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  Top Performing Hotels for Orient-Express 
in 2000 Were the Cipriani,  Windsor Court 
and  Copacabana
--
Orient-Express Hotels Ltd. Reports Net Income of 
$40 Million in 2000, Up 14% Over Prior Year; 
Earnings Per Common Share Were $1.43 

 
HAMILTON, Bermuda, March 5, 2001 - Orient-Express Hotels Ltd.  (NYSE: OEH) , owner and operator of 36 deluxe hotels, restaurants, tourist trains and inland cruise ships in 14 countries, today announced its results for the quarter and year ended December 31, 2000.  For the quarter net earnings were $11.9 million compared with $12.4 million in the fourth quarter of 1999 which included a gain of $2.5 million.  Earnings per common share in the fourth quarter of 2000 were $0.38.  Earnings per share are not comparable on a year to year basis because of changes in the debt and capital structure of the company made prior to the initial public offering of its common shares in August, 2000.  Revenue in the fourth quarter of 2000 was $70 million, up 9% from the year earlier period.

For the 12 months ended December 31, 2000, net income was $40 million compared with $35 million in 1999, on revenue of $276 million compared with $249 million in 1999.  Earnings per common share in 2000 were $1.43 which are not comparable with the prior year because of changes to the company�s debt and equity structure made prior to its initial public offering of common shares in August, 2000.

Operating profits (earnings before interest, depreciation, central overheads and taxes) of the company�s European hotels in 2000 of $27.2 million were the same as in 1999 despite a significant weakening of the Euro.  Since the company tries to maintain rates at US dollar equivalent levels and retain the benefit of local currency cost structures, currency devaluation in this market should increase profits in the following (2001) season.

Operating profits from the company�s North American owned hotels was up 16% in 2000 over 1999 to $20.2 million driven by same store RevPAR growth of 11%.  The company�s major restaurant business �21� Club (also located in North America) showed a small increase in operating profits in spite of poor stock market conditions which affected demand for banqueting.

Southern Africa properties reported a 46% increase in operating profits in 2000 to $4 million despite a devaluation of the South African Rand.  All 5 hotels showed healthy increases.
 

The Copacabana Palace Hotel in Rio de Janeiro turned in an excellent performance with operating profits up 14% to $11.4 million despite a weakening of the Real.  Brazil enjoyed a 4.5% growth rate in 2000 with no sign of slackening.

Operating profits of the company�s two Australian hotels were $3.2 million for the nine months in 2000 of ownership.

Income from hotel management interests in 2000 was up 3% to $11.4 


Copacabana Palace
Avenida Atlântica 1702
Rio de Janeiro, Brazil
million compared with the prior year.  The Observatory in Sydney moved from management to ownership early in the year.  Excluding this property, income was up 6% over the prior year.

Operating profits from Peruvian hotels (owned in a 50/50 joint venture and managed by Orient-Express Hotels) were up 26% on a direct 9 month comparison basis (the properties were acquired at the end of the first quarter of 1999).

Trains and cruises (including the company�s management fees and 50% interest in PeruRail and management fees and 25% interest in E&O Express and management fees only for the Great South Pacific Express) enjoyed a 69% increase in operating profits in 2000 over 1999 to $10.2 million, reflecting same store growth of 34% and the benefit of full year earnings from PeruRail.  Since a large part of the revenue from these activities is in US dollars, devaluation of the Euro was of benefit to profits in  Europe.  These excellent results were achieved despite start up losses of the Northern Belle tourist train in the UK.  The UK rail network has been severely disrupted due to an extensive track replacement program but should be back to normal by Easter.
The company�s depreciation charge increased to $15.1 million in 2000 from $13.1 million in 1999.  Finance costs increased from $19 million in 1999 to $23 million in 2000 reflecting the purchase of additional properties and other capital investment.  The company�s tax charge was $6 million in 2000 compared with $5.2 million in 1999.

Same store RevPAR for owned hotels in 2000 was $184 compared with $175 in 1999.

The proceeds of the initial public offering of the company�s shares were used short term to pay down debt but the funds are available for reborrowing to cover the cost of property improvements.  The improvement program is now in full swing and is concentrated in the northern hemisphere winter low season, which will generate improved earnings in the current year, particularly from the company�s European properties.

A new competitive five star hotel in New Orleans did not reduce earnings of the Windsor Court in 2000.  Operating profits in the third and fourth quarters from the Windsor Court were almost identical with those of 1999.

Simon Sherwood, President, said �Although the US stock market seems to have recession �jitters� the strengthening economies of Europe, Africa and South America have stimulated regional demand for the company�s properties and forward bookings look promising.�

Sea Containers Ltd., the company�s majority shareholder, has advised that they will be issuing a statement later this month confirming their intention to dispose of their shareholding in the company later this year.

The company�s Peruvian joint venture has agreed to acquire a small hotel on a 65 acre site in the spectacular Colca Canyon in Peru.  The initial purchase price will be $0.8 million but approximately $2 million will have to be spent to add rooms and make other improvements.

Mr. James B Sherwood, Chairman, said that the outlook for the company remains bright.  He announced that the annual general meeting of shareholders will be held in Hamilton, Bermuda on June 5, 2001.
 

 
                          ORIENT-EXPRESS HOTELS LTD

                    TWELVE MONTHS ENDED DECEMBER 31st 2000
                         SUMMARY OF OPERATING RESULTS

                                                       Twelve months ended
                                                          December 31st
    $'000                                               2000           1999

    Revenue
    Owned hotels  (see attached)             201,307        177,657
    Hotel management interests              11,398         11,118
    Restaurants                                       20,922         20,114
    Total hotels & Restaurants                 233,627        208,889
    Trains & Cruises                                  42,768         40,193
    Total revenue                                    276,395        249,082

    Operating Profits
    Owned hotels (see attached)                65,953         57,451
    Hotel management interests                 11,394         11,114
    Restaurants                                          5,965          5,877
    Total hotels & Restaurants                     83,312         74,442
    Trains & Cruises                                  10,168          6,007
    Central overheads                                 (9,378)        (8,913)
    EBITDA                                               84,102         71,536
    Depreciation & Amortization               (15,132)       (13,149)
    Interest                                              (23,005)       (19,019)
    Earnings before Tax                            45,965         39,368
    Tax                                                     (6,000)        (5,173)
    Net earnings on common shares before
    gains and cumulative effect of change
     in accounting principle                          39,965         34,195
    Gains (1)                                                     --          3,800
    Cumulative effect of change in accounting
     principle                                            --         (2,987)
    Net earnings on common shares                     39,965         35,008
 

    Earnings per common share                          $1.43 (2)      $1.35
    Number of shares - millions                         27.9           25.9
 

    (1)  In the twelve months ended December 31st, 1999 Orient-Express Hotels
          Ltd was paid $2.5m in connection with the amendment of a management
          contract and recorded a $1.3m gain on the sale of the Windermere
          Island Club in the Bahamas.

    (2)  Earnings per share comparisons with prior year are not meaningful in
          view of the changes in equity and debt structure made before the
          initial public offering in August 2000.
 

                          ORIENT-EXPRESS HOTELS LTD
                    TWELVE MONTHS ENDED DECEMBER 31st 2000
                 Owned Hotels - Analysis of Operating Results

                                     Owned Hotels  $'000 
                                    EUROPE                NORTH AMERICA
                                2000       1999              2000       1999

    Revenue                   79,050     79,867      67,183     59,141
    EBITDA                    27,161     27,316      20,196     17,426
    Overall ADR                  304        327         300        295
    Rooms sold               164,149    155,049     129,034    121,124
    Overall Revpar               231        231         226        224
    Same Store Revpar ($)        231        231         211        190
    Same Store Growth           zero         --        +11%         --
    Same Store
    Local currency
     Revpar growth              +15%         --        +11%         --

    EBITDA TOP REGIONAL
    EARNING HOTELS (US$'000)
    Cipriani                   8,018      7,831
    Windsor Court                                         13,480     12,296
    Copacabana

                                         Owned Hotels $'000 
                         REST OF WORLD                   TOTAL
                                2000       1999             2000       1999

    Revenue                   55,074     38,649     201,307     177657
    EBITDA                    18,596     12,709      65,953     57,451
    Overall ADR                  211        227         271        289

    Rooms sold               156,771    108,284     449,954    384,457
    Overall Revpar               122        113         185        186
    Same Store Revpar ($)        123        113         184        175
    Same Store Growth           +10%         --         +5%         --
    Same Store
    Local currency
     Revpar growth              +15%         --        +13%         --
 

    EBITDA TOP REGIONAL
    EARNING HOTELS (US$'000)

    Cipriani
    Windsor Court
    Copacabana                11,410      9,977
 

This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties.  

 

###

Contact:
http://www.orient-express.com

Also See Orient-Express Hotels Acquires Hotels in South Pacific and South America For $37 Million / Jan 2001 


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