Orient-Express Hotels Reports Fourth Quarter and Full Year 2010 Results
By Orient Express Hotels Ltd, PRNEWednesday, February 23, 2011
HAMILTON, Bermuda, February 24, 2011 - Fourth Quarter Earnings Summary
- Fourth quarter total revenue, excluding Real Estate, up 13% to $126.6
million
- Revenue from Owned Hotels up 15% to $102.2 million
- Same store RevPAR up by 9% in local currency, up 10% in US dollars
- Adjusted EBITDA before Real Estate of $16.2 million, up 17%
Key Events
- Raised $117.3 million of cash in common share offering
- Completed the refinancing of six European hotels with new loan
facilities totaling EUR187.5 million ($251.5 million)
- Completed the refinancing of four US properties with new loan
facilities totaling $122.9 million, bringing the total amount of debt
refinanced in the fourth quarter of 2010 to $374.4 million
- Appointed Roy Paul as Vice President and Chief Development Officer to
drive management contract opportunities
- Refurbished 32 rooms and opened new Planet Restaurant at Mount Nelson
Hotel, Cape Town
- Second phase of three year refurbishment in Sicily completed
- Hotel Ritz Madrid celebrated the 100th anniversary of its inauguration
in the presence of Infanta D.(a) Elena, the eldest daughter of King D.
Juan Carlos I of Spain
Orient-Express Hotels Ltd. (NYSE: OEH, www.orient-express.com),
owners or part-owners and managers of 50 luxury
hotel, restaurant, tourist train and river cruise properties operating in 24
countries, today announced its results for the fourth quarter and full year
ended December 31, 2010.
"Widespread belief that our industry has begun to enter a sustained
period of recovery was supported by a fourth consecutive quarter of good
RevPAR growth, albeit in a quarter that is 'low season' for many of our
properties," said Paul White, President and Chief Executive Officer. "The
same store RevPAR growth of 10% (9% in local currency) was driven primarily
by occupancy, with rates holding up well. In addition to this solid operating
performance, the Company continued to improve its balance sheet after
completing key refinancings on ten assets and raising $117.3 million of cash
by way of a successful common share offering.
"I am pleased to see Orient-Express continue to achieve the highest
recognition for its service levels, with more awards from the most highly
regarded sources in the industry. Credit must be given to our workforce
around the world, who continually strive to exceed customer expectations -
the true driver of RevPAR."
Business Highlights
Revenue, excluding Real Estate, was $126.6 million in the fourth quarter
of 2010, up $14.5 million from the fourth quarter of 2009.
Revenue from Owned Hotels for the fourth quarter was $102.2 million, up
$13.1 million from the fourth quarter of 2009. On a same store basis, Owned
Hotels RevPAR was up 9% in local currency and up 10% in US dollars.
Trains and Cruises revenue in the fourth quarter was $17.6 million
compared to $16.1 million in the fourth quarter of 2009.
Adjusted EBITDA before Real Estate was $16.2 million compared to $13.8
million in the prior year. The principal variances from the fourth quarter of
2009 included the Brazilian hotels (up $2.0 million), La Samanna, St Martin
(up $0.9 million), Hotel Cipriani, Venice (up $0.8 million), Trains and
Cruises (up $0.8 million) and '21' Club, New York, (up $0.5 million), offset
by Southern African hotels (down $1.2 million), Grand Hotel Europe, St
Petersburg (down $0.6 million) and Maroma Resort & Spa, Riviera Maya (down
$0.6 million).
Adjusted net losses from continuing operations for the period were $16.0
million (loss of $0.17 per common share), compared with $11.0 million ($0.14
per common share) in the fourth quarter of 2009. Net loss attributable to
Orient-Express Hotels Ltd. for the period was $26.5 million (loss of $0.27
per common share), compared with a net loss attributable to Orient-Express
Hotels Ltd. of $16.8 million (loss of $0.22 per common share) in the fourth
quarter of 2009. The current quarter net loss includes a $5.2 million tax
charge in respect of valuation allowances compared to no charge in respect of
valuation allowances in the prior year quarter.
In November, the Company completed its public offering of 10 million
Class A common shares. In addition, the underwriters for the offering
exercised in full their over-allotment option to purchase an additional 1.5
million Class A common shares, bringing the total shares sold to 11.5 million
at a price of $10.75 per share for gross proceeds of $123.6 million. The
Company received net proceeds of approximately $117.3 million, after
deducting underwriting discounts and offering expenses.
During the fourth quarter the refinancing of six European hotels was
completed with new loan facilities totaling EUR187.5 million ($251.5 million
at the exchange rate at December 31, 2010). Also during the quarter, four US
properties were refinanced for a total of $122.9 million. This brings the
total amount of debt refinanced in the fourth quarter of 2010 to $374.4
million, all of which has a maturity profile of at least three years.
In November 2010, the Company reached agreement for the sale of a
non-core asset in France for $12.1 million and the sale is scheduled to
complete in the first quarter of 2011.
In January 2011, the Company appointed Roy Paul as Vice President and
Chief Development Officer to drive its planned entry into the management
contract business. Until 2007, Roy Paul had led the development team at Four
Seasons Hotels and Resorts for 20 years.
During the quarter, 32 rooms overlooking the garden in the main building
of the Mount Nelson Hotel were refurbished. The rooms have been designed
along classic lines with refreshing contemporary elements. In December, the
hotel successfully launched a new concept gourmet restaurant called Planet.
The EUR2.0 million ($2.7 million) second phase of a three year complete
renovation project at Grand Hotel Timeo and Villa Sant'Andrea, Taormina,
which the Company acquired in January 2010, continued this quarter whilst
both hotels were closed for the winter season. Villa Sant'Andrea has a new
infinity edge pool overlooking the Bay of Mazzaro and the pool restaurant at
Grand Hotel Timeo has been extended. Since acquisition, across both
properties 25 new suites and junior suites have been created from existing
room stock. More than 80% of room stock at both properties has been
refurbished since acquisition.
La Residence Phou Vao, Luang Prabang received the Enduring Excellence
Award 2011 at Tatler magazine's Travel Awards, and the Copacabana Palace, Rio
de Janeiro was awarded the Hotels Green Stamp prize from the Brazilian
Association of the Hotel Industry.
Regional Performance
Europe:
In the fourth quarter, revenue from owned hotels was $29.7 million, up
10% from $26.9 million in the fourth quarter of 2009. Same store local
currency RevPAR was unchanged from the prior year (down 7% in US dollars).
EBITDA was a loss of $0.3 million in 2010 versus a profit of $1.2 million in
the prior year. The two new hotels in Sicily, which were closed for most of
the quarter, reported an EBITDA loss of $1.5 million.
North America:
Revenue from owned hotels was $28.1 million, up 14% from $24.6 million in
the fourth quarter of 2009. Local currency same store RevPAR increased by
11%. EBITDA was $3.3 million compared to $2.6 million in the fourth quarter
of 2009. Charleston Place, Charleston and La Samanna benefited from revenue
growth of 17% and 23%, respectively.
Rest of World:
Southern Africa:
Fourth quarter revenue was $9.8 million, up 7% from $9.2 million in the
fourth quarter of 2009 largely as a result of strong corporate business at
The Westcliff, Johannesburg. Same store local currency RevPAR was down 8% (up
1% in US dollars). EBITDA was $1.4 million, compared to $2.6 million in the
fourth quarter of 2009. EBITDA was negatively impacted by pre-opening costs
for the new Planet Restaurant and energy tariff increases at the Mount Nelson
Hotel.
South America:
Revenue increased by 23% to $24.1 million in the fourth quarter of 2010,
from $19.6 million in the fourth quarter of 2009. Same store RevPAR increased
by 18% in both local currency and US dollars. EBITDA was $6.0 million,
compared to $4.2 million last year, an increase of 43%. Year on year revenue
increased at Hotel das Cataratas, Iguassu Falls by $1.9 million or 75%
following the recent major refurbishment of the rooms and public areas to
Orient-Express standards. Year on year revenue increased at Copacabana Palace
by $2.4 million or 16%, primarily driven by growth in average rate.
Asia Pacific:
Revenue for the fourth quarter of 2010 was $10.6 million, an increase of
$1.8 million or 20% year over year. Same store local currency RevPAR
increased by 22% in local currency (22% in US dollars). EBITDA was $2.5
million compared to $2.1 million in the fourth quarter of 2009.
Hotel management and part-ownership interests:
EBITDA for the fourth quarter of 2010 was $0.4 million compared to EBITDA
of $1.2 million in the fourth quarter of 2009. The share of results from
Hotel Ritz Madrid and Peru hotels decreased by $0.5 million and $0.4 million,
respectively.
Restaurants:
Revenue from '21' Club in the fourth quarter of 2010 was $6.5 million
compared to $5.7 million in the same quarter of 2009, and EBITDA was $2.2
million compared with $1.7 million in 2009. This growth is largely
attributable to a 7% increase in average spend.
Trains and Cruises:
Revenue increased by $1.5 million to $17.6 million in the fourth quarter
of 2010, an increase of 9% year over year, and EBITDA increased by $0.8
million to $5.4 million. Fourth quarter EBITDA for the Venice
Simplon-Orient-Express increased from 2009 by $0.4 million as a result of
increased passenger numbers, and EBITDA for Road to Mandalay increased by
$0.7 million as operations in 2009 had only just re-commenced after a full
refurbishment. These gains are offset by a decrease in the share of results
from PeruRail of $0.5 million, caused largely by higher fuel costs and the
scheduled reduction of an allowance received against concession fees payable
to the Peruvian government.
Central costs:
In the fourth quarter of 2010, central costs decreased by $0.9 million to
$5.6 million compared with $6.5 million in the prior year period.
Real Estate:
In the fourth quarter of 2010, there was an EBITDA loss of $0.7 million
from Real Estate activities, primarily related to Porto Cupecoy, Sint
Maarten, compared with a loss of $1.9 million in 2009. During the quarter,
six units were sold and the Company recognized $7.9 million of revenue from
eight units transferred to customers. Cumulatively, at the end of the
quarter, 103 units net of cancellations had been sold and the legal title of
95 units had been transferred. Since the end of the quarter, a further eight
units have been sold, resulting in 111 or 60% of the total units sold and
leaving 73 units unsold.
Depreciation, amortization and impairment:
The depreciation and amortization charge for the fourth quarter of 2010
was $11.4 million compared with $11.0 million in the fourth quarter of 2009.
The increase was largely due to the depreciation charge relating to the two
new Sicilian hotels.
During the quarter, there was an impairment charge of $8.0 million, which
included $6.4 million relating to the Company's New York hotel project, and a
charge of $1.6 million relating to two model homes at Keswick Estate,
Virginia.
Interest:
The interest charge for the fourth quarter of 2010 was $11.7 million
compared with $6.7 million in the fourth quarter of 2009. The current year
quarter included a $1.3 million charge to write off deferred finance costs
relating to debt that was refinanced in the quarter and a $1.9 million
associated cost of termination of interest rate swaps.
Tax:
The tax charge for continuing operations for the fourth quarter of 2010
was $9.9 million, compared to a tax charge of $4.6 million in the same
quarter in the prior year. The 2010 fourth quarter tax charge included a $5.2
million charge in respect of valuation allowances.
Discontinued operations:
Losses from discontinued operations in the quarter were $2.8 million.
This included a loss of $1.7 million at Windsor Court Hotel, New Orleans,
where an insurance settlement resulted in the write off of costs above a $0.5
million award, and an impairment charge of $1.1 million in respect of two
Internet businesses that were written down to reflect the level of an offer
received.
Investment:
The Company invested $3.0 million during the quarter in the two new
Sicilian properties. Payments of a further $1.5 million were made to the New
York Public Library and there was additional capital expenditure of $11.9
million, including $1.8 million at Mount Nelson Hotel, $1.6 million at Hotel
das Cataratas and $1.3 million at El Encanto, Santa Barbara.
Liquidity
At December 31, 2010, the Company had long-term debt (including the
current portion and debt of consolidated variable interest entities) of
$728.4 million, working capital loans of $1.2 million and cash balances of
$158.8 million (including $8.4 million of restricted cash), giving a total
net debt of $570.8 million compared with total net debt of $659.2 million at
the end of the third quarter of 2010. The decrease in net debt is largely
attributable to the equity raise completed during the quarter.
At December 31, 2010, undrawn amounts available to the Company under
short-term lines of credit were $12.1 million and undrawn amounts available
to the Company under secured revolving credit facilities were $12.0 million,
bringing total cash availability (excluding restricted cash) at December 31,
2010, to $174.5 million.
At December 31, 2010, approximately 54% of the Company's debt was at
fixed interest rates and 46% was at floating interest rates. The weighted
average maturity of the debt was approximately 3.4 years and the weighted
average interest rate (including margin and swaps) was approximately 4.5%.
At December 31, 2010, excluding revolving credit facilities of $28.0
million which are available for redrawing, the Company had $98.6 million of
debt repayments due within 12 months. The Company is in advanced discussions
with two existing lenders regarding the refinancing of two loans totaling
$58.7 million that mature within 12 months, leaving a further $39.9 million
of scheduled debt amortization due within the 12 month period.
Outlook
"As we move into 2011," said Paul White, "it is perhaps worth reflecting
on some key achievements Orient-Express has made in 2010:
- Same store RevPAR, up 11% (local currency and US dollars)
- Strengthened balance sheet with capital raises and key refinancings
with maturities of 3-5 years
- Net debt to adjusted EBITDA before Real Estate reduced from 9.1x to
6.7x
- Acquired two 'iconic' properties in a core market (Italy) and completed
the upgrade of Hotel das Cataratas
- Won 'Cipriani' trademark litigation, securing a valuable brand in
Europe
- Closed and agreed sales of three non-core assets for $33.5 million
- Completed Porto Cupecoy development with 111 units or 60% sold at
February 24, 2011
"This was all in a year where the first quarter was dominated by severe
weather conditions in Peru and Madeira, the ash cloud in Europe, and
political unrest in South East Asia. As we look forward, the US traveler is
returning to our high end properties, backed up by stronger domestic
business. Leisure and corporate transient sectors are showing stronger
recovery, with groups trailing, with the key result being the ability to
drive average daily rate and average daily spend across our portfolio."
Reconciliation and Adjustments
Three months ended Twelve months ended
December 31 December 31
$'000 - except per share amounts
2010 2009 2010 2009
6,630 13,215 37,569 69,547
EBITDA
Real Estate 666 1,943 5,329 3,476
EBITDA before Real Estate 7,296 15,158 42,898 73,023
Adjusted items:
Legal costs (1) (18) 6 (175) 654
Cipriani litigation (2) - - (788) -
Grand Hotel Timeo & Villa
Sant'Andrea (3) 344 - 2,068 -
Management restructuring (4) 555 - 1,666 1,419
Peru hotel depreciation
adjustment (5) - - 1,240 -
Impairment (6) 7,986 - 38,497 6,500
Gain on insurance proceeds (7) - (1,385) - (1,385)
Adjusted EBITDA before Real
Estate 16,163 13,779 85,406 80,211
Reported net loss attributable to
Orient-Express Hotels Ltd. (26,479) (16,830) (62,759) (68,797)
Net losses/(earnings)
attributable to non- controlling
interests 5 (48) (179) (60)
Reported net loss (26,484) (16,782) (62,580) (68,737)
Discontinued operations net of 2,793 6,199 ( 469) 48,613
tax
Net losses from continuing
operations (23,691) (10,583) (63,049) (20,124)
Adjusted items net of tax:
Legal costs (1) (18) 6 (175) 654
Cipriani litigation (2) - - (788) -
Grand Hotel Timeo & Villa
Sant'Andrea (3) 249 - 1,535 -
Management restructuring (4) 397 - 1,322 1,043
Peru hotel depreciation
adjustment (5) - - 853 -
Impairment (6) 7,426 - 37,937 6,500
Gain on insurance proceeds (7) - (1,385) - (1,385)
Interest rate swaps (8) 1,104 (142) 1,772 823
Amortization of finance costs (9) 906 - 906 -
Foreign exchange (10) (2,379) 1,056 (4,946) 812
Adjusted net loss from continuing
operations (16,006) (11,048) (24,633) (11,677)
Reported EPS (0.27) (0.22) (0.68) (1.01)
Reported EPS from continuing
operations (0.25) (0.14) (0.69) (0.30)
Adjusted EPS from continuing
operations (0.17) (0.14) (0.27) (0.17)
Number of shares (millions) 96.62 76.84 91.54 68.05
1. Legal costs incurred in defending the Company's class B common share
structure, net of awards or claims for reimbursement.
2. Cash received in excess of costs incurred following settlement of
'Cipriani' trademark litigation.
3. Non-recurring costs and purchase transaction costs incurred in
relation to Grand Hotel Timeo and Villa Sant'Andrea.
4. Restructuring and redundancy costs.
5. Additional charge to reflect revision of useful economic life of
assets at Machu Picchu Sanctuary Lodge.
6. Impairment charges recorded on owned properties and Porto Cupecoy.
7. Gain on the settlement of insurance proceeds received for
cyclone-damaged assets on the Road to Mandalay ship.
8. Charges on swaps that did not qualify for hedge accounting and
termination costs on closing swaps.
9. Amortization of remaining deferred finance costs on refinanced debt.
10. Foreign exchange is a non-cash item arising on the translation of
certain assets and liabilities denominated in currencies other than the
reporting currency of the entity concerned.
Net debt / adjusted EBITDA reconciliation
Twelve months ended and
as at December 31
$'000
2010 2009
Cash (including restricted cash) 158,773 91,568
Working capital facilities 1,174 6,666
Current portion of long-term debt and capital
leases 124,805 173,223
Current portion of long-term debt of
consolidated variable interest entities 1,775 165
Long-term debt and obligations under capital
leases 511,336 559,042
Long-term debt of consolidated variable interest
entities 90,529 79,304
729,619 818,400
Net debt 570,846 726,832
Adjusted EBITDA before Real Estate 85,406 80,211
Net debt / adjusted EBITDA before Real Estate 6.7x 9.1x
Management evaluates the operating performance of the Company's segments
on the basis of segment net earnings before interest, foreign exchange, tax
(including tax on unconsolidated companies), depreciation and amortization
(EBITDA), and believes that EBITDA is a useful measure of operating
performance, for example to help determine the ability to incur capital
expenditure or service indebtedness, because it is not affected by
non-operating factors such as leverage and the historical cost of assets.
EBITDA is also a financial performance measure commonly used in the hotel and
leisure industry, although the Company's EBITDA may not be comparable in all
instances to that disclosed by other companies. EBITDA does not represent net
cash provided by operating, investing and financing activities under US
generally accepted accounting principles (US GAAP), is not necessarily
indicative of cash available to fund all cash flow needs, and should not be
considered as an alternative to earnings from operations or net earnings
under US GAAP for purposes of evaluating operating performance.
Adjusted EBITDA and adjusted net earnings of the Company are non-GAAP
financial measures and do not have any standardized meanings prescribed by US
GAAP. They are, therefore, unlikely to be comparable to similar measures
presented by other companies, which may be calculated differently, and should
not be considered as an alternative to net earnings, cash flow from operating
activities or any other measure of performance prescribed by US GAAP.
Management considers adjusted EBITDA and adjusted net earnings to be
meaningful indicators of operations and uses them as measures to assess
operating performance because, when comparing current period performance with
prior periods and with budgets, management does so after having adjusted for
non-recurring items, foreign exchange (a non-cash item), disposals of assets
or investments, and certain other items (some of which may be recurring)
which management does not consider indicative of ongoing operations or which
could otherwise have a material effect on the comparability of the Company's
operations. Adjusted EBITDA and adjusted net earnings are also used by
investors, analysts and lenders as measures of financial performance because,
as adjusted in the foregoing manner, the measures provide a consistent basis
on which the performance of the Company can be assessed.
This news release and related oral presentations by management contain,
in addition to historical information, forward-looking statements that
involve risks and uncertainties. These include statements regarding earnings
outlook, investment plans, debt reduction and debt refinancings, asset sales
and similar matters that are not historical facts. These statements are based
on management's current expectations and are subject to a number of
uncertainties and risks that could cause actual results to differ materially
from those described in the forward-looking statements. Factors that may
cause a difference include, but are not limited to, those mentioned in the
news release, unknown effects on the travel and leisure markets of terrorist
activity and any police or military response, varying customer demand and
competitive considerations, failure to realize hotel bookings and
reservations and planned property development sales as actual revenue,
inability to sustain price increases or to reduce costs, rising fuel costs
adversely impacting customer travel and the Company's operating costs,
fluctuations in interest rates and currency values, uncertainty of
negotiating and completing proposed asset sales, debt refinancings, capital
expenditures and acquisitions, inability to reduce funded debt as planned or
to agree bank loan agreement waivers or amendments, adequate sources of
capital and acceptability of finance terms, possible loss or amendment of
planning permits and delays in construction schedules for expansion or
development projects, delays in reopening properties closed for repair or
refurbishment and possible cost overruns, shifting patterns of tourism and
business travel and seasonality of demand, adverse local weather conditions,
changing global and regional economic conditions in many parts of the world
and weakness in financial markets, legislative, regulatory and political
developments, and possible new challenges to the Company's corporate
governance structure. Further information regarding these and other factors
is included in the filings by the Company with the U.S. Securities and
Exchange Commission.
Orient-Express Hotels will conduct a conference call on Friday, February
25, 2011 at 10.00 hrs EST (15.00 GMT) which is accessible at +1-888-935-4577
(US toll free) or +44-(0)20-7136-6284 (Standard International). The
conference ID is 7314941. A re-play of the conference call will be available
until 23.00pm (EST) Wednesday, March 2, 2011 and can be accessed by calling
+1-347-366-9565 (US) or +44-(0)20-7111-1244 (Standard International) and
entering replay access number 7314941#. 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, 2010
SUMMARY OF OPERATING RESULTS
(Unaudited)
Three months ended
December 31
$'000 - except per share amount 2010 2009
Revenue and earnings from unconsolidated
companies
Owned hotels
- Europe 29,696 26,894
- North America 28,099 24,609
- Rest of World 44,379 37,621
Hotel management & part ownership interests 353 1,221
Restaurants 6,489 5,719
Trains & Cruises 17,622 16,099
Revenue and earnings from unconsolidated
companies before Real Estate 126,638 112,163
Real Estate 7,889 18
Total (1) 134,527 112,181
Analysis of earnings
Owned hotels
- Europe (264) 1,207
- North America 3,347 2,622
- Rest of World 9,827 8,888
Hotel management & part ownership interests 353 1,221
Restaurants 2,217 1,726
Trains & Cruises 5,432 4,623
Central overheads (5,630) (6,514)
EBITDA before Real Estate and Impairment 15,282 13,773
Real Estate (666) (1,943)
EBITDA before Impairment 14,616 11,830
Impairment (7,986) -
Gain on insurance proceeds - 1,385
EBITDA 6,630 13,215
Depreciation & amortization (11,401) (11,049)
Interest (11,701) (6,740)
Foreign exchange 2,696 (1,376)
Losses before tax (13,776) (5,950)
Tax (9,915) (4,633)
Net losses from continuing operations (23,691) (10,583)
Discontinued operations (2,793) (6,199)
Net losses (26,484) (16,782)
Net losses / (earnings) attributable to
non-controlling interests 5 (48)
Net losses attributable to Orient-Express
Hotels Ltd. (26,479) (16,830)
Loss per common share attributable to Orient-
Express Hotels Ltd. (0.27) (0.22)
Number of shares - millions 96.62 76.84
(1) Comprises earnings from unconsolidated companies of $963,000 (2009 -
$2,331,000) and revenue of $133,564,000 (2009 - $109,850,000).
ORIENT-EXPRESS HOTELS LTD.
Three Months Ended December 31, 2010
SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS
Three months ended
December 31
2010 2009
Average Daily Rate
(in US dollars)
Europe 497 555
North America 330 349
Rest of World 343 321
Worldwide 369 373
Rooms Available (000's)
Europe 65 58
North America 66 67
Rest of World 120 118
Worldwide 251 243
Rooms Sold (000's)
Europe 26 23
North America 42 37
Rest of World 69 63
Worldwide 137 123
RevPAR (in US dollars)
Europe 202 216
North America 211 191
Rest of World 198 171
Worldwide 202 187
Change %
Same Store RevPAR Dollar Local
(in US dollars) currency
Europe 144 155 -7% 0%
North America 211 191 11% 11%
Rest of World 198 171 16% 12%
Worldwide 190 173 10% 9%
ORIENT-EXPRESS HOTELS LTD.
Twelve Months ended December 31, 2010
SUMMARY OF OPERATING RESULTS
(Unaudited)
Twelve months ended
December 31
$'000 - except per share amount 2010 2009
Revenue and earnings from unconsolidated
companies
Owned hotels
- Europe 169,772 155,830
- North America 107,909 100,486
- Rest of World 148,778 116,182
Hotel management & part ownership interests 2,228 2,995
Restaurants 15,809 14,436
Trains & Cruises 67,913 67,968
Revenue and earnings from unconsolidated 512,409 457,897
companies before Real Estate
Real Estate 64,019 1,706
Total (1) 576,428 459,603
Analysis of earnings
Owned hotels
- Europe 37,388 38,595
- North America 14,963 14,579
- Rest of World 33,399 25,513
Hotel management & part ownership interests 2,228 2,995
Restaurants 2,476 1,757
Trains & Cruises 17,444 20,569
Central overheads (26,503) (25,870)
EBITDA before Real Estate and Impairment 81,395 78,138
Real Estate (5,329) (3,476)
EBITDA before Impairment 76,066 74,662
Impairment (38,497) (6,500)
Gain on insurance proceeds - 1,385
EBITDA 37,569 69,547
Depreciation & amortization (45,483) (39,950)
Interest (33,839) (31,068)
Foreign exchange 5,686 (1,067)
Losses before tax (36,067) (2,538)
Tax (26,982) (17,586)
Net losses from continuing operations (63,049) (20,124)
Discontinued operations 469 (48,613)
Net losses (62,580) (68,737)
Net earnings attributable to non-controlling
interests (179) (60)
Net losses attributable to Orient-Express
Hotels Ltd. (62,759) (68,797)
Loss per common share attributable to Orient-
Express Hotels Ltd. (0.69) (1.01)
Number of shares - millions 91.54 68.05
(1) Comprises earnings from unconsolidated companies of $4,486,000 (2009
- $8,693,000) and revenue of $571,942,000 (2009 - $450,910,000).
ORIENT-EXPRESS HOTELS LTD.
Twelve Months Ended December 31, 2010
SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS
Twelve months ended
December 31
2010 2009
Average Daily Rate
(in US dollars)
Europe 637 702
North America 325 342
Rest of World 331 293
Worldwide 405 407
Rooms Available (000's)
Europe 280 257
North America 267 271
Rest of World 463 448
Worldwide 1,010 976
Rooms Sold (000's)
Europe 139 119
North America 171 150
Rest of World 254 221
Worldwide 564 490
RevPAR (in US dollars)
Europe 317 325
North America 209 189
Rest of World 182 145
Worldwide 226 205
Change %
Same Store RevPAR Dollar Local
(in US dollars) currency
Europe 317 319 -1% 2%
North America 208 189 10% 9%
Rest of World 188 147 28% 22%
Worldwide 227 204 11% 11%
ORIENT-EXPRESS HOTELS LTD.
CONSOLIDATED AND CONDENSED BALANCE SHEETS
(Unaudited)
December 31 December 31
$'000 2010 2009
Assets
Cash 158,773 91,568
Accounts receivable 51,386 59,968
Due from unconsolidated companies 19,643 19,385
Prepaid expenses 23,663 22,276
Inventories 44,245 43,678
Other assets held for sale 33,945 64,358
Real estate assets 68,111 120,288
Total current assets 399,766 421,521
Property, plant & equipment, net book value 1,268,822 1,191,531
Property, plant & equipment, net book value of
consolidated variable interest entities
188,502 192,682
Investments 60,428 58,432
Goodwill 177,498 149,180
Other intangible assets 18,987 18,936
Other assets 23,711 40,408
2,137,714 2,072,690
Liabilities and Equity
Working capital facilities 1,174 6,666
Accounts payable 25,448 23,240
Accrued liabilities 71,436 73,875
Deferred revenue 28,963 68,784
Due to related parties - -
Other liabilities held for sale 2,910 14,646
Current portion of long-term debt and capital
leases 124,805 173,223
Current portion of long-term debt of consolidated
variable interest entities 1,775 165
Total current liabilities 256,511 360,599
Long-term debt and obligations under capital
leases 511,336 559,042
Long-term debt of consolidated variable interest
entities 90,529 79,304
Deferred income taxes 100,730 94,872
Deferred income taxes of consolidated variable
interest entities 61,835 64,100
Other liabilities 43,906 34,295
Total liabilities 1,064,847 1,192,212
Shareholders' equity 1,070,945 878,709
Non-controlling interests 1,922 1,769
Total equity 1,072,867 880,478
2,137,714 2,072,690
Contact:
Martin O'Grady
Vice President, Chief Financial Officer
Tel: +44-20-7921-4038
E: martin.ogrady@orient-express.com
Vicky Legg
Director, Corporate Communications
Tel: +44-20-7921-4067
E: vicky.legg@orient-express.com
Contact: Martin O'Grady, Vice President, Chief Financial Officer, Tel: +44-20-7921-4038, E: martin.ogrady at orient-express.com. Vicky Legg, Director, Corporate Communications, Tel: +44-20-7921-4067, E: vicky.legg at orient-express.com
Tags: Bermuda, February 24, Hamilton, Orient Express Hotels Ltd
