Profile: Orient-Express Hotels Ltd (OEH.N)
18 Dec 2013
Orient-Express Hotels Ltd.(OEH), incorporated on October 16, 1987, is a luxury hotel company and travel operator with exposure to national economies. As of December 31, 2012, the Company managed 46 properties (all but two of which it owns or part owns), consisting of 36 individual deluxe hotels, one stand-alone restaurant, six tourist trains and three river/canal cruise businesses. These are located in 22 countries worldwide. The Company operates in three business segments: hotels and restaurants, tourist trains and cruises and real estate. It owns and operates the stand-alone restaurant 21 Club in New York. As of December 31, 2012, its worldwide portfolio of hotels consists of 3,314 individual guest rooms and multiple-room suites, each known as a key. During the year ended December 31, 2012, the Company sold Keswick Hall in Charlottesville, Virginia, Bora Bora Lagoon Resort in French Polynesia, The Observatory Hotel in Sydney, Australia and The Westcliff in Johannesburg, South Africa.
The Company’s hotels and restaurants represent the l segment of OEH’s business, contributing 86% of revenue in 2012. Tourist trains and cruises accounted for 14% of revenue in 2012. Approximately 90% of OEH’s customer revenue in 2012, was from leisure travelers, with approximately 35% originating from North America, 47% from Europe and the remaining 18% from elsewhere in the world.
The Company owns properties in Italy, Spain, Portugal, the United Kingdom and Russia. The Hotel Cipriani and Palazzo Vendramin (95 Keys) is in Venice. It includes cuisine in three indoor and outdoor restaurants, gardens and terraces encompassing an Olympic-sized swimming pool, a tennis court, a spa and a banquet and meeting facility situated in an historic refurbished warehouse. Hotel Splendido and Splendido Mare(85 Keys) overlook picturesque Portofino harbor on the Italian Riviera. It includes swimming pool and tennis court. There are two restaurants each with open-air dining as well as banquet/meeting rooms, and a shuttle service linking the main hotel with the smaller Splendido Mare on the harbor below. Villa San Michele(46 Keys) is located in F iesole. It has views over historic Florence and the Arno River Valley. It also has remodeled and expanded the guest accommodation to luxury standards in recent years including the addition of a swimming pool. A shuttle service is provided into Florence. The property occupies ten acres.
Hotel Caruso (50) keys in Ravello. It includes two restaurants, an outdoor swimming pool, spa and gardens. Grand Hotel Timeo (70 keys) in Taormina, the hotel features a restaurant serving regional specialties, a spa and fitness center, outdoor swimming pool, and banqueting and conference facilities, all surrounded by six acres of parkland. Villa Sant’Andrea (60 keys) on Taormina's Bay of Mazzaro ,it has a private beach, the hotel has the atmosphere of a private villa set in lush gardens, a total site of about two acres, with many of the guest rooms and the hotel’s seafood restaurant looking onto the Calabrian coast. La Residencia (67 keys) is in village of Deia, includes the gastronomic El Olivio, as well as two outdoor swimming pools, tennis courts and a spa with an indoor pool. Reid’s Palace(163 keys) located on the island of Madeira. It includes fresh and sea water swimming pools, a third tide-filled pool, tennis courts, ocean water sports, a spa and access to two championship golf courses. Le Manoir aux Quat’Saisons (32 keys) is located in Oxfordshire. It includes ballroom, meeting facilities, a health club and spa and several retail shops.
Owned Hotels-North America
The Company owns properties in the United States, Caribbean and Mexico. Charleston Place (435 keys) is located in Charleston. It has two restaurants, banqueting and conference space including a ballroom, a fitness center with spa and indoor swimming pool, and a shopping arcade of 20 retail outlets leased to unaffiliated parties. The Inn at Perry Cabin (78 keys) St. Michaels, Maryland. It includes an outdoor swimming pool as well as boating and fishing on the bay, it is an attractive conference and vacation destination. El Encanto(92 keys) in Santa Barbara. It includes seven-acre owned site, the guest rooms are in cottages and low rise buildings spread throughout mature gardens. La Samanna (83 keys) is located on the island of St. Martin in the French West Indies. It includes two restaurants, two swimming pools, a spa, tennis courts, fitness and conference centers, boating and ocean water sports, and gardens. Maroma Resort and Spa (64 keys) is on Mexico’s Riviera Maya on the Caribbean coast of the Yucatan Peninsula. It includes two restaurants, three swimming pools, tennis courts and spa facilities. Casa de Sierra Nevada (37 keys) is a luxury resort in the colonial town of San Miguel de Allende. It includes two restaurants, and has built new suites as well as a pool, spa and garden area.
Owned Hotels-Rest of the World
The Company owns properties in South America, Southern Africa and Asia Pacific. Copacabana Palace (239 keys) in Rio de Janeiro, Brazil.It includes features two dining restaurants, spacious function and banqueting rooms including the hotel’s refurbished former casino rooms with space for up to 1,800 persons, a 500-seat theater, a swimming pool, spa and fitness center, and a roof-top tennis court and plunge pool. Hotel das Cataratas (193 keys) is located in Brazil. It includes two restaurants, conference facilities, a swimming pool, spa and tennis court, and tropical gardens looking onto the falls. Miraflores Park Hotel (82 keys) is located in district of Lima, Peru. It includes two restaurants, a ballroom, conference and meeting rooms, a rooftop outdoor pool, health and beauty facilities and a business center for guests, and occupies about one acre of land. Mount Nelson Hotel (209 keys) in Cape Town, South Africa, includes two restaurants, a ballroom, two swimming pools, tennis courts, and a fitness center and spa, all situated on ten acres of owned grounds. Khwai River Lodge, Eagle Island Camp and Savute Elephant Camp(39 keys), includes 12 or 15 twin-bedded deluxe tents under thatched roofs, and guests travel between the camps by light aircraft. Boating, fishing, hiking and swimming are offered at the various sites. Napasai (55 keys) is located on the north side of Koh Samui island of Thailand in the Gulf of Siam, includes two restaurants, tennis courts, a swimming pool, a spa and water sports such as diving and snorkeling in the nearby coral reef. Jimbaran Puri Bali(64 keys) is on the island of Bali in Indonesia, includes two restaurants, a swimming pool and ocean water sports.
Ubud Hanging Gardens (38 keys) on Bali, includes two restaurants, a swimming pool and spa, and a free shuttle bus to the nearby town of Ubud, a cultural and arts center. Each key has its own private plunge pool. La Residence d’Angkor (62 keys) in Siem Reap, Cambodia, includes an indoor/outdoor restaurant and swimming pool. OEH added eight suites and a spa to this property. The Governor’s Residence (48 keys) in Yangon, Myanmar (Burma), includes a restaurant and swimming pool. La Residence Phou Vao(34 keys)is in Luang Prabang, includes four two-story buildings surrounded by lush gardens that include a restaurant, spa and swimming pool.
Hotel Management Interests
The Company owns properties in the United States, Caribbean and Mexico. Hotel Ritz (167 keys) is located in central Madrid, includes four spacious conference and banqueting suites, an indoor restaurant and the Ritz Terrace restaurant outdoors in the gardens. Hotel Monasterio (126 keys) is located in the ancient Inca capital of Cuzco, includes deluxe guest rooms and two restaurants are arranged around open-air cloisters. Palacio Nazarenas (55 keys) is located next door to Hotel Monasterio, includes oxygenated guest rooms, an outdoor heated swimming pool, spa, and poolside restaurant and bar. Machu Picchu Sanctuary Lodge (31 keys) in which all of the rooms have been refurbished. Hotel Rio Sagrado(23 keys) is located in the Sacred Valley of the Incas between Cuzco and Machu Picchu, includes a spa with small swimming pool and gardens beside the Urubamba River on a site of about six acres set against an imposing mountain backdrop. The Westcliff (117 keys) in Johannesburg, South Africa, includes two swimming pools, a tennis court and a spa and health club.
21’ Club is a restaurant at 21 West 52nd Street in midtown Manhattan in New York City. This restaurant is open to the public, occupies three brownstone buildings and features fine American cuisine. It serves a la carte meals in the original bar restaurant and a separate dining room upstairs, and also has ten banqueting rooms used for functions, including the famous secret wine cellar. During the year ended December 31, 2012, two event spaces on the first floor were reconfigured and improved for private receptions.
Tourist Trains and Cruises
Venice Simplon-Orient-Express, the Company’s principal European tourist train, operates in two parts in a regularly scheduled overnight service between London and Venice and on short excursions in southern England. It owns 30 historic railway cars originally used on Orient-Express and other famous European trains. The services are marketed as a continuation of the Orient-Express trains of pre-World War II years. One train is based in Great Britain and composed entirely of Pullman day coaches with a capacity for up to 230 passengers. The other train is based on the European Continent and made up of Wagons-Lits sleeping cars, three dining cars and a bar car with capacity for up to 190 passengers. They operate once or twice weekly principally between London and Venice from March to November each year via Paris, Zurich and Innsbruck on a scenic route through the Alps. Passengers travel across the English Channel by coach on the Eurotunnel shuttle train. Occasional trips are also made to Vienna, Prague, Dresden, Krakow, Copenhagen, Stockholm, Budapest and Istanbul.
The ten British Pullman dining cars of Venice Simplon-Orient-Express with capacity up to 230 passengers operate all year, originating out of London on short excursions to places of historic or scenic interest in southern England, including some overnight trips when passengers stay at local hotels. Both the British and Continental trains are available for private charter. The Northern Belle tourist train offers day trips and charter service principally in the north of England. It builds on the success of OEH’s British Pullman business, which focuses on the south of England around London. This train consists of six owned dining cars elegantly decorated to be reminiscent of old British Belle trains of the 1930s, plus three kitchen and service cars, and can carry up to 250 passengers. The Royal Scotsman luxury tourist train owned by OEH is composed of nine Edwardian-style cars, including five sleeping cars (each compartment with private bathroom), two dining cars and a lounge car, and accommodating up to 36 passengers. Peru Rail operates the track and other infrastructure of the state-owned railways in southern and southeastern Peru and a license to operate passenger and freight services in those areas. The 70-mile Cuzco-Machu Picchu line, carrying mainly tourists as well as local passenger traffic, is the principal means of access to the famous Inca ruins because there is no convenient road. Hiram Bingham luxury daytime tourist train composed of two dining cars and a bar/observation car with capacity up to 84 passengers. OEH also operates a daytime tourist train called the Andean Explorer on the Cuzco-Puno route through the High Andes mountains.
The Eastern & Oriental Express in Southeast Asia travels up to one round trip each week between Singapore, Kuala Lumpur and Bangkok. The journey includes two or three nights on board and side trips to Penang in Malaysia and the River Kwai in Thailand. The Road To Mandalay is a deluxe river cruise ship on the Irrawaddy River in central Myanmar. The ship was a Rhine River cruiser built in 1964 that OEH bought and refurbished. It has 43 air conditioned cabins with private bathrooms, spacious restaurant and lounge areas, and a canopied sun deck with swimming pool. The ship travels between Mandalay and Bagan up to eight times each month and carries up to 82 passengers who may enjoy sightseeing along the river and guided shore excursions to places of cultural interest. Orcaella will be a second river cruise ship in Myanmar. The ship is being built in Yangon to OEH's deluxe accommodation standards and will be long-term chartered by OEH. The ship is named after the dolphins found in the inland waterways of the country, and will offer 25 spacious river-facing cabins, restaurant, lounge and bar, and sundeck with plunge pool. It will cruise between Yangon and the far north of Myanmar on the Irrawaddy and Chindwin Rivers to areas accessible to Orcaella because of its shallow draft and greater maneuverability compared to Road to Mandalay.
Afloat in France is composed of five luxury river and canal boats (called peniche-hotels) owned by OEH and operating in Burgundy, Provence and other rural regions of France. They accommodate between four and 12 passengers each in double berth compartments with private bathrooms, and some have small plunge pools on deck. They operate seasonally between April and October on three- to six-night itineraries with guests dining on board or in nearby restaurants.
The Company develops the real estate adjoining its hotels. On a portion of 37 available acres on the French side of St. Martin, OEH built the Villas at La Samanna consisting of eight homes in three- or four-bedroom configurations, each with a private swimming pool and access to La Samanna’s amenities and services as well as a hotel-sponsored rental program. In 2012, OEH agreed to sell its Porto Cupecoy development on the Dutch side of St. Martin near La Samanna. It consisted of 184 condominium units and 35,000 square feet of commercial space around a Mediterranean-style piazza, and a marina with boat slips. The sale was completed in January 2013 and, at the time of sale, about one third of the condominiums remained unsold. In addition, OEH's sale of Keswick Hall in Virginia in 2012 included the hotel's Keswick Club golf course and an adjacent subdivision of 87 home sites including roads and other infrastructure, about half of which remained unsold.
Orient-Express Hotels Ltd
22 Victoria Street
HAMILTON HM 12