Orient-Express profits benefit from pick-up in luxury travel
Bermuda-based luxury resort operators Orient-Express Hotels Ltd reported net earnings of $5.2 million for the second quarter as the premier leisure travel market continued to pick up.
That compared to a net loss of $800,000 in 2010.
So far this year the company has made a net loss of $9.8 million or nine cents per share compared to a net loss of $13.8 million or 15 cents per share for the same period in 2010.
“Orient-Express performed well in the second quarter, reflecting continued positive momentum in the luxury leisure travel market and the solid performance of our iconic properties as well as our train, cruise and other assets,” said Bob Lovejoy, chairman and interim CEO of Oreient-Express Hotels.
“Revenue excluding real estate grew by 23 percent compared to the prior year period, driven by strong performance in Europe, particularly our Italian properties. Adjusted EBITDA before Real Estate increased by 28 percent, compared with the second quarter of last year, and we delivered our sixth consecutive quarter of RevPAR growth.
“Looking forward, we are encouraged by signs of continued recovery in our market - including favourable booking trends. In addition, we see substantial potential to grow revenue through disciplined capital expenditure programs and our marketing and brand-building initiatives, as well as opportunities to enhance profitability through continued operational improvement.
“Orient-Express has a deep team of seasoned operating professionals implementing the company’s long-term strategy, and we are keenly focused on profitable growth and building long-term shareholder value.”
Revenue, excluding real estate, was $177.4 million in the second quarter of 2011, up $33.3 million or 23 percent from the second quarter of 2010.