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Orient-Express Names John M. Scott III President and Chief Executive Officer



 Orient-Express Names John M. Scott III President and Chief Executive Officer

  PR Newswire

  HAMILTON, Bermuda, November 8, 2012

HAMILTON, Bermuda, November 8, 2012 /PRNewswire/ --

Board Unanimously Rejects Unsolicited Acquisition Proposal From Indian Hotels

Orient-Express Hotels Ltd. (NYSE: OEH) today announced that John M. Scott III
has been appointed President and Chief Executive Officer and a Director.  Mr.
Scott, 47, is an experienced operator of luxury hotels who most recently
served as President and CEO of Rosewood Hotels & Resorts, where he oversaw a
portfolio of 17 ultra-luxury hotels located in seven countries with combined
revenues of more than $500 million.

"John Scott is a talented and highly regarded leader in the global hotel
industry and we are excited to welcome him to Orient-Express," said J. Robert
Lovejoy, Chairman of the Board.  "During his time at Rosewood, John was
responsible for doubling the number of hotels under management, significantly
increasing EBITDA and securing an active development pipeline of new hotel
projects.  With a deep understanding of the ultra-luxury lodging sector and
proven industry experience in strategy, operations, finance, and brand
building, John has the right skills and qualifications to drive growth and
deliver on the tremendous potential of Orient-Express' portfolio of iconic and
irreplaceable properties."

"Orient-Express is a legendary brand synonymous with excellence,
sophistication and personality," said Mr. Scott.  "With a unique collection of
one-of-a-kind assets and a business model and culture that ensures the highest
quality service and guest experience, Orient-Express is among the world's
premier luxury hotel and travel companies.  I am excited to join
Orient-Express and look forward to working together with the Board and
management team to expand the business, grow profitability and significantly
increase shareholder value, while providing our guests with experiences and
memories that last a lifetime."

Added Mr. Lovejoy, "On behalf of the Board, I want to thank Philip Mengel for
serving as interim CEO for the past six months.  We look forward to his
continued contributions as a Director on our Board.  Having a seasoned leader
at the helm provided us with the flexibility to conduct the thorough search
that led us to John Scott."

Response to Unsolicited Acquisition Proposal

Orient-Express also announced that its Board, after consultation with
independent financial and legal advisors, has unanimously determined that the
unsolicited proposal from The Indian Hotels Company Limited and certain
affiliates and third parties to acquire all of the outstanding shares of
Orient-Express for $12.63 per share in cash (the "Indian Hotels Proposal")
significantly undervalues Orient-Express and its unique assets and is not in
the best interests of Orient-Express and its shareholders.  The Company
informed Indian Hotels of its decision in a letter included below.

Mr. Lovejoy said, "The Board is deeply committed to creating value for our
shareholders and will take whatever actions it believes will best accomplish
that objective.  We carefully evaluated the Indian Hotels Proposal in that
spirit but unanimously concluded it is deeply unattractive from a financial
perspective. Importantly, the Board believes the current macroeconomic
environment, conditions in the luxury hotel business and factors unique to
Orient-Express would make this a highly disadvantageous time to sell the
Company to realize its true value.  Orient-Express has exciting prospects and
an unrivalled collection of one-of-a-kind luxury properties that it is taking
concerted actions to optimize. With the appointment of a world-class CEO, whom
the Board is confident will drive superior long-term value, we believe
Orient-Express has a bright future as an independent company serving the
interests of shareholders as well as guests."

Mr. Lovejoy noted that Mr. Scott formerly served as President and CEO of
Rosewood Hotels & Resorts from 2003 until the sale in 2011 of Rosewood and
related owned hotel assets (including The Carlyle, Mansion on Turtle Creek,
Hotel Crescent Court, Little Dix Bay and Inn of the Anasazi).

Prior to joining Rosewood Hotels, Mr. Scott served for seven years as Managing
Director of Acquisitions and Asset Management at Maritz, Wolff & Co., where he
was responsible for acquisitions and asset management for the private equity
real estate investment group.  Previously, Mr. Scott held management positions
in business planning and development at The Walt Disney Company and senior
hotel management positions at the Interpacific Group Hong Kong, a private
hotel investment and management company operating in the Asia-Pacific region.
 

Mr. Scott holds a Master's Degree in Business Administration from Harvard
Business School and a Bachelor of Arts Degree from Dartmouth College.  He also
serves on the Board of Cedar Fair Entertainment (NYSE: FUN), a leading
publicly traded theme park and entertainment company.

Deutsche Bank Securities Inc. and Goldman, Sachs & Co. are acting as financial
advisors to Orient-Express.  Davis Polk & Wardwell LLP is acting as legal
advisor to Orient-Express.

The text of the letter sent to Indian Hotels is below:

                                November 8, 2012

Mr. R. K. Krishna Kumar Vice Chairman The Indian Hotels Company Limited
Mandlik House Mandlik RoadMumbai 400 001India

Dear Mr. Kumar:

I am writing in response to your letter of October 18, 2012 setting forth an
unsolicited proposal by The Indian Hotels Company and certain other entities
to acquire all of the outstanding shares of Orient-Express Hotels Ltd. for
$12.63 per share in cash.

After thorough consideration, and in consultation with independent financial
and legal advisors, our Board of Directors has unanimously concluded that your
proposal significantly undervalues Orient-Express and its future prospects.
 Like that of many other hospitality companies and luxury sector participants,
we believe the current price of Orient-Express shares reflects the market's
short-term outlook and not the long-term value of its assets.

Orient-Express is one of the premier hospitality brands in the world. We own a
unique and irreplaceable portfolio of iconic ultra-luxury properties -
including the Hotel Cipriani, Copacabana Palace, the Venice
Simplon-Orient-Express, Hotel Splendido and the '21' Club.  Despite a
difficult operating environment, we continue to perform well.  The Board
believes the Company is well positioned to deliver substantial value to our
shareholders in 2013 and the coming years.  

You continue to state publicly that you are offering a significant premium,
but your opportunistic proposal was made at a time when the price of
Orient-Express shares has been significantly depressed.  Orient-Express shares
have been negatively impacted by various factors including economic
turbulence, particularly in Europe, important properties in the midst of
refurbishment projects, and the transition to a new CEO.  In short, we
strongly believe your proposal is significantly below the value of
Orient-Express.  

Our opportunity to grow earnings and cash flow is significant, as many of our
core properties are expected to achieve in 2012 substantially less than their
peak EBITDA.  In addition, we expect EBITDA to benefit materially as
properties undergoing renovations reopen and major new properties commence
operations.  We are encouraged by the growth in our advance bookings for 2013,
which are currently well ahead of last year at this time.  In addition, the
market value of our unique properties is underscored by the prices per key
paid in some recent sales of iconic assets.

For all these reasons, the Board is convinced that Orient-Express has a very
bright future.  Importantly, we have announced today the hiring of John M.
Scott as our new President and Chief Executive Officer.  Mr. Scott has superb
industry experience, a deep understanding of the luxury customer and a track
record of success with high-end assets.  We are convinced his leadership will
usher in an exciting new era at Orient-Express.  We believe he will help build
the value of the Orient-Express brand, drive substantial incremental value
from our properties, and deliver strong long-term returns to our shareholders.
 

The members of the Orient-Express Board have great respect for your company.
 We have taken, and will continue to take, our responsibilities to
Orient-Express shareholders extremely seriously. We remain deeply committed to
the goal of delivering superior value to our shareholders.  For the reasons
described above, our Board has unanimously concluded that your proposal
significantly undervalues Orient-Express, and that now would be a highly
disadvantageous time to sell the Company.  Accordingly, our Board has
unanimously determined that it is not in the best interests of Orient-Express
and its shareholders to pursue your proposal.

Sincerely yours,

J. Robert Lovejoy

Chairman

About Orient-Express Hotels Ltd.

Orient-Express Hotels Ltd., listed on the New York Stock Exchange, ticker OEH,
engages in the hotel, tourist train, restaurant and cruise ship business.
 Orient-Express Hotels owns all or part of and manages 45 famous properties in
22 countries, including the Hotel Cipriani in Venice, the Copacabana Palace in
Rio de Janeiro and the Mount Nelson Hotel in Cape Town. In addition, it owns
the Venice Simplon-Orient-Express and Eastern & Oriental Express tourist
trains, '21' Club in New York City and the "Road To Mandalay" cruise ship in
Burma.

Safe Harbour Statement

This news release contains, in addition to historical information,
forward-looking statements that involve risks and uncertainties. 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 news release, unknown effects on the travel and leisure markets of
terrorist activity and any police or military response, varying customer
demand and competitive considerations, failure to realize hotel bookings and
reservations and planned property development sales as actual revenue,
inability to sustain price increases or to reduce costs, rising fuel costs
adversely impacting customer travel and Orient-Express' operating costs,
fluctuations in interest rates and currency values, uncertainty of negotiating
and completing proposed asset sales, debt refinancings, capital expenditures
and acquisitions, inability to reduce funded debt as planned or to agree bank
loan agreement waivers or amendments, 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, changing global or
regional economic conditions and weakness in financial markets which may
adversely affect demand, legislative, regulatory and political developments,
possible challenges to Orient-Express' corporate governance structure, and the
uncertain outcome of the pending Indian Hotels Proposal. Further information
regarding these and other factors is included in the filings by Orient-Express
with the U.S. Securities and Exchange Commission.

Contacts : Investors :Martin O'Grady, Vice President, Chief Financial Officer
Tel: +44-20-3117-1333 E: martin.ogrady@orient-express.com Media :Vicky Legg,
Director, Corporate Communications Tel: +44-20-3117-1380 E:
vicky.legg@orient-express.com or George Sard/Denise DesChenes/Jamie Tully Sard
Verbinnen & Co Tel: +1-212-687-8080
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