Orient Express: 2013 Begins “On Positive Note”
Luxury travel firm Orient-Express Hotels Ltd., a Bermuda based company, today announced its results for the first quarter ended March 31, 2013.
Owners, part-owners or managers of 46 luxury hotel, restaurant, tourist train and river cruise properties operating in 22 countries, Orient-Express reported total revenue was $103.2 million in the first quarter of 2013, up $2.7 million or 3% from $100.5 million in the first quarter of 2012. Revenue from owned hotels for the first quarter was $89.2 million, up $1.7 million or 2% from $87.5 million in the first quarter of 2012. On a same store basis, owned hotels RevPAR was up 6% in US dollars and up 7% in local currency. Trains & cruises revenue in the first quarter was $11.2 million, up 18% compared to $9.5 million in the first quarter of 2012.
Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization [EBITDA] was $4.5 million for the first quarter, up $1.3 million or 41% from $3.2 million in the prior-year period. The principal increases were at Road To Mandalay and The Governor’s Residence, both in Myanmar, where aggregate EBITDA increased by $2.6 million. EBITDA also increased at Maroma Resort and Spa, Riviera Maya, Mexico [up $0.4 million] and Charleston Place, South Carolina [up $0.4 million], offset by a decrease at Copacabana Palace, Rio de Janeiro [down $1.1 million].
Adjusted net loss from continuing operations for the first quarter was $8.3 million [$0.08 per common share] compared with a loss of $14.4 million ($0.14 per common share) in the first quarter of 2012.
“2013 has started on a positive note,” said John Scott, President and Chief Executive Officer. “Same store RevPAR across our portfolio was up 6% in US dollar terms and up 7% in local currency. Adjusted EBITDA for the Company’s traditionally low first quarter was $4.5 million, up 41% from $3.2 million last year.
“The highlight of the first quarter was the March opening of the El Encanto hotel in Santa Barbara, California that has firmly established our brand presence in the important US West Coast travel market. This wonderfully restored hotel will significantly enhance the revenue-generating power of our portfolio and will fully contribute to earnings in future periods.
“Our new leadership team remains sharply focused on our strategy to increase the earnings power of our properties and optimize our unique portfolio of luxury travel assets. During the quarter, we completed the sale of Porto Cupecoy, Sint Maarten, generating cash proceeds of $19.0 million and removing a loss-making asset from our portfolio. We are also embarking on significant renovation plans at Charleston Place and Grand Hotel Europe, St. Petersburg, two of our key cash-generating properties.
“Current early indicators for 2013 are positive, with bookings pace for owned hotels up 8% compared to last year. Booked revenue for the Italian properties is 15% ahead of where it was at the same time last year and Asia is 18% ahead, reflecting the continued strength of Asia and providing momentum as we enter our second and third quarters.”
