UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported)  March 27, 2006

 

Orient-Express Hotels Ltd.

(Exact name of registrant as specified in its charter)

 

Bermuda

(State or other jurisdiction of
incorporation)

 

1-16017

 

98-0223493

(Commission File Number)

 

(I.R.S. Employer Identification No.)

 

22 Victoria Street, Hamilton HM 12, Bermuda

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code (441)295-2244

 

Not Applicable

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o                                    Pre-commencement communications pursuant to Rule 13e-4(c)under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

ITEM 2.02

Results of Operations and Financial Condition

 

The information contained in this Current Report is furnished under Item 2.02 Results of Operations and Financial Condition. In accordance with General Instruction B.2 of Form 8-K, the information hereunder shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into a filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in the filing. The registrant is a foreign private issuer and, therefore, is exempt from Regulation FD.

 

On March 27, 2006, registrant’s management commenced a series of oral presentations at investors’ meetings in various cities in the United States. The slides shown at those meetings are attached as an Exhibit to this Current Report and incorporated herein by reference.

 

ITEM 9.01

Financial Statements and Exhibits.

 

 

(c)

Exhibits

 

 

99

Week of March 27, 2006 slide presentations at investors’ meetings in various cities in the United States.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

ORIENT-EXPRESS HOTELS LTD.

 

 

 

 

 

 

 

 

 

 

By:

 /s/ Edwin S. Hetherington

 

 

 

Name: Edwin S. Hetherington

 

 

Title: Secretary

 

 

 

 

 

 

Date:  March 27, 2006

 

3



 

EXHIBIT INDEX

 

Exhibit

 

 

Number

 

Description

 

 

 

99

 

Week of March 27, 2006 slide presentations at investors’ meetings in various cities in the United States.

 

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Orient-Express Hotels

 

March 2006

 

 

[GRAPHIC]

 

 

 

 

[LOGO]

 

ORIENT-EXPRESS HOTELS
TRAINS & CRUISES

 



 

Orient-Express Hotels

 

Overview

 

2005 Highlights

 

Major investments in 2005

 

Acquisitions

 

Expansions

 

Real Estate Update

 

Quarter 1 Outlook

 

2



Orient-Express Hotels

 

[LOGO]

 

 

 

 

                  Global hospitality and leisure company

[LOGO]

 

 

 

 

                  Exclusive focus on deluxe luxury market

[LOGO]

 

 

 

 

                  39 Hotels, 3 Restaurants, 6 Trains, 2 River Cruise Operations

[LOGO]

 

 

 

 

                  Distinguished luxury brand names

[LOGO]

 

 

 

 

                  Orient-Express, Hotel Cipriani, Copacabana Palace, ‘21’ Club, Mount Nelson, The Ritz

[LOGO]

 

 

 

 

                  Benefits of ownership

[LOGO]

 

 

 

 

                  Irreplaceable assets, high barriers to entry

[LOGO]

 

 

 

 

 

 

3



 

N. AMERICA

 

Global and Expanding

 

EUROPE

 

 

Acquisitions since 2002

 

 

                  ‘21’ Club, New York

                  Windsor Court Hotel, Louisiana

                  Charleston Place, South Carolina

                  The Inn at Perry Cabin, Maryland

                  Keswick Hall, Virginia

                  El Encanto, Santa Barbara

                  La Samanna (Caribbean)

                  Maroma Resort and Spa (Mexico)

                  Casa Sierra Nevada

 

[GRAPHIC]

 

                  Hotel Cipriani & Palazzo Vendramin, Italy

                  Hotel Splendido & Splendido Mare, Italy

                  Villa San Michele, Italy

                  Hotel Caruso, Italy

                  Grand Hotel Europe, Russia

                  The Ritz, Madrid, Spain

                  La Residencia, Mallorca, Spain

                  Reid’s Palace, Madeira, Portugal

                  Lapa Palace, Lisbon, Portugal

                  Le Manoir aux Quat’Saisons, England

                  Harry’s Bar, England

                  Hôtel de la Cité, France

 

 

 

 

 

 

 

S.E ASIA

 

 

 

 

 

 

 

 

 

                  The Governor’s Residence, Yangon,

                  La Résidence d’Angkor, Siem Reap

                  La Résidence, Luang Prabang

                  Jimbaran Puri Bali

                  Ubud Hanging Gardens, Bali

                  Napasai, Koh Samu, Thailand

 

 

 

 

 

 

 

REST OF THE WORLD

 

 

 

 

 

 

 

 

TRAINS & CRUISES

 

                  Copacabana Palace, Brazil

 

 

 

 

 

                  Mount Nelson Hotel, South Africa

 

 

 

                  Venice Simplon-Orient-Express, Europe

 

                  Orient-Express Safaris, Botswana

 

 

 

                  British Pullman, UK

 

                  The Westcliff, South Africa

 

 

 

                  Northern Belle, UK

 

                  The Observatory Hotel, Australia

 

 

 

                  Royal Scotsman, UK

 

                  Lilianfels Blue Mountains, Australia

 

 

 

                  Eastern & Oriental Express, Asia

 

                  Hotel Monasterio, Peru

 

 

 

                  Road To Mandalay, Myanmar (River Vessel)

 

                  Machu Picchu Sanctuary Lodge, Peru

 

 

 

                  Peru Rail, Peru

 

                  Miraflores Park Hotel, Peru

 

 

 

                  Hiram Bingham Train, Peru

 

                  Bora Bora Lagoon Resort, South Pacific

 

 

 

                  Afloat in France

 

                  La Cabaña, Argentina

 

 

 

 

 

 

 

 

 

 

 

Dark red:  Added since 2002

 

 

 

 

 

 

4



 

Casa de Sierra Nevada

 

[GRAPHIC]

 



 

2005

 

Highlights

 

6



 

Highlights in 2005

 

                  Good financial results

 

                  EBITDA up 37%; Net earnings up 44%

 

                  EBITDA margin up 3%

 

                  Grand Hotel Europe acquisition

 

                  $17.4m EBITDA in 2005

 

                  Acquired at 6x multiple

 

                  Overhang and free float

 

                  SC shareholding reduced to 0% from 42%

 

                  Free float increased 2x from 19.9m to 39.3m

 



 

US$ REVPAR GROWTH

 

[CHART]

 



 

Margin Recovery

1% improvement is $4m impact on annual EBITDA

 

[CHART]

 

2006 EBITDA margin on track for 27% (up 300bp)

 


* Excludes gain on sale of Hotel Quinta do Lago

 

9



 

2005 Results

 

$’m

 

Dec 31
2005

 

Dec 31
2004

 

Change

 

 

 

 

 

 

 

(%)

 

Revenue (1)

 

448

 

369

 

+25

%

EBITDA

 

108

 

79

 

+37

%

Net earnings (2)

 

40.7

 

28.2

 

+44

%

EPS ($)

 

1.07

 

0.82

 

+30

%

EBITDA Margin (%) (2)

 

24.2

%

21.4

%

+280bp

 

 


(1) Includes earnings from unconsolidated companies

(2) Includes seasonally loss making Q1

 

Same store RevPAR

 

US Dollar

+11%

Local currency

+10%

 

10



 

Balance Sheet

 

Assets

 

31 December,
2005

 

 

 

 

 

($ ’m)

 

 

 

Cash

 

38

 

 

 

Current assets

 

119

 

 

 

Fixed assets and investments

 

1,171

 

 Historical depreciated cost

 

Intangible and other assets

 

88

 

 

 

 

 

1,416

 

 

 

Liabilities

 

 

 

 

 

Current liabilities

 

213

 

 

 

Debt

 

496

 

 

 

Other

 

30

 

 

 

Shareholder’s equity

 

677

 

 

 

 

 

1,416

 

 

 

 

11



 

Major Investments

in 2005

 

12



 

Major Investments in 2006

 

Acquisitions/Openings:

 

                  Grand Hotel Europe, Russia

 

February 2005

                  Hotel Caruso, Ravello, Italy

 

June 2005

                  Hanging Gardens, Ubud, Bali (Pansea)

 

July 2005

                  Maroma, Mexico, 100% ownership & land

 

Jan 2006

                  Casa Sierra Nevada, Mexico

 

February 2006

 

Recovery work from hurricanes

 

                  Windsor Court Hotel, USA – re-opened

 

November 2005

                  Maroma, Mexico – re-opened

 

February 2006

 

13



 

Major Investments in 2005/6

 

Investment Opportunities:

 

                  Grand Hotel Europe, Russia – 120 Rooms refurbishment

 

Completion Q2 06

                  La Residencia, Mallorca – 8 luxury suites/ Restaurant/ Bar

 

Construction underway

                  Ritz Hotel, Madrid – Foyer & restaurant,

 

Complete

                  Monasterio, Cusco – 54 key expansion

 

Q3 2006 start

 

 

 

                  Copacabana Palace, Brazil – grand ballrooms and spa 36 suites

 

Completion Q3 complete

                  Reid’s Palace, Madeira – spa and pool

 

Q1 2006 completion Easter

                  Mount Nelson Hotel – Oasis wing

 

Complete

                  La Samanna – New suits/bathrooms

 

Complete

                  Villa San Michele, Florence – 2 suites

 

Construction underway

 

14



 

Real Estate Update

 

15



 

Real Estate

 

                  Villas at Maroma, Mexico

 

                  Acquired land January 2006

 

                  Plan 27 villas

 

                  Bora Bora Lagoon Resort

 

                  Permits granted February 2006

 



 

Villas at Maroma

 

[GRAPHIC]

 

17



 

Q1 Outlook 2006

 

18



 

Q1 2006 Outlook

 

                  KEY DRIVERS

 

                  Demand growth continues

 

                  Demographics favour industry

 

                  Limited supply

 

                  Year on year bookings ahead by 8% (as at Feb 2006)

 

                  ONE OFF ITEMS WILL HAVE SHORT TERM IMPACT

 

                  Closure of La Residencia & Reids - $4m

 

                  Finance related write-offs - $3m

 

                  FROM SECOND QUARTER, NO FURTHER EFFECTS

 



 

Summary

 

                  Solid Performance in 2005

 

                  Financial performance

 

                  Acquisitions and expansions

 

                  Free float

 

                  Encouraging Outlook

 

                  Strong demand, limited supply

 

                  Bookings pace strong

 

                  Continuing Opportunities

 

                  Acquisition and Expansion

 



 

ORIENT-EXPRESS HOTELS LTD.

 

Management believes that EBITDA (net earnings adjusted for interest expense, foreign currency, tax, depreciation and amortization) is a useful measure of operating performance, for example to help determine the ability to incur capital expenditure or service indebtedness, because it is not affected by non-operating factors such as leverage and the historic cost of assets. EBITDA is also a financial performance measure commonly used in the hotel and leisure industry, although the company’s EBITDA may not be comparable in all instances to that disclosed by other companies. EBITDA does not represent net cash provided by operating, investing and financing activities under U.S. generally accepted accounting principles, is not necessarily indicative of cash available to fund all cash flow needs, and should not be considered as an alternative to earnings from operations or net earnings under U.S. generally accepted accounting principles for purposes of evaluating operating performance.

 

This presentation and the accompanying oral remarks by management contain, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding earnings growth, investment plans and similar matters that are not historical facts. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause a difference include, but are not limited to, those mentioned in the presentation and oral remarks, unknown effects on the travel and leisure markets of terrorist activity and any police or military response, varying customer demand and competitive considerations, realization of hotel bookings and reservations and planned property development sales as actual revenue, inability to sustain price increases or to reduce costs, fluctuations in interest rates and currency values, adequate sources of capital and acceptability of finance terms, possible loss or amendment of planning permits and delays in construction schedules for expansion or development projects, delays in reopening properties closed for repair or refurbishment and possible cost overruns, shifting patterns of tourism and business travel and seasonality of demand, adverse local weather conditions, uncertainty of collecting insurance claims for property damage and lost earnings, changing global and regional economic conditions, and legislative, regulatory and political developments. Further information regarding these and other factors is included in the filings by the company with the U.S. Securities and Exchange Commission.

 

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