Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

In a bid to expand its businesses further and enhance its luxury product portfolio, Orient-Express Hotels Ltd. (OEH - Snapshot Report) recently made some progressive advances.

Orient Express has recently declared selling of two assets that no longer fit well with the company’s growth strategy. Separately, the company also announced the re-opening of refurbished Copacabana Palace and its intention to revamp two of its top-producing assets through re-investment. The company has taken these strategic initiatives to raise its earnings and strengthen its balance sheet.

Highlighting its divestment plans further, the company has recently concluded the sale of The Westcliff, Johannesburg to joint venture partners Albwardy Investment in Dubai and Hotels Properties Limited in Singapore. Following the completion of the asset sale, the company will be engaged in managing the operations of the sold property for a period of one year.

Additionally, the company has inked an agreement to sell the asset of its real estate development firm, Porto Cupecoy, in Sint Maarten to a local client. As per the contract, the company has reserved its right to own Porto Cupecoy’s four condominium units. The company expects to complete the divestiture within a month. Orient-Express expects to receive $45.0 million in cash from the sale of these assets. The company will fund its re-investment program with net proceeds from the sale of the assets.

In a different story, the company declared the completion of the extensive renovation program undertaken for the main building of Copacabana Palace in Rio de Janeiro. It invested nearly $20 million to develop and upgrade Copacabana Palace’s 145 rooms, suites and other areas.

Moreover, the company has also stated its plan to renovate two of its high-valued properties- Grand Hotel Europe in St. Petersburg, Russia and Charleston Place, South Carolina. The Company will fund the refurbishment of Grand Hotel Europe and Charleston Place through a new $50.0 million loan agreement and $9.2 million existing loan facility, respectively. Renovation work is slated to begin in 2013 for both properties.

These divestitures and renovation programs are in line with the company’s philosophy of focusing on its core assets in a bid to improve its portfolio by turning its attention towards more high-valued assets.

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.

Orient-Express which competes with the likes of Wyndham Worldwide Corporation (WYN - Analyst Report) and Marriott International, Inc. (MAR - Analyst Report), currently retains a Zacks #3 Rank, implying a short-term ‘Hold’ rating on the stock.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%