded during the nine months endedSeptember 30, 2017 compared to a $1.0 million impairment of property, plant and equipment in the nine months endedSeptember 30, 2016 relating to Belmond Orcaella. In addition, during the nine months endedSeptember 30, 2016 there was a $1.2 million gain on extinguishment of debt and a $14.3 million cash outflow to settle accrued interest on Charleston Center LLC’s 1984 development loan from a municipal agency. Operating cash flows were also affected by the fact that net losses from continuing operations for the nine months endedSeptember 30, 2017 included a non-cash loss from foreign currency translation of $2.7 million, compared to a non-cash gain from foreign currency translation of $9.2 million for the nine months endedSeptember 30, 2016.

Investing Activities. Net cash used in investing activities was $111.6 million for the nine months endedSeptember 30, 2017, compared to net cash used in investing activities of $37.8 million for the nine months endedSeptember 30, 2016.

During the nine months endedSeptember 30, 2017, $68.6 million, net of cash acquired, was used for the acquisition of Cap Juluca. See Note 3 to the Financial Statements. There were no acquisitions during the nine months endedSeptember 30, 2016.

Capital expenditure to acquire property, plant and equipment of $43.0 million during the nine months endedSeptember 30, 2017 included $3.8 million at Belmond Copacabana Palace on the full refurbishment of the Pergula Restaurant, $3.7 million for the Venice Simplon-Orient-Express related to statutory maintenance works, $3.0 million at Belmond Grand Hotel Europe for improvements to the hotel's heating and air conditioning system and renovation of its deluxe rooms, $2.9 million on corporate projects, which included the Company's new enterprise resource planning system and website, with the balance being for routine capital expenditures, $2.7 million at Belmond La Residencia for the addition of six new suites and $2.6 million at Belmond Hotel Cipriani for works related to the renovation of two existing junior suites and the addition of a new junior suite.

Capital expenditure to acquire property, plant and equipment of $40.6 million during the nine months endedSeptember 30, 2016 included $5.2 million at Belmond Charleston Place related to the cost of adding a new high-end sports pub which opened in July 2016 as well as for roof replacement works, $4.2 million on the Venice Simplon-Orient-Express related to statutory maintenance works and the phased installation of air-conditioning, $3.8 million at Belmond Mount Nelson Hotel for the renovation of rooms in the hotel's main building, $3.7 million on the Belmond Grand Hibernian train which commenced operations in August 2016, $3.6 million at Belmond La Residence d’Angkor primarily for a rooms renovation project, with the balance being for routine capital expenditures.

Financing Activities. Net cash provided by financing activities for the nine months endedSeptember 30, 2017 was $91.0 million, compared to net cash provided by financing activities of $11.1 million for the nine months endedSeptember 30, 2016.

On July 3, 2017, Belmond amended and restated its credit agreement which had previously consisted of (a) a seven-year $552.0 million term loan facility consisting of a $345.0 million U.S. dollar tranche and a €150.0 million euro-denominated tranche (equivalent to $207.0 million at drawdown), scheduled to mature on March 21, 2021 and (b) a $105 million revolving credit facility scheduled to mature on March 21, 2019.

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The amended and restated credit agreement provides the Company with (i) a seven-year $603.4 million Term Loan Facility that matures on July 3, 2024 and (ii) a $100.0 million Revolving Credit Facility that matures on July 3, 2022. The proceeds from the Term Loan Facility were recognized as cash and used to repay all outstanding funded debt including the $45.0 million that had been drawn during the nine months endedSeptember 30, 2017 under the prior revolving credit facility, but not the debt of Charleston Center LLC, a consolidated VIE, or the debt of Belmond’s unconsolidated joint venture companies.

During the nine months endedSeptember 30, 2016, Charleston Center LLC refinanced its $86.0 million loan secured on its real and personal property with an amended $112.0 million loan. The additional proceeds of $26.0 million were used to repay a 1984 development loan from a municipal agency and associated accrued interest.

Principal repayments under long-term debt were therefore $548.8 million for the nine months endedSeptember 30, 2017 compared to $12.6 million for the nine months endedSeptember 30, 2016.

In addition, the nine months endedSeptember 30, 2016 included a cash outflow of $2.0 million in relation to repurchases of Belmond’s class A common stock. There were no share repurchases in the nine months endedSeptember 30, 2017.

Cash Flows from Discontinued Operations. The results of Ubud Hanging Gardens and Porto Cupecoy have been presented as discontinued operations for all periods presented.

Capital Commitments

Belmond routinely makes capital expenditures to enhance its business. These capital expenditures relate to maintenance, improvements to existing properties and investment in new properties. These capital commitments are expected to be funded through current cash balances, cash flows from operations and existing debt facilities.

There were $11.0 million of capital commitments outstanding at September 30, 2017 (December 31, 2016 - $7.8 million) relating to project developments and refurbishment for existing properties.

Indebtedness

As at September 30, 2017, Belmond has $722.9 million (December 31, 2016 - $602.1 million) of consolidated debt and obligations under capital leases, including the current portion and including debt held by consolidated variable interest entities. Total debt on the consolidated balance sheets at September 30, 2017 is net of the unamortized original issue discount of $3.3 million (December 31, 2016 - $1.5 million) and unamortized debt issuance costs of $14.6 million (December 31, 2016 - $9.5 million), both of which are amortized through interest expense over the term of the loans.

On July 3, 2017, Belmond amended and restated its credit agreement. The amended and restated agreement provides the Company with (i) a seven-year $603.4 million Term Loan Facility that matures on July 3, 2024 and (ii) a $100.0 million Revolving Credit Facility that matures on July 3, 2022.

As at September 30, 2017, Belmond is financed with a $610.0 million Term Loan Facility and a $100.0 million Revolving Credit Facility.

The Term Loan Facility has two tranches, a U.S. dollar tranche ($399.0 million currently outstanding) and a euro-denominated tranche (€178.6 million currently outstanding, equivalent to $211.0 million as at September 30, 2017). The dollar tranche bears interest at a rate of LIBOR plus 2.75% per annum, and the euro tranche bears interest at a rate of EURIBOR plus 3% per annum. Both tranches are subject to a 0% interest rate floor. The annual mandatory amortization is 1% of the principal amount.

The Revolving Credit Facility bears interest at a rate of LIBOR plus 2.50% per annum, with a commitment fee of 0.4% to be paid on the undrawn amount. As at September 30, 2017 the Revolving Credit Facility is undrawn and including other working capital facilities the Company has $100.6 million available to draw.

The Secured Credit Facilities are secured by pledges of shares in certain Company subsidiaries and by security interests in tangible and intangible personal property. There are no mortgages over real estate.

The weighted average duration of Belmond’s debt, including debt held by consolidated variable interest entities, as at September 30, 2017 is 6.3 years, and the weighted average interest rate is 3.99% which incorporates the effect of derivatives which are used to mitigate interest rate risk. See Note 10 to the Financial Statements regarding the maturity of long-term debt.

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Debt of consolidated variable interest entities as at September 30, 2017 included above comprises $112.9 million (December 31, 2016 - $113.1 million), including the current portion but before deduction of unamortized debt issuance costs, of debt obligations of Charleston Center LLC, owner of Belmond Charleston Place in which Belmond has a 19.9% equity investment.

In June 2016, Charleston Center LLC amended its secured loan of $86.0 million increasing the amount of the loan to $112.0 million but keeping the original 2019 maturity. The interest rate on the new loan is LIBOR plus 2.35% per annum and has no amortization and is non-recourse to Belmond. The additional proceeds were used to repay a 1984 development loan from a municipal agency and associated accrued interest.

Including debt of consolidated variable entities, approximately 29% of the outstanding principal amount of Belmond’s consolidated debt is in euros and the balance primarily in U.S. dollars, and 52% of borrowings of Belmond are at floating interest rates as at September 30, 2017.

Belmond has contingently guaranteed debt obligations of certain of its joint ventures. The following table summarizes these commitments at September 30, 2017:

	Contingent guarantee	Duration
September 30, 2017	$ millions
PeruRail joint venture:
Concession performance	9.9	through May 2018
Peru hotel joint venture:
Debt obligations	16.3	through 2021
Total	26.2

Belmond has contingently guaranteed, through 2021, $16.3 million of debt obligations of the joint venture in Peru that operates five hotels and has also contingently guaranteed the PeruRail joint venture’s obligations relating to the performance of its governmental rail concessions, currently in the amount of $9.9 million, through May 2018. The contingent guarantees for each Peruvian joint venture may only be enforced in the event there is a change in control of the relevant joint venture, which would occur only if Belmond’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred and is not expected to occur.

Recent Accounting Pronouncements

As at September 30, 2017, Belmond had adopted all relevant accounting guidance, as reported in Note 1 to the condensed consolidated financial statements. Accounting pronouncements to be adopted are also reported in Note 1.

Critical Accounting Policies and Estimates

For a discussion of these, see Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates in the Company’s 2016 Annual Report on Form 10-K.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

Belmond is exposed to market risk from changes in interest rates and foreign currency exchange rates.  These exposures are monitored and managed as part of its overall risk management program, which recognizes the unpredictability of financial markets and seeks to mitigate material adverse effects on consolidated earnings and cash flow. Belmond does not hold market rate sensitive financial instruments for trading purposes.

The market risk relating to interest rates arises mainly from the financing activities of Belmond. Earnings are affected by changes in interest rates on floating rate borrowings, principally based on U.S. dollar LIBOR and EURIBOR. Belmond management assesses market risk based on changes in interest rates using a sensitivity analysis. If the rate to be paid by Belmond increased by 100 basis points with all other variables held constant and after taking into account the 0% floor on the corporate term loan, annual net finance costs of Belmond would increase by approximately $3.7 million based on borrowings outstanding at September 30, 2017.

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The market risk relating to foreign currencies arises from holding assets, buying, selling and financing in currencies other than the U.S. dollar, principally the euro, British pound, South African rand, Russian ruble and Brazilian real. Some non-U.S. subsidiaries of the Company borrow in local currencies, and Belmond may in the future enter into forward exchange contracts relating to purchases denominated in foreign currencies.

Twelve of Belmond’s owned properties in 2017 operated in European euro territories, two in Brazilian real, one in South African rand, five in British pounds, three in Botswana pula, two in Mexican peso, one in Peruvian nuevo sol, one in Russian ruble and eight in various Southeast Asian currencies. Revenue derived by Venice Simplon-Orient-Express was recorded primarily in British pounds, but its operating costs were mainly denominated in euros. Revenue derived by Belmond Maroma Resort and Spa, Belmond La Samanna and Belmond Miraflores Park was recorded in U.S. dollars, but the majority of the hotels’ expenses were denominated in Mexican pesos, European euros and Peruvian nuevo soles, respectively. Both revenue and the majority of expenses for Belmond Governor's Residence, Belmond La Résidence D'Angkor, Belmond Road to Mandalay and Belmond Orcaella were recorded in U.S. dollars.

Except for the specific instances described above, Belmond’s properties seek to match foreign currency earnings and costs as far as possible to provide a natural hedge against currency movements. The extent to which such a match is possible depends on the property, its guest base and the currency of the majority of its costs. Belmond hedges the U.S. dollar value of its euro denominated net assets by drawing part of its debt in euros and designating that debt as a net investment hedge. In addition, a significant proportion of the guests at Belmond hotels located outside of the United States originate from the United States. When a foreign currency in which Belmond operates depreciates against the U.S. dollar, Belmond has some flexibility to increase prices in local currency, or vice versa. Management believes that when these factors are combined, Belmond does not face a material exposure to its net earnings from currency movements, although the reporting of Belmond’s revenue and costs translated into U.S. dollars can, from period to period, be materially affected.

Belmond management uses a sensitivity analysis to assess the potential impact on net earnings of changes in foreign currency financial instruments from hypothetical changes in the foreign currency exchange rates. The primary assumption used in this model is a hypothetical 10% weakening or strengthening of the foreign currencies against the U.S. dollar. However, because Belmond does not have at September 30, 2017 any significant financial instruments in a currency other than the functional currency of the operation concerned, apart from the euro-denominated indebtedness designated as a net investment hedge discussed in Note 20, there is no material potential impact on net earnings at September 30, 2017 as a result of hypothetical changes in the foreign currency exchange rates.

ITEM 4. Controls and Procedures

Disclosure Controls and Procedures

The Company’s chief executive officer and chief financial officer have evaluated the effectiveness of Belmond’s disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) to ensure that the information required to be disclosed in reports filed or submitted under the Exchange Act is accumulated and communicated to Belmond management to allow timely decisions regarding required disclosure and to provide reasonable assurance that the information is recorded, processed, summarized and reported within the appropriate time periods. Based on that evaluation, Belmond management has concluded that these disclosure controls and procedures were effective as of September 30, 2017.

Changes in Internal Control over Financial Reporting

There have been no changes in Belmond’s internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the third quarter of 2017 that have materially affected, or are reasonably likely to materially affect, Belmond’s internal control over financial reporting.

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PART II — OTHER INFORMATION

ITEM 1.    Legal Proceedings

The information set forth under Note 18 to the accompanying consolidated financial statements included in this Quarterly Report on Form 10-Q is incorporated herein by reference.

ITEM 1A.    Risk Factors

There have been no material changes in the Company’s risk factors as previously disclosed in Part I, Item IA of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

ITEM 6.    Exhibits

The exhibit index appears on the page immediately following the signature page to this report.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated:  November 7, 2017

BELMOND LTD.
By:	/s/ Martin O’Grady
	Martin O’Grady
	Executive Vice President, Chief Financial Officer (Principal Accounting Officer)

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EXHIBIT INDEX

Exhibit No.	Incorporated by Reference to	Description
3.1	Exhibit 3.1 to July 2, 2014 Form 8-K Current Report	Memorandum of Association and Certificate of Incorporation of Belmond Ltd.
3.2	Exhibit 3.2 to June 21, 2007 Form 8-K Current Report	Bye-Laws of Belmond Ltd.
3.3	Exhibit 1 to April 23, 2007 Amendment No. 1 to Form 8-A Registration Statement	Rights Agreement dated June 1, 2000, and amended and restated April 12, 2007, between Orient-Express Hotels Ltd. and Computershare Trust Company N.A., as Rights Agent
3.4	Exhibit 4.2 to December 10, 2007 Form 8-K Current Report	Amendment No. 1 dated December 10, 2007 to Amended and Restated Rights Agreement (Exhibit 3.3)
3.5	Exhibit 4.3 to May 27, 2010 Form 8-K Current Report	Amendment No. 2 dated May 27, 2010 to Amended and Restated Rights Agreement (Exhibit 3.3)
10.1	Exhibit 10.1 to July 6, 2017 Form 8-K Current Report	Amended and Restated Credit Agreement dated July 3, 2017, among Belmond Ltd., Belmond Interfin Ltd., Barclays Bank PLC, and Credit Agricole Corporate and Investment Bank, HSBC Bank USA, National Association, Fifth Third Bank and JPMorgan Chase Bank, N.A.
31		Rule 13a-14(a)/15d-14(a) Certifications
32		Section 1350 Certification
101		Interactive data file

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EX-31

Exhibit 31

BELMOND LTD.

Rule 13a-14(a)/15d-14(a) Certification

I, H. Roeland Vos, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Belmond Ltd. for the quarter ended September 30, 2017;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: November 7, 2017	/s/ H. Roeland Vos
	H. Roeland Vos
	President and Chief Executive Officer

BELMOND LTD.

Rule 13a-14(a)/15d-14(a) Certification

I, Martin O’Grady, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Belmond Ltd. for the quarter ended September 30, 2017;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: November 7, 2017	/s/ Martin O’Grady
	Martin O’Grady
	Executive Vice President, Chief Financial Officer

EX-32

Exhibit 32

BELMOND LTD.

Section 1350 Certification

The undersigned hereby certify that this report of Belmond Ltd. for the periods presented fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented in the report.

/s/ H. Roeland Vos	/s/ Martin O’Grady
H. Roeland Vos	Martin O’Grady
President and Chief Executive Officer	Executive Vice President, Chief Financial Officer

Dated: November 7, 2017

A signed original of this written certification has been provided to Belmond Ltd. and will be retained by Belmond Ltd. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 03, 2017
Entity Registrant Name	BELMOND LTD.
Entity Central Index Key	0001115836
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Class A common shares at par value
Entity Common Stock, Shares Outstanding:		102,339,398
Class B common shares at par value
Entity Common Stock, Shares Outstanding:		18,044,478

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Condensed Consolidated Balance Sheets (unaudited) - USD ($)		Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents		$ 205,367,000	$ 153,425,000
Restricted cash		6,368,000	1,830,000
Accounts receivable, net of allowances of $491 and $420		43,037,000	25,775,000
Due from unconsolidated companies		14,064,000	12,165,000
Prepaid expenses and other		13,352,000	12,262,000
Inventories		23,890,000	23,931,000
Assets held for sale		3,829,000	0
Total current assets		309,907,000	229,388,000
Property, plant and equipment, net of accumulated depreciation of $420,285 and $368,939		1,167,515,000	1,074,676,000
Investments in unconsolidated companies		83,074,000	79,327,000
Goodwill		125,088,000	113,343,000
Other intangible assets		20,306,000	13,877,000
Other assets		12,555,000	13,457,000
Total assets	[1]	1,718,445,000	1,524,068,000
Liabilities and Equity
Accounts payable		16,274,000	16,366,000
Accrued liabilities		98,774,000	69,046,000
Deferred revenue		38,582,000	31,350,000
Liabilities held for sale		938,000	0
Current portion of long-term debt and obligations under capital leases		6,767,000	5,284,000
Total current liabilities		161,335,000	122,046,000
Long-term debt and obligations under capital leases		698,275,000	585,768,000
Liability for pension benefit		440,000	1,447,000
Other liabilities		1,040,000	5,366,000
Deferred income taxes		133,246,000	122,291,000
Liability for uncertain tax positions		428,000	318,000
Total liabilities	[1]	994,764,000	837,236,000
Commitments and contingencies (Note 18)
Shareholders’ equity:
Preferred shares $0.01 par value (30,000,000 shares authorized, issued Nil)		0	0
Additional paid-in capital		984,483,000	979,458,000
Retained earnings		43,046,000	58,313,000
Accumulated other comprehensive loss		(305,223,000)	(352,339,000)
Less: Reduction due to class B common shares owned by a subsidiary — 18,044,478 (2016 — 18,044,478)		(181,000)	(181,000)
Total shareholders’ equity		723,327,000	686,450,000
Non-controlling interests		354,000	382,000
Total equity		723,681,000	686,832,000
Total liabilities and equity		1,718,445,000	1,524,068,000
Class A common shares $0.01 par value (240,000,000 shares authorized):
Shareholders’ equity:
Common shares		1,021,000	1,018,000
Class B common shares $0.01 par value (120,000,000 shares authorized):
Shareholders’ equity:
Common shares		$ 181,000	$ 181,000

[1] Included in Belmond Ltd.’s consolidated assets and liabilities are assets of consolidated variable interest entities (“consolidated VIEs”) that can only be used to settle obligations of the consolidated VIEs and liabilities of consolidated VIEs whose creditors have no recourse to Belmond Ltd. The Company’s only consolidated VIE at September 30, 2017 and December 31, 2016 is Charleston Center LLC. The assets and liabilities relating to this VIE at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 $’000 $’000 Assets Cash and cash equivalents 1,508 2,233Accounts receivable, net of allowances of $Nil and $Nil 3,696 3,066Prepaid expenses and other 1,306 365Inventories 1,289 1,296Total current assets 7,799 6,960 Property, plant and equipment, net of accumulated depreciation of $41,052 and $35,902 198,643 201,861Other assets 1,303 1,455Total assets 207,745 210,276 Liabilities Accounts payable 2,773 4,558Accrued liabilities 4,195 3,099Deferred revenue 3,017 1,714Current portion of long-term debt and obligations under capital leases 252 242Total current liabilities 10,237 9,613 Long-term debt and obligations under capital leases 112,046 111,968Other liabilities — 40Total liabilities 122,283 121,621See further description in note 5, Variable interest entities.

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Condensed Consolidated Balance Sheets (unaudited) - Variable Interest Entities (Parenthetical) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents		$ 205,367	$ 153,425
Accounts receivable, net of allowances of $Nil and $Nil		43,037	25,775
Prepaid expenses and other		13,352	12,262
Inventories		23,890	23,931
Total current assets		309,907	229,388
Property, plant and equipment, net of accumulated depreciation of $41,052 and $35,902		1,167,515	1,074,676
Other assets		12,555	13,457
Total assets	[1]	1,718,445	1,524,068
Liabilities
Accounts payable		16,274	16,366
Accrued liabilities		98,774	69,046
Deferred revenue		38,582	31,350
Current portion of long-term debt and obligations under capital leases		6,767	5,284
Total current liabilities		161,335	122,046
Long-term debt and obligations under capital leases		698,275	585,768
Other liabilities		1,040	5,366
Total liabilities	[1]	994,764	837,236
Variable Interest Entity, Primary Beneficiary
Assets
Cash and cash equivalents		1,508	2,233
Accounts receivable, net of allowances of $Nil and $Nil		3,696	3,066
Prepaid expenses and other		1,306	365
Inventories		1,289	1,296
Total current assets		7,799	6,960
Property, plant and equipment, net of accumulated depreciation of $41,052 and $35,902		198,643	201,861
Other assets		1,303	1,455
Total assets		207,745	210,276
Liabilities
Accounts payable		2,773	4,558
Accrued liabilities		4,195	3,099
Deferred revenue		3,017	1,714
Current portion of long-term debt and obligations under capital leases		252	242
Total current liabilities		10,237	9,613
Long-term debt and obligations under capital leases		112,046	111,968
Other liabilities		0	40
Total liabilities		$ 122,283	$ 121,621

[1] Included in Belmond Ltd.’s consolidated assets and liabilities are assets of consolidated variable interest entities (“consolidated VIEs”) that can only be used to settle obligations of the consolidated VIEs and liabilities of consolidated VIEs whose creditors have no recourse to Belmond Ltd. The Company’s only consolidated VIE at September 30, 2017 and December 31, 2016 is Charleston Center LLC. The assets and liabilities relating to this VIE at September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 $’000 $’000 Assets Cash and cash equivalents 1,508 2,233Accounts receivable, net of allowances of $Nil and $Nil 3,696 3,066Prepaid expenses and other 1,306 365Inventories 1,289 1,296Total current assets 7,799 6,960 Property, plant and equipment, net of accumulated depreciation of $41,052 and $35,902 198,643 201,861Other assets 1,303 1,455Total assets 207,745 210,276 Liabilities Accounts payable 2,773 4,558Accrued liabilities 4,195 3,099Deferred revenue 3,017 1,714Current portion of long-term debt and obligations under capital leases 252 242Total current liabilities 10,237 9,613 Long-term debt and obligations under capital leases 112,046 111,968Other liabilities — 40Total liabilities 122,283 121,621See further description in note 5, Variable interest entities.

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Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Accounts receivable, allowances	$ 491	$ 420
Property, plant and equipment, accumulated depreciation	$ 420,285	$ 368,939
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, shares authorized (in shares)	30,000,000	30,000,000
Preferred shares, shares issued (in shares)	0	0
Class A common shares at par value
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	240,000,000	240,000,000
Common shares, shares issued (in shares)	102,335,078	101,793,829
Class B common shares at par value
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized (in shares)	120,000,000	120,000,000
Common shares, shares issued (in shares)	18,044,478	18,044,478
Reduction due to Class B shares owned by a subsidiary (in shares)	18,044,478	18,044,478
Variable Interest Entity, Primary Beneficiary
Accounts receivable, allowances	$ 0	$ 0
Property, plant and equipment, accumulated depreciation	$ 41,052	$ 35,902

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Statements of Condensed Consolidated Operations (unaudited) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	[1]	$ 182,973	$ 183,737	$ 443,705	$ 435,629
Expenses:
Cost of services		72,010	71,987	184,775	186,459
Selling, general and administrative		59,356	53,285	184,205	150,214
Depreciation and amortization		17,052	13,155	45,862	39,553
Impairment of property, plant and equipment		0	1,007	8,216	1,007
Total operating costs and expenses		148,418	139,434	423,058	377,233
Gain on disposal of property, plant and equipment		150	488	450	788
Earnings from operations		34,705	44,791	21,097	59,184
Gain on extinguishment of debt		0	0	0	1,200
Interest income		240	289	582	582
Interest expense		(8,993)	(7,840)	(24,536)	(23,026)
Foreign currency, net		(1,486)	1,432	(2,727)	9,161
Earnings/(losses) before income taxes and earnings from unconsolidated companies, net of tax		24,466	38,672	(5,584)	47,101
Provision for income taxes		(20,732)	(20,401)	(17,608)	(25,140)
Earnings/(losses) before earnings from unconsolidated companies, net of tax		3,734	18,271	(23,192)	21,961
Earnings from unconsolidated companies, net of tax provision of $2,026, $1,712, $4,079 and $3,943		3,939	4,618	7,789	7,712
Earnings/(losses) from continuing operations		7,673	22,889	(15,403)	29,673
Net (losses)/earnings from discontinued operations, net of tax provision of $Nil, $Nil, $Nil and $Nil		(3)	(4)	125	51
Net earnings/(losses)		7,670	22,885	(15,278)	29,724
Net losses/(earnings) attributable to non-controlling interests		96	(17)	11	(57)
Net earnings/(losses) attributable to Belmond Ltd.		$ 7,766	$ 22,868	$ (15,267)	$ 29,667
Basic earnings per share
Net earnings/(losses) from continuing operations (in dollars per share)		$ 0.075	$ 0.225	$ (0.151)	$ 0.292
Net earnings/(losses) from discontinued operations (in dollars per share)		0.000	0.000	0.001	0.001
Basic net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share)		0.076	0.225	(0.150)	0.292
Diluted earnings per share
Net earnings/(losses) from continuing operations (in dollars per share)		0.074	0.222	(0.151)	0.288
Net earnings/(losses) from discontinued operations (in dollars per share)		0.000	0.000	0.001	0.000
Diluted net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share)		$ 0.075	$ 0.222	$ (0.150)	$ 0.287

[1] Includes revenue from related parties of $4,758,000, $4,563,000, $11,601,000 and $10,869,000 respectively

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Statements of Condensed Consolidated Operations (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Earnings from unconsolidated companies, tax provision	$ 2,026	$ 1,712	$ 4,079	$ 3,943
Discontinued operations, tax (benefit)/provision	0	0	0	0
Related party revenue	$ 4,758	$ 4,563	$ 11,601	$ 10,869

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Statements of Condensed Consolidated Comprehensive Income (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net earnings/(losses)	$ 7,670	$ 22,885	$ (15,278)	$ 29,724
Other comprehensive income/(losses), net of tax:
Foreign currency translation adjustments, net of tax provision/(benefit) of $Nil, $(335), $Nil and $(335)	17,950	1,769	46,927	7,668
Change in fair value of derivatives, net of tax provision/(benefit) of $175, $235, $371 and $(313)	(1,065)	748	(306)	(967)
Change in pension liability, net of tax provision of $32, $29, $97 and $87	162	121	478	386
Total other comprehensive income, net of tax	17,047	2,638	47,099	7,087
Total comprehensive income	24,717	25,523	31,821	36,811
Comprehensive losses/(income) attributable to non-controlling interests	122	(36)	28	(178)
Comprehensive income attributable to Belmond Ltd.	$ 24,839	$ 25,487	$ 31,849	$ 36,633

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Statements of Condensed Consolidated Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, tax provision/(benefit)	$ 0	$ (335)	$ 0	$ (335)
Change in fair value of derivatives, tax provision/(benefit)	175	235	371	(313)
Change in pension liability, tax provision/(benefit)	$ 32	$ 29	$ 97	$ 87

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Statements of Condensed Consolidated Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Cash flows from operating activities:
Net earnings/(losses)	$ 7,670	$ 22,885	$ (15,278)	$ 29,724
Less: Net earnings from discontinued operations, net of tax	(3)	(4)	125	51
Net (losses)/earnings from continuing operations	7,673	22,889	(15,403)	29,673
Adjustments to reconcile net (losses)/earnings to net cash provided by operating activities:
Depreciation and amortization	17,052	13,155	45,862	39,553
Impairment of property, plant and equipment			8,216	1,007
Gain on disposal of property, plant and equipment	(150)	(488)	(450)	(788)
Gain on extinguishment of debt	0	0	0	1,200
Earnings from unconsolidated companies, net of tax	(3,939)	(4,618)	(7,789)	(7,712)
Amortization of debt issuance costs and discount on secured term loan	1,350	768	2,826	2,208
Share-based compensation			5,025	5,258
Change in provisions for uncertain tax positions			67	204
Benefit from deferred income tax			6,504	12,074
Other non-cash movements			1,472	1,773
Effect of exchange rates on net losses			541	(11,070)
Change in assets and liabilities, net of effects from acquisitions:
Accounts receivable			(7,082)	(4,004)
Due from unconsolidated companies			(724)	(816)
Prepaid expenses and other			(1,113)	701
Inventories			1,714	(375)
Escrow and prepaid customer deposits			(4,168)	(3,294)
Accounts payable			(1,144)	948
Accrued liabilities			29,351	11,555
Deferred revenue			4,182	4,057
Other liabilities			(5,622)	(14,383)
Other, net			866	(530)
Other cash movements:
Dividends from equity method investees			3,180	3,018
Payment of swap termination costs			(2,145)	0
Net cash provided by operating activities from continuing operations			64,166	67,857
Net cash provided by operating activities from discontinued operations			(10)	51
Net cash provided by operating activities			64,156	67,908
Cash flows from investing activities:
Capital expenditure to acquire property, plant and equipment	(15,597)	(13,480)	(43,012)	(40,556)
Acquisitions, net of cash acquired			(68,632)	0
Release of restricted cash			7	43
Proceeds from sale of property, plant and equipment			0	2,746
Net cash used in investing activities from continuing operations			(111,637)	(37,767)
Net cash provided by investing activities from discontinued operations			0	0
Net cash used in investing activities			(111,637)	(37,767)
Cash flows from financing activities:
Repurchase of shares			0	(1,992)
Exercised share options and vested share awards			3	17
Dividend to non-controlling interest			0	(7)
Proceeds from borrowings			649,478	26,000
Debt issuance costs			(9,703)	(414)
Principal payments under long-term debt			(548,798)	(12,552)
Net cash provided by financing activities from continuing operations			90,980	11,052
Net cash provided by financing activities from discontinued operations			0	0
Net cash provided by financing activities			90,980	11,052
Effect of exchange rate changes on cash and cash equivalents			8,443	1,100
Net increase in cash and cash equivalents			51,942	42,293
Cash and cash equivalents at beginning of period (includes $Nil and $Nil of cash presented within assets held for sale)			153,425	135,599	$ 135,599
Cash and cash equivalents at end of period (includes $2,000 and $Nil of cash presented within assets held for sale)	$ 205,367	$ 177,892	$ 205,367	$ 177,892	$ 153,425

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Statements of Condensed Consolidated Cash Flows (unaudited) (Parenthetical) - Assets held for sale - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Cash presented within assets held for sale at beginning of period	$ 0	$ 0	$ 0
Cash presented within assets held for sale at end of period	$ 2,000	$ 0	$ 0

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Statements of Condensed Consolidated Total Equity (unaudited) - USD ($) $ in Thousands	Total	Preferred shares at par value	Common shares at par value Class A common shares at par value	Common shares at par value Class B common shares at par value	Additional paid-in capital	Retained earnings	Accumulated other comprehensive loss	Class B common shares held by a subsidiary	Non-controlling interests
Beginning balance at Dec. 31, 2015	$ 658,425	$ 0	$ 1,015	$ 181	$ 975,419	$ 16,172	$ (334,542)	$ (181)	$ 361
Increase (Decrease) in Stockholders' Equity
Share-based compensation	5,258				5,258
Exercised stock options and vested share awards	17		5		12
Repurchase of shares	(1,992)		(2)		(2,245)	255
Dividend to non-controlling interest	(179)								(179)
Comprehensive income/(losses):
Net (losses)/earnings attributable to common shares	29,724					29,667			57
Other comprehensive income	7,087						6,966		121
Ending balance at Sep. 30, 2016	698,340	0	1,018	181	978,444	46,094	(327,576)	(181)	360
Beginning balance at Dec. 31, 2016	686,832	0	1,018	181	979,458	58,313	(352,339)	(181)	382
Increase (Decrease) in Stockholders' Equity
Share-based compensation	5,025				5,025
Exercised stock options and vested share awards	3		3		0
Comprehensive income/(losses):
Net (losses)/earnings attributable to common shares	(15,278)					(15,267)			(11)
Other comprehensive income	47,099						47,116		(17)
Ending balance at Sep. 30, 2017	$ 723,681	$ 0	$ 1,021	$ 181	$ 984,483	$ 43,046	$ (305,223)	$ (181)	$ 354

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Basis of financial statement presentation

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of financial statement presentation

Basis of financial statement presentation

Business

The terms “Belmond” and the “Company” are used in this report to refer to Belmond Ltd. and Belmond Ltd. and its subsidiaries, unless otherwise stated.

At September 30, 2017, Belmond owned, partially-owned or managed 36 deluxe hotels and resort properties operating in the United States, Mexico, the Caribbean, Europe, Southern Africa, South America, and Southeast Asia, one stand-alone restaurant in New York, eight tourist trains in Europe, Southeast Asia and Peru, two river cruise businesses in Myanmar (Burma) and one canal boat business in France. In addition, there is one hotel, scheduled for a 2018 opening, Belmond Cadogan Hotel, in London, England. Subsequent to the balance sheet date, the Company sold the shares in Northern Belle Limited, the wholly owned subsidiary that owns the rolling stock, on November 2, 2017 and provided notice of termination to the owner of Belmond Orcaella in respect of its charter agreement in October 2017. See Note 24.

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reporting on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the management of the Company, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, operating results and cash flows for the interim period have been included in these condensed consolidated financial statements.

The interim results presented are not necessarily indicative of results that may be expected for any subsequent interim period or the fiscal year ending December 31, 2017.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. See Note 2 to the consolidated financial statements in the 2016 Annual Report on Form 10-K for additional information regarding significant accounting policies.

For interim reporting purposes, Belmond calculates its tax expense by estimating its global annual effective tax rate and applies that rate in providing for income taxes on a year-to-date basis. Belmond has calculated an expected annual effective tax rate, excluding significant or unusual items, and the tax effect of jurisdictions with losses for which a tax benefit cannot be recognized. The income tax expense (or benefit) related to all other items is individually computed and recognized when the items occur.

Reclassifications

In the first quarter of 2017, the Company corrected a prior period misstatement to reclassify an immaterial deferred tax entry related to a change of functional currency at the Company's Brazilian subsidiaries in 2014. As a result, opening Retained earnings increased by $5,562,000 and opening Accumulated other comprehensive income decreased by $5,562,000, with no net change in Total Equity. There is no impact on net earnings, EPS or cash flows in any period presented.

Accounting policies

The accounting policies used in preparing these condensed consolidated financial statements are the same as those applied in the prior year.

Accounting pronouncements to be adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the new guidance. In March 2016, the FASB issued additional guidance which amends the principal-versus-agent implementation guidance and illustrations in the original accounting pronouncement. In May 2016, the FASB issued an update that clarified guidance in certain narrow aspects of the topic. The guidance was originally effective for annual and interim periods beginning after December 15, 2016, however in July 2015 the FASB confirmed that the effective date would be deferred by one year, to annual and interim periods beginning after December 15, 2017. Early adoption is permitted only for periods beginning after December 15, 2016.

The Company intends to adopt the standard in the annual period beginning January 1, 2018 under the modified retrospective approach with a cumulative effect recognized in equity and no prior period restatement. The initial analysis identifying areas that will be impacted by the new guidance is substantially complete and has been conducted predominantly through a review of contracts with customers under the new five step model: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

We have substantially completed our assessment and do not expect the standard to materially affect the amount or timing of revenue recognition for rooms, food and beverage and other hotel level sales, which form the majority of the Company’s revenue. We are continuing to evaluate other possible impacts to our condensed consolidated financial statements, including the impact on our unconsolidated companies, management and incentive fees and real estate sales.

In February 2016, the FASB issued its new standard on accounting for leases, which introduces a lessee model that brings most leases on the balance sheet. A distinction between finance leases and operating leases is retained, with the result that the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous lease guidance. The guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Belmond is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

In August 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The new guidance will be applied on a retrospective basis where applicable. Belmond is currently evaluating the impact, if any, of the adoption of this guidance on its condensed consolidated financial statements.

In October 2016, the FASB issued new guidance which is intended to simplify the tax consequences of certain types of intra-entity asset transfers. The guidance is effective for annual periods ending after December 15, 2017, and interim periods thereafter, with early adoption permitted. The new guidance will be applied on a modified retrospective basis. Belmond is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

In November 2016, the FASB issued new guidance which clarifies the classification and presentation of restricted cash in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods therein, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In January 2017, the FASB issued new guidance to simplify the accounting for goodwill impairment by eliminating step 2 from the goodwill impairment test. A goodwill impairment will now be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance is effective for annual and interim impairment tests for periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. The new guidance will be applied on a prospective basis. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In January 2017, the FASB issued new guidance to clarify the definition of a business. The guidance is effective in annual periods beginning after December 15, 2017, including interim periods therein, with early adoption permitted. The new guidance will be applied on a prospective basis. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In May 2017, the FASB issued new guidance on service concession arrangements. The guidance is effective on the same date the new revenue guidance is adopted, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In August 2017, the FASB issued new guidance to make improvements to hedge accounting requirements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods therein, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

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Earnings per share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Earnings per share

Earnings per share

The calculation of basic and diluted earnings per share including a reconciliation of the numerator and denominator is as follows:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Numerator ($'000)
Net earnings/(losses) from continuing operations	7,673		22,889		(15,403	)	29,673
Net earnings/(losses) from discontinued operations	(3	)	(4	)	125		51
Net losses/(earnings) attributable to non-controlling interests	96		(17	)	11		(57	)
Net earnings/(losses) attributable to Belmond Ltd.	7,766		22,868		(15,267	)	29,667
Denominator (shares '000)
Basic weighted average shares outstanding	102,327		101,752		102,114		101,534
Effect of dilution	1,656		1,541		—		1,409
Diluted weighted average shares outstanding	103,983		103,293		102,114		102,943
	$		$		$		$
Basic earnings per share
Net earnings/(losses) from continuing operations	0.075		0.225		(0.151	)	0.292
Net earnings/(losses) from discontinued operations	—		—		0.001		0.001
Net losses/(earnings) attributable to non-controlling interests	0.001		—		—		(0.001	)
Net earnings/(losses) attributable to Belmond Ltd.	0.076		0.225		(0.150	)	0.292
Diluted earnings per share
Net earnings/(losses) from continuing operations	0.074		0.222		(0.151	)	0.288
Net earnings/(losses) from discontinued operations	—		—		0.001		—
Net losses/(earnings) attributable to non-controlling interests	0.001		—		—		(0.001	)
Net earnings/(losses) attributable to Belmond Ltd.	0.075		0.222		(0.150	)	0.287

The total number of share options and share-based awards excluded from computing diluted earnings per share was as follows: 

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Share options	556,015	1,366,722	2,385,870	1,673,772
Share-based awards	—	—	1,333,089	—
Total	556,015	1,366,722	3,718,959	1,673,772

The number of share options and share-based awards unexercised at September 30, 2017 was 3,718,959 (September 30, 2016 - 4,028,279).

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Significant acquisitions

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Significant acquisitions

Significant acquisitions

2017 Acquisitions

Cap Juluca

On May 26, 2017, Belmond acquired Cap Juluca, a 96-key luxury resort on the Caribbean island of Anguilla, British West Indies for a total transaction value of $84,791,000, including an aggregate cash purchase price of $68,652,000, acquisition-related costs of $14,032,000 and excluding a working capital credit of $2,107,000. On the same date, the Company assumed management of the resort, which had been independently managed, and began marketing the property under the name Belmond Cap Juluca. As one of the most recognized resorts in the Caribbean, Cap Juluca is a natural fit for the Belmond portfolio and enhances Belmond’s positioning in the global luxury resort market.

The following table summarizes the consideration paid for the hotel and the preliminary allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed at the acquisition date. The acquisition has been accounted for in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, using the acquisition method of accounting whereby the total purchase price has been allocated to the acquired assets and liabilities as at May 26, 2017. The estimated fair values are preliminary and are subject to adjustment as the fair value analysis is finalized, which will be completed as soon as practicable, but no later than one year from the acquisition date.

	Fair value on May 26, 2017
	$'000
Consideration:
Agreed cash consideration	70,759
Less: Working capital adjustment	(2,107	)
Total purchase price	68,652
Assets acquired and liabilities assumed:
Cash and cash equivalents	20
Accounts receivable	112
Prepaid expenses and other	45
Inventories	108
Property, plant and equipment	59,159
Other intangible assets	6,100
Accounts payable	(595	)
Accrued liabilities	(360	)
Deferred revenue	(1,437	)
Goodwill	5,500
Net assets acquired	68,652

The purchase price of $68,652,000 was funded from existing cash reserves and $45,000,000 of borrowings under the Company’s prior revolving credit facility, which was repaid following the amendment and restatement to the credit agreement on July 3, 2017. See Note 10.

Acquisition-related costs which are included within selling, general and administrative expenses in the statements of condensed consolidated operations for the nine months endedSeptember 30, 2017 were $14,032,000, related to professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla.

Other intangible assets of $6,100,000 was assigned to trade names that are not subject to amortization. No other intangible assets were identified and recognized.

Goodwill arising on acquisition of $5,500,000 was assigned to the Owned hotels in North America segment and consists largely of profit growth opportunities the hotel is expected to generate. None of the goodwill recognized is expected to be deductible for income tax purposes.

At the same time, the Company entered into a 125-year ground lease for the property with the Government of Anguilla. The lease has been accounted for as an operating lease in accordance with ASC 840, Leases, with the annual rental expense recognized in selling, general and administrative expenses in the statements of condensed consolidated operations, and future rental payments committed as at September 30, 2017 disclosed in Note 18.

The results of operations of the hotel has been included in the consolidated financial results since the date of acquisition. The following table presents information for Belmond Cap Juluca included in the Company’s statements of condensed consolidated operations from the acquisition date to the period ending September 30, 2017:

	2017
	$'000
Revenue	2,395
Losses from continuing operations	(14,996	)

Belmond is unable to provide pro forma results of operations for the nine months endedSeptember 30, 2017 and 2016 as if the acquisition had occurred on January 1, 2016 due to the lack of reliable historical financial information.

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Assets held for sale and discontinued operations

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Assets held for sale and discontinued operations

Assets held for sale and discontinued operations

(a)    Results of discontinued operations

Belmond had been operating the hotel Ubud Hanging Gardens under a long-term lease arrangement with a third-party owner. The existing lease arrangement continues to 2030. Following the owner's unannounced dispossession of Belmond from the hotel in November 2013, however, Belmond was unable to continue to operate the hotel. Belmond believed that the owner's actions were unlawful and constituted a wrongful dispossession and has pursued its legal remedies under the lease. See Note 18. As Belmond is unable to operate Ubud Hanging Gardens for the foreseeable future, the hotel has been presented as a discontinued operation for all periods shown. The assets and liabilities of the hotel have not been classified as held for sale, as the hotel has not been disposed of through a sale transaction.

The Porto Cupecoy development was sold in January 2013, with the final unit disposed of in September 2014. Residual costs relating to the sale of Porto Cupecoy are presented within discontinued operations for all periods shown.

Summarized operating results of the properties classified as discontinued operations for the three and nine months endedSeptember 30, 2017 and 2016 are as follows:

	Three months ended September 30, 2017
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Losses before tax, gain on sale and impairment	—	(3	)	(3	)
Losses before tax	—	(3	)	(3	)
Net losses from discontinued operations	—	(3	)	(3	)

	Three months ended September 30, 2016
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Losses before tax, gain on sale and impairment	—	(4	)	(4	)
Losses before tax	—	(4	)	(4	)
Net losses from discontinued operations	—	(4	)	(4	)

	Nine months ended September 30, 2017
	Ubud Hanging Gardens	Porto Cupecoy	Total
	$'000	$'000	$'000
Revenue	—	—	—
Earnings before tax, gain on sale and impairment	100	25	125
Earnings before tax	100	25	125
Net earnings from discontinued operations	100	25	125

	Nine months ended September 30, 2016
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Earnings/(losses) before tax, gain on sale and impairment	73	(22	)	51
Earnings/(losses) before tax	73	(22	)	51
Net earnings/(losses) from discontinued operations	73	(22	)	51

The results of discontinued operations for the nine months endedSeptember 30, 2017 included earnings of $100,000 due to the partial release of legal fee accruals in relation to Ubud Hanging Gardens, where Belmond is pursuing legal remedies following its dispossession by the owner in November 2013. See Note 18.

(b)    Assets and liabilities held for sale

At September 30, 2017, the assets and liabilities of Belmond Northern Belle, part of Belmond’s Owned trains and cruises segment, were classified as held for sale as Belmond signed a Share Purchase Agreement (“SPA”) to sell the shares in Northern Belle Limited, the wholly owned subsidiary that owns the rolling stock, for a sales price of £2,500,000 (equivalent to $3,350,000 as at September 30, 2017). This sale closed on November 2, 2017. See Note 24.

Assets and liabilities of properties classified as held for sale consist of the following:

	September 30, 2017
	Northern Belle
	$’000
Current assets	259
Property, plant and equipment	3,570
Total assets held for sale	3,829
Current liabilities	(553	)
Other liabilities	(385	)
Total liabilities held for sale	(938	)

There were no assets or liabilities classified as held for sale at December 31, 2016.

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Variable interest entities

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable interest entities

Variable interest entities

(a)    VIEs of which Belmond is the primary beneficiary

Belmond holds a 19.9% equity investment in Charleston Center LLC, owner of Belmond Charleston Place, Charleston, South Carolina. Belmond has also made a number of loans to the hotel. Belmond concluded that Charleston Center LLC is a VIE because the total equity at risk is insufficient for the entity to fund its operations without additional subordinated financial support, the majority of which has been provided by Belmond. Belmond is the primary beneficiary of this VIE because it is expected to absorb a majority of the VIE’s expected losses and residual gains through the subordinated financial support it has provided, and has the power to direct the activities that impact the VIE’s performance, based on the current organizational structure.

Assets of Charleston Center LLC that can only be used to settle obligations of the consolidated VIEs and liabilities of Charleston Center LLC whose creditors have no recourse to Belmond are presented as a footnote to the consolidated balance sheets. The third-party debt of Charleston Center LLC is secured by its net assets and is non-recourse to its members, including Belmond. The hotel's separate assets are not available to pay the debts of Belmond and the hotel's separate liabilities do not constitute obligations of Belmond. The assets of Charleston Center LLC that can be used only to settle obligations of Charleston Center LLC totaled $207,745,000 at September 30, 2017 (December 31, 2016 - $210,276,000) and exclude goodwill of $40,395,000 (December 31, 2016 - $40,395,000). The liabilities of Charleston Center LLC for which creditors do not have recourse to the general credit of Belmond totaled $122,283,000 at September 30, 2017 (December 31, 2016 - $121,621,000).

All deferred taxes attributable to the Company’s investment in the LLC arise at the investor level and are therefore not included in the footnote to the condensed consolidated balance sheets.

(b)    VIEs of which Belmond is not the primary beneficiary

Belmond holds a 25% equity investment in Eastern and Oriental Express Ltd., which operates the Eastern & Oriental Express luxury tourist train in Southeast Asia. Belmond concluded that the Eastern & Oriental Express joint venture is a variable interest entity because the total equity at risk is insufficient for it to fund its operations without additional subordinated financial support. Belmond is not the primary beneficiary of the joint venture because it does not have the power to direct the activities that most significantly impact the economic performance of the entity. The joint venture is accounted for under the equity method of accounting and included in earnings/(losses) before income taxes and earnings from unconsolidated companies in the statements of condensed consolidated operations.

The carrying amounts and maximum exposure to loss as a result of Belmond's involvement with its Eastern & Oriental Express joint venture are as follows:

	Carrying amounts		Maximum exposure
	September 30, 2017	December 31, 2016	September 30, 2017	December 31, 2016
	$’000	$’000	$’000	$’000
Investment	2,586	2,818	2,586	2,818
Due from unconsolidated company	6,681	4,771	6,681	4,771
Total	9,267	7,589	9,267	7,589

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Investments in unconsolidated companies

9 Months Ended

Sep. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

Investments in unconsolidated companies

Investments in unconsolidated companies

Investments in unconsolidated companies represent equity interests of 50% or less and in which Belmond exerts significant influence, but does not have effective control of these unconsolidated companies and, therefore, accounts for these investments using the equity method. As at September 30, 2017, these investments include the 50% ownership in rail and hotel joint venture operations in Peru, the 25% ownership in Eastern and Oriental Express Ltd, and the Buzios land joint venture which is 50% owned and is further described below.

In June 2007, a joint venture in which Belmond holds a 50% equity interest acquired real estate in Buzios, a beach resort area in Brazil, for a cash consideration of $5,000,000. Belmond planned to build a hotel and villas on the acquired land and to purchase the remaining share of the joint venture company when the building permits were obtained from the local authorities. In February 2009, the Municipality of Buzios commenced a process for the expropriation of the land in exchange for a payment of fair compensation to the joint venture. In April 2011, the State of Rio de Janeiro took over the expropriation process as part of a broader State plan to develop a coastal environmental park. Under applicable law, the State had five years to carry out the expropriation in exchange for fair value, which it failed to do by the April 18, 2016 deadline. As a result, the land returned unencumbered to the joint venture, although it is subject to expropriation again. The Company and its joint venture partner are assessing their options, including negotiation with or litigation against the State to seek a permanent resolution of the status of the land, but in any case, the Company expects to recover its investment in the project.

Summarized financial data for Belmond’s unconsolidated companies are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Current assets	94,722	96,247
Property, plant and equipment, net of accumulated depreciation	307,383	295,662
Other non-current assets	29,153	29,442
Non-current assets	336,536	325,104
Total assets	431,258	421,351
Current liabilities, including $23,949 and $21,021 current portion of third-party debt	98,759	89,785
Long-term debt	147,424	153,876
Other non-current liabilities	28,106	27,545
Non-current liabilities	175,530	181,421
Total shareholders’ equity	156,969	150,145
Total liabilities and shareholders’ equity	431,258	421,351

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Revenue	59,085	54,345	153,685	140,697
Gross profit1	41,163	39,670	106,134	98,435
Net earnings2	7,567	8,980	15,115	15,071

¹Gross profit is defined as revenues less cost of services of the unconsolidated companies.

²There were no discontinued operations or cumulative effects of a change in an accounting principle in the unconsolidated companies.

Included in unconsolidated companies are Belmond’s hotel and rail joint ventures in Peru, under which Belmond and the other 50% participant must contribute equally additional equity needed for the businesses. If the other participant does not meet this obligation, Belmond has the right to dilute the other participant and obtain a majority equity interest in the affected joint venture company. Belmond also has rights to purchase the other participant’s interests, which rights are exercisable in limited circumstances such as the other participant’s bankruptcy.

There are contingent guarantees to unconsolidated companies which are not recognized in the condensed consolidated financial statements. The contingent guarantees for each Peruvian joint venture may only be enforced in the event there is a change in control of the relevant joint venture, which would occur only if Belmond’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred and is not expected to occur. As at September 30, 2017, Belmond does not expect that it will be required to fund these guarantees relating to these joint venture companies.

Belmond has contingently guaranteed, through 2021, $16,334,000 of debt obligations of the joint venture in Peru that operates five hotels and has contingently guaranteed the Peru rail joint venture’s obligations relating to the performance of its governmental rail concessions, currently in the amount of $9,899,000, through May 2018.

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Property, plant and equipment

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, plant and equipment

Property, plant and equipment

The major classes of property, plant and equipment are as follows:

	September 30, 2017		December 31, 2016
	$’000		$’000
Land and buildings	1,128,068		1,010,362
Machinery and equipment	182,532		179,537
Fixtures, fittings and office equipment	263,904		235,098
River cruise ship and canal boats	13,296		18,618
	1,587,800		1,443,615
Less: Accumulated depreciation	(420,285	)	(368,939	)
Total property, plant and equipment, net of accumulated depreciation	1,167,515		1,074,676

The depreciation charge on property, plant and equipment for the three and nine months endedSeptember 30, 2017 was $16,916,000 (September 30, 2016 - $13,038,000) and $45,458,000 (September 30, 2016 - $39,165,000).

The table above includes property, plant and equipment, net of accumulated depreciation, of Charleston Center LLC, a consolidated VIE, of $198,643,000 at September 30, 2017 (December 31, 2016 - $201,861,000).

In September 2017 the islands of Anguilla and St Martin were hit by Hurricanes Irma and Jose when both Belmond La Samanna on St Martin and Belmond Cap Juluca on Anguilla were closed for the season. While there is still great uncertainty associated with St Martin and the speed of its recovery, based on our preliminary assessment, we anticipate that Belmond La Samanna will re-open in the fourth quarter of 2018. Belmond Cap Juluca is undergoing planned renovations and we also currently expect to re-open the resort in the fourth quarter of 2018.

Both properties are included in Belmond’s global insurance program whichprovides a combined property damage and twelve month business interruption cover of$30,000,000, subject to a deductible.In addition, Belmond La Samanna has a separate property damage insurance policy of €4,900,000 (equivalent to $5,800,000as at September 30, 2017)covering the eight villas at the resort.

We have made preliminary assessments regarding the nature and extent of the damage sustained and we are preparing the insurance claim. While these assessments are fluid and will continue to be updated and reassessed, they are subject to a number of uncertainties related to such matters as the speed of the recovery of St Martin and Anguilla and the impact of the hurricane on fuel, transportation and labor prices over the coming year. Based on our preliminary estimate at this time, we anticipate that the property damage elements of the claim alone could absorb the available cover, which therefore would not be sufficient to cover business interruption claims of approximately $8,000,000 to $10,000,000 over the next 12 months.

Based on initial estimates of the level of property damage, the Company recorded a write-off to property, plant and equipment of$5,645,000and$2,937,000at Belmond La Samanna and Belmond Cap Juluca, respectively. Belmond expects that the recovery of property damage and site clean-up costs is probable; therefore it has recorded an insurance receivable for the same amount as the property damage that has been recognized in the three and nine months endedSeptember 30, 2017, reduced by the deductible of $1,278,000. No gain contingencies have been recorded to date as those amounts have not yet been realized.

Additionally, Belmond considered whether the significant adverse change in use and physical condition following the hurricanes indicated that the carrying amount of both businesses’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and a recoverability test was required. Under the fixed assets recoverability test, the sum of the undiscounted cash flows expected to result from the operations of Belmond Cap Juluca and Belmond La Samanna were in excess of their carrying value. As at September 30, 2017, Belmond La Samanna and Belmond Cap Juluca had a property, plant and equipment balance of $29,625,000 and $56,448,000, respectively.

Factors that could reasonably be expected to impact Belmond’s estimates of property damage and the sum of undiscounted cash flows of the asset groups include the outcome of negotiations of the Company’s insurance claims with the Company’s insurers, the speed of recovery of island infrastructure, particularly the airport at St Martin, and the attractiveness of the Caribbean islands as a tourist destination.

The Company also believes this situation presents an opportunity to re-examine proposed capital expenditures for Belmond Cap Juluca and Belmond La Samanna, potentially increasing the scope of the projects but also increasing the impact of the ultimate build-outs.This re-examination, which will continue to be updated, is subject to a number of uncertainties, such as the speed of the recovery of St Martin and Anguilla and the impact of the hurricane on fuel, transportation and labor prices over the coming year.

In the nine months endedSeptember 30, 2017, Belmond considered whether the decline in performance of Belmond Road to Mandalay caused by increased competition in Myanmar indicated that the carrying amount of the business’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and an impairment test was required. The carrying value of assets was written down to management’s best estimate of the fair value based on an internally developed discounted cash flow analysis. The impairment charge of $7,124,000 is included within impairment of property, plant and equipment in the statements of consolidated operations.

Also in the nine months endedSeptember 30, 2017, Belmond considered whether the decline in performance of Belmond Northern Belle caused by a reduction in passenger numbers sourced mainly from regional markets in the U.K. indicated that the carrying amount of the business’ fixed assets may not be recoverable. Belmond concluded that an impairment trigger existed and an impairment test was required. The carrying value of assets was written down to fair value based on assumptions of potential market value. The impairment charge of $1,092,000 is included within impairment of property, plant and equipment in the statements of consolidated operations.

There was no capitalized interest in the three and nine months endedSeptember 30, 2017 and 2016.

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Goodwill

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The changes in the carrying amount of goodwill for the nine months endedSeptember 30, 2017 are as follows:

	At January 1, 2017							At September 30, 2017
	Gross goodwill amount	Accumulated impairment		Net goodwill amount	Goodwill on acquisition	Impairment	Foreign currency translation adjustment	Gross goodwill amount	Accumulated impairment		Net goodwill amount
	$'000	$'000		$'000	$'000	$'000	$'000	$'000	$'000		$'000
Owned hotels:
Europe	64,459	(14,202	)	50,257	—	—	5,493	69,952	(14,202	)	55,750
North America	66,101	(16,110	)	49,991	5,500	—	—	71,601	(16,110	)	55,491
Rest of world	20,581	(13,149	)	7,432	—	—	107	20,688	(13,149	)	7,539
Owned trains and cruises	6,325	(662	)	5,663	—	—	645	6,970	(662	)	6,308
Total	157,466	(44,123	)	113,343	5,500	—	6,245	169,211	(44,123	)	125,088

In the nine months endedSeptember 30, 2017, goodwill of $5,500,000 was recognized on the acquisition of Cap Juluca. See Note 3.

In the three months endedSeptember 30, 2017, Belmond considered whether the significant adverse change in use and physical condition following the hurricanes, indicated that it was more likely than not that the fair value of Belmond Cap Juluca was less than its carrying value. Under the first step of the goodwill impairment test, the fair value of Belmond Cap Juluca was in excess of its carrying value. Belmond Cap Juluca had a goodwill balance of $5,500,000 at September 30, 2017. The impairment test remains sensitive to changes in assumptions; factors that could result in an impairment and impact the fair value of the reporting unit include the outcome of negotiations of the Company’s insurance claims with the Company’s insurers, changes in the estimated costs of repair to the hotel, the future operating projections of the hotel, the speed of recovery of island infrastructure, particularly the airport at St. Martin, and the attractiveness of the Caribbean islands as a tourist destination. These assumptions involve a high degree of estimation and are based on preliminary information that is currently available. As new information becomes available these assumptions may need to change which may lead to changes in cash inflows or outflows that could result in a future impairment of goodwill.

In the three months endedSeptember 30, 2017, Belmond considered whether the fall in tourist arrivals in Myanmar due to negative perceptions of the country, indicated that it was more likely than not that the fair value of Belmond Governor’s Residence was less than its carrying value. While Belmond concluded that there was no impairment trigger in the three months ended September 30, 2017, it is carefully monitoring the situation. Belmond Governor’s Residence had a goodwill balance of $2,195,000 at September 30, 2017. The impairment test remains sensitive to changes in assumptions; factors that could reasonably be expected to potentially have an adverse effect on the fair value of the reporting unit include the future operating projections of the hotel, volatility in debt or equity markets that could result in changes to the discount rate, political instability, changes in future travel patterns or local competitive supply. Any failure to meet these assumptions may result in a future impairment of goodwill.

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Other intangible assets

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Other intangible assets

Other intangible assets

Other intangible assets consist of the following as of September 30, 2017:

	Favorable lease assets	Internet sites		Trade names	Total
	$'000	$'000		$'000	$'000
Carrying amount:
Balance at January 1, 2017	8,501	1,658		7,579	17,738
Additions	—	—		6,100	6,100
Disposals	—	(232	)	—	(232	)
Foreign currency translation adjustment	46	140		665	851
Balance at September 30, 2017	8,547	1,566		14,344	24,457
Accumulated amortization:
Balance at January 1, 2017	2,636	1,225			3,861
Charge for the period	279	125			404
Disposals	—	(232	)		(232	)
Foreign currency translation adjustment	16	102			118
Balance at September 30, 2017	2,931	1,220			4,151
Net book value:
At September 30, 2017	5,616	346		14,344	20,306
At December 31, 2016	5,865	433		7,579	13,877

Favorable lease intangible assets are amortized over the terms of the leases, which are between 19 and 60 years. Internet sites are amortized over a period of five to ten years. Trade names have an indefinite life and therefore are not amortized, but are assessed for impairment annually or when events indicate that impairment may have occurred.

In the nine months endedSeptember 30, 2017, trade name additions of $6,100,000 were recognized on the acquisition of Cap Juluca. See Note 3.

Amortization expense for the three and nine months endedSeptember 30, 2017 was $136,000 (September 30, 2016 - $117,000) and $404,000 (September 30, 2016 - $388,000). Estimated total amortization expense for the remainder of the year ending December 31, 2017 is $134,000 and for each of the years ending December 31, 2018 to December 31, 2021 is $539,000.

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Debt and obligations under capital lease

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt and obligations under capital lease

Debt and obligations under capital lease

(a)    Long-term debt and obligations under capital lease

Long-term debt and obligations under capital lease consist of the following:

	September 30, 2017	December 31, 2016
	$’000	$’000
Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of 21 months to seven years (2016 - two to five years), with a weighted average interest rate of 3.99% (2016 - 4.27%)	722,874	602,083
Obligations under capital lease	27	19
Total long-term debt and obligations under capital lease	722,901	602,102
Less: Current portion	6,767	5,284
Less: Discount on secured term loan	3,267	1,515
Less: Debt issuance costs	14,592	9,535
Non-current portion of long-term debt and obligations under capital lease	698,275	585,768

On July 3, 2017, Belmond amended and restated its credit agreement which had previously consisted of (a) a seven-year $551,955,000 term loan facility consisting of a $345,000,000 U.S. dollar tranche and a €150,000,000 euro-denominated tranche (equivalent to $206,955,000 at drawdown), scheduled to mature on March 21, 2021; and (b) a $105,000,000 revolving credit facility scheduled to mature on March 21, 2019.

The amended and restated credit agreement provides the Company with (i) a seven-year $603,434,000 secured term loan (the “Term Loan Facility”) that matures on July 3, 2024 and (ii) a $100,000,000 revolving credit facility (the “Revolving Credit Facility”) that matures on July 3, 2022 (together, the “Secured Credit Facilities”).

As at September 30, 2017, Belmond is financed with a $609,955,000 Term Loan Facility and a $100,000,000 Revolving Credit Facility.

The Term Loan Facility has two tranches, a U.S. dollar tranche ($399,000,000 currently outstanding) and a euro-denominated tranche (€178,553,000 currently outstanding, equivalent to $210,955,000 as at September 30, 2017). The dollar tranche bears interest at a rate of LIBOR plus 2.75% per annum, and the euro tranche bears interest at a rate of EURIBOR plus 3% per annum. Both tranches are subject to a 0% interest rate floor. The annual mandatory amortization is 1% of the principal amount.

The Revolving Credit Facility has a maturity of five years and bears interest at a rate of LIBOR plus 2.50% per annum, with a commitment fee of 0.4% to be paid on the undrawn amount. The Revolving Credit Facility is undrawn at September 30, 2017.

The Secured Credit Facilities are secured by pledges of shares in certain Company subsidiaries and by security interests in tangible and intangible personal property. There are no mortgages over real estate.

In June 2016, Charleston Center LLC amended its secured loan of $86,000,000 increasing the amount of the loan to $112,000,000 but retaining the original 2019 maturity. The interest rate on the new loan is LIBOR plus 2.35% per annum, has no amortization and is non-recourse to Belmond. The additional proceeds were used to repay a 1984 development loan from a municipal agency in the principal amount of $10,000,000 and accrued interest of $16,819,000. In connection with the early repayment of the loan, Belmond negotiated a discount that resulted in a net gain reported in the statement of consolidated operations during the year ended December 31, 2016 of $1,200,000 upon extinguishment of debt, including the payment of a tax indemnity to its partners in respect of their income from the discount arising on the cancellation of indebtedness.

The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at September 30, 2017, taking into consideration the execution of the amended and restated credit agreement on July 3, 2017:

	$’000
Remainder of 2017	1,691
2018	6,761
2019	118,783
2020	6,783
2021	6,548
2022	6,499
2023	6,499
2024 and thereafter	569,337
Total long-term debt and obligations under capital lease	722,901

The Company had guaranteed $609,955,000 of the long-term debt of its subsidiary companies as at September 30, 2017 (December 31, 2016 - $488,985,000).

The tables above include the debt of Charleston Center LLC of $112,919,000 at September 30, 2017 (December 31, 2016 - $113,098,000). The debt is non-recourse to Belmond and includes $112,000,000 which was refinanced in June 2016.

A loss on modification of debt of $575,000 (September 30, 2016 - $Nil) was recognized in the three and nine months endedSeptember 30, 2017. The loss consisted of unamortized debt issuance costs relating to the amended and restated credit agreement.

Debt issuance costs related to the above outstanding long-term debt were $14,592,000 at September 30, 2017 (December 31, 2016 - $9,535,000), including $621,000 at September 30, 2017 (December 31, 2016 - $888,000) related to the debt of Charleston Center LLC, a consolidated VIE, and are amortized to interest expense over the term of the corresponding long-term debt.

(b)Revolving credit and working capital facilities

Belmond had approximately $100,589,000 of revolving credit and working capital facilities at September 30, 2017 (December 31, 2016 - $105,525,000) of which $100,589,000 was available (December 31, 2016 - $105,525,000).

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Other liabilities

9 Months Ended

Sep. 30, 2017

Other Liabilities Disclosure [Abstract]

Other liabilities

Other liabilities

The major balances in other liabilities are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Interest rate swaps (see Note 20)	—	1,054
Deferred gain on sale of Inn at Perry Cabin by Belmond	900	1,350
Deferred lease incentive	140	162
Tax indemnity provision on extinguishment of debt (see Note 10)	—	2,800
Total other liabilities	1,040	5,366

The tax indemnity provision on extinguishment of debt, included within other liabilities at December 31, 2016, is classified within accrued liabilities for an amount totaling $2,644,000 at September 30, 2017.

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Pensions

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Pensions

Pensions

Components of net periodic pension benefit cost are as follows:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$’000		$’000		$’000		$’000
Service cost	—		—		—		—
Interest cost on projected benefit obligation	179		207		527		660
Expected return on assets	(249	)	(270	)	(736	)	(859	)
Net amortization and deferrals	195		148		576		471
Net periodic benefit cost	125		85		367		272

From January 1, 2003, a number of non-U.S. Belmond employees participated in a funded defined benefit pension plan in the United Kingdom called the Belmond (UK) Ltd. 2003 Pension Scheme. On May 31, 2006, the plan was closed for future benefit accruals.

Belmond (UK) Ltd., the plan sponsor and a wholly owned subsidiary of the Company (“Belmond UK”), was previously obligated to pay £1,272,000 (equivalent to $1,704,000 at September 30, 2017) annually to the plan under the U.K. statutorily-mandated triennial negotiation with the plan’s trustees. With a new triennial arrangement that came into effect June 2017, Belmond UK’s funding obligation was reduced from £106,000 to £24,320 (equivalent to $142,000 and $33,000 as at September 30, 2017) per month. Under the prior contribution level, the plan’s funding deficit was projected to be fully funded by the end of 2017. With the current funding level, Belmond UK is obligated to continue funding until the audited financials of the plan for the year ended December 31, 2018 are available. If no unfunded balance remains, Belmond UK shall be able to suspend further payments, but otherwise it will be expected to continue paying its monthly contribution, subject to any subsequent triennial negotiation with the plan’s trustees. However, once the plan is fully funded, Belmond UK will remain obligated to restore the plan to a fully funded balance over the remainder of the period through December 31, 2021 should its position deteriorate. During the three and nine months endedSeptember 30, 2017, contributions of $61,000 (September 30, 2016 - $442,000) and $856,000 (September 30, 2016 - $1,352,000), respectively, were made to the pension plan.

In May 2014, Belmond guaranteed the payment obligations of Belmond UK through 2023, subject to a cap of £8,200,000 (equivalent to $10,988,000 at September 30, 2017), which reduces commensurately with every payment made to the plan since December 31, 2012. As part of the recent triennial negotiation referred to above, Belmond has reinstated this guarantee effective July 1, 2017, for the period through 2026 and reset the cap from December 31, 2015 at £8,200,000, which as before will reduce with each payment made to the plan over the period.

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Income taxes

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

In the three and nine months endedSeptember 30, 2017, the income tax provision was $20,732,000 (September 30, 2016 - provision of $20,401,000) and $17,608,000 (September 30, 2016 - provision of $25,140,000), respectively. The movement in the tax provision and effective tax rate for the three and nine months endedSeptember 30, 2017 compared to the three and nine months endedSeptember 30, 2016 is mainly due to the jurisdictional profit mix of earnings from continuing operations, which have decreased compared to the prior year and have also been impacted by the costs associated with the Cap Juluca acquisition in May 2017. See Note 3.

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Interest expense

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Interest expense

Interest expense

The balances in interest expense are as follows:

	Three months ended			Nine months ended
	September 30, 2017		September 30, 2016	September 30, 2017		September 30, 2016
	$’000		$’000	$’000		$’000
Interest expense on long-term debt and obligations under capital lease	7,653		6,965	21,863		20,413
Interest on legal settlements	(10	)	107	(153	)	405
Amortization of debt issuance costs and discount on secured term loan	1,350		768	2,826		2,208
Total interest expense	8,993		7,840	24,536		23,026

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Supplemental cash flow information

9 Months Ended

Sep. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Supplemental cash flow information

Supplemental cash flow information

	Nine months ended
	September 30, 2017	September 30, 2016
	$’000	$’000
Cash paid during the period for:
Interest	22,750	34,020
Income taxes, net of refunds	11,037	12,862

To reflect the actual cash paid for capital expenditure to acquire property, plant and equipment, increases in accounts payable for capital expenditure are non-cash and excluded from capital expenditure, while decreases are cash payments and included. The change in accounts payable was a decrease of $18,000 for the nine months endedSeptember 30, 2017 (September 30, 2016 - increase of $113,000).

During the nine months endedSeptember 30, 2016, cash paid during the period for interest of $34,020,000 included the payment of accrued interest on a 1984 development loan from a municipal agency that was fully repaid by Charleston Center LLC in June 2016. See Note 10.

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Restricted cash

9 Months Ended

Sep. 30, 2017

Cash and Cash Equivalents [Abstract]

Restricted cash

Restricted cash

The major balances in restricted cash are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Cash deposits required to be held with lending banks as collateral	748	755
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy	6,012	1,341
Bonds and guarantees	356	489
Total restricted cash	7,116	2,585

Restricted cash classified as long-term and included in other assets on the condensed consolidated balance sheets at September 30, 2017 was $748,000 (December 31, 2016 - $755,000).

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Share-based compensation plans

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based compensation plans

Share-based compensation plans

At September 30, 2017, Belmond had two share-based compensation plans, the 2004 stock option plan and the 2009 share award and incentive plan. The compensation cost that has been charged to selling, general and administrative expense for these plans for the three and nine months endedSeptember 30, 2017 was $1,471,000 (September 30, 2016 - $2,109,000) and $5,025,000 (September 30, 2016 - $5,258,000), respectively. The total compensation cost related to unexercised options and unvested share awards at September 30, 2017 to be recognized over the period October 1, 2017 to June 30, 2021 was $7,865,000 and the weighted average period over which it is expected to be recognized is 28 months. Measured from the grant date, substantially all awards of restricted shares have a maximum term of up to four years, and substantially all awards of share options have a maximum term of ten years. There were no grants under the 2004 stock option plan during the nine months endedSeptember 30, 2017.

2009 share award and incentive plan

During the nine months endedSeptember 30, 2017, the following awards were made under the 2009 share award and incentive plan on the following dates. Estimates of fair values of share options and restricted shares with and without performance criteria were made using the Black-Scholes options pricing model.

2009 share award and incentive plan	Class A common shares	Date granted	Vesting date	Exercise price	Expected share price volatility	Risk-free interest rate	Expected dividends per share	Expected life of awards
Share options	40,900	June 11, 2017	June 11, 2018	$13.45	29%	1.50%	$—	2.5 years
Share options	40,900	June 11, 2017	June 11, 2019	$13.45	29%	1.50%	$—	3.5 years
Share options	40,900	June 11, 2017	June 11, 2020	$13.45	30%	1.77%	$—	4.5 years
Share options	40,900	June 11, 2017	June 11, 2021	$13.45	34%	1.77%	$—	5.5 years

During the nine months endedSeptember 30, 2017, the following restricted share awards were made under the 2009 share award and incentive plan on the following dates:

2009 share award and incentive plan	Class A common shares	Date granted	Vesting date	Purchase price
Restricted shares without performance criteria	56,390	June 11, 2017	June 11, 2018	$0.01
Restricted shares without performance criteria	48,872	June 11, 2017	June 11, 2020	$0.01
Restricted shares without performance criteria	11,278	June 11, 2017	On retirement	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2018	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2019	$0.01
Restricted shares without performance criteria	117,231	March 17, 2017	March 17, 2020	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2021	$0.01
Restricted shares with performance criteria	228,500	March 17, 2017	March 17, 2020	$0.01

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Commitments and contingencies

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies

Belmond Copacabana Palace

In February 2013, the State of Rio de Janeiro Court of Justice affirmed a 2011 decision of a Rio state trial court against Sea Containers Ltd (“SCL”) in lawsuits brought against SCL by minority shareholders in Companhia Hoteis Palace (“CHP”), the company that owns Belmond Copacabana Palace, relating to the recapitalization of CHP in 1995, but the Court reduced the total award against SCL to approximately $27,000,000. SCL further appealed the judgments during the second quarter of 2013 to the Superior Court of Justice in Brasilia. SCL sold its shares in CHP to the Company in 2000. Years later, in 2006, SCL entered insolvency proceedings in the U.S. and Bermuda that are continuing in Bermuda. Possible claims could be asserted against the Company or CHP in connection with this Brazilian litigation that has to date only involved SCL, although no claims have been asserted.

As a precautionary measure to defend the hotel, CHP commenced a declaratory lawsuit in the Rio state court in December 2013 seeking judicial declarations that no fraud was committed against the SCL plaintiffs when the shares in CHP were sold to the Company in 2000 and that the sale of the shares did not render SCL insolvent. Pending rulings on those declarations, the court granted CHP an injunction preventing the SCL plaintiffs from provisionally enforcing their 2011 judgments against CHP, which judgment was subsequently reversed on appeal in May 2014. In September 2014, CHP sought reconsideration from the appellate court of this decision, but the court dismissed its request, resulting in the return of the declaratory lawsuit proceedings to the Rio State Court.

Management cannot estimate the range of possible loss if the SCL plaintiffs assert claims against the Company or CHP, and Belmond has made no accruals in respect of this matter. If any such claims were brought, Belmond would continue to defend its interests vigorously.

Ubud Hanging Gardens

In November 2013, the third-party owner of Ubud Hanging Gardens in Bali, Indonesia dispossessed Belmond from the hotel under long-term lease without prior notice. As a result, Belmond was unable to continue operating the hotel and, accordingly, to prevent any confusion to its guests, Belmond ceased referring to the property in its sales and marketing materials, including all electronic marketing.

Belmond believed that the owner's actions were unlawful and in breach of the lease arrangement and constituted a wrongful dispossession. Belmond pursued its legal remedies through arbitration proceedings required under the lease. In June 2015, a Singapore arbitration panel issued its final award in favor of Belmond, holding that the owner had breached Indonesian law and the lease, and granting monetary damages and costs to the Company in an amount equal to approximately $8,500,000. Since its receipt of the arbitral award, Belmond has been engaged in the process of enforcing this arbitral award in the Indonesian courts. Starting in April 2014, the Indonesian trial courts have dismissed six separate actions filed by the owner for lack of jurisdiction due to the arbitration clause in the parties’ lease. The owner has appealed these decisions, one of which was reversed by the Appellate Court in October 2014. Belmond appealed this case to the Indonesian Supreme Court, which in December 2016 affirmed the Appellate Court's decision. Belmond has sought review for reconsideration by the Supreme Court. In the meantime, Belmond filed with the Central Jakarta District Court in October 2017, as further support for the enforcement of Belmond’s arbitral claim, the decisions of three Indonesian trial courts enforcing the arbitration provision under the lease and ruling that the Indonesian courts had no jurisdiction over the parties’ 2013 dispute, along with three affirming decisions from appellate courts and two from the Indonesian Supreme Court.

Belmond does not believe there is any merit in the owner’s outstanding Indonesian actions and is vigorously defending its rights while it seeks to enforce the Singapore arbitral award. While the Company can give no assurances, it believes that it should ultimately be able to enforce its arbitral award. Given the uncertainty involved in this litigation, Belmond recorded in the year ended December 31, 2013, a non-cash impairment charge in the amount of $7,031,000 relating to long-lived assets and goodwill of Ubud Hanging Gardens and has not booked a receivable in respect of the award.

As supplemental proceedings to its arbitration claim, Belmond commenced contempt proceedings in the High Court in London, England, where the owner resided, for pursuing the Indonesian proceedings contrary to an earlier High Court injunction, and obtained against the owner in July 2014 a contempt order, which subsequently resulted in the court issuing a committal order of imprisonment for 120 days. The owner left England before the court order was issued and has not yet served the sentence.

Belmond Hotel das Cataratas

In September 2014, the Brazilian Ministry of Planning, Budget and Management notified the Company that it was denying the Company's application to extend the term or reduce the rent under the lease for Belmond Hotel das Cataratas, which was entered into in 2007. Belmond had applied for the amendment in 2009 based on its claim that it suffered additional unanticipated and/or unforeseeable costs in performing the refurbishment of the hotel as required by the lease and related tender documentation in order to raise the standard of the property to a five star luxury standard.

Prior to August 2014, with the agreement of the Ministry, the Company had been paying the base annual rent without an annual adjustment for inflation as provided for in the lease, pending resolution of Belmond’s application. Throughout this period, the Company had expensed the full rental amount and has fully accrued the difference between the rental charge and the amount actually paid. Based on the Ministry’s decision denying any relief, the Ministry directed the Company that it would henceforth assess rent at the contractual rate, which has been included in the table of future rental payments as at September 30, 2017, and that it was required to pay the difference between the contractual rent and the rent that had been actually paid. On March 20, 2015, the Ministry provided notice to the hotel that an aggregate amount of approximately R$17,000,000 ($5,366,000) was due on March 31, 2015 as a result of its rejection of any relief sought by Belmond.

The Company appealed to the Ministry to reconsider its decision on both procedural and substantive grounds. Pending this requested reconsideration and exhaustion of administrative remedies, the Company did not pay to the Ministry the amount claimed. The Company filed a lawsuit in the Federal Court in Paraná State in August 2016 against the Government of Brazil regarding the Ministry’s failure to properly consider and modify the lease concession for Belmond Hotel das Cataratas. The Federal Court granted the Company’s request for an injunction against the Government enforcing its claim and granted the Company’s request for a 25% preliminary reduction in rent, pending a decision on the merits, which the Superior Court upheld on appeal in a decision rendered in September 2016. The Government appealed to a three-judge panel of the Superior Court, which upheld the decision of the Federal Court in favor of the Company in a judgment rendered in January 2017.

On October 17, 2017, the Federal Court issued a decision denying the Company’s claim for modification of the lease concession. The Court ruled although the lease is an administration agreement rather than a simple commercial lease, the Company had not overcome its burden of proof to show that a modification was justified. The Court further ordered that the Company must pay the stated rent in the lease rather than the reduced rent set by the original first instance Court in September 2016. The Court also revoked the injunction issued in September 2016 that had been subsequently affirmed on appeal prohibiting the Federal Government from pursuing a claim against the Company to recover the difference between the stated lease rent and the amounts the Company actually paid during the period from 2009 to 2014. As a result, the Federal Government could seek immediately to enforce its claim for allegedly unpaid lease obligations. The Company has reserved against this claim, and this accrual as at September 30, 2017 totaled R$24,368,000 ($7,692,000). The Company does not believe that any loss above the amounts accrued is likely. The Company intends to vigorously contest this ruling on appeal.

Belmond Miraflores Park

The Company is contesting a claim against Belmond Miraflores Park Hotel (“BMP”) by the municipality of Miraflores in Lima, Peru, where the BMP is located. The municipality alleges that BMP has generated noise and vibrations in violation of municipal nuisance ordinances resulting in the disturbance of certain apartment owners in an adjoining residential building. The local administrative court ruled in favor of the municipality, and levied a nominal fine and issued an order for injunctive relief that included the potential closure of BMP pending the elimination of the noise and vibrations. In March 2016, after the administrative court’s ruling was affirmed at the trial court and subsequently, the appellate court level, BMP appealed to the Supreme Court of Peru. Enforcement of the ruling of the appellate court has been stayed pending the Supreme Court appeal. On June 29, 2017, the Supreme Court issued a decision accepting BMP’s appeal rather than, as BMP had expected, summarily affirming the appellate court decision. Consequently, BMP expects that the Supreme Court will issue its opinion on this matter in the latter half of 2018. Management believes that the risk of closure of BMP is remote because BMP will have completed its remediation by the time the Supreme Court issues its decision and expects to be in compliance with municipal nuisance ordinances at that time. BMP has other alternatives that it could pursue to resolve this matter if BMP is not compliant by the time of the Supreme Court decision. Accordingly, management does not believe that a material loss is probable and no accrual has been made in respect of this matter.

“Cipriani” Trademark

In May 2010, after prevailing in litigation at the trial and appellate court levels, Belmond settled litigation in the United Kingdom for infringement of its U.K. and Community (European wide) registrations for the “Cipriani” trademark. Defendants paid the amount of $3,947,000 to Belmond in March 2010 with the balance of $9,833,000 being payable in installments over five years with interest. Belmond received the final payment in the amount of $1,178,000 in June 2015. Subsequent to Belmond’s success before the U.K. courts, there have arisen a number of European trademark opposition and infringement cases relating to Belmond "Cipriani" and "Hotel Cipriani" Community trademarks. These include an ongoing invalidity action filed by Arrigo Cipriani in the European Trade Mark Office against Belmond’s "Cipriani" Community trademark. To date, Belmond has successfully rebutted this challenge at every level of administrative appeal, including before the EU General Court in Luxembourg which issued a decision on June 29, 2017 dismissing the Arrigo Cipriani appeal and ordering that appellant pay the costs of the court and the Company. Belmond has recently been successful in securing the cancellation in Portugal of a trademark application filed by an affiliated company of the Cipriani family for “Cipriani”. Belmond has also been successful in obtaining cancellations of "Cipriani" trademark applications made by the Cipriani family's corporate entity in Russia. In addition, there are a number of ongoing trademark disputes with the Cipriani family in Italy: in January 2015, the Cipriani family and affiliated entities commenced proceedings against Belmond in the Court of Venice, asserting that a 1967 agreement pursuant to which the family sold their interest in the Hotel Cipriani constituted a coexistence agreement allowing both the Company to use “Hotel Cipriani”, and the Cipriani family to use “Cipriani” and in August 2015, pursuant to a separate claim filed by the Cipriani family, the Court of Venice ruled in favor of the Cipriani family, determining that their use of their full name (rather than just an initial with their surname), would not constitute infringement of the Company’s registered trademark. The Court’s ruling purports to apply to hotels and restaurants on an EU-wide basis (other than the U.K.) rather than only Italy. The Company has appealed this decision. Final briefs were filed in October 2017 with the respective courts for each of these two Italian proceedings with the expectation that a decision in each case will be forthcoming in the first quarter of 2018. While Belmond believes that it has meritorious cases in all of these Italian proceedings, Belmond cannot estimate the range of possible additional loss to Belmond if it should not prevail in any or all of these cases and Belmond has made no accruals in these matters. Separate proceedings brought by Belmond in Spain to defend Belmond’s marks against a use by the Cipriani family and its affiliated entities of “Cipriani” to promote a restaurant have been stayed pending the outcome of the Venice appeal.

The Company and certain of its subsidiaries are parties to various legal proceedings arising in the normal course of business. These proceedings generally include matters relating to labor disputes, tax claims, personal injury cases, lease negotiations and ownership disputes. The outcome of each of these matters cannot be determined with certainty, and the liability that the relevant parties may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued for with respect to these matters. Where a reasonable estimate can be made, the additional losses or range of loss that may be incurred in excess of the amount recognized from the various legal proceedings arising in the normal course of business are disclosed separately for each claim, including a reference to where it is disclosed. However, for certain of the legal proceedings, management is unable to estimate the loss or range of loss that may result from these claims due to the highly complex nature or early stage of the legal proceedings. 

Belmond has granted to James Sherwood, a former director of the Company, a right of first refusal to purchase the Belmond Hotel Cipriani in Venice, Italy in the event Belmond proposes to sell it. The purchase price would be the offered sale price in the case of a cash sale or the fair market value of the hotel, as determined by an independent valuer, in the case of a non-cash sale. Mr. Sherwood has also been granted an option to purchase the hotel at fair market value if a change in control of the Company occurs. Mr. Sherwood may elect to pay 80% of the purchase price if he exercises his right of first refusal, or 100% of the purchase price if he exercises his purchase option, by a non-recourse promissory note secured by the hotel payable in ten equal annual installments with interest at LIBOR. This right of first refusal and purchase option are not assignable and expire one year after Mr. Sherwood’s death. These agreements relating to Belmond Hotel Cipriani between Mr. Sherwood and Belmond and its predecessor companies have been in place since 1983 and were last amended and restated in 2005.

Capital Commitments

Outstanding contracts to purchase property, plant and equipment were approximately $11,046,000 at September 30, 2017 (December 31, 2016 - $7,772,000).

Future rental payments and rental expense under operating leases

Future rental payments as at September 30, 2017 under operating leases in respect of equipment rentals and leased premises are payable as follows:

	$’000
Remainder of 2017	3,191
2018	12,574
2019	11,208
2020	11,252
2021	11,756
2022	9,630
2023 and thereafter	143,711
Future rental payments under operating leases	203,322

Rental expense for the three and nine months endedSeptember 30, 2017 amounted to $3,917,000 (September 30, 2016 - $3,491,000) and $11,161,000 (September 30, 2016 - $9,604,000), respectively.

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Fair value measurements

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

(a)     Financial instruments recorded at fair value

The following tables summarize the valuation of Belmond’s financial instruments recorded at fair value by the fair value hierarchy at September 30, 2017 and December 31, 2016:

	Level 1	Level 2		Level 3	Total
September 30, 2017	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	154		—	154
Total assets	—	154		—	154
Liabilities at fair value:
Derivative financial instruments	—	(1,593	)	—	(1,593	)
Total net liabilities	—	(1,439	)	—	(1,439	)

	Level 1	Level 2		Level 3	Total
December 31, 2016	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	—		—	—
Total assets	—	—		—	—
Liabilities at fair value:
Derivative financial instruments	—	(3,364	)	—	(3,364	)
Total net liabilities	—	(3,364	)	—	(3,364	)

During the three and nine months endedSeptember 30, 2017, there were no transfers between levels of the fair value hierarchy.

(b)    Other financial instruments

Certain methods and assumptions are used to estimate the fair value of each class of financial instruments. The carrying amount of current assets and current liabilities as disclosed on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of those instruments.

The fair value of Belmond's long-term debt, excluding interest rate swaps and caps, is determined using the contractual cash flows and credit-adjusted discount curves. The fair value of the debt is the present value of those contractual cash flows which are discounted at the current market cost of debt and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral.

The estimated carrying values, fair values, and levels of the fair value hierarchy of Belmond's long-term debt as of September 30, 2017 and December 31, 2016 were as follows:

		September 30, 2017		December 31, 2016
		Carrying amounts $’000	Fair value $’000	Carrying amounts $’000	Fair value $’000
Total long-term debt, before deduction of discount on secured term loan and debt issuance costs, excluding obligations under capital leases	Level 3	722,874	727,661	602,083	626,613

(c)    Non-financial assets measured at fair value on a non-recurring basis

The estimated fair values of Belmond’s non-financial assets measured at fair value on a non-recurring basis for the nine months endedSeptember 30, 2017 and 2016 are as follows:

		Fair value measurement inputs
	Fair value	Level 1	Level 2	Level 3	Total losses in the nine months ended September 30, 2017
	$’000	$’000	$’000	$’000	$’000
Property, plant and equipment	5,955	—	—	5,955	(8,216	)

		Fair value measurement inputs
	Fair value	Level 1	Level 2	Level 3	Total losses in the nine months ended September 30, 2016
	$’000	$’000	$’000	$’000	$’000
Property, plant and equipment	—	—	—	—	(1,000	)

Property, plant and equipment

In the nine months endedSeptember 30, 2017, property, plant and equipment at Belmond Road to Mandalay and Belmond Northern Belle with a combined carrying value of $14,173,000 was written down to fair value of $5,955,000, resulting in a non-cash impairment charge of $8,216,000.

In the nine months endedSeptember 30, 2016, property, plant and equipment at Belmond Orcaella with a carrying amount of $1,007,000 was written down to fair value of $Nil, resulting in a non-cash impairment charge of $1,007,000.

These impairments are included in earnings from continuing operations in the period incurred. See Note 7.

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Derivatives and hedging activities

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and hedging activities

Derivatives and hedging activities

Belmond hedges its interest rate risk, ensuring that an element of its floating rate interest is fixed by using interest rate derivatives. Belmond designates these derivatives as cash flow hedges. Additionally, Belmond designates its foreign currency borrowings and currency derivatives as net investment hedges of overseas operations.

In connection with the Term Loan Facility, the interest rate derivatives associated with the previous term loan facility were terminated. See Note 10. The termination costs incurred were $2,145,000 during the three months endedSeptember 30, 2017. All amounts in other comprehensive income/(loss) relating to these derivatives will be amortized to interest expense over the remaining original life of the interest rate derivative under ASC 815 Derivatives and Hedging. New interest rate derivatives were entered into to fix an element of the floating interest rate on the Term Loan Facility.

Cash flow hedges of interest rate risk

As of September 30, 2017 and December 31, 2016, Belmond had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: 

	September 30, 2017		December 31, 2016
	’000		’000
Interest rate swaps	€	89,500	€	72,938
Interest rate swaps	$	243,000	$	210,756
Interest rate caps	$	17,200	$	17,200

Fair value

The table below presents the fair value of Belmond’s derivative financial instruments and their classification as of September 30, 2017 and December 31, 2016: 

		Fair value as of September 30, 2017		Fair value as of December 31, 2016
	Balance sheet location	$’000		$’000
Derivatives designated in a cash flow hedging relationship:
Interest rate derivatives	Other assets	154		—
Interest rate derivatives	Accrued liabilities	(1,593	)	(2,310	)
Interest rate derivatives	Other liabilities	—		(1,054	)
Total		(1,439	)	(3,364	)

Offsetting

There was no offsetting within derivative assets or derivative liabilities at September 30, 2017 and December 31, 2016. However, these derivatives are subject to master netting arrangements.

Other comprehensive income/(loss)

Information concerning the movements in other comprehensive income/(loss) for cash flow hedges of interest rate risk is shown in Note 21. At September 30, 2017, the amount accounted for in other comprehensive income/(loss) which is expected to be reclassified to interest expense in the next 12 months is $2,846,000. Movement in other comprehensive income/(loss) for net investment hedges recorded through foreign currency translation adjustments for the three and nine months endedSeptember 30, 2017 was a loss of $6,822,000 (September 30, 2016 - loss of $1,955,000) and a loss of $19,867,000 (September 30, 2016 - loss of $5,038,000).

Credit-risk-related contingent features

Belmond has agreements with some of its derivative counterparties that contain provisions under which, if Belmond defaults on the debt associated with the hedging instrument, Belmond could also be declared in default in respect of its derivative obligations.

As of September 30, 2017, the fair value of derivatives in a net liability position, which includes accrued interest and an adjustment for non-performance risk, related to these agreements was $1,593,000 (December 31, 2016 - $3,364,000). If Belmond breached any of the provisions, it would be required to settle its obligations under the agreements at their termination value of $1,400,000 (December 31, 2016 - $3,370,000).

Non-derivative financial instruments — net investment hedges

Belmond uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. Belmond designates its euro-denominated indebtedness as a net investment hedge of long-term investments in its euro-functional subsidiaries. These contracts are included in non-derivative hedging instruments. The notional value of non-derivative hedging instruments was $210,955,000 at September 30, 2017, being a liability of Belmond (December 31, 2016 - $153,472,000).

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Accumulated other comprehensive income/loss

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Accumulated other comprehensive income/loss

Accumulated other comprehensive income/loss

Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) are as follows:

	Foreign currency translation adjustments		Derivative financial instruments		Pension liability		Total
Nine months ended September 30, 2017	$’000		$’000		$’000		$’000
Balance at January 1, 2017	(337,053	)	(3,224	)	(12,062	)	(352,339	)
Other comprehensive income before reclassifications, net of tax (benefit)/provision of $Nil, $(341) and $97	46,944		(1,664	)	478		45,758
Amounts reclassified from AOCI, net of tax provision of $Nil, $712 and $Nil	—		1,358		—		1,358
Net current period other comprehensive income	46,944		(306	)	478		47,116
Balance at September 30, 2017	(290,109	)	(3,530	)	(11,584	)	(305,223	)

Reclassifications out of AOCI (net of tax) are as follows:

	Amount reclassified from AOCI
	Three months ended
	September 30, 2017	September 30, 2016
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for hedged debt instruments	379	707	Interest expense
Total reclassifications for the period	379	707

	Amount reclassified from AOCI
	Nine months ended
	September 30, 2017	September 30, 2016
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	1,358	2,118	Interest expense
Total reclassifications for the period	1,358	2,118

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Segment information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Segment information

Segment information

Segment performance is evaluated by the chief operating decision maker based upon adjusted earnings before interest, tax, depreciation and amortization (“adjusted EBITDA”).

For reporting periods prior to the quarter ended March 31, 2017, the Company disclosed certain disaggregated segment profitability information in its periodic reports in accordance with applicable U.S. GAAP accounting principles, ASC 280 Segment Reporting, in the form of earnings before gains/(losses) on disposal, impairments, central costs, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization, share-based compensation and gains/(losses) on extinguishment of debt (“segment profit/(loss)”). This is a measure of unadjusted EBITDA and, consistent with ASC 280, has represented the way management traditionally have evaluated the operating performance of each of the Company’s reportable segments. The format of the segment performance information provided to the chief operating decision maker for these purposes has evolved over time to focus primarily on adjusted EBITDA as the key measure of segment profitability. Adjusted EBITDA excludes gains/(losses) on disposal, impairments, restructuring and other special items, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization and gains/(losses) on extinguishment of debt. In order to better reflect management’s internal evaluation of segment performance under ASC 280, as of the quarterly reporting period ended March 31, 2017, Belmond has disclosed adjusted EBITDA in place of segment profit/(loss) as the primary metric used by the chief operating decision maker to evaluate segment performance. In management’s view, adjusted EBITDA allows the Company’s segment performance to be evaluated more effectively and on a consistent basis by removing the impact of certain items that management believes do not reflect the underlying operations. Belmond notes that adjusted EBITDA is not a term defined under GAAP. As a result, Belmond provides reconciliations to the GAAP number immediately following tables using this non-GAAP term.

Belmond's operating segments are aggregated into six reportable segments primarily around the type of service being provided—hotels, trains and cruises, and management business/part ownership interests—and are secondarily organized by geography for the hotels, as follows:

• Owned hotels in each of Europe, North America and Rest of world which derive earnings from the hotels that Belmond owns including its one stand-alone restaurant;

• Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns;

• Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; and

• Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages.

The following tables present information regarding these reportable segments.

Revenue from external customers by segment:

	Three months ended			Nine months ended
	September 30, 2017		September 30, 2016	September 30, 2017	September 30, 2016
	$’000		$’000	$’000	$’000
Owned hotels:
Europe	96,658		92,319	180,772	172,827
North America	32,956		30,577	115,239	108,235
Rest of world	26,767		37,045	88,605	96,578
Total owned hotels	156,381		159,941	384,616	377,640
Owned trains and cruises	23,674		19,218	50,583	47,120
Part-owned/managed hotels	(405	)	1,382	368	3,180
Part-owned/managed trains	3,323		3,196	8,138	7,689
Total management fees	2,918		4,578	8,506	10,869
Revenue	182,973		183,737	443,705	435,629

Reconciliation of consolidated (losses)/earnings from continuing operations to adjusted EBITDA:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$’000		$’000		$’000		$’000
Adjusted EBITDA
Owned hotels:
Europe	48,714		45,554		71,507		66,239
North America	2,245		3,226		21,790		21,794
Rest of world	3,544		11,301		15,899		24,892
Total owned hotels	54,503		60,081		109,196		112,925
Owned trains and cruises	5,342		3,332		5,289		4,127
Part-owned/managed hotels	2,502		2,424		5,266		4,744
Part-owned/managed trains	8,201		8,836		18,135		18,144
Total adjusted share of earnings from unconsolidated companies and management fees	10,703		11,260		23,401		22,888
Unallocated corporate:
Central costs	(6,911	)	(6,851	)	(24,822	)	(22,341	)
Share-based compensation	(1,471	)	(2,109	)	(5,025	)	(5,885	)
Adjusted EBITDA	62,166		65,713		108,039		111,714
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Earnings/(losses) from continuing operations	7,673		22,889		(15,403	)	29,673
Depreciation and amortization	17,052		13,155		45,862		39,553
Gain on extinguishment of debt	—		—		—		(1,200	)
Interest income	(240	)	(289	)	(582	)	(582	)
Interest expense	8,993		7,840		24,536		23,026
Foreign currency, net	1,486		(1,432	)	2,727		(9,161	)
Provision for income taxes	20,732		20,401		17,608		25,140
Share of provision for income taxes of unconsolidated companies	2,026		1,712		4,079		3,943
	57,722		64,276		78,827		110,392
Gain on disposal of property, plant and equipment	(150	)	(488	)	(450	)	(788	)
Impairment of property, plant and equipment	—		1,007		8,216		1,007
Restructuring and other special items (1)	4,315		918		7,414		1,103
Acquisition-related costs (2)	279		—		14,032		—
Adjusted EBITDA	62,166		65,713		108,039		111,714
(1) Represents adjustments for insurance deductibles and losses while Belmond Cap Juluca and Belmond La Samanna are closed following the impact of Hurricanes Irma and Jose, restructuring, severance and redundancy costs, pre-opening costs and other items, net.
(2) Represents professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla.

Earnings from unconsolidated companies, net of tax:

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Part-owned/managed hotels	747	794	1,213	1,022
Part-owned/managed trains	3,192	3,824	6,576	6,690
Total earnings from unconsolidated companies, net of tax	3,939	4,618	7,789	7,712

Reconciliation of capital expenditure to acquire property, plant and equipment by segment:

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Owned hotels:
Europe	4,269	1,646	17,043	8,850
North America	3,404	2,051	6,351	6,442
Rest of world	5,510	6,832	10,316	13,529
Total owned hotels	13,183	10,529	33,710	28,821
Owned trains and cruises	1,055	2,493	6,542	10,656
Unallocated corporate	1,359	458	2,760	1,079
Total capital expenditure to acquire property, plant and equipment	15,597	13,480	43,012	40,556

Revenue from external customers in Belmond’s country of domicile and significant countries (based on the location of the property):

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Bermuda	—	—	—	—
Italy	70,704	67,746	120,322	115,928
United Kingdom	19,089	16,950	43,572	44,568
United States	24,597	25,338	82,879	79,621
Brazil	11,994	24,025	41,910	56,232
All other countries	56,589	49,678	155,022	139,280
Total revenue	182,973	183,737	443,705	435,629

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Related party transactions

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Related party transactions

Related party transactions

Belmond manages, under long-term contract, the tourist train owned by Eastern and Oriental Express Ltd., in which Belmond has a 25% ownership interest. In the three and nine months endedSeptember 30, 2017, Belmond earned management fees from Eastern and Oriental Express Ltd. of $1,000 (September 30, 2016 - $20,000) and $137,000 (September 30, 2016 - $147,000), respectively, which are recorded in revenue. The amount due to Belmond from Eastern and Oriental Express Ltd. at September 30, 2017 was $6,681,000 (December 31, 2016 - $4,886,000).

Belmond manages, under long-term contracts in Peru, Belmond Hotel Monasterio, Belmond Palacio Nazarenas, Belmond Sanctuary Lodge, Belmond Hotel Rio Sagrado, Belmond Las Casitas del Colca, PeruRail and Ferrocarril Transandino, in all of which Belmond has a 50% ownership interest. Belmond provides loans, guarantees and other credit accommodation to these joint ventures. In the three and nine months endedSeptember 30, 2017, Belmond earned management and guarantee fees from its Peruvian joint ventures of $4,757,000 (September 30, 2016 - $4,543,000) and $11,464,000 (September 30, 2016 - $10,722,000), respectively, which are recorded in revenue. The amount due to Belmond from its Peruvian joint ventures at September 30, 2017 was $6,946,000 (December 31, 2016 - $6,907,000).

Belmond owns 50% of a company holding real estate in Buzios, Brazil. The amount due to Belmond from the joint venture at September 30, 2017 was $437,000 (December 31, 2016 - $372,000).

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Subsequent events

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent events

Subsequent events

On September 27, 2017, Belmond signed a Share Purchase Agreement (“SPA”) to sell the shares in Northern Belle Limited, the wholly owned subsidiary that owns the rolling stock, for a sales price of £2,500,000 (equivalent to $3,350,000 as at September 30, 2017). The assets and liabilities of Northern Belle Limited have been transferred to held for sale as at September, 30 2017 as a binding agreement has been signed and a non-refundable deposit has been received. This sale closed on November 2, 2017. No gain or loss is expected to be recorded upon completion. See Note 4.

In October 2017, the Company provided notice of termination to the owner of Belmond Orcaella in respect of its charter agreement. The termination of this agreement is to be effective in early November. This business is operating at a loss and in the nine months endedSeptember 30, 2017, it had contributed an adjusted EBITDA loss of $800,000. The Company continues to own its Belmond Road to Mandalay vessel and to operate that cruise business in Myanmar.

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Basis of financial statement presentation (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of presentation

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reporting on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of the management of the Company, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, operating results and cash flows for the interim period have been included in these condensed consolidated financial statements.

The interim results presented are not necessarily indicative of results that may be expected for any subsequent interim period or the fiscal year ending December 31, 2017.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. See Note 2 to the consolidated financial statements in the 2016 Annual Report on Form 10-K for additional information regarding significant accounting policies.

For interim reporting purposes, Belmond calculates its tax expense by estimating its global annual effective tax rate and applies that rate in providing for income taxes on a year-to-date basis. Belmond has calculated an expected annual effective tax rate, excluding significant or unusual items, and the tax effect of jurisdictions with losses for which a tax benefit cannot be recognized. The income tax expense (or benefit) related to all other items is individually computed and recognized when the items occur.

Accounting pronouncements to be adopted

Accounting pronouncements to be adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Entities will have the option of using either a full retrospective approach or a modified approach to adopt the new guidance. In March 2016, the FASB issued additional guidance which amends the principal-versus-agent implementation guidance and illustrations in the original accounting pronouncement. In May 2016, the FASB issued an update that clarified guidance in certain narrow aspects of the topic. The guidance was originally effective for annual and interim periods beginning after December 15, 2016, however in July 2015 the FASB confirmed that the effective date would be deferred by one year, to annual and interim periods beginning after December 15, 2017. Early adoption is permitted only for periods beginning after December 15, 2016.

The Company intends to adopt the standard in the annual period beginning January 1, 2018 under the modified retrospective approach with a cumulative effect recognized in equity and no prior period restatement. The initial analysis identifying areas that will be impacted by the new guidance is substantially complete and has been conducted predominantly through a review of contracts with customers under the new five step model: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

We have substantially completed our assessment and do not expect the standard to materially affect the amount or timing of revenue recognition for rooms, food and beverage and other hotel level sales, which form the majority of the Company’s revenue. We are continuing to evaluate other possible impacts to our condensed consolidated financial statements, including the impact on our unconsolidated companies, management and incentive fees and real estate sales.

In February 2016, the FASB issued its new standard on accounting for leases, which introduces a lessee model that brings most leases on the balance sheet. A distinction between finance leases and operating leases is retained, with the result that the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous lease guidance. The guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Belmond is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

In August 2016, the FASB issued new guidance which clarifies the classification of certain cash receipts and payments in the statement of cash flows. The guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The new guidance will be applied on a retrospective basis where applicable. Belmond is currently evaluating the impact, if any, of the adoption of this guidance on its condensed consolidated financial statements.

In October 2016, the FASB issued new guidance which is intended to simplify the tax consequences of certain types of intra-entity asset transfers. The guidance is effective for annual periods ending after December 15, 2017, and interim periods thereafter, with early adoption permitted. The new guidance will be applied on a modified retrospective basis. Belmond is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements.

In November 2016, the FASB issued new guidance which clarifies the classification and presentation of restricted cash in the statement of cash flows. The guidance is effective for fiscal years beginning after December 15, 2017, including interim periods therein, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In January 2017, the FASB issued new guidance to simplify the accounting for goodwill impairment by eliminating step 2 from the goodwill impairment test. A goodwill impairment will now be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance is effective for annual and interim impairment tests for periods beginning after December 15, 2019, with early adoption permitted for any impairment tests performed after January 1, 2017. The new guidance will be applied on a prospective basis. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In January 2017, the FASB issued new guidance to clarify the definition of a business. The guidance is effective in annual periods beginning after December 15, 2017, including interim periods therein, with early adoption permitted. The new guidance will be applied on a prospective basis. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In May 2017, the FASB issued new guidance on service concession arrangements. The guidance is effective on the same date the new revenue guidance is adopted, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

In August 2017, the FASB issued new guidance to make improvements to hedge accounting requirements. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods therein, with early adoption permitted. Belmond is currently assessing what impact the adoption of this guidance will have on its consolidated financial statements.

Segment reporting

Segment performance is evaluated by the chief operating decision maker based upon adjusted earnings before interest, tax, depreciation and amortization (“adjusted EBITDA”).

For reporting periods prior to the quarter ended March 31, 2017, the Company disclosed certain disaggregated segment profitability information in its periodic reports in accordance with applicable U.S. GAAP accounting principles, ASC 280 Segment Reporting, in the form of earnings before gains/(losses) on disposal, impairments, central costs, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization, share-based compensation and gains/(losses) on extinguishment of debt (“segment profit/(loss)”). This is a measure of unadjusted EBITDA and, consistent with ASC 280, has represented the way management traditionally have evaluated the operating performance of each of the Company’s reportable segments. The format of the segment performance information provided to the chief operating decision maker for these purposes has evolved over time to focus primarily on adjusted EBITDA as the key measure of segment profitability. Adjusted EBITDA excludes gains/(losses) on disposal, impairments, restructuring and other special items, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization and gains/(losses) on extinguishment of debt. In order to better reflect management’s internal evaluation of segment performance under ASC 280, as of the quarterly reporting period ended March 31, 2017, Belmond has disclosed adjusted EBITDA in place of segment profit/(loss) as the primary metric used by the chief operating decision maker to evaluate segment performance. In management’s view, adjusted EBITDA allows the Company’s segment performance to be evaluated more effectively and on a consistent basis by removing the impact of certain items that management believes do not reflect the underlying operations. Belmond notes that adjusted EBITDA is not a term defined under GAAP. As a result, Belmond provides reconciliations to the GAAP number immediately following tables using this non-GAAP term.

Belmond's operating segments are aggregated into six reportable segments primarily around the type of service being provided—hotels, trains and cruises, and management business/part ownership interests—and are secondarily organized by geography for the hotels, as follows:

• Owned hotels in each of Europe, North America and Rest of world which derive earnings from the hotels that Belmond owns including its one stand-alone restaurant;

• Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns;

• Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; and

• Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages.

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Earnings per share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

The calculation of basic and diluted earnings per share including a reconciliation of the numerator and denominator is as follows:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
Numerator ($'000)
Net earnings/(losses) from continuing operations	7,673		22,889		(15,403	)	29,673
Net earnings/(losses) from discontinued operations	(3	)	(4	)	125		51
Net losses/(earnings) attributable to non-controlling interests	96		(17	)	11		(57	)
Net earnings/(losses) attributable to Belmond Ltd.	7,766		22,868		(15,267	)	29,667
Denominator (shares '000)
Basic weighted average shares outstanding	102,327		101,752		102,114		101,534
Effect of dilution	1,656		1,541		—		1,409
Diluted weighted average shares outstanding	103,983		103,293		102,114		102,943
	$		$		$		$
Basic earnings per share
Net earnings/(losses) from continuing operations	0.075		0.225		(0.151	)	0.292
Net earnings/(losses) from discontinued operations	—		—		0.001		0.001
Net losses/(earnings) attributable to non-controlling interests	0.001		—		—		(0.001	)
Net earnings/(losses) attributable to Belmond Ltd.	0.076		0.225		(0.150	)	0.292
Diluted earnings per share
Net earnings/(losses) from continuing operations	0.074		0.222		(0.151	)	0.288
Net earnings/(losses) from discontinued operations	—		—		0.001		—
Net losses/(earnings) attributable to non-controlling interests	0.001		—		—		(0.001	)
Net earnings/(losses) attributable to Belmond Ltd.	0.075		0.222		(0.150	)	0.287

Schedule of antidilutive securities excluded from computation of earnings per share

The total number of share options and share-based awards excluded from computing diluted earnings per share was as follows: 

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
Share options	556,015	1,366,722	2,385,870	1,673,772
Share-based awards	—	—	1,333,089	—
Total	556,015	1,366,722	3,718,959	1,673,772

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Significant acquisitions (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Schedule of Business Acquisitions

The following table summarizes the consideration paid for the hotel and the preliminary allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed at the acquisition date. The acquisition has been accounted for in accordance with Accounting Standards Codification (“ASC”) 805, Business Combinations, using the acquisition method of accounting whereby the total purchase price has been allocated to the acquired assets and liabilities as at May 26, 2017. The estimated fair values are preliminary and are subject to adjustment as the fair value analysis is finalized, which will be completed as soon as practicable, but no later than one year from the acquisition date.

	Fair value on May 26, 2017
	$'000
Consideration:
Agreed cash consideration	70,759
Less: Working capital adjustment	(2,107	)
Total purchase price	68,652
Assets acquired and liabilities assumed:
Cash and cash equivalents	20
Accounts receivable	112
Prepaid expenses and other	45
Inventories	108
Property, plant and equipment	59,159
Other intangible assets	6,100
Accounts payable	(595	)
Accrued liabilities	(360	)
Deferred revenue	(1,437	)
Goodwill	5,500
Net assets acquired	68,652

Schedule of Earnings From Business Acquisition

The results of operations of the hotel has been included in the consolidated financial results since the date of acquisition. The following table presents information for Belmond Cap Juluca included in the Company’s statements of condensed consolidated operations from the acquisition date to the period ending September 30, 2017:

	2017
	$'000
Revenue	2,395
Losses from continuing operations	(14,996	)

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Assets held for sale and discontinued operations (Tables)

9 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

Assets and liabilities of properties classified as held for sale consist of the following:

	September 30, 2017
	Northern Belle
	$’000
Current assets	259
Property, plant and equipment	3,570
Total assets held for sale	3,829
Current liabilities	(553	)
Other liabilities	(385	)
Total liabilities held for sale	(938	)

Summarized operating results of the properties classified as discontinued operations for the three and nine months endedSeptember 30, 2017 and 2016 are as follows:

	Three months ended September 30, 2017
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Losses before tax, gain on sale and impairment	—	(3	)	(3	)
Losses before tax	—	(3	)	(3	)
Net losses from discontinued operations	—	(3	)	(3	)

	Three months ended September 30, 2016
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Losses before tax, gain on sale and impairment	—	(4	)	(4	)
Losses before tax	—	(4	)	(4	)
Net losses from discontinued operations	—	(4	)	(4	)

	Nine months ended September 30, 2017
	Ubud Hanging Gardens	Porto Cupecoy	Total
	$'000	$'000	$'000
Revenue	—	—	—
Earnings before tax, gain on sale and impairment	100	25	125
Earnings before tax	100	25	125
Net earnings from discontinued operations	100	25	125

	Nine months ended September 30, 2016
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Earnings/(losses) before tax, gain on sale and impairment	73	(22	)	51
Earnings/(losses) before tax	73	(22	)	51
Net earnings/(losses) from discontinued operations	73	(22	)	51

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Variable interest entities (Tables)

9 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Variable Interest Entities

The carrying amounts and maximum exposure to loss as a result of Belmond's involvement with its Eastern & Oriental Express joint venture are as follows:

	Carrying amounts		Maximum exposure
	September 30, 2017	December 31, 2016	September 30, 2017	December 31, 2016
	$’000	$’000	$’000	$’000
Investment	2,586	2,818	2,586	2,818
Due from unconsolidated company	6,681	4,771	6,681	4,771
Total	9,267	7,589	9,267	7,589

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Investments in unconsolidated companies (Tables)

9 Months Ended

Sep. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

Summarized financial data for unconsolidated companies

Summarized financial data for Belmond’s unconsolidated companies are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Current assets	94,722	96,247
Property, plant and equipment, net of accumulated depreciation	307,383	295,662
Other non-current assets	29,153	29,442
Non-current assets	336,536	325,104
Total assets	431,258	421,351
Current liabilities, including $23,949 and $21,021 current portion of third-party debt	98,759	89,785
Long-term debt	147,424	153,876
Other non-current liabilities	28,106	27,545
Non-current liabilities	175,530	181,421
Total shareholders’ equity	156,969	150,145
Total liabilities and shareholders’ equity	431,258	421,351

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Revenue	59,085	54,345	153,685	140,697
Gross profit1	41,163	39,670	106,134	98,435
Net earnings2	7,567	8,980	15,115	15,071

¹Gross profit is defined as revenues less cost of services of the unconsolidated companies.

²There were no discontinued operations or cumulative effects of a change in an accounting principle in the unconsolidated companies.

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Property, plant and equipment (Tables)

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Schedule of major classes of property plant and equipment

The major classes of property, plant and equipment are as follows:

	September 30, 2017		December 31, 2016
	$’000		$’000
Land and buildings	1,128,068		1,010,362
Machinery and equipment	182,532		179,537
Fixtures, fittings and office equipment	263,904		235,098
River cruise ship and canal boats	13,296		18,618
	1,587,800		1,443,615
Less: Accumulated depreciation	(420,285	)	(368,939	)
Total property, plant and equipment, net of accumulated depreciation	1,167,515		1,074,676

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Goodwill (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in carrying amount of goodwill

The changes in the carrying amount of goodwill for the nine months endedSeptember 30, 2017 are as follows:

	At January 1, 2017							At September 30, 2017
	Gross goodwill amount	Accumulated impairment		Net goodwill amount	Goodwill on acquisition	Impairment	Foreign currency translation adjustment	Gross goodwill amount	Accumulated impairment		Net goodwill amount
	$'000	$'000		$'000	$'000	$'000	$'000	$'000	$'000		$'000
Owned hotels:
Europe	64,459	(14,202	)	50,257	—	—	5,493	69,952	(14,202	)	55,750
North America	66,101	(16,110	)	49,991	5,500	—	—	71,601	(16,110	)	55,491
Rest of world	20,581	(13,149	)	7,432	—	—	107	20,688	(13,149	)	7,539
Owned trains and cruises	6,325	(662	)	5,663	—	—	645	6,970	(662	)	6,308
Total	157,466	(44,123	)	113,343	5,500	—	6,245	169,211	(44,123	)	125,088

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Other intangible assets (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of other intangible assets

Other intangible assets consist of the following as of September 30, 2017:

	Favorable lease assets	Internet sites		Trade names	Total
	$'000	$'000		$'000	$'000
Carrying amount:
Balance at January 1, 2017	8,501	1,658		7,579	17,738
Additions	—	—		6,100	6,100
Disposals	—	(232	)	—	(232	)
Foreign currency translation adjustment	46	140		665	851
Balance at September 30, 2017	8,547	1,566		14,344	24,457
Accumulated amortization:
Balance at January 1, 2017	2,636	1,225			3,861
Charge for the period	279	125			404
Disposals	—	(232	)		(232	)
Foreign currency translation adjustment	16	102			118
Balance at September 30, 2017	2,931	1,220			4,151
Net book value:
At September 30, 2017	5,616	346		14,344	20,306
At December 31, 2016	5,865	433		7,579	13,877

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Debt and obligations under capital lease (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of long-term debt and obligations under capital lease

Long-term debt and obligations under capital lease consist of the following:

	September 30, 2017	December 31, 2016
	$’000	$’000
Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of 21 months to seven years (2016 - two to five years), with a weighted average interest rate of 3.99% (2016 - 4.27%)	722,874	602,083
Obligations under capital lease	27	19
Total long-term debt and obligations under capital lease	722,901	602,102
Less: Current portion	6,767	5,284
Less: Discount on secured term loan	3,267	1,515
Less: Debt issuance costs	14,592	9,535
Non-current portion of long-term debt and obligations under capital lease	698,275	585,768

Summary of the aggregate maturities of long-term debt including obligations under capital lease

The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at September 30, 2017, taking into consideration the execution of the amended and restated credit agreement on July 3, 2017:

	$’000
Remainder of 2017	1,691
2018	6,761
2019	118,783
2020	6,783
2021	6,548
2022	6,499
2023	6,499
2024 and thereafter	569,337
Total long-term debt and obligations under capital lease	722,901

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Other liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Other Liabilities Disclosure [Abstract]

Schedule of major balances in other liabilities

The major balances in other liabilities are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Interest rate swaps (see Note 20)	—	1,054
Deferred gain on sale of Inn at Perry Cabin by Belmond	900	1,350
Deferred lease incentive	140	162
Tax indemnity provision on extinguishment of debt (see Note 10)	—	2,800
Total other liabilities	1,040	5,366

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Pensions (Tables)

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Schedule of components of net periodic pension benefit cost

Components of net periodic pension benefit cost are as follows:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$’000		$’000		$’000		$’000
Service cost	—		—		—		—
Interest cost on projected benefit obligation	179		207		527		660
Expected return on assets	(249	)	(270	)	(736	)	(859	)
Net amortization and deferrals	195		148		576		471
Net periodic benefit cost	125		85		367		272

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Interest expense (Tables)

9 Months Ended

Sep. 30, 2017

Other Income and Expenses [Abstract]

Balances in interest expense

The balances in interest expense are as follows:

	Three months ended			Nine months ended
	September 30, 2017		September 30, 2016	September 30, 2017		September 30, 2016
	$’000		$’000	$’000		$’000
Interest expense on long-term debt and obligations under capital lease	7,653		6,965	21,863		20,413
Interest on legal settlements	(10	)	107	(153	)	405
Amortization of debt issuance costs and discount on secured term loan	1,350		768	2,826		2,208
Total interest expense	8,993		7,840	24,536		23,026

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Supplemental cash flow information (Tables)

9 Months Ended

Sep. 30, 2017

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental cash flow information

	Nine months ended
	September 30, 2017	September 30, 2016
	$’000	$’000
Cash paid during the period for:
Interest	22,750	34,020
Income taxes, net of refunds	11,037	12,862

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Restricted cash (Tables)

9 Months Ended

Sep. 30, 2017

Cash and Cash Equivalents [Abstract]

Major balances in restricted cash

The major balances in restricted cash are as follows:

	September 30, 2017	December 31, 2016
	$’000	$’000
Cash deposits required to be held with lending banks as collateral	748	755
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy	6,012	1,341
Bonds and guarantees	356	489
Total restricted cash	7,116	2,585

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Share-based compensation plans (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of assumptions

2009 share award and incentive plan	Class A common shares	Date granted	Vesting date	Exercise price	Expected share price volatility	Risk-free interest rate	Expected dividends per share	Expected life of awards
Share options	40,900	June 11, 2017	June 11, 2018	$13.45	29%	1.50%	$—	2.5 years
Share options	40,900	June 11, 2017	June 11, 2019	$13.45	29%	1.50%	$—	3.5 years
Share options	40,900	June 11, 2017	June 11, 2020	$13.45	30%	1.77%	$—	4.5 years
Share options	40,900	June 11, 2017	June 11, 2021	$13.45	34%	1.77%	$—	5.5 years

During the nine months endedSeptember 30, 2017, the following restricted share awards were made under the 2009 share award and incentive plan on the following dates:

2009 share award and incentive plan	Class A common shares	Date granted	Vesting date	Purchase price
Restricted shares without performance criteria	56,390	June 11, 2017	June 11, 2018	$0.01
Restricted shares without performance criteria	48,872	June 11, 2017	June 11, 2020	$0.01
Restricted shares without performance criteria	11,278	June 11, 2017	On retirement	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2018	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2019	$0.01
Restricted shares without performance criteria	117,231	March 17, 2017	March 17, 2020	$0.01
Restricted shares without performance criteria	34,450	March 17, 2017	March 17, 2021	$0.01
Restricted shares with performance criteria	228,500	March 17, 2017	March 17, 2020	$0.01

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Commitments and contingencies (Tables)

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of future rental payments under operating leases

Future rental payments as at September 30, 2017 under operating leases in respect of equipment rentals and leased premises are payable as follows:

	$’000
Remainder of 2017	3,191
2018	12,574
2019	11,208
2020	11,252
2021	11,756
2022	9,630
2023 and thereafter	143,711
Future rental payments under operating leases	203,322

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Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured on a recurring basis

The following tables summarize the valuation of Belmond’s financial instruments recorded at fair value by the fair value hierarchy at September 30, 2017 and December 31, 2016:

	Level 1	Level 2		Level 3	Total
September 30, 2017	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	154		—	154
Total assets	—	154		—	154
Liabilities at fair value:
Derivative financial instruments	—	(1,593	)	—	(1,593	)
Total net liabilities	—	(1,439	)	—	(1,439	)

	Level 1	Level 2		Level 3	Total
December 31, 2016	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	—		—	—
Total assets	—	—		—	—
Liabilities at fair value:
Derivative financial instruments	—	(3,364	)	—	(3,364	)
Total net liabilities	—	(3,364	)	—	(3,364	)

Schedule of estimated fair values of financial instruments (other than derivative financial instruments)

The estimated fair values of Belmond’s non-financial assets measured at fair value on a non-recurring basis for the nine months endedSeptember 30, 2017 and 2016 are as follows:

		Fair value measurement inputs
	Fair value	Level 1	Level 2	Level 3	Total losses in the nine months ended September 30, 2017
	$’000	$’000	$’000	$’000	$’000
Property, plant and equipment	5,955	—	—	5,955	(8,216	)

		Fair value measurement inputs
	Fair value	Level 1	Level 2	Level 3	Total losses in the nine months ended September 30, 2016
	$’000	$’000	$’000	$’000	$’000
Property, plant and equipment	—	—	—	—	(1,000	)

The estimated carrying values, fair values, and levels of the fair value hierarchy of Belmond's long-term debt as of September 30, 2017 and December 31, 2016 were as follows:

		September 30, 2017		December 31, 2016
		Carrying amounts $’000	Fair value $’000	Carrying amounts $’000	Fair value $’000
Total long-term debt, before deduction of discount on secured term loan and debt issuance costs, excluding obligations under capital leases	Level 3	722,874	727,661	602,083	626,613

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Derivatives and hedging activities (Tables)

9 Months Ended

Sep. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional amounts of outstanding interest rate derivatives that were designated as cash flow hedges

As of September 30, 2017 and December 31, 2016, Belmond had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: 

	September 30, 2017		December 31, 2016
	’000		’000
Interest rate swaps	€	89,500	€	72,938
Interest rate swaps	$	243,000	$	210,756
Interest rate caps	$	17,200	$	17,200

Schedule of fair value of derivative financial instruments

The table below presents the fair value of Belmond’s derivative financial instruments and their classification as of September 30, 2017 and December 31, 2016: 

		Fair value as of September 30, 2017		Fair value as of December 31, 2016
	Balance sheet location	$’000		$’000
Derivatives designated in a cash flow hedging relationship:
Interest rate derivatives	Other assets	154		—
Interest rate derivatives	Accrued liabilities	(1,593	)	(2,310	)
Interest rate derivatives	Other liabilities	—		(1,054	)
Total		(1,439	)	(3,364	)

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Accumulated other comprehensive income/loss (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of changes in accumulated other comprehensive income/(loss) by component (net of tax)

Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) are as follows:

	Foreign currency translation adjustments		Derivative financial instruments		Pension liability		Total
Nine months ended September 30, 2017	$’000		$’000		$’000		$’000
Balance at January 1, 2017	(337,053	)	(3,224	)	(12,062	)	(352,339	)
Other comprehensive income before reclassifications, net of tax (benefit)/provision of $Nil, $(341) and $97	46,944		(1,664	)	478		45,758
Amounts reclassified from AOCI, net of tax provision of $Nil, $712 and $Nil	—		1,358		—		1,358
Net current period other comprehensive income	46,944		(306	)	478		47,116
Balance at September 30, 2017	(290,109	)	(3,530	)	(11,584	)	(305,223	)

Schedule of reclassification out of accumulated other comprehensive income/(loss)

Reclassifications out of AOCI (net of tax) are as follows:

	Amount reclassified from AOCI
	Three months ended
	September 30, 2017	September 30, 2016
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for hedged debt instruments	379	707	Interest expense
Total reclassifications for the period	379	707

	Amount reclassified from AOCI
	Nine months ended
	September 30, 2017	September 30, 2016
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	1,358	2,118	Interest expense
Total reclassifications for the period	1,358	2,118

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Segment information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Reconciliation of revenue from segments to consolidated

Revenue from external customers by segment:

	Three months ended			Nine months ended
	September 30, 2017		September 30, 2016	September 30, 2017	September 30, 2016
	$’000		$’000	$’000	$’000
Owned hotels:
Europe	96,658		92,319	180,772	172,827
North America	32,956		30,577	115,239	108,235
Rest of world	26,767		37,045	88,605	96,578
Total owned hotels	156,381		159,941	384,616	377,640
Owned trains and cruises	23,674		19,218	50,583	47,120
Part-owned/managed hotels	(405	)	1,382	368	3,180
Part-owned/managed trains	3,323		3,196	8,138	7,689
Total management fees	2,918		4,578	8,506	10,869
Revenue	182,973		183,737	443,705	435,629

Reconciliation of adjusted earnings by segment to net earnings/losses

Reconciliation of consolidated (losses)/earnings from continuing operations to adjusted EBITDA:

	Three months ended				Nine months ended
	September 30, 2017		September 30, 2016		September 30, 2017		September 30, 2016
	$’000		$’000		$’000		$’000
Adjusted EBITDA
Owned hotels:
Europe	48,714		45,554		71,507		66,239
North America	2,245		3,226		21,790		21,794
Rest of world	3,544		11,301		15,899		24,892
Total owned hotels	54,503		60,081		109,196		112,925
Owned trains and cruises	5,342		3,332		5,289		4,127
Part-owned/managed hotels	2,502		2,424		5,266		4,744
Part-owned/managed trains	8,201		8,836		18,135		18,144
Total adjusted share of earnings from unconsolidated companies and management fees	10,703		11,260		23,401		22,888
Unallocated corporate:
Central costs	(6,911	)	(6,851	)	(24,822	)	(22,341	)
Share-based compensation	(1,471	)	(2,109	)	(5,025	)	(5,885	)
Adjusted EBITDA	62,166		65,713		108,039		111,714
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Earnings/(losses) from continuing operations	7,673		22,889		(15,403	)	29,673
Depreciation and amortization	17,052		13,155		45,862		39,553
Gain on extinguishment of debt	—		—		—		(1,200	)
Interest income	(240	)	(289	)	(582	)	(582	)
Interest expense	8,993		7,840		24,536		23,026
Foreign currency, net	1,486		(1,432	)	2,727		(9,161	)
Provision for income taxes	20,732		20,401		17,608		25,140
Share of provision for income taxes of unconsolidated companies	2,026		1,712		4,079		3,943
	57,722		64,276		78,827		110,392
Gain on disposal of property, plant and equipment	(150	)	(488	)	(450	)	(788	)
Impairment of property, plant and equipment	—		1,007		8,216		1,007
Restructuring and other special items (1)	4,315		918		7,414		1,103
Acquisition-related costs (2)	279		—		14,032		—
Adjusted EBITDA	62,166		65,713		108,039		111,714
(1) Represents adjustments for insurance deductibles and losses while Belmond Cap Juluca and Belmond La Samanna are closed following the impact of Hurricanes Irma and Jose, restructuring, severance and redundancy costs, pre-opening costs and other items, net.
(2) Represents professional fees incurred in preliminary design and planning, structuring, assessment of financing opportunities, legal, tax, accounting and engineering due diligence and the negotiation of the purchase and sale agreements, and other ancillary documents, with the principal owner and leaseholder, together with three owners of villas and separate subleases, as well as a memorandum of understanding and ground lease with the Government of Anguilla.

Reconciliation of other significant reconciling items from segments to consolidated

Reconciliation of capital expenditure to acquire property, plant and equipment by segment:

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Owned hotels:
Europe	4,269	1,646	17,043	8,850
North America	3,404	2,051	6,351	6,442
Rest of world	5,510	6,832	10,316	13,529
Total owned hotels	13,183	10,529	33,710	28,821
Owned trains and cruises	1,055	2,493	6,542	10,656
Unallocated corporate	1,359	458	2,760	1,079
Total capital expenditure to acquire property, plant and equipment	15,597	13,480	43,012	40,556

Earnings from unconsolidated companies, net of tax:

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Part-owned/managed hotels	747	794	1,213	1,022
Part-owned/managed trains	3,192	3,824	6,576	6,690
Total earnings from unconsolidated companies, net of tax	3,939	4,618	7,789	7,712

Schedule of financial information regarding geographic areas based on the location of properties

Revenue from external customers in Belmond’s country of domicile and significant countries (based on the location of the property):

	Three months ended		Nine months ended
	September 30, 2017	September 30, 2016	September 30, 2017	September 30, 2016
	$’000	$’000	$’000	$’000
Bermuda	—	—	—	—
Italy	70,704	67,746	120,322	115,928
United Kingdom	19,089	16,950	43,572	44,568
United States	24,597	25,338	82,879	79,621
Brazil	11,994	24,025	41,910	56,232
All other countries	56,589	49,678	155,022	139,280
Total revenue	182,973	183,737	443,705	435,629

XML

Basis of financial statement presentation (Details) $ in Thousands	Sep. 30, 2017 USD ($) restaurant train canalboat hotel ship	Dec. 31, 2016 USD ($)
Accounting Policies [Abstract]
Number of hotels | hotel	36
Number of restaurants | restaurant	1
Number of trains | train	8
Number of river cruise ship businesses | ship	2
Number of canal boat businesses | canalboat	1
Error Corrections and Prior Period Adjustments Restatement
Retained earnings	$ 43,046	$ 58,313
Accumulated other comprehensive loss	$ (305,223)	(352,339)
Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement
Retained earnings		5,562
Accumulated other comprehensive loss		$ (5,562)

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Earnings per share - Calculation of basic and diluted earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator ($'000)
Net earnings/(losses) from continuing operations	$ 7,673	$ 22,889	$ (15,403)	$ 29,673
Net earnings/(losses) from discontinued operations	(3)	(4)	125	51
Net losses/(earnings) attributable to non-controlling interests	96	(17)	11	(57)
Net earnings/(losses) attributable to Belmond Ltd.	$ 7,766	$ 22,868	$ (15,267)	$ 29,667
Denominator (shares '000)
Basic weighted average shares outstanding (in shares)	102,327	101,752	102,114	101,534
Effect of dilution (in shares)	1,656	1,541	0	1,409
Diluted weighted average shares outstanding (in shares)	103,983	103,293	102,114	102,943
Basic earnings per share
Net earnings/(losses) from continuing operations (in dollars per share)	$ 0.075	$ 0.225	$ (0.151)	$ 0.292
Net earnings/(losses) from discontinued operations (in dollars per share)	0.000	0.000	0.001	0.001
Net losses/(earnings) attributable to non-controlling interests (in dollars per share)	0.001	0.000	0.000	(0.001)
Basic net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share)	0.076	0.225	(0.150)	0.292
Diluted earnings per share
Net earnings/(losses) from continuing operations (in dollars per share)	0.074	0.222	(0.151)	0.288
Net earnings/(losses) from discontinued operations (in dollars per share)	0.000	0.000	0.001	0.000
Net losses/(earnings) attributable to non-controlling interests (in dollars per share)	0.001	0.000	0.000	(0.001)
Diluted net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share)	$ 0.075	$ 0.222	$ (0.150)	$ 0.287

XML

Earnings per share - Securities excluded from the computation of diluted earnings per share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of share options and share-based awards excluded from computation of earnings per share (in shares)	556,015	1,366,722	3,718,959	1,673,772
Number of share options and share-based awards unexercised (in shares)	3,718,959	4,028,279	3,718,959	4,028,279
Share options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of share options and share-based awards excluded from computation of earnings per share (in shares)	556,015	1,366,722	2,385,870	1,673,772
Share-based awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of share options and share-based awards excluded from computation of earnings per share (in shares)	0	0	1,333,089	0

XML

Significant acquisitions - Narratives (Details) $ in Thousands		3 Months Ended		9 Months Ended
	May 26, 2017 USD ($) property	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Total purchase price				$ 68,632	$ 0
Business acquisition costs		$ 279	$ 0	14,032	$ 0
Proceeds from credit facility	$ 45,000
Goodwill		$ 125,088		$ 125,088		$ 113,343
Cap Juluca
Business Acquisition [Line Items]
Number of rooms | property	96
Transaction value	$ 84,791
Total purchase price	68,652
Business acquisition costs	14,032
Working capital adjustment	2,107
Other intangible assets	6,100
Goodwill	$ 5,500
Lease term	125 years

XML

Significant acquisitions - Assets Acquired Liabilities Assumed (Details) - USD ($) $ in Thousands		9 Months Ended
	May 26, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Consideration:
Total purchase price		$ 68,632	$ 0
Assets acquired and liabilities assumed:
Goodwill		$ 125,088		$ 113,343
Cap Juluca
Consideration:
Agreed cash consideration	$ 70,759
Less: Working capital adjustment	(2,107)
Total purchase price	68,652
Assets acquired and liabilities assumed:
Cash and cash equivalents	20
Accounts receivable	112
Prepaid expenses and other	45
Inventories	108
Property, plant and equipment	59,159
Other intangible assets	6,100
Accounts payable	(595)
Accrued liabilities	(360)
Deferred revenue	(1,437)
Goodwill	5,500
Net assets acquired	$ 68,652

XML

Significant acquisitions - Schedule of Earnings (Details) - Cap Juluca $ in Thousands	4 Months Ended
	Sep. 30, 2017 USD ($)
Business Acquisition [Line Items]
Revenue	$ 2,395
Losses from continuing operations	$ (14,996)

XML

Assets held for sale and discontinued operations - Narratives (Details) £ in Thousands			9 Months Ended
	Nov. 02, 2017 USD ($)	Nov. 02, 2017 GBP (£)	Sep. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale			$ 3,829,000	$ 0
Liabilities held for sale			938,000	0
Ubud Hanging Gardens
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Legal fees			(100,000)
Assets held for sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale				0
Liabilities held for sale				$ 0
Assets held for sale | Belmond Northern Belle
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Assets held for sale			3,829,000
Liabilities held for sale			$ 938,000
Assets held for sale | Belmond Northern Belle | Subsequent Event
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of business	$ 3,350,000	£ 2,500

XML

Assets held for sale and discontinued operations - Summarized operating results for discontinued operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating results
Revenue	$ 0	$ 0	$ 0	$ 0
Losses before tax, gain on sale and impairment	(3)	(4)	125	51
Earnings before tax	(3)	(4)	125	51
Net earnings from discontinued operations	(3)	(4)	125	51
Ubud Hanging Gardens
Operating results
Revenue	0	0	0	0
Losses before tax, gain on sale and impairment	0	0	100	73
Earnings before tax	0	0	100	73
Net earnings from discontinued operations	0	0	100	73
Porto Cupecoy
Operating results
Revenue	0	0	0	0
Losses before tax, gain on sale and impairment	(3)	(4)	25	(22)
Earnings before tax	(3)	(4)	25	(22)
Net earnings from discontinued operations	$ (3)	$ (4)	$ 25	$ (22)

XML

Assets held for sale and discontinued operations - Assets and Liabilities Held for Sale (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale	$ 3,829,000	$ 0
Total liabilities held for sale	(938,000)	0
Assets held for sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total assets held for sale		0
Total liabilities held for sale		$ 0
Assets held for sale | Belmond Northern Belle
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Current assets	259,000
Property, plant and equipment	3,570,000
Total assets held for sale	3,829,000
Current liabilities	(553,000)
Other liabilities	(385,000)
Total liabilities held for sale	$ (938,000)

XML

Variable interest entities - Narratives (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Variable Interest Entity [Line Items]
Goodwill	$ 125,088	$ 113,343
Variable Interest Entity, Primary Beneficiary | Charleston Center LLC
Variable Interest Entity [Line Items]
Ownership percentage in variable interest entity	19.90%
Assets of consolidated VIE that can be used only to settle obligations of the consolidated VIE	$ 207,745	210,276
Goodwill	40,395	40,395
Liabilities of consolidated VIE for which creditors do not have recourse to Belmond	$ 122,283	$ 121,621
Variable Interest Entity, Not Primary Beneficiary | Eastern and Oriental Express Ltd.
Variable Interest Entity [Line Items]
Ownership percentage in variable interest entity	25.00%

XML

Variable interest entities - Carrying amounts and maximum exposure to loss for E&O joint venture (Details) - Variable Interest Entity, Not Primary Beneficiary - Eastern and Oriental Express Ltd. - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Carrying amounts, Total	$ 9,267	$ 7,589
Maximum exposure	9,267	7,589
Investment
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Investment/Due from unconsolidated company, Carrying amounts	2,586	2,818
Maximum exposure	2,586	2,818
Due from unconsolidated company
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Investment/Due from unconsolidated company, Carrying amounts	6,681	4,771
Maximum exposure	$ 6,681	$ 4,771

XML

Investments in unconsolidated companies - Narratives (Details) $ in Thousands	1 Months Ended
	Apr. 30, 2011	Sep. 30, 2017 USD ($) hotel	Dec. 31, 2016 USD ($)	Jun. 30, 2007 USD ($)
Schedule of Cost and Equity Method Investments [Line Items]
Ownership percentage in equity method investment		50.00%
Number of hotels | hotel		36
Equity method investments current liabilities		$ 98,759	$ 89,785
Peruvian rail joint venture
Schedule of Cost and Equity Method Investments [Line Items]
Ownership percentage in equity method investment		50.00%
Peruvian rail joint venture | Guarantee of Governmental Concession | Variable Interest Entity, Not Primary Beneficiary
Schedule of Cost and Equity Method Investments [Line Items]
Guarantor obligations, maximum exposure		$ 9,899
Eastern and Oriental Express Ltd.
Schedule of Cost and Equity Method Investments [Line Items]
Ownership percentage in equity method investment		25.00%
Buzios land joint venture
Schedule of Cost and Equity Method Investments [Line Items]
Ownership percentage in equity method investment		50.00%		50.00%
Cash consideration				$ 5,000
State of Rio de Janeiro, initial expropriation period	5 years
Peruvian hotel and rail joint ventures
Schedule of Cost and Equity Method Investments [Line Items]
Ownership percentage in equity method investment		50.00%
Peruvian hotel and rail joint ventures | Guarantees
Schedule of Cost and Equity Method Investments [Line Items]
Ownership percentage in equity method investment		50.00%
Peruvian hotel joint venture
Schedule of Cost and Equity Method Investments [Line Items]
Ownership percentage in equity method investment		50.00%
Number of hotels | hotel		5
Peruvian hotel joint venture | Contingent Financial Guarantee Additional Debt 2020
Schedule of Cost and Equity Method Investments [Line Items]
Guarantor obligations, maximum exposure		$ 16,334
Third-party Debt
Schedule of Cost and Equity Method Investments [Line Items]
Equity method investments current liabilities		$ 23,949	$ 21,021

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Investments in unconsolidated companies - Summarized balance sheet for investments in unconsolidated companies (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Summarized financial data for OEH's unconsolidated companies
Current assets	$ 94,722	$ 96,247
Property, plant and equipment, net of accumulated depreciation	307,383	295,662
Other non-current assets	29,153	29,442
Non-current assets	336,536	325,104
Total assets	431,258	421,351
Current liabilities, including $23,949 and $21,021 current portion of third-party debt	98,759	89,785
Long-term debt	147,424	153,876
Other non-current liabilities	28,106	27,545
Non-current liabilities	175,530	181,421
Total shareholders’ equity	156,969	150,145
Total liabilities and shareholders’ equity	$ 431,258	$ 421,351

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Investments in unconsolidated companies - Summarized income statement for investments in unconsolidated companies (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Equity Method Investment, Summarized Financial Information, Income Statement
Revenue	$ 59,085	$ 54,345	$ 153,685	$ 140,697
Gross profit	41,163	39,670	106,134	98,435
Net earnings	$ 7,567	$ 8,980	$ 15,115	$ 15,071

XML

Property, plant and equipment - Major classes of property, plant and equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, plant and equipment
Property, plant and equipment, gross	$ 1,587,800	$ 1,443,615
Less: Accumulated depreciation	(420,285)	(368,939)
Total property, plant and equipment, net of accumulated depreciation	1,167,515	1,074,676
Land and buildings
Property, plant and equipment
Property, plant and equipment, gross	1,128,068	1,010,362
Machinery and equipment
Property, plant and equipment
Property, plant and equipment, gross	182,532	179,537
Fixtures, fittings and office equipment
Property, plant and equipment
Property, plant and equipment, gross	263,904	235,098
River cruise ship and canal boats
Property, plant and equipment
Property, plant and equipment, gross	$ 13,296	$ 18,618

XML

Property, plant and equipment - Narratives (Details) € in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 EUR (€)	Dec. 31, 2016 USD ($)
Property, Plant and Equipment [Line Items]
Depreciation	$ 16,916,000	$ 13,038,000	$ 45,458,000	$ 39,165,000
Property, plant and equipment, net	1,167,515,000		1,167,515,000			$ 1,074,676,000
Insurance coverage amount	30,000,000		30,000,000
Impairment of property, plant and equipment	0	1,007,000	8,216,000	1,007,000
Deduction expense for insurance policy	1,278,000		1,278,000
Interest costs capitalized	0	$ 0	0	$ 0
La Samanna
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	29,625,000		29,625,000
La Samanna | Hurricane
Property, Plant and Equipment [Line Items]
Insurance coverage amount	5,800,000		5,800,000		€ 4,900
Insurance receivable	5,645,000		5,645,000
Impairment of property, plant and equipment	5,645,000		5,645,000
La Samanna | Hurricane | Minimum
Property, Plant and Equipment [Line Items]
Estimate unrecoverable loss from catastrophic loss	8,000,000		8,000,000
La Samanna | Hurricane | Maximum
Property, Plant and Equipment [Line Items]
Estimate unrecoverable loss from catastrophic loss	10,000,000		10,000,000
Cap Juluca
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	56,448,000		56,448,000
Cap Juluca | Hurricane
Property, Plant and Equipment [Line Items]
Insurance receivable	2,937,000		2,937,000
Impairment of property, plant and equipment	2,937,000		2,937,000
Belmond Road to Mandalay
Property, Plant and Equipment [Line Items]
Impairment of property, plant and equipment			7,124,000
Belmond Northern Belle
Property, Plant and Equipment [Line Items]
Impairment of property, plant and equipment			1,092,000
Variable Interest Entity, Primary Beneficiary
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	198,643,000		198,643,000			201,861,000
Variable Interest Entity, Primary Beneficiary | Charleston Center LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment, net	$ 198,643,000		$ 198,643,000			$ 201,861,000

XML

Goodwill - Changes in carrying amount of goodwill (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Goodwill
Gross goodwill amount	$ 169,211	$ 157,466
Accumulated impairment	(44,123)	(44,123)
Changes in the carrying amount of goodwill
Net goodwill amount	113,343
Goodwill on acquisition	5,500
Impairment	0
Foreign currency translation adjustment	6,245
Net goodwill amount	125,088
Europe
Goodwill
Gross goodwill amount	69,952	64,459
Accumulated impairment	(14,202)	(14,202)
Changes in the carrying amount of goodwill
Net goodwill amount	50,257
Goodwill on acquisition	0
Impairment	0
Foreign currency translation adjustment	5,493
Net goodwill amount	55,750
North America
Goodwill
Gross goodwill amount	71,601	66,101
Accumulated impairment	(16,110)	(16,110)
Changes in the carrying amount of goodwill
Net goodwill amount	49,991
Goodwill on acquisition	5,500
Impairment	0
Foreign currency translation adjustment	0
Net goodwill amount	55,491
Rest of world
Goodwill
Gross goodwill amount	20,688	20,581
Accumulated impairment	(13,149)	(13,149)
Changes in the carrying amount of goodwill
Net goodwill amount	7,432
Goodwill on acquisition	0
Impairment	0
Foreign currency translation adjustment	107
Net goodwill amount	7,539
Owned trains and cruises
Goodwill
Gross goodwill amount	6,970	6,325
Accumulated impairment	(662)	$ (662)
Changes in the carrying amount of goodwill
Net goodwill amount	5,663
Goodwill on acquisition	0
Impairment	0
Foreign currency translation adjustment	645
Net goodwill amount	$ 6,308

XML

Goodwill - Narratives (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Goodwill
Goodwill	$ 125,088	$ 113,343
Cap Juluca
Goodwill
Goodwill	5,500
Governor’s Residence
Goodwill
Goodwill	$ 2,195

XML

Other intangible assets - Rollforward of other intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Carrying amount:
Balance at January 1, 2017			$ 17,738
Additions			6,100
Disposals			(232)
Foreign currency translation adjustment			851
Balance at September 30, 2017	$ 24,457		24,457
Accumulated amortization:
Balance at January 1, 2017			3,861
Charge for the period	136	$ 117	404	$ 388
Foreign currency translation adjustment			118
Balance at September 30, 2017	4,151		4,151
Net book value:
Net book value	20,306		20,306		$ 13,877
Trade names
Carrying amount:
Balance at January 1, 2017			7,579
Additions			6,100
Disposals			0
Foreign currency translation adjustment			665
Balance at September 30, 2017	14,344		14,344
Net book value:
Net book value	14,344		14,344		7,579
Favorable lease assets
Carrying amount:
Balance at January 1, 2017			8,501
Additions			0
Disposals			0
Foreign currency translation adjustment			46
Balance at September 30, 2017	8,547		8,547
Accumulated amortization:
Balance at January 1, 2017			2,636
Charge for the period			279
Foreign currency translation adjustment			16
Balance at September 30, 2017	2,931		2,931
Net book value:
Net book value	5,616		5,616		5,865
Internet sites
Carrying amount:
Balance at January 1, 2017			1,658
Additions			0
Disposals			(232)
Foreign currency translation adjustment			140
Balance at September 30, 2017	1,566		1,566
Accumulated amortization:
Balance at January 1, 2017			1,225
Charge for the period			125
Foreign currency translation adjustment			102
Balance at September 30, 2017	1,220		1,220
Net book value:
Net book value	$ 346		$ 346		$ 433

XML

Other intangible assets - Narratives (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Finite Lived Intangible Assets
Additions			$ 6,100
Amortization expense	$ 136	$ 117	404	$ 388
Estimated amortization expense, remainder of 2017	134		134
Estimated amortization expense, year ending December 31, 2018	539		539
Estimated amortization expense, year ending December 31, 2019	539		539
Estimated amortization expense, year ending December 31, 2020	539		539
Estimated amortization expense, year ending December 31, 2021	$ 539		539
Trade names
Finite Lived Intangible Assets
Additions			6,100
Favorable lease assets
Finite Lived Intangible Assets
Additions			0
Amortization expense			$ 279
Favorable lease assets | Minimum
Finite Lived Intangible Assets
Amortization period (in years)			19 years
Favorable lease assets | Maximum
Finite Lived Intangible Assets
Amortization period (in years)			60 years
Internet sites
Finite Lived Intangible Assets
Additions			$ 0
Amortization expense			$ 125
Internet sites | Minimum
Finite Lived Intangible Assets
Amortization period (in years)			5 years
Internet sites | Maximum
Finite Lived Intangible Assets
Amortization period (in years)			10 years

XML

Debt and obligations under capital lease - Long term debt and obligations under capital leases (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Loans from banks and other parties collateralized by tangible and intangible personal property and real estate with a maturity of 21 months to seven years (2016 - two to five years), with a weighted average interest rate of 3.99% (2016 - 4.27%)	$ 722,874	$ 602,083
Obligations under capital lease	27	19
Total long-term debt and obligations under capital lease	722,901	602,102
Less: Current portion	6,767	5,284
Less: Discount on secured term loan	3,267	1,515
Less: Debt issuance costs	14,592	9,535
Non-current portion of long-term debt and obligations under capital lease	$ 698,275	$ 585,768
Weighted-average interest rate	3.99%	4.27%
Minimum
Debt Instrument [Line Items]
Period of debt repayment	21 months	2 years
Maximum
Debt Instrument [Line Items]
Period of debt repayment	7 years	5 years

XML

Debt and obligations under capital lease - Narratives (Details)		1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 21, 2014 USD ($)	Jun. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2017 EUR (€)	Jul. 03, 2017 USD ($)	Aug. 31, 2014 USD ($)	Mar. 21, 2014 EUR (€)	Dec. 31, 1984 USD ($)
Debt Instrument [Line Items]
Debt instrument, face amount			$ 609,955,000		$ 609,955,000
Line of credit maximum borrowing capacity			100,000,000		100,000,000
Long-term debt and obligations under capital leases			$ 698,275,000		$ 698,275,000		$ 585,768,000
Interest rate floor			0.00%		0.00%			0.00%
Secured term loan, annual mandatory amortization, percentage of principal amount					1.00%
Gain on extinguishment of debt			$ 0	$ 0	$ 0	$ 1,200,000
Guaranteed debt of subsidiary					609,955,000		488,985,000
Loss on debt modification			575,000	$ 0	575,000	$ 0
Deferred financing costs			14,592,000		14,592,000		9,535,000
Line of credit maximum borrowing capacity including working capital facility			100,589,000		100,589,000		105,525,000
Line of credit facility, remaining borrowing capacity including working capital facilities			100,589,000		100,589,000		105,525,000
Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Long-term debt and obligations under capital leases			112,046,000		112,046,000		111,968,000
Charleston Center LLC | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Debt instrument, face amount		$ 112,000,000								$ 86,000,000		$ 10,000,000
Interest payable noncurrent		$ 16,819,000
Gain on extinguishment of debt							1,200,000
Debt of consolidated VIE			112,919,000		112,919,000		113,098,000
Deferred financing costs			621,000		621,000		$ 888,000
Charleston Center LLC | LIBOR | Variable Interest Entity, Primary Beneficiary
Debt Instrument [Line Items]
Basis spread on variable interest rate		2.35%
Tranche One term loan
Debt Instrument [Line Items]
Long-term debt and obligations under capital leases			399,000,000		$ 399,000,000
Tranche One term loan | LIBOR
Debt Instrument [Line Items]
Basis spread on variable interest rate					2.75%
Tranche Two term loan
Debt Instrument [Line Items]
Long-term debt and obligations under capital leases			$ 210,955,000		$ 210,955,000			€ 178,553,000
Tranche Two term loan | EURIBOR
Debt Instrument [Line Items]
Basis spread on variable interest rate					3.00%
Line of Credit
Debt Instrument [Line Items]
Debt instrument, term	7 years				5 years
Debt instrument, face amount	$ 551,955,000
Line of Credit | LIBOR
Debt Instrument [Line Items]
Basis spread on variable interest rate					2.50%
Commitment fee, percentage					0.40%
Line of Credit | Tranche One term loan
Debt Instrument [Line Items]
Debt instrument, face amount	345,000,000
Line of Credit | Tranche Two term loan
Debt Instrument [Line Items]
Debt instrument, face amount	206,955,000										€ 150,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount	$ 105,000,000								$ 100,000,000
Secured Credit Facility
Debt Instrument [Line Items]
Debt instrument, face amount									$ 603,434,000

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Debt and obligations under capital lease - Long term debt maturities, including obligations under capital leases (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Aggregate Maturities of Consolidated Long-term Debt, Including Obligations Under Capital Lease
Remainder of 2017	$ 1,691
2018	6,761
2019	118,783
2020	6,783
2021	6,548
2022	6,499
2023	6,499
2024 and thereafter	569,337
Total long-term debt and obligations under capital lease	$ 722,901	$ 602,102

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Other liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Other Liabilities Disclosure [Abstract]
Interest rate swaps (see Note 20)	$ 0	$ 1,054
Deferred gain on sale of Inn at Perry Cabin by Belmond	900	1,350
Deferred lease incentive	140	162
Tax indemnity provision on extinguishment of debt (see Note 10)	0	2,800
Total other liabilities	$ 1,040	$ 5,366

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Other liabilities - Narratives (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Estimated fair values of financial instruments (other than derivative financial instruments)
Accrued Income Taxes, Noncurrent	$ 0	$ 2,800
Accrued liabilities
Estimated fair values of financial instruments (other than derivative financial instruments)
Accrued Income Taxes, Noncurrent	$ 2,644

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Pensions - Components of net periodic pension benefit cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Components of net periodic pension benefit cost
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost on projected benefit obligation	179	207	527	660
Expected return on assets	(249)	(270)	(736)	(859)
Net amortization and deferrals	195	148	576	471
Net periodic benefit cost	$ 125	$ 85	$ 367	$ 272

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Pensions - Narratives (Details) $ in Thousands	3 Months Ended			6 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($)	Sep. 30, 2017 GBP (£)	Sep. 30, 2016 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2017 GBP (£)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 GBP (£)
Retirement Benefits [Abstract]
Estimated future employer contributions in next fiscal year	$ 1,704					$ 1,704		£ 1,272,000
Monthly contributions by employer	33	£ 24,320		$ 142	£ 106,000
Contribution by employer	61		$ 442			856	$ 1,352
Payment obligation guaranteed by Belmond	$ 10,988					$ 10,988		£ 8,200,000

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Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 20,732	$ 20,401	$ 17,608	$ 25,140

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Interest expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Interest Expense [Abstract]
Interest expense on long-term debt and obligations under capital lease	$ 7,653	$ 6,965	$ 21,863	$ 20,413
Interest on legal settlements	(10)	107	(153)	405
Amortization of debt issuance costs and discount on secured term loan	1,350	768	2,826	2,208
Total interest expense	$ 8,993	$ 7,840	$ 24,536	$ 23,026

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Supplemental cash flow information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash paid during the period for:
Interest	$ 22,750	$ 34,020
Income taxes, net of refunds	11,037	12,862
Decrease in accounts payable	$ (18)	$ 113

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Restricted cash - Major balances in restricted cash (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 7,116	$ 2,585
Other assets
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash, long-term	748	755
Cash deposits required to be held with lending banks as collateral
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	748	755
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	6,012	1,341
Bonds and guarantees
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 356	$ 489

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Share-based compensation plans - Narratives (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017 USD ($) share_based_plan	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) share_based_plan	Sep. 30, 2016 USD ($)
Share-based compensation plans
Number of share-based compensation plans | share_based_plan	2		2
Allocated Share-based Compensation Expense	$ 1,471	$ 2,109	$ 5,025	$ 5,258
Total unrecognized compensation cost related to unexercised stock options and unvested share awards	$ 7,865		$ 7,865
Total unrecognized compensation cost related to unexercised stock options and unvested share awards, recognition period (in months)			28 months
Restricted shares
Share-based compensation plans
Maximum expected life of awards (in years)			4 years
Share options
Share-based compensation plans
Maximum expected life of awards (in years)			10 years

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Share-based compensation plans - Grants in period and fair value assumptions for share-based compensation plans (Details)	9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares
Share options
Share-based compensation plans
Expected life of awards	10 years
2009 share award and incentive plan | Restricted shares without performance criteria | Vesting June 11, 2018
Share-based compensation plans
Granted deferred shares (in shares) | shares	56,390
Exercise/Purchase price (in dollars per share) | $ / shares	$ 0.01
2009 share award and incentive plan | Restricted shares without performance criteria | Vesting June 11, 2020
Share-based compensation plans
Granted deferred shares (in shares) | shares	48,872
Exercise/Purchase price (in dollars per share) | $ / shares	$ 0.01
2009 share award and incentive plan | Restricted shares without performance criteria | On retirement
Share-based compensation plans
Granted deferred shares (in shares) | shares	11,278
Exercise/Purchase price (in dollars per share) | $ / shares	$ 0.01
2009 share award and incentive plan | Restricted shares without performance criteria | Vesting March 17, 2018
Share-based compensation plans
Granted deferred shares (in shares) | shares	34,450
Exercise/Purchase price (in dollars per share) | $ / shares	$ 0.01
2009 share award and incentive plan | Restricted shares without performance criteria | Vesting March 17, 2019
Share-based compensation plans
Granted deferred shares (in shares) | shares	34,450
Exercise/Purchase price (in dollars per share) | $ / shares	$ 0.01
2009 share award and incentive plan | Restricted shares without performance criteria | Vesting March 17, 2020
Share-based compensation plans
Granted deferred shares (in shares) | shares	117,231
Exercise/Purchase price (in dollars per share) | $ / shares	$ 0.01
2009 share award and incentive plan | Restricted shares without performance criteria | Vesting March 17, 2021
Share-based compensation plans
Granted deferred shares (in shares) | shares	34,450
Exercise/Purchase price (in dollars per share) | $ / shares	$ 0.01
2009 share award and incentive plan | Restricted shares with performance criteria | Vesting March 17, 2020
Share-based compensation plans
Granted deferred shares (in shares) | shares	228,500
Exercise/Purchase price (in dollars per share) | $ / shares	$ 0.01
2009 share award and incentive plan | Common Class A Vesting June 2018 | Share options
Share-based compensation plans
Granted deferred shares (in shares) | shares	40,900
Exercise/Purchase price (in dollars per share) | $ / shares	$ 13.45
Expected share price volatility	29.00%
Risk-free interest rate	1.50%
Expected dividends per share | $	$ 0
Expected life of awards	2 years 6 months
2009 share award and incentive plan | Common Class A Vesting June 2019 | Share options
Share-based compensation plans
Granted deferred shares (in shares) | shares	40,900
Exercise/Purchase price (in dollars per share) | $ / shares	$ 13.45
Expected share price volatility	29.00%
Risk-free interest rate	1.50%
Expected dividends per share | $	$ 0
Expected life of awards	3 years 6 months
2009 share award and incentive plan | Common Class A Vesting June 2020 | Share options
Share-based compensation plans
Granted deferred shares (in shares) | shares	40,900
Exercise/Purchase price (in dollars per share) | $ / shares	$ 13.45
Expected share price volatility	30.00%
Risk-free interest rate	1.77%
Expected dividends per share | $	$ 0
Expected life of awards	4 years 6 months
2009 share award and incentive plan | Common Class A Vesting June 2021 | Share options
Share-based compensation plans
Granted deferred shares (in shares) | shares	40,900
Exercise/Purchase price (in dollars per share) | $ / shares	$ 13.45
Expected share price volatility	34.00%
Risk-free interest rate	1.77%
Expected dividends per share | $	$ 0
Expected life of awards	5 years 6 months

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Commitments and contingencies - Narratives (Details) BRL in Thousands, $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2015 USD ($)	Mar. 31, 2010 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) installment	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2013 USD ($)	Sep. 30, 2017 BRL	Aug. 31, 2016	Mar. 20, 2015 USD ($)	Mar. 20, 2015 BRL	Feb. 28, 2013 USD ($)
Commitments
Percentage of purchase price to be paid for purchase of Hotel Cipriani in Venice, Italy by James Sherwood on exercise of first refusal right					80.00%
Percentage of purchase price to be paid for purchase of Hotel Cipriani in Venice, Italy by James Sherwood on exercise of purchase option by non-recourse promissory note					100.00%
Number of installments for payment of purchase price for Hotel Cipriani in Venice Italy by James Sherwood on exercise of purchase option by non-recourse promissory note | installment					10
Significant acquisitions and disposals, length of time before expiry of former director's right of first refusal and purchase option after his death					1 year
Rental expenses			$ 3,917	$ 3,491	$ 11,161	$ 9,604
Purchase of property, plant and equipment
Commitments
Amount of outstanding contracts					11,046		$ 7,772
Infringement litigation of Cipriani
Commitments
Amount received from defendants	$ 1,178	$ 3,947
Amount receivable from defendants in installments		$ 9,833
Period for receivable amount from defendants in installments (in years)		5 years
Ubud Hanging Gardens
Commitments
Litigation settlement amount	$ 8,500
Impairment								$ 7,031
Belmond Hotel das Cataratas
Commitments
Proposed change in rent rate										25.00%
Unasserted claim | Copacabana Palace
Commitments
Loss contingency, possible loss, amount not accrued													$ 27,000
Lease agreements | Belmond Hotel das Cataratas
Commitments
Aggregate amount due per Ministry											$ 5,366	BRL 17,000
Loss contingency accrual (more than for the $200,000)			$ 7,692		$ 7,692				BRL 24,368

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Commitments and contingencies - Future rental payments under operating leases (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Future rental payments under operating leases in respect of equipment rentals and leased premises
Remainder of 2017	$ 3,191
2018	12,574
2019	11,208
2020	11,252
2021	11,756
2022	9,630
2023 and thereafter	143,711
Future rental payments under operating leases	$ 203,322

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Fair value measurements - Financial instruments recorded at fair value (Details) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets at fair value:
Derivative financial instruments	$ 154	$ 0
Total assets	154	0
Liabilities at fair value:
Derivative financial instruments	(1,593)	(3,364)
Total net liabilities	(1,439)	(3,364)
Level 1
Assets at fair value:
Derivative financial instruments	0	0
Total assets	0	0
Liabilities at fair value:
Derivative financial instruments	0	0
Total net liabilities	0	0
Level 2
Assets at fair value:
Derivative financial instruments	154	0
Total assets	154	0
Liabilities at fair value:
Derivative financial instruments	(1,593)	(3,364)
Total net liabilities	(1,439)	(3,364)
Level 3
Assets at fair value:
Derivative financial instruments	0	0
Total assets	0	0
Liabilities at fair value:
Derivative financial instruments	0	0
Total net liabilities	$ 0	$ 0

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Fair value measurements - Fair value of other financial instruments not recorded at fair value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Estimated fair values of financial instruments (other than derivative financial instruments)
Carrying amount - Loans from banks and other parties	$ 722,874	$ 602,083
Level 3
Estimated fair values of financial instruments (other than derivative financial instruments)
Carrying amount - Loans from banks and other parties	722,874	602,083
Fair value - Loans from banks and other parties	$ 727,661	$ 626,613

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Fair value measurements - Estimated Fair Value of Non-financial Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of property, plant and equipment	$ 8,216	$ 1,007
Belmond Road to Mandalay and Belmond Northern Belle [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of property, plant and equipment	8,216
Reported Value Measurement [Member] | Belmond Road to Mandalay and Belmond Northern Belle [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment, fair value	14,173
Reported Value Measurement [Member] | Belmond Orcaella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment, fair value		1,007
Estimate of Fair Value Measurement [Member] | Belmond Road to Mandalay and Belmond Northern Belle [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment, fair value	5,955
Estimate of Fair Value Measurement [Member] | Belmond Orcaella
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment, fair value		0
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment, fair value	5,955	0
Impairment of property, plant and equipment	8,216	1,007
Fair Value, Measurements, Nonrecurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment, fair value	0	0
Fair Value, Measurements, Nonrecurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment, fair value	0	0
Fair Value, Measurements, Nonrecurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Property, plant and equipment, fair value	$ 5,955	$ 0

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Derivatives and hedging activities - Notional amounts of outstanding interest rate derivatives (Details) € in Thousands, $ in Thousands	Sep. 30, 2017 USD ($)	Sep. 30, 2017 EUR (€)	Dec. 31, 2016 USD ($)	Dec. 31, 2016 EUR (€)
Interest rate swaps
Derivatives and hedging activities
Derivative, notional amount	$ 243,000	€ 89,500	$ 210,756	€ 72,938
Interest rate caps
Derivatives and hedging activities
Derivative, notional amount	$ 17,200		$ 17,200

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Derivatives and hedging activities - Fair value of derivative financial instruments (Details) - Derivatives designated in a cash flow hedging relationship - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair value of derivative financial instruments
Total fair value, net	$ (1,439)	$ (3,364)
Interest rate swaps | Other assets
Fair value of derivative financial instruments
Derivative Asset, Fair Value, Gross Asset	154	0
Interest rate swaps | Accrued liabilities
Fair value of derivative financial instruments
Fair value of derivative liabilities	(1,593)	(2,310)
Interest rate swaps | Other liabilities
Fair value of derivative financial instruments
Fair value of derivative liabilities	$ 0	$ (1,054)

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Derivatives and hedging activities - Narratives (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
(Loss) gain recorded in other comprehensive income/(loss)	$ (6,822)	$ (1,955)	$ (19,867)	$ (5,038)
Fair value of derivatives in a net liability position	1,593		1,593		$ 3,364
Assets required to settle obligations under derivatives with credit-risk-related contingent features upon breach of provisions, termination value	1,400		1,400		3,370
Net Investment Hedging
Derivatives, Fair Value [Line Items]
Fair value of non-derivative hedging instruments			210,955		$ 153,472
Interest rate swaps
Derivatives, Fair Value [Line Items]
Loss on contract termination	2,145
Amount recorded in other comprehensive income which is expected to be reclassified to interest expense in the next 12 months	$ 2,846		$ 2,846

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Accumulated other comprehensive income/loss - Changes in accumulated other comprehensive income/(loss) by component (net of tax) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Increase (Decrease) in Stockholders' Equity
Beginning balance			$ 686,832	$ 658,425
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Total other comprehensive income, net of tax	$ 17,047	$ 2,638	47,099	7,087
Ending balance	723,681	698,340	723,681	698,340
Accumulated other comprehensive income/(loss)
Increase (Decrease) in Stockholders' Equity
Beginning balance			(352,339)	(334,542)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Other comprehensive income before reclassifications, net of tax (benefit)/provision of $Nil, $(341) and $97			45,758
Amounts reclassified from AOCI, net of tax provision of $Nil, $712 and $Nil			1,358
Total other comprehensive income, net of tax			47,116	6,966
Ending balance	(305,223)	$ (327,576)	(305,223)	$ (327,576)
Foreign currency translation adjustments
Increase (Decrease) in Stockholders' Equity
Beginning balance			(337,053)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Other comprehensive income before reclassifications, net of tax (benefit)/provision of $Nil, $(341) and $97			46,944
Amounts reclassified from AOCI, net of tax provision of $Nil, $712 and $Nil			0
Total other comprehensive income, net of tax			46,944
Ending balance	(290,109)		(290,109)
Other Comprehensive Income (Loss) before Reclassifications Tax
Other comprehensive income before reclassifications, tax			0
Reclassification from AOCI, Current Period, Tax
Amounts reclassified from AOCI, tax			0
Derivative financial instruments
Increase (Decrease) in Stockholders' Equity
Beginning balance			(3,224)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Other comprehensive income before reclassifications, net of tax (benefit)/provision of $Nil, $(341) and $97			(1,664)
Amounts reclassified from AOCI, net of tax provision of $Nil, $712 and $Nil			1,358
Total other comprehensive income, net of tax			(306)
Ending balance	(3,530)		(3,530)
Other Comprehensive Income (Loss) before Reclassifications Tax
Other comprehensive income before reclassifications, tax			(341)
Reclassification from AOCI, Current Period, Tax
Amounts reclassified from AOCI, tax			712
Pension liability
Increase (Decrease) in Stockholders' Equity
Beginning balance			(12,062)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Other comprehensive income before reclassifications, net of tax (benefit)/provision of $Nil, $(341) and $97			478
Amounts reclassified from AOCI, net of tax provision of $Nil, $712 and $Nil			0
Total other comprehensive income, net of tax			478
Ending balance	$ (11,584)		(11,584)
Other Comprehensive Income (Loss) before Reclassifications Tax
Other comprehensive income before reclassifications, tax			976
Reclassification from AOCI, Current Period, Tax
Amounts reclassified from AOCI, tax			$ 0

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Accumulated other comprehensive income/loss - Reclassifications out of accumulated other comprehensive income/(loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cash flows from derivative financial instruments related to interest payments made for hedged debt instruments	$ 8,993	$ 7,840	$ 24,536	$ 23,026
Net earnings/(losses)	7,670	22,885	(15,278)	29,724
Reclassification out of Accumulated Other Comprehensive Income
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net earnings/(losses)	379	707	1,358	2,118
Reclassification out of Accumulated Other Comprehensive Income | Derivative financial instruments
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cash flows from derivative financial instruments related to interest payments made for hedged debt instruments	$ 379	$ 707	$ 1,358	$ 2,118

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Segment information - Narratives (Details)	9 Months Ended
	Sep. 30, 2017 restaurant segment
Segment Reporting [Abstract]
Number of reportable segments | segment	6
Number of restaurants | restaurant	1

XML

Segment information - Revenue by segment (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Revenue	[1]	$ 182,973	$ 183,737	$ 443,705	$ 435,629
Owned hotels
Segment Reporting Information [Line Items]
Revenue		156,381	159,941	384,616	377,640
Part owned/managed trains and hotels
Segment Reporting Information [Line Items]
Revenue		2,918	4,578	8,506	10,869
Europe | Owned hotels
Segment Reporting Information [Line Items]
Revenue		96,658	92,319	180,772	172,827
North America | Owned hotels
Segment Reporting Information [Line Items]
Revenue		32,956	30,577	115,239	108,235
Rest of world | Owned hotels
Segment Reporting Information [Line Items]
Revenue		26,767	37,045	88,605	96,578
Owned trains and cruises | Owned trains and cruises
Segment Reporting Information [Line Items]
Revenue		23,674	19,218	50,583	47,120
Part-owned/managed hotels | Part owned/managed trains and hotels
Segment Reporting Information [Line Items]
Revenue		(405)	1,382	368	3,180
Part-owned/managed trains | Part owned/managed trains and hotels
Segment Reporting Information [Line Items]
Revenue		$ 3,323	$ 3,196	$ 8,138	$ 7,689

[1] Includes revenue from related parties of $4,758,000, $4,563,000, $11,601,000 and $10,869,000 respectively

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Segment information - Segment earnings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Central costs	$ (6,911)	$ (6,851)	$ (24,822)	$ (22,341)
Share-based compensation	(1,471)	(2,109)	(5,025)	(5,885)
Adjusted EBITDA	62,166	65,713	108,039	111,714
Net (losses)/earnings from continuing operations	7,673	22,889	(15,403)	29,673
Depreciation and amortization	17,052	13,155	45,862	39,553
Gain on extinguishment of debt	0	0	0	(1,200)
Interest income	(240)	(289)	(582)	(582)
Interest expense	8,993	7,840	24,536	23,026
Foreign currency, net	1,486	(1,432)	2,727	(9,161)
Provision for income taxes	20,732	20,401	17,608	25,140
Share of provision for income taxes of unconsolidated companies	2,026	1,712	4,079	3,943
EBITDA	57,722	64,276	78,827	110,392
Gain on disposal of property, plant and equipment	(150)	(488)	(450)	(788)
Impairment of property, plant and equipment	0	1,007	8,216	1,007
Restructuring and other special item	4,315	918	7,414	1,103
Business acquisition costs	279	0	14,032	0
Owned hotels
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Segment Adjusted EBITDA	54,503	60,081	109,196	112,925
Part owned/managed trains and hotels
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Segment Adjusted EBITDA	10,703	11,260	23,401	22,888
Europe | Owned hotels
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Segment Adjusted EBITDA	48,714	45,554	71,507	66,239
North America | Owned hotels
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Segment Adjusted EBITDA	2,245	3,226	21,790	21,794
Rest of world | Owned hotels
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Segment Adjusted EBITDA	3,544	11,301	15,899	24,892
Owned trains and cruises | Owned trains and cruises
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Segment Adjusted EBITDA	5,342	3,332	5,289	4,127
Part-owned/managed hotels | Part owned/managed trains and hotels
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Segment Adjusted EBITDA	2,502	2,424	5,266	4,744
Part-owned/managed trains | Part owned/managed trains and hotels
Reconciliation from earnings from continuing operations to adjusted EBITDA:
Segment Adjusted EBITDA	$ 8,201	$ 8,836	$ 18,135	$ 18,144

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Segment information - Reconciliation of other significant reconciling items from segments to consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting, Other Significant Reconciling Item [Line Items]
Earnings from unconsolidated companies, net of tax	$ 3,939	$ 4,618	$ 7,789	$ 7,712
Capital expenditure to acquire property, plant and equipment	15,597	13,480	43,012	40,556
Unallocated corporate
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital expenditure to acquire property, plant and equipment	1,359	458	2,760	1,079
Owned hotels | Operating segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital expenditure to acquire property, plant and equipment	13,183	10,529	33,710	28,821
Europe | Owned hotels | Operating segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital expenditure to acquire property, plant and equipment	4,269	1,646	17,043	8,850
North America | Owned hotels | Operating segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital expenditure to acquire property, plant and equipment	3,404	2,051	6,351	6,442
Rest of world | Owned hotels | Operating segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital expenditure to acquire property, plant and equipment	5,510	6,832	10,316	13,529
Owned trains and cruises | Owned trains and cruises | Operating segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
Capital expenditure to acquire property, plant and equipment	1,055	2,493	6,542	10,656
Part-owned/managed hotels
Segment Reporting, Other Significant Reconciling Item [Line Items]
Earnings from unconsolidated companies, net of tax	747	794	1,213	1,022
Part-owned/managed trains
Segment Reporting, Other Significant Reconciling Item [Line Items]
Earnings from unconsolidated companies, net of tax	$ 3,192	$ 3,824	$ 6,576	$ 6,690

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Segment information - Revenues by geography (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	[1]	$ 182,973	$ 183,737	$ 443,705	$ 435,629
Bermuda
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		0	0	0	0
Italy
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		70,704	67,746	120,322	115,928
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		19,089	16,950	43,572	44,568
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		24,597	25,338	82,879	79,621
Brazil
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		11,994	24,025	41,910	56,232
All other countries
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue		$ 56,589	$ 49,678	$ 155,022	$ 139,280

[1] Includes revenue from related parties of $4,758,000, $4,563,000, $11,601,000 and $10,869,000 respectively

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Related party transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Jun. 30, 2007
Related party transactions
Ownership percentage in equity method investment	50.00%		50.00%
Related party revenue	$ 4,758	$ 4,563	$ 11,601	$ 10,869
Eastern and Oriental Express Ltd.
Related party transactions
Ownership percentage in equity method investment	25.00%		25.00%
Related party revenue	$ 1	20	$ 137	147
Amounts payable to (from) Belmond	$ 6,681		$ 6,681		$ 4,886
Peruvian hotel and rail joint ventures
Related party transactions
Ownership percentage in equity method investment	50.00%		50.00%
Related party revenue	$ 4,757	$ 4,543	$ 11,464	$ 10,722
Amounts payable to (from) Belmond	$ 6,946		$ 6,946		6,907
Buzios land joint venture
Related party transactions
Ownership percentage in equity method investment	50.00%		50.00%			50.00%
Amounts payable to (from) Belmond	$ 437		$ 437		$ 372

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Subsequent events (Details) £ in Thousands			3 Months Ended		9 Months Ended
	Nov. 02, 2017 USD ($)	Nov. 02, 2017 GBP (£)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)
Subsequent Event [Line Items]
Adjusted EBITDA			$ 62,166,000	$ 65,713,000	$ 108,039,000	$ 111,714,000
Belmond Orcaella
Subsequent Event [Line Items]
Adjusted EBITDA					$ (800,000)
Subsequent Event | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | Belmond Northern Belle
Subsequent Event [Line Items]
Proceeds from divestiture of business	$ 3,350,000	£ 2,500
Gain.loss from disposal	$ 0