The 83-key Grand Hotel Timeo (http://www.grandhoteltimeo.com) is widely
considered the most luxurious hotel in Taormina and the nearby 78-key Villa
Sant'Andrea (http://www.villasantandreahotel.com) has a private beach on the
Bay of Mazzaro. Under the agreement, scheduled for completion in late
January, Orient-Express Hotels will acquire both properties for a combined
Commenting on the transaction,
"These hotels typify Orient-Express Hotels' core business - established properties with history and personality. Currently, they both punch below their weight and because they occupy a premier position in the Sicilian market, we are confident we can make significant improvements in performance, as we integrate the properties into the Orient-Express Hotels collection and bring RevPAR and operating margins in line with our existing Italian portfolio," White continued.
"Our prudent approach to funding this financially accretive acquisition, along with the Company's continued disposal of non-core assets and sales of developed Real Estate, should ensure that we remain on track to achieve our key financial objective of deleveraging the Company's balance sheet by the end of 2011."
Grand Hotel Timeo
Built in 1873, the Grand Hotel Timeo occupies an excellent position in the historical center of the city. From the hotel's panoramic terrace, guests can admire spectacular views of Mount Etna and the coastline. Since the 19th century and the era of the Grand Tour, the hotel has been popular with an elite group of international travellers, who choose to vacation here. Each guest room has its own terrace and the hotel's 'Il Dito e la Luna' restaurant specializes in regional Sicilian cuisine, in elegant surroundings.
The Company anticipates that post refurbishment, The Grand Hotel Timeo
will trade at RevPAR levels closer to those of its key Italian properties,
Hotel Cipriani in
Villa Sant'Andrea is located on the Bay of Mazzaro, the heart of Taormina's seaside district. The atmosphere is that of a private villa set in lush gardens, with a private beach. Several of the hotel's suites open onto a private terrace. The 'Oliviero' restaurant, on a panoramic terrace overlooking the Calabrian coast, is known for its fish and seafood specialities.
The Company anticipates that the Villa Sant'Andrea will trade, post the
refurbishment which will lift it into a category of its own among the
beachfront hotels, at RevPAR levels closer to those achieved at its
properties Hotel Caruso in
At present, value has not been assigned to potential development land, as
planning regulations in
Orient-Express Hotels in
The successful completion of this transaction would bring the number of
Orient-Express properties in
Note to Editors
Grand Hotel Timeo and Villa Sant'Andrea have been listed among the
World's Best Hotels by readers of Travel and Leisure in both 2009 and 2010.
This news release and related oral presentations by management contain, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding earnings outlook, investment plans and similar matters that are not historical facts. 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 as actual revenue, inability to sustain price increases or to reduce costs, rising fuel costs adversely impacting customer travel and the Company's operating costs, fluctuations in interest rates and currency values, adequate sources of capital and acceptability of finance terms made more difficult by the current crisis in financial markets and by weakening national economies, possible loss or amendment of planning permits and delays in construction schedules for expansion projects, delays in reopening after closing 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 and regional economic conditions in many parts of the world and weakness in financial markets, and legislative, regulatory and political developments. Further information regarding these and other factors is included in the filings by the company with the U.S. Securities and Exchange Commission.
Contact: Martin O'Grady Vice President, Chief Financial Officer Tel: +44-20-7921-4038 E: firstname.lastname@example.org Pippa Isbell Vice President, Corporate Communications Tel: +44-20-7921-4065 E: email@example.com
SOURCE Orient Express Hotels Ltd