PRNewswire HAMILTON, Bermuda November 7:
Orient-Express Hotels Ltd. (NYSE: OEH, www.orient-express.com), owner of
39 deluxe hotel, restaurant, tourist train and river cruise properties in
17 countries, announced today it has sold the Hotel Quinta do Lago,
Algarve, Portugal for US$40 million which is 16 times current year EBITDA.
The company also announced it has filed a registration statement for a
proposed offering of 3,000,000 class A common shares, with an additional
450,000 shares available to cover an over-allotment option. Merrill Lynch
is acting as sole book-running manager for the proposed offering.
Mr James B Sherwood, Chairman, said that the primary purpose of the hotel
sale and sale of common shares is to raise additional capital for purchase
of hotels and related businesses and to fund capital investment in some
existing owned properties. The Hotel Quinta do Lago sale was considered
appropriate in that this property lacked its own golf course while
intensive development of small homes in the area has put enormous pressure
on the nearby golf courses for start times. Another luxury hotel with its
own golf course is currently under construction on the same estate. A
significant gain on sale of the hotel will be realized and be included in
fourth quarter results.
Mr Simon Sherwood, President, said that the company has a number of
interesting investment opportunities which are under negotiation and also
wishes to fund an annex building for its Windsor Court Hotel in New
Orleans and a large spa at Reid`s Palace Hotel in Madeira. In order to
complete these investments without straining equity to debt ratios the
board has deemed it prudent to raise a moderate amount of additional
capital. The company currently has 30.8 million shares outstanding so the
sale of 3 million additional shares would increase the shares outstanding
The registration statement relating to the offering has been filed but has
not yet become effective. These securities may not be sold nor may offers
to buy be accepted prior to the time the registration statement becomes
effective. This news release does not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in a state to which the offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws
of any state. Copies of the prospectus may be obtained from the
The company will announce its third quarter and nine months results on
Wednesday, November 12, 2003 and will hold a conference call at 10.00 a.m.
New York City time (EST). Anyone wishing to join the call should dial +1
212 896 6111 at that time (phone lines will open at 9.50 a.m.).