Orient-Express Sees 12% Decline In RevPar For 1Q

HAMILTON, Bermuda— Orient-Express Hotels has announced its results for the first quarter ended March 31, 2002. Net earnings on common shares were $0.4 million ($.01 per common share), compared with $4.9 million ($0.16 per common share) in the first quarter of 2001. Revenue was down 7% to $53.7 million from $57.9 million in the year earlier period. James Sherwood, Orient-Express chairman, said that the decline in revenue and net income had been primarily due to the lingering effects of the 9/11 terrorist attacks in the U.S. He indicated that same store RevPAR in the first quarter was down 12% compared with the prior year period, while in the fourth quarter of 2001 it was down 17% compared with the fourth quarter of 2000. Sherwood also said that Orient-Express Hotels first quarter is the seasonal low earnings period for the year. He said that results were 3 cents per share ahead of “Street consensus” and reflected the resilience of the company in the face of unexpected adversity such as 9/11. Recent devaluations of the South African Rand and Brazilian Real had also reduced first quarter profits when translated into U.S. dollars, he said, despite improved occupancies over the year earlier period. Local currency rates are being increased in South Africa and Brazil to ensure profits on translation are maintained at pre-devaluation levels, however, there is a lag effect because of booking commitments in local currencies made prior to the devaluations.