Orient-Express Hotels Reports $24.3 Million Quarterly Loss

Orient-Express Hotels Ltd., owners or part-owners and managers of 50 luxury hotels, restaurants, tourist trains and river cruise properties operating in 25 countries, announced its results for the second quarter ended June 30, 2009.

The net loss for the period was $24.3 million (loss of $0.36 per common share) on revenue of $132 million, compared with net earnings of $19.5 million ($0.46 per common share) on revenue of $177.5 million in the second quarter of 2008.

The net loss from continuing operations for the period was $2.6 million (loss of $0.04 per common share) compared with net earnings from continuing operations of $21.3 million ($0.50 per common share) in the second quarter of 2008.

The adjusted net loss from continuing operations for the period was $2.6 million (loss of $0.04 per common share) compared with adjusted net earnings from continuing operations of $19.7 million ($0.46 per common share) in the second quarter of 2008.

Revenue, excluding real estate revenue, was $132 million in the second quarter of 2009, down $41 million from the second quarter of 2008. This reflected Owned Hotels same store RevPAR decline of 24 percent in local currency (33 percent in U.S. dollars).

Adjusted EBITDA before real estate was $26.7 million, down $23.6 million on the prior year quarter. Revenue from owned hotels for the second quarter was $105.3 million, including $13.4 million from Charleston Place.

This excludes revenue from Lapa Palace and Windsor Court Hotel, which are now accounted for as discontinued operations. On a same store basis, revenue from owned hotels declined by 29 percent year over year. Trains and cruises revenue fell by 29 percent, or $9 million. As these operations have a high variable cost component, EBITDA fell by only $3 million.

EBITDA for hotel management and part-ownership interests in the second quarter of 2009 was $1.2 million compared to $7.7 million in the second quarter of 2008, which included $4.6 million of EBITDA earnings from Charleston Place Hotel. Revenue from restaurants in the second quarter of 2009 was $3.6 million compared to $5.3 million in the same quarter of 2008, and EBITDA was $0.2 million compared with $0.9 million in 2008.

Revenue for trains and cruises was down $9 million in the second quarter of 2009, a decrease of 29 percent year over year, and EBITDA was down by $3 million, reflecting the high level of variable costs in the trains business.

In July, the company reached agreement with the New York Public Library to secure and spread future payments over the next 24 months in connection with its acquisition of the land and building of the Donnell branch of the Library, adjoining the company’s 21 Club.