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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.
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.
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.
This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties.
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http://www.orient-express.com |
Also See | Orient-Express Hotels Acquires Hotels in South Pacific and South America For $37 Million / Jan 2001 |