Orient Express Hotels, today reported net earning of $17.73 million or $0.17 per share for quarter ending 30 September, up from net loss $49.92 million or $0.49 per share in the corresponding period a year ago. Bermuda based company is owner or part-owners and managers of 45 luxury hotel, restaurant, tourist train and river cruise properties operating in 22 countries. Tata group promoted Indian Hotels Company (IHC) put an unsolicited bid on 19 October to acquire the company for $1.86 billion.
"The Board of Directors of Orient-Express Hotels Ltd. is evaluating the proposal in consultation with its financial and legal advisors and will respond in due course in accordance with the best interests of the Company and its shareholders," said the company in a statement.
About a week after the unsolicited bid IHC vice-chairman R K Krishna Kumar hinted at a revised offer in a letter to J Robert Lovejoy, chairman of the board of directors of Orient-Express Hotels. As per Tata group’s offer Orient Express is expected to revert on the offer by 9 November.
"Despite continuing economic uncertainty in Europe, revenues held up well and same store RevPAR in local currency was unchanged from last year on a global basis," said Philip Mengel, director and interim chief executive officer. "In fact, in local currency and excluding the effects of the temporary closure of Copacabana Palace as part of its planned refurbishment, same store RevPAR was up 5% from the prior year quarter, reflecting the tremendous strength and guest appeal of our unmatched collection of iconic assets. In Europe, revenues from owned hotels were up by $2.6 million on a local currency basis even with the tough macro-economic conditions in that market."
The Company has continued to execute its strategy of redeploying capital and reducing debt through targeted divestments. During the quarter, the company completed the sale of The Observatory Hotel. The proceeds from the sale were $42.1 million, of which $11.2 million was used to repay associated debt. The company has also entered into an agreement in July to sell The Westcliff, Johannesburg. The process of securing certain regulatory approvals necessary under that contract is underway and the transaction is currently expected to close by the end of the year.
The company said it is pursuing plans to maximise opportunities from emerging markets and has retained the services of two leading sales representation companies for promoting its services in the Chinese market. These firms will represent Orient-Express from offices in Singapore, Hong Kong, Taipei, Beijing, Shanghai and Guangzhou.