Orient-Express Hotels Reports Fourth Quarter and Full Year 2009 Results
By Orient Express Hotels Ltd, PRNEMonday, February 22, 2010
HAMILTON, Bermuda, February 23, 2010 -
Fourth Quarter Earnings Summary
- Fourth quarter total revenues, excluding Real Estate, up 17%
to $113.6 million
- Same store revenue from owned hotels up 13%
- Same store RevPAR down 7% in local currency, up 11% in US dollars
- Trains and cruises revenue up 7%
- Adjusted EBITDA before Real Estate, up $3.3 million to $13.5
million
Key events
- In January 2010, raised $131 million of cash in common share
offering for acquisition of strategic assets in Sicily, debt reduction
and general corporate purposes
- In January 2010, acquired Grand Hotel Timeo and Villa Sant'Andrea
in Taormina, Sicily for EUR81 million ($117 million)
- Joint venture in Peru acquired fourth property, Hotel Rio Sagrado
in the Sacred Valley of the Incas, between Cuzco and Machu Picchu
- Sold Lilianfels Blue Mountains, Australia for AUD21 million
($19.3 million)
- Concluded sale of Windsor Court Hotel, New Orleans for $44.25
million
- Total proceeds from non-core asset sales agreed in 2009 of $108
million
- Sold a further 10 apartments at Porto Cupecoy, St. Martin for
$6.7 million
Orient-Express Hotels Ltd. (NYSE: OEH, www.orient-express.com),
owners or part-owners and managers of 50 luxury hotels, restaurants, tourist
trains and river cruise properties operating in 24 countries, today announced
its results for the fourth quarter and full year ended December 31, 2009.
For the fourth quarter, the Company reported a net loss of $16.8 million
(loss of $0.22 per common share) on revenue of $113.6 million, compared with
a net loss of $48.1 million (loss of $1.04 per common share) on revenue of
$70.7 million in the fourth quarter of 2008. The net loss from continuing
operations for the period was $9.1 million (loss of $0.12 per common share),
compared with a net loss of $39.8 million (loss of $0.86 per common share) in
the fourth quarter of 2008. The adjusted net loss from continuing operations
for the period was $9.6 million ($0.12 per common share), compared with
adjusted net earnings of $0.1 million ($0.00 per common share) in the fourth
quarter of 2008.
Paul White, President and Chief Executive Officer said, "The early signs
of stability seen at the end of the third quarter continued through quarter
four, with growth in hotel revenues in all regions and overall revenues (pre
Real Estate) up 17%. EBITDA margin was ahead of 2008, with the result that
adjusted EBITDA (pre Real Estate) grew by $3.3 million to $13.5 million.
Whilst we cannot yet celebrate the end of these challenging times, these
results, coupled with improved bookings pace, are strong indicators that the
revenue and RevPAR declines of 2009 will not be repeated in 2010.
"In January 2010, we completed the acquisition of two rare assets in
Italy, supported by a $131 million equity raise. Elements of this purchase
meet every one of Orient-Express Hotels' investment criteria, including the
unique and iconic status of the Grand Hotel Timeo, the location of the
properties, the financial upside and barriers to entry. They typify
Orient-Express Hotels' core business - established properties with history
and personality. Currently, they both punch below their weight and because
they occupy a premier position in the Sicilian market, we are confident we
can make significant improvements in performance, as we integrate the
properties into the Orient-Express Hotels collection and bring RevPAR and
operating margins in line with our existing Italian portfolio. The two hotels
will open, post initial renovations, in May 2010.
"2009 has been a very challenging year," White continued, "with revenues
from continuing operations (pre Real Estate) down 14%, or $76.8 million. We
have maintained discipline in all areas of expenditure, and most importantly
we have made good progress in the management of the portfolio. Hotel das
Cataratas was renovated to Orient-Express standards, we increased the number
of keys at Jimbaran Puri Bali by 22 and we relaunched an improved Road to
Mandalay after it was badly damaged in Cyclone Nargis. Porto Cupecoy, our
Real Estate development in St. Martin, successfully opened in January 2010."
Business Highlights
Revenue, excluding Real Estate revenue, was $113.6 million in the fourth
quarter of 2009, up $16.8 million from the fourth quarter of 2008. On a same
store basis, revenue, excluding Real Estate revenue, was up 9% in US dollars
or by $8.7 million.
Revenue from Owned Hotels for the fourth quarter was $90.5 million,
including $11.6 million from Charleston Place, South Carolina, which was
consolidated from January 1, 2009. On a same store basis, revenue from Owned
Hotels increased by 13% year over year. Owned Hotels same store RevPAR was
down 7% in local currency. However, because of a weakening of the US dollar
in the last quarter, RevPAR in US dollars was up 11% compared to the fourth
quarter of last year.
Trains and Cruises revenue in the fourth quarter was $16.2 million, an
increase of 7% over the prior year.
Adjusted EBITDA before Real Estate and Impairment was $13.5 million
compared to $10.2 million in the prior year. The principal variances from the
fourth quarter of 2008 included results from owned hotels in Italy (up $3.8
million), Grand Hotel Europe, St Petersburg (up $1.8 million), La Samanna,
St. Martin (down $1.5 million), Mount Nelson Hotel, Cape Town (down $1.6
million), and Venice Simplon-Orient-Express (up $1.1 million).
In October, the Company entered into conditional agreements to purchase
two hotels in Taormina, Sicily - the 83-room Grand Hotel Timeo, widely
considered the most luxurious hotel in Taormina, and the 78-room Villa
Sant'Andrea, a nearby hotel on the city's Bay of Mazzaro with a private
beach. The acquisition was completed in January 2010. The total price of the
two hotels was approximately $117 million, of which $37 million was paid in
cash and the balance was in the form of assumption of existing and new
indebtedness relating to the two properties.
In December, the Company's 50% joint venture company, Peru OEH SA,
acquired a fourth property in Peru, the existing Hotel Rio Sagrado in the
Sacred Valley of the Incas. The 21 suite property, which opened in April
2009, was acquired for US$7 million, funded from the joint venture's cash
reserves plus long term debt of $2.5 million. This brings to five the number
of Orient-Express hotels in Peru.
Also in December, agreement was reached to sell Lilianfels Blue
Mountains, Australia for AUD21 million ($19.3 million). The cash proceeds
from this sale were received in January 2010.
Finally in December, the Company signed an agreement to sell its La
Cabana restaurant in Buenos Aires including the real estate for $2.7 million.
Completion is scheduled to take place in March 2010.
The sale of the Windsor Court Hotel, New Orleans to The Berger Company,
Inc. was concluded in October for $44.3 million.
After taking account of the sale of Lapa Palace, Lisbon, in June 2009 for
$42 million, the Company executed during the year four sales of non-core
assets for a total amount of $108 million, of which a balance of $19 million
will be received later in 2010.
In October, La Residence d'Angkor in Siem Reap, Cambodia, opened eight
luxury suites in a new wing of this boutique city resort, bringing the total
number of rooms at the property to 62. The rooms are located above a new Kong
Kea Spa, which has six treatment rooms.
During the quarter, Hotel das Cataratas was relaunched under the
Orient-Express brand, following a $27 million renovation to raise the hotel
to international standards of style, design and service.
In December, the Company entered into a deferred sale agreement with the
luxury destination club Quintess, The Leading Residences of the World, which
has the option to purchase four of La Samanna's free-standing villas for
proceeds of $16 million in the first year, $17 million in the second year or
$18 million in the third year and will make option payments of up to
approximately $0.9 million on each villa.
Porto Cupecoy enjoyed strong sales in the run-up to completion of the
construction, with ten apartment contracts signed during the quarter, and a
further five units sold since the end of the year. This means that 99 units
or 54% of the total are now sold. The grand opening of the development took
place in January 2010.
On January 19, 2010, the Company completed its public offering of 13.8
million class A common shares including 1.8 million shares covered by the
underwriters' over-allotment option which was exercised in full. The Company
intends to use the net proceeds, $131 million, primarily to pay the cash
portion of the purchase price of the two hotels in Taormina, Sicily, and for
debt reduction and general corporate purposes.
Regional Performance
Europe: In the fourth quarter, revenues from Owned Hotels were $28.2
million, up 23% from $23.0 million in the fourth quarter of 2008. Same store
RevPAR for the region fell by 7% in local currency. EBITDA was $1.0 million
in 2009 versus an EBITDA loss of $4.1 million in the prior year. For the
region, the effect of the weakening US dollar in the fourth quarter of 2009
compared to a strengthening US dollar in the fourth quarter of 2008 had a
$3.2 million positive impact on EBITDA versus the prior year.
North America: Revenue was $24.6 million in the fourth quarter, including
$11.6 million from Charleston Place. Excluding this hotel, revenue was $1.5
million lower than the fourth quarter of 2008. Excluding EBITDA of $3.2
million from Charleston Place, there was an EBITDA decrease of $1.1 million.
Same store RevPAR for the region fell by 18%.
Southern Africa: Revenue of $9.2 million was 9% lower year over year, and
EBITDA of $2.6 million was $1.6 million lower than the fourth quarter of
2008.
South America: Revenue was $19.6 million in the fourth quarter, compared
to $14.7 million in the prior year. EBITDA was unchanged at $4.1 million.
Copacabana Palace had a RevPAR increase of 27% in local currency, and EBITDA
was up by $0.4 million. Hotel das Cataratas, which was relaunched as an
Orient-Express hotel in October 2009, contributed an EBITDA loss of $1.2
million, compared to an EBITDA loss of $0.6 million in the prior year.
Asia Pacific: Revenue for the fourth quarter of 2009 was $5.2 million, an
increase of 7% year over year. EBITDA was $1.7 million compared to $1.5
million in the fourth quarter of 2008. Same store RevPAR in local currency
for the region increased by 4%.
Hotel management and part-ownership interests: EBITDA for the fourth
quarter of 2009 was $1.2 million compared to $5.7 million in the fourth
quarter of 2008, which included $3.5 million of EBITDA from Charleston Place.
The fall in EBITDA on a same store basis was mostly attributable to Hotel
Ritz Madrid, which continues to operate in adverse market conditions.
Restaurants: Revenue from restaurants in the fourth quarter of 2009 was
$5.7 million, compared to $6.3 million in the fourth quarter of 2008, and
EBITDA was $1.7 million compared to $2.0 million in the prior year.
Trains and Cruises: Revenue increased by 7% to $16.2 million in the
fourth quarter of 2009. EBITDA increased by $1.9 million to $4.6 million. The
prior year quarter included a non-recurring restructuring charge of $0.8
million.
Central costs: In the fourth quarter of 2009, central costs were $6.5
million compared with $11.0 million in the prior year period. The prior year
quarter included $3.3 million of restructuring charges and other
non-recurring costs.
Real Estate: In the fourth quarter of 2009 there was an EBITDA loss of
$1.9 million from real estate activities, primarily relating to sales and
marketing costs for Porto Cupecoy, which have been expensed in the current
year in line with US GAAP. During the quarter, a further ten units were sold
for a total value of $6.7 million.
Depreciation and amortization: The depreciation and amortization charge
for the fourth quarter of 2009 was $11.3 million compared with $7.7 million
in the fourth quarter of 2008. The current quarter includes $1.4 million
relating to Charleston Place, which was consolidated from January 1, 2009.
Additionally, there was a $0.4 million impact from the effect of the
weakening US dollar in the fourth quarter of 2009 compared to a strengthening
US dollar in the fourth quarter of 2008.
Interest: The interest charge for the fourth quarter of 2009 was $6.7
million compared to $13.8 million in the fourth quarter of 2008. The prior
year quarter included a non-cash charge of $4.3 million arising on interest
rate swaps that did not qualify for hedge accounting.
Tax: The tax charge for the fourth quarter of 2009 was $2.6 million,
including ASC 740 credits of $0.1 million and excluding a tax charge in
respect of discontinued operations of $2.1 million, compared to a credit of
$7.9 million in the same quarter in the prior year, which included ASC 740
credits of $12.7 million but excluded a tax charge in respect of discontinued
operations of $1.6 million. Excluding ASC 740 credits, the Company's reported
tax charge would have been $2.7 million for the 2009 quarter and $4.8 million
for the same quarter last year.
Discontinued operations: The charge for the fourth quarter of 2009 was
$7.7 million. Discontinued operations in the fourth quarter include the
results of Bora Bora Lagoon Resort, La Cabana and Lilianfels Blue Mountains.
The charge includes an operating loss in the quarter, net of tax, of $3.6
million, a loss on sale of the Windsor Court Hotel of $1.1 million and an
expense of $2.9 million in respect of an insurance claim relating to the
Windsor Court.
Investment: The Company invested $11.0 million during the quarter in the
Company's development at Porto Cupecoy and $2.6 million in Hotel das
Cataratas. There was additional capital expenditure in the fourth quarter of
$5.3 million.
Liquidity and Capital Reserves
At December 31, 2009, the Company had long term debt of $811.7 million,
working capital loans of $6.7 million and cash balances of $92.0 million
(including $19.9 million of restricted cash), giving a total net debt of
$726.4 million compared with total net debt of $705.8 million at the end of
the third quarter of 2009. Additionally, at December 31, 2009, Other
Liabilities Held for Sale included $6.8 million of debt relating to
Lilianfels Blue Mountains, which was repaid in January 2010 when the hotel
was sold.
At December 31, 2009, undrawn amounts available to the Company under
committed short-term lines of credit were $30.6 million and undrawn amounts
available to the Company under secured revolving credit facilities were $12.0
million, bringing total cash availability at December 31, 2009, to $134.6
million, including restricted cash of $19.9 million. The Company's liquidity
was improved by $94 million after raising $131 million from its equity
offering, which was completed on January 19, 2010, and after paying $37
million for the cash portion of the purchase price for the two hotels
acquired in Taormina, Sicily. The acquisition of these two hotels included
the assumption of existing and new indebtedness of $80.0 million relating to
the properties maturing mostly in 2013.
At December 31, 2009, approximately 56% of the Company's debt was at
fixed interest rates and 44% was at floating interest rates. The weighted
average maturity of the debt was approximately 2.8 years and the weighted
average interest rate (including margin and swaps) was approximately 3.5%.
Recent Events in Peru, Bora Bora and Madeira
Heavy rains in late January 2010 caused flooding in the Machu Picchu
region of Peru resulting in a series of landslides which severely damaged and
eroded railway tracks of the Company's rail joint venture between Cuzco,
Ollantaytambo and Machu Picchu. Services are currently suspended and none of
the joint venture's trains has been able to operate between Ollantaytambo and
Machu Picchu since January 23.
Engineers from the Company's rail joint venture have repaired the track
between Machu Picchu and Hydroelectrica, a town upriver from Machu Picchu,
and estimate that works to the damaged tracks between Ollantaytambo and Machu
Picchu, the main access route for tourist and local trains from Cuzco, will
be completed by early April, subject to favorable weather conditions.
Management expects the cost of repairs and the disruption to rail
operations to be covered by the rail joint venture's insurance.
The 31 room Machu Picchu Sanctuary Lodge, part of the Company's hotel
joint venture in Peru was not damaged by the floods. Hotel Rio Sagrado, in
the Sacred Valley, has reopened, having been evacuated when river levels were
very high. The property was not damaged.
On February 4, 2010, Bora Bora Lagoon Resort & Spa, French Polynesia, was
hit by tropical Cyclone Oli, with wind speeds reaching 160km per hour. The
resort sustained damage and is not expected to re-open before September 2010.
It is covered under the Company's global insurance program.
On February 20, 2010, Madeira experienced heavy rains which temporarily
closed the airport and caused major flooding in Funchal. Reid's Palace was
not damaged and is operating normally, but it is not yet known what the
impact of cancellations may be. Guests who do not wish to travel in the next
couple of weeks are being allowed to rebook during 2010.
Outlook
Commenting on strategy for the year ahead, Paul White said, "In 2010, we
will continue with the key strategic actions which we started in 2008,
including further sales of non-core assets, the ongoing enhancement of the
Orient-Express brand, the sale of developed real estate, and tight controls
on both operating and capital expenditure. These strategies, coupled with a
determined approach to revenue and EBITDA management, should see debt levels
continue to decrease and our net debt to EBITDA and debt service coverage
ratio further improved."
Reconciliation and Adjustments
$'000 - except per share amounts Three months ended Twelve months
December 31 ended
December 31
2009 2008 2009 2008
12,896 (28,785) 69,222 87,120
EBITDA from continuing operations
Adjusted items:
Management restructuring and
related costs (1) - 2,493 1,472 2,493
Impairment (2) - 29,099 6,500 29,099
Gain on insurance proceeds (3) (1,385) - (1,385) -
Abandoned projects (4) - 1,418 - 1,497
Legal costs (5) 6 690 654 690
Porto Cupecoy (6) - 5,247 - 4,866
Adjusted EBITDA from continuing
operations 11,517 10,162 76,463 125,765
US GAAP reported net loss (16,830) (48,056) (68,797) (26,551)
Discontinued operations net of
tax 7,744 8,247 49,520 27,635
Net (loss)/ earnings from
continuing operations (9,086) (39,809) (19,277) 1,084
Adjusted items net of tax:
Management restructuring and
related costs (1) - 1,885 1,080 1,885
Impairment (2) - 29,099 6,500 29,099
Gain on insurance proceeds (3) (1,385) - (1,385) -
Abandoned projects (4) - 1,418 - 1,497
Legal costs (5) 6 690 654 690
Porto Cupecoy (6) - 5,247 - 4,902
Interest rate swaps (7) (142) 3,881 823 4,022
Foreign exchange (8) 1,049 (2,330) 806 (4,392)
Adjusted net (loss)/earnings
from continuing operations (9,558) 81 (10,799) 38,787
Reported EPS (0.22) (1.04) (1.01) (0.61)
Reported EPS from continuing
operations (0.12) (0.86) (0.28) 0.03
Adjusted EPS from continuing
operations (0.12) 0.00 (0.16) 0.89
Number of shares (millions) 76.84 46.35 68.05 43.44
1. Restructuring and redundancy costs incurred as part of the Company's
cost reduction program
2. Goodwill and fixed asset impairment charges recorded on three owned
properties in 2009 and three owned properties and one joint venture in 2008
3. A gain on the settlement of insurance proceeds received for
cyclone-damaged assets on the Road to Mandalay ship
4. Costs associated with certain projects which the Company has decided
not to pursue
5. Legal costs incurred in defending the Company's class B common share
structure including a Special General Meeting in 2008 and litigation in 2009
6. In Q4 2008 there was a change in the application of the accounting
policy for revenue recognition resulting in the reversal of revenues and
earnings previously recognized
7. Swaps that did not qualify for hedge accounting
8. Foreign exchange, net of tax, a non-cash item arising on the
translation of certain assets and liabilities denominated in currencies other
than the reporting currency of the entity concerned
Management evaluates the operating performance of the Company's segments
on the basis of segment net earnings before interest, foreign currency, tax
(including tax on unconsolidated companies), depreciation and amortization
(EBITDA), and believes that EBITDA is a useful measure of operating
performance, for example to help determine the ability to incur capital
expenditure or service indebtedness, because it is not affected by
non-operating factors such as leverage and the historic cost of assets.
EBITDA is also a financial performance measure commonly used in the hotel and
leisure industry, although the Company's EBITDA may not be comparable in all
instances to that disclosed by other companies. EBITDA does not represent net
cash provided by operating, investing and financing activities under U.S.
generally accepted accounting principles (U.S. GAAP), is not necessarily
indicative of cash available to fund all cash flow needs, and should not be
considered as an alternative to earnings from operations or net earnings
under U.S. GAAP for purposes of evaluating operating performance.
Adjusted net earnings, adjusted net earnings from continuing operations,
and adjusted E.P.S. of the Company are non-GAAP financial measures and do not
have any standardized meanings prescribed by U.S. GAAP. They are, therefore,
unlikely to be comparable to similar measures presented by other companies,
which may be calculated differently, and should not be considered as an
alternative to net earnings, cash flow from operating activities or any other
measure of performance prescribed by U.S. GAAP. Management considers adjusted
net earnings, adjusted net earnings from continuing operations, and adjusted
E.P.S. to be meaningful indicators of operations and uses them as measures to
assess operating performance because, when comparing current period
performance with prior periods and with budgets, management does so after
having adjusted for non-recurring items, foreign exchange (a non-cash item)
and significant disposals of assets or investments, which could otherwise
have a material effect on the comparability of the Company's core operations.
Adjusted net earnings, adjusted net earnings from continuing operations, and
adjusted E.P.S. are also used by investors, analysts and lenders as measures
of financial performance because, as adjusted in the foregoing manner, the
measures provide a consistent basis on which the performance of the Company
can be assessed.
This news release and related oral presentations by management contain,
in addition to historical information, forward-looking statements that
involve risks and uncertainties. These include statements regarding earnings
outlook, investment plans, debt reduction, asset sales and similar matters
that are not historical facts. These statements are based on management's
current expectations and are subject to a number of uncertainties and risks
that could cause actual results to differ materially from those described in
the forward-looking statements. Factors that may cause a difference include,
but are not limited to, those mentioned in the news release, unknown effects
on the travel and leisure markets of terrorist activity and any police or
military response, varying customer demand and competitive considerations,
failure to realize hotel bookings and reservations and planned property
development sales as actual revenue, inability to sustain price increases or
to reduce costs, rising fuel costs adversely impacting customer travel and
the Company's operating costs, fluctuations in interest rates and currency
values, uncertainty of negotiating and completing proposed asset sales,
capital expenditures and acquisitions, inability to reduce funded debt as
planned or to agree bank loan agreement waivers or amendments, adequate
sources of capital and acceptability of finance terms, possible loss or
amendment of planning permits and delays in construction schedules for
expansion or development projects, delays in reopening properties closed for
repair or refurbishment and possible cost overruns, shifting patterns of
tourism and business travel and seasonality of demand, adverse local weather
conditions, changing global and regional economic conditions in many parts of
the world and weakness in financial markets, legislative, regulatory and
political developments, and possible continuing challenges to the Company's
corporate governance structure. Further information regarding these and other
factors is included in the filings by the Company with the U.S. Securities
and Exchange Commission.
Orient-Express Hotels will conduct a conference call on Wednesday,
February 24, 2010 at 10.00 hrs ET (15.00 GMT) which is accessible at
+1-866-966 5335 (US toll free) or +44-(0)20-3037-9120 (Standard International
access). The conference ID is 'Orient-Express'. A re-play of the conference
call will be available until 5.00pm (ET) Wednesday, March 3, 2010 and can be
accessed by calling +1-866-583-1035 (US toll free) or +44-(0)20-8196-1998
(Standard International) and entering replay access number 3917290#. A
re-play will also be available on the company's website:
www.orient-expressinvestorinfo.com.
ORIENT-EXPRESS HOTELS LTD
Three Months ended December 31, 2009
SUMMARY OF OPERATING RESULTS
(Unaudited)
Three months ended
December 31
$'000 - except per share amount 2009 2008
Revenue and earnings from
unconsolidated companies
Owned hotels
- Europe 28,234 23,021
- North America 24,609 14,442
- Rest of World 37,621 32,125
Hotel management & part ownership
interests 1,221 5,684
Restaurants 5,719 6,337
Trains & Cruises 16,193 15,195
Revenue and earnings from
unconsolidated
companies before Real Estate 113,597 96,804
Real Estate 18 (26,134)
Total (1) 113,615 70,670
Analysis of earnings
Owned hotels
- Europe 971 (4,062)
- North America 2,622 519
- Rest of World 8,840 9,722
Hotel management & part ownership
interests 1,221 5,684
Restaurants 1,726 2,002
Trains & Cruises 4,588 2,663
Central overheads (6,514) (10,964)
EBITDA before Real Estate and
Impairment 13,454 5,564
Real Estate (1,943) (5,250)
EBITDA before Impairment & Gain
on insurance proceeds 11,511 314
Impairment - (29,099)
Gain on insurance proceeds 1,385 -
EBITDA 12,896 (28,785)
Depreciation & amortization (11,285) (7,728)
Interest (6,740) (13,809)
Foreign exchange (1,367) 2,653
Losses before tax (6,496) (47,669)
Tax (2,590) 7,860
Net losses from continuing (9,086) (39,809)
operations
Discontinued operations (7,744) (8,247)
Net losses on common shares (16,830) (48,056)
Losses per common share (0.22) (1.04)
Number of shares - millions 76.84 46.35
(1) Comprises earnings from unconsolidated companies of $2,331,000 (2008
- $5,434,000) and revenue of $111,284,000 (2008 - $65,236,000).
ORIENT-EXPRESS HOTELS LTD
Three Months Ended December 31, 2009
SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS
Three months ended
December 31
2009 2008
Average Daily Rate
(in U.S. dollars)
Europe 538 367
North America 349 381
Rest of World 321 278
Worldwide 373 326
Rooms Available (000's)
Europe 64 65
North America 67 66
Rest of World 118 111
Worldwide 249 242
Rooms Sold (000's)
Europe 25 25
North America 37 38
Rest of World 63 66
Worldwide 125 129
RevPAR (in U.S. dollars)
Europe 207 142
North America 191 219
Rest of World 171 166
Worldwide 186 174
Change %
Same Store RevPAR Dollar Local
(in U.S. dollars) currency
Europe 207 146 42% -7%
North America 271 330 -18% -18%
Rest of World 183 169 8% -3%
Worldwide 203 183 11% -7%
ORIENT-EXPRESS HOTELS LTD
Twelve Months ended December 31, 2009
SUMMARY OF OPERATING RESULTS
(Unaudited)
Twelve months ended
December 31
$'000 - except per share amount 2009 2008
Revenue and earnings from
unconsolidated companies
Owned hotels
- Europe 161,446 217,121
- North America 100,486 64,214
- Rest of World 116,182 129,317
Hotel management & part ownership
interests 2,995 23,302
Restaurants 14,436 18,499
Trains & Cruises 68,398 88,296
Revenue and earnings from
unconsolidated
companies before Real Estate 463,943 540,749
Real Estate 1,706 (14,154)
Total (1) 465,649 526,595
Analysis of earnings
Owned hotels
- Europe 38,328 61,215
- North America 14,579 9,455
- Rest of World 25,453 32,000
Hotel management & part ownership
interests 2,995 23,302
Restaurants 1,757 3,518
Trains & Cruises 20,571 24,279
Central overheads (25,870) (31,117)
EBITDA before Real Estate and 77,813 122,652
Impairment
Real Estate (3,476) (6,433)
EBITDA before Impairment & Gain on
insurance proceeds 74,337 116,219
Impairment (6,500) (29,099)
Gain on insurance proceeds 1,385 -
EBITDA 69,222 87,120
Depreciation & amortization (40,830) (34,772)
Interest (31,068) (46,874)
Foreign exchange (1,058) 4,774
(Losses)/earnings before tax (3,734) 10,248
Tax (15,543) (9,164)
Net (losses)/earnings from
continuing operations (19,277) 1,084
Discontinued operations (49,520) (27,635)
Net losses on common shares (68,797) (26,551)
Losses per common share (1.01) (0.61)
Number of shares - millions 68.05 43.44
(1) Comprises earnings from unconsolidated companies of $8,693,000 (2008
- $23,757,000) and revenue of $456,956,000 (2008 - $502,838,000).
ORIENT-EXPRESS HOTELS LTD
Twelve Months Ended December 31, 2009
SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS
Twelve months ended
December 31
2009 2008
Average Daily Rate
(in U.S. dollars)
Europe 682 795
North America 342 374
Rest of World 293 280
Worldwide 407 442
Rooms Available (000's)
Europe 276 282
North America 271 269
Rest of World 448 430
Worldwide 995 981
Rooms Sold (000's)
Europe 127 153
North America 150 175
Rest of World 221 262
Worldwide 498 590
RevPAR (in U.S. dollars)
Europe 313 432
North America 189 243
Rest of World 145 170
Worldwide 204 266
Change %
Same Store RevPAR Dollar Local
(in U.S. dollars) currency
Europe 313 435 -28% -21%
North America 272 359 -24% -23%
Rest of World 158 181 -13% -12%
Worldwide 230 299 -23% -19%
ORIENT-EXPRESS HOTELS LTD
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Unaudited)
December 31 December 31
$'000 2009 2008
Assets
Cash 92,045 77,432
Accounts receivable 59,905 44,927
Due from related parties 19,385 9,676
Prepaid expenses 22,331 19,263
Inventories 44,191 42,873
Other assets held for sale 41,770 180,930
Real estate assets 120,288 83,983
Total current assets 399,915 459,084
Property, plant & equipment, net 1,403,773 1,329,955
book value
Investments 58,432 67,464
Goodwill 149,180 153,502
Other intangible assets 20,982 20,255
Other assets 40,408 38,536
2,072,690 2,068,796
Liabilities and Equity
Working capital facilities 6,666 54,179
Accounts payable 23,575 23,085
Accrued liabilities 74,569 71,549
Deferred revenue 68,784 55,783
Other liabilities held for sale 11,847 86,410
Current portion of long-term debt 173,388 138,813
and capital leases
Total current liabilities 358,829 429,819
Long-term debt and obligations 638,346 652,980
under capital leases
Deferred income taxes 160,742 160,352
Other liabilities 34,295 41,476
Total liabilities 1,192,212 1,284,627
Shareholders' equity 878,709 782,598
Non-controlling interests 1,769 1,571
Total equity 880,478 784,169
2,072,690 2,068,796
Contact:
Martin O'Grady
Vice President, Chief Financial Officer
Tel: +44-20-7921-4038
E: martin.ogrady@orient-express.com
Pippa Isbell
Vice President, Corporate Communications
Tel: +44-20-7921-4065
E: pippa.isbell@orient-express.com
Contact: Martin O'Grady, Vice President, Chief Financial Officer, Tel: +44-20-7921-4038, E: martin.ogrady at orient-express.com; Pippa Isbell, Vice President, Corporate Communications, Tel: +44-20-7921-4065, E: pippa.isbell at orient-express.com
Tags: Bermuda, February 23, Hamilton, Orient Express Hotels Ltd
