HAMILTON, Bermuda, Aug 8, 200 - Orient-Express
Hotels Ltd. (NYSE: OEH), owner and operator of 37 deluxe leisure properties
in 14 countries, today announced its results for the quarter and six months
ended June 30, 2001. For the quarter net earnings were up 6% over the prior
year period to $14.4 million and for the six months they were up 10% to
$19.3 million. Earnings per common share were $0.47 in the quarter and
$0.62 for the six months. Prior year earnings per common share are not
comparable as the capital structure of the company was altered prior to
an initial public offering of its shares in August, 2000.
Owned European hotels. EBITDA was $11.8 million in the quarter,
an improvement of $0.3 million over the prior year despite a significant
decline in the value of the Euro year on year.
Owned North American hotels. EBITDA was $4.8 million, a decline
of $0.5m from the prior year period due to weaker earnings from the Windsor
Court in New Orleans. As earlier reported, New Orleans has many less city
wide conventions this year compared with last and a new Ritz Carlton has
opened recently.
Owned Southern Africa hotels. EBITDA close to break even for
the period, representing little change from the year earlier period despite
a significant weakening of the South African Rand against the dollar.
Owned South American hotel. (Copacabana Palace). EBITDA $1.6
million, down $1.2 million from the prior year. A drop in US corporate
travel has affected the property and the Real has weakened significantly
against the US dollar.
Owned South Pacific hotels. EBITDA $0.8 million, up $0.1 million
from the prior year.
Management and part ownership interests. EBITDA $3.3 million,
up $0.1 million from the prior year.
Restaurants. EBITDA $1.4 million, identical to the year earlier
period. Good recovery at "21" Club during the period.
Trains and inland cruise ship. EBITDA $3.5 million, an improvement
of $0.3 million over the prior year, with strong performance, particularly
in the Far East, more than offsetting the impact of foot and mouth disease
in the UK on the two tourist trains based there.
Interest costs. $4.6 million in the quarter, down $1.7 million
from the prior year.
Mr. James B. Sherwood, Chairman, said that the company had performed
to expectation for the quarter and six months, with strength in Europe
and lower interest costs offsetting weakness in New Orleans and Rio de
Janeiro. A much stronger than expected US dollar, particularly in Europe,
Brazil and South Africa had held back earnings expressed in dollar terms.
In recent days the dollar has weakened against the Euro which, if maintained,
should help third quarter results in Europe.
Mr. Sherwood said that the company has obtained an option to acquire
a 50% interest and management of its 38th property, the first in Mexico,
and hoped to conclude the transaction within 90 days. The property is valued
at $15 million and has 63 keys and considerable expansion potential.
| Mr. Simon M.C. Sherwood said that some weakness
had been detected in the business guest market but the independent guest
vacation and personal travel market has held up well. He indicated that
the company has recently opened a 15 room and suite annex to its highly
popular Lapa Palace Hotel in Lisbon, Portugal. He added that the Machu
Picchu Sanctuary Lodge reopened in the quarter after completion of a major |
Lapa Palace
Rua do Pau de Bandeira, 4
Lisboa, Portugal
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reconstruction and redecoration of its 31 rooms and public spaces.
He pointed out that for the quarter, same store REVPAR for owned hotels
was down 4% from the prior year, although in local currency it was up 1%.
The second quarter is a period of low occupancy in Southern Africa and
Brazil. For the six months same store REVPAR of owned hotels was down 3%
while in local currency it was up 1%. These comparisons show the effect
of exchange rate movements on earnings translated into dollars from other
currencies.
He said that zoning permission has just been received for addition
of 12 suites at the Villa San Michele, near Florence, Italy, a property
which has been severely capacity constrained. Construction should commence
immediately upon the end of the current season with five of the units being
ready for occupation next summer and the balance to follow in early 2003.
ORIENT-EXPRESS HOTELS LTD
Six months ended June 30th, 2001
SUMMARY OF OPERATING RESULTS
Six months ended
June 30th
$'000
2001 2000
Revenue
Owned hotels
- Europe
36,788 35,935
- North America
35,649 36,191
- Rest of World
27,257 26,050
Hotel management and part
ownership interests 5,842
5,631
Restaurants
9,749 10,277
Trains and cruises
19,323 18,763
Total revenue
134,608 132,847
Operating Profits
Owned hotels
- Europe
11,638 11,138
- North America
12,061 12,855
- Rest of World
8,437 8,634
Hotel management and part
ownership interests 5,842
5,624
Restaurants
2,399 2,789
Trains and cruises
3,631 2,674
Central overheads
(4,554) (4,786)
EBITDA
39,454 38,928
Depreciation and amortization
(8,024) (7,421)
Interest
(9,745) (11,568)
Earnings before tax
21,685 19,939
Tax
(2,378) (2,463)
Net earnings on common
shares
19,307 17,476
Earnings per common share
0.62 0.67
Number of shares - millions
30.90 25.90
(1) 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
Summary of Operating Information
for Owned Hotels
Six months ended June 30th, 2001
Six months ended
June 30th $'000
2001 2000 Average
Daily Rate ($)
Europe
318 287
North America
346 303
Rest of World
199 213
Overall
282 267
Rooms Sold ('000)
Europe
74
78
North America
67
67
Rest of World
83
75
Overall
224 220
RevPar ($)
Europe
227 212
North America
259 240
Rest of World
112 126
Overall
185 185
Change %
Same Store RevPar ($)
2001 2000
$ Local
Currency
Europe
227 212
+7% +14%
North America
219 234
-6% -6%
Rest of World
108 126
-14% -8%
Overall
177 183
-3% +1%
ORIENT-EXPRESS HOTELS LTD
Three months ended June 30th, 2001
SUMMARY OF OPERATING RESULTS
Three months ended
June 30th
$'000
2001 2000
Revenue
Owned hotels
- Europe
27,691 26,591
- North America
16,281 17,501
- Rest of World
11,731 13,133
Hotel management and part
ownership interests 3,330
3,258
Restaurants
4,993 5,111
Trains and cruises
12,671 13,210
Total revenue
76,697 78,804
Operating Profits
Owned hotels
- Europe
11,785 11,469
- North America
4,754 5,233
- Rest of World
2,328 3,554
Hotel management and part
ownership interests 3,330
3,251
Restaurants
1,419 1,416
Trains and cruises
3,485 3,224
Central overheads
(2,253) (2,422)
EBITDA
24,848 25,725
Depreciation and amortization
(4,095) (3,874)
Interest
(4,634) (6,308)
Earnings before tax
16,119 15,543
Tax
(1,704) (1,948)
Net earnings on common
shares
14,415 13,595
Earnings per common share
0.47 0.53
Number of shares - millions
30.90 25.90
(1) 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
Summary of Operating Information
for Owned Hotels
Three months ended June 30th, 2001
Three months ended
June 30th
$'000
2001 2000
Average Daily Rate ($)
Europe
380 348
North America
314 306
Rest of World
184 189
Overall
300 285
Rooms Sold ('000)
Europe
48
49
North America
32
36
Rest of World
37
39
Overall
117 124
RevPar ($)
Europe
294 273
North America
223 247
Rest of World
93 108
Overall
195 202
Change %
Same Store RevPar ($)
2001 2000
$ Local
Currency
Europe
294 273
+8% +15%
North America
223 247
-10% -10%
Rest of World
85 108
-21% -16%
Overall
194 202
-4% +1%
Orient-Express Hotels Ltd.
and Subsidiaries
Consolidated and Condensed
Balance Sheets
$'000
June 30 December 31
2001 2000
Assets
Cash
$34,043 $15,889
Accounts receivable
46,730 45,600
Inventories
16,823 15,950
Total current assets
97,596 77,439
Real estate and other fixed
assets,
net book value
571,157 548,788
Investments
86,109 66,973
Intangible assets
29,976 30,423
Other assets
1,998 2,253
$786,836 $ 725,876
Liabilities and Shareholders'
Equity
Working capital facilities
7,213 6,348
Accounts payable
18,961 15,962
Accrued liabilities
33,386 28,556
Deferred revenue
10,690 9,043
Current portion of long-term
debt
38,135 53,722
Total current liabilities
108,385 113,631
Long-term debt
280,027 223,051
Deferred income taxes
4,208 5,456
392,620 342,138
Minority interest
5,187 5,021
Shareholders' equity
389,029 378,717
$786,836 $ 725,876
This press release contains, in addition to historical information,
forward-looking statements that involve risks and uncertainties.
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