Orient-Express Hotels Ltd. (
recently announced the sale of its 'The Observatory Hotel' to an
international world class luxury hotel group. The transaction is
expected to close on August 8, 2012 and till then Orient-Express
will manage the operations of the hotel.
The Observatory Hotel, located in Sydney, is well known for its
customer service and luxurious amenities. The proximity of hotel to
the most enviable tourist locations in Australia like the historic
Rocks, Sydney Harbour and the world famous Harbour Bridge has been
a major reason for its strong customer base. Equipped with world
class facilities, the hotel caters efficiently to both the business
and leisure travelers.
The sale of the hotel is a part of the company's long-term
strategy of portfolio optimization through disposition of non-core
assets for reinvestment of capital in acquisitions and balance
sheet improvement. Management remains optimistic on growth
potential of the hotel and expects it to flourish going forward on
the back of strong management team of its new owner.
Since its inception in 1971, Orient-Express along with its
subsidiaries owns, manages and invests in individual luxury
restaurants, hotels and resorts, tourist trains, and cruise
businesses. The company operates in Europe, North America, and
other major international markets. As of now, Orient-Express owns
46 hotel, cruise and luxury rail businesses in 23 countries. The
company also operates two river cruise operations, six luxury
tourist trains and other iconic restaurants and watering holes.
The company, which competes with the likes of
Wyndham Worldwide Corporation (
Marriott International, Inc. (
, reported first quarter 2012 adjusted loss from continuing
operation of 16 cents per share, narrower than the Zacks Consensus
Estimate of a loss of 18 cents. The company expects financials in
2012 to benefit from portfolio optimization activity and
stabilization of global economic environment, especially outside
Europe. The Zacks Consensus estimates for 2012 and 2013 are pegged
at 14 cents and 36 cents, respectively.
Orient-Express currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We are also maintaining
our long-term Neutral recommendation on the stock.
MARRIOTT INTL-A (MAR): Free Stock Analysis
ORIENT EXP HOTL (OEH): Free Stock Analysis
WYNDHAM WORLDWD (WYN): Free Stock Analysis
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