| November 6, 2000 - Orient-Express Hotels Ltd. (NYSE: OEH) which completed
its initial public offering on August 9, 2000 and was listed on the New
York Stock Exchange the following day, made its first quarterly earnings
release to its shareholders today.
 For
the quarter ended September 30, 2000, earnings before interest, tax and
depreciation (EBITDA) were $22.6 million, up 14% from the prior year period,
on revenue of $73.3 million, while net income was $10.7 million.
In the prior year period EBITDA was $19.8 million on revenue of $65.3 million,
and net income was $9.9 million. Earnings per share (EPS) were $0.37
in the latest quarter. EPS comparisons with prior year are not meaningful
in view of the changes in equity and debt structure made before the initial
public offering (IPO).
For the nine months ended September 30, 2000, EBITDA was up 17% over
the prior year period to $61.5 million on revenue of $206.2 million and
net income before a sales gain* in 1999 was up 16% to $28.1 million.
Earnings per common share were $1.05. Prior year EBITDA was $52.5
million on revenues of $184.7 million and net income was $24.3 million
excluding the sales gain.
| Mr. James B. Sherwood, chairman,
said that this result was ahead of consensus forecast and had been achieved
despite the weakening of the Euro against the U.S. dollar. Fourteen
of the company�s 35 properties are in Europe. He indicated that the
weakening of the Euro bodes well for 2001 because costs in dollar terms
have declined while rates in dollar terms will be adjusted upward.
EBITDA in U.S. dollars of European hotels both in the third quarter and
for the nine months were approximately the same this year as last, reflecting
stronger performance in local currencies. He noted that same store
revenue per available room (REVPAR) growth at the European hotels was 14%
for the quarter and 12% for the nine months in local currency.
For the North American properties the third quarter is the low season
at the Windsor Court, �21� Club and La Samanna. |
|
Orient Express Hotels',
properties include:
Hotel Cipriani and Palazzo Vendramin, Venice, Italy
Hotel Splendido and Splendido Mare, Portofino, Italy
Villa San Michele, Florence, Italy
Hotel de la Cite, Carcassonne, France
Hotel Quinta do Lago, Algarve, Portugal
Lapa Palace, Lisbon, Portugal
Reid's Palace, Madeira, Portugal
Inn at Perry Cabin, Maryland, USA
Keswick Hall, Virginia, USA
The Windsor Court Hotel, New Orleans, USA
Charleston Place, South Carolina, USA
Copacabana Palace, Rio de Janeiro, Brazil
Hotel Monasterio, Cusco, Peru
The Machu Picchu Sanctury, Peru
Mount Nelson Hotel, Cape Town, South Africa
The Westcliff, Johannesburg, South Africa
Gametrackers, Botswana
La Samanna, St.Martin, French West Indies
Bora Bora Lagoon Resort, Tahiti, French Polynesia
The Observatory Hotel, Sydney, Australia
Lilianfels Blue Mountains, NSW, Australia
The company also owns the '21' Club widely regarded as
one of New York's finest restaurants and owns 50% of Harry's Bar, a private
London dining club, which it also manages. |
|
EBITDA in that region was similar to the prior year quarter but 12%
ahead for the nine month period with an underlying 13% same store REVPAR
growth.
Properties in the rest of the world registered a strong EBITDA increase
both for the quarter and the nine months over the prior year with same
store REVPAR growth of 8% and 17% respectively. Tourist trains and
river cruising were also strongly ahead of the year earlier periods.
Mr. Simon M.C. Sherwood, president, said that on September 18, 2000
the company had purchased the historic Granary of Venice adjacent to the
Hotel Cipriani for about $2.5 million.
This property will enable the hotel to expand its banqueting, conference
and restaurant facilities in addition to permitting a number of additional
rooms to be built, and should make a contribution to profits in 2001, increasing
in the following years as the build-out continues.
He indicated that negotiations were well advanced towards acquiring,
probably in the first quarter of 2001, two additional hotel properties.
He also said that recently two large companies had decided to reduce their
holdings of hotel properties meeting Orient-Express Hotels investment criteria
and this may provide opportunities.
Mr. James G. Struthers, chief financial officer, said that during the
quarter the company decided to lock in the low Euro interest rates that
it pays on debt secured on its European properties. The equivalent
of $100 million of Euros was fixed for two years at attractive rates.
The company now has approximately 50% of its debt in Euros and 40% of total
debt is at fixed rates. The net proceeds from the IPO of $87 million
have been used to repay secured debt on all of the North American properties.
The company is currently in the process of refinancing these assets, which
should increase the group�s cash availability by substantially more than
the IPO proceeds, recognizing the increased value of these properties since
they were last financed.
This press release contains, in addition to historical information,
forward-looking statements that involve risks and uncertainties.
.
ORIENT-EXPRESS HOTELS LIMITED
NINE MONTHS ENDED SEPTEMBER 30th 2000
SUMMARY OF OPERATING RESULTS
(UNAUDITED)
Nine Months ended September 30th
2000 1999
$000 $000
Revenue
Owned hotels
152,977 135,776
Hotel management interests
8,306 8,294
Restaurants
13,614 12,811
Total hotels & Restaurants
174,897 156,881
Trains & Cruises
31,280 27,774
Total revenue
206,177 184,655
EBITDA
Owned hotels (see attached)
51,027 45,652
Hotel management interests
8,296 8,290
Restaurants
3,027 3,025
Total hotels & Restaurants
62,350 56,967
Trains & Cruises
6,310 2,357
Central overheads
(7,169) (6,835)
Total EBITDA
61,491 52,489
Depreciation & Amortisation
(11,234) (10,135)
Earnings before Interest &
Tax 50,257
42,354
Interest
(18,110) (14,294)
Earnings before Tax
32,147 28,060
Tax
(4,036) (3,728)
Net earnings before exceptional
gain 28,111
24,332
Exceptional gain
-- 1,300
Net earnings on common shares
28,111 25,632
Basic earnings per share (a)
$1.05 $0.94
(a) Excluding the gain in 1999 on sale of Windermere
Island Club.
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.
ORIENT-EXPRESS HOTELS LIMITED
NINE MONTHS ENDED SEPTEMBER 30th, 2000
Owned Hotels - Analysis of Operating Results Owned Hotels
$000
EUROPE
NORTH AMERICA
2000 1999
2000 1999
Revenue
65,569 64,987
48,747 43,887
EBITDA
24,553 24,391
14,554 12,976
Overall ADR
316 337
291 303
Rooms sold
131,680 122,289 96,950
91,284
Overall Revpar
247 250
220 228
Same Store Revpar ($)
247 250
208 184
Same Store Growth
-2%
+13%
Same Store
Local currency Revpar growth
+12% +13%
EBITDA EARNING HOTELS (US$k)
Windsor Court
9,711 8,541
Copacabana
Cipriani
7,718 7,384
Owned Hotels
REST OF WORLD
$000
2000 1999
2000 1999
Revenue
38,661 26,902 152,977
135,776
EBITDA
11,920 8,285
51,027 45,652
Overall ADR
227 220
280 296
Rooms sold
110,639 77,688 339,269
291,261
Overall Revpar
128 108
193 194
Same Store Revpar ($) 122
108 190
182
Same Store Growth
+13%
+5%
Same Store
Local currency Revpar growth +17%
+13%
EBITDA EARNING HOTELS (US$k)
Windsor Court
Copacabana
7,982 6,459
Cipriani |
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