Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | |
Class A common shares at par value | Class B common shares at par value | ||
Entity Registrant Name | 'ORIENT EXPRESS HOTELS LTD | ' | ' |
Entity Central Index Key | '0001115836 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding: | ' | 103,404,460 | 18,044,478 |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ||
Cash and cash equivalents | $153,144 | $93,382 | ||
Restricted cash | 3,312 | 21,080 | ||
Accounts receivable, net of allowances of $497 and $472 | 43,540 | 36,533 | ||
Due from unconsolidated companies | 12,928 | 15,200 | ||
Prepaid expenses and other | 23,902 | 21,244 | ||
Inventories | 45,344 | 44,555 | ||
Assets of discontinued operations held for sale | 720 | 22,078 | ||
Real estate assets | 1,883 | 1,924 | ||
Total current assets | 284,773 | 255,996 | ||
Property, plant and equipment, net of accumulated depreciation of $328,835 and $300,899 | 1,147,981 | 1,171,603 | ||
Property, plant and equipment of consolidated variable interest entities | 186,543 | 183,793 | ||
Investments in unconsolidated companies | 62,087 | 58,924 | ||
Goodwill | 159,601 | 161,278 | ||
Other intangible assets | 17,229 | 18,608 | ||
Other assets | 60,320 | 41,825 | ||
Total assets | 1,918,534 | 1,892,027 | ||
Liabilities and Equity | ' | ' | ||
Accounts payable | 22,650 | 25,182 | ||
Accrued liabilities | 95,534 | 77,519 | ||
Deferred revenue | 41,514 | 30,519 | ||
Liabilities of discontinued operations held for sale | 0 | 2,174 | ||
Current portion of long-term debt and obligations under capital leases | 194,823 | 90,115 | ||
Current portion of long-term debt of consolidated variable interest entities | 1,751 | 1,795 | ||
Total current liabilities | 356,272 | 227,304 | ||
Long-term debt and obligations under capital leases | 351,301 | 431,445 | ||
Long-term debt of consolidated variable interest entities | 94,849 | 96,150 | ||
Liability for pension benefit | 8,224 | 8,275 | ||
Other liabilities | 19,225 | 21,511 | ||
Deferred income taxes | 104,804 | 104,112 | ||
Deferred income taxes of consolidated variable interest entities | 59,765 | 60,326 | ||
Liability for uncertain tax positions | 3,381 | 4,581 | ||
Total liabilities | 997,821 | 953,704 | ||
Commitments and contingencies (Note 16) | ' | ' | ||
Shareholdersb equity: | ' | ' | ||
Preferred shares $0.01 par value (30,000,000 shares authorized, issued Nil) | 0 | 0 | ||
Additional paid-in capital | 988,663 | 982,106 | ||
Retained earnings | 25,590 | 39,202 | ||
Accumulated other comprehensive loss | -97,000 | -86,381 | ||
Less: Reduction due to class B common shares owned by a subsidiary b 18,044,478 | -181 | -181 | ||
Total shareholdersb equity | 918,287 | 935,956 | ||
Non-controlling interests | 2,426 | 2,367 | ||
Total equity | 920,713 | [1] | 938,323 | [1] |
Total liabilities and equity | 1,918,534 | 1,892,027 | ||
Class A common shares $0.01 par value (240,000,000 shares authorized): | ' | ' | ||
Shareholdersb equity: | ' | ' | ||
Common shares | 1,034 | 1,029 | ||
Class B common shares $0.01 par value (120,000,000 shares authorized): | ' | ' | ||
Shareholdersb equity: | ' | ' | ||
Common shares | $181 | $181 | ||
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowances | $497 | $472 |
Property, plant and equipment, accumulated depreciation | $328,835 | $300,899 |
Preferred shares, par value (in dollars per share) | $0.01 | $0.01 |
Preferred shares, shares authorized | 30,000,000 | 30,000,000 |
Preferred shares, shares issued | 0 | 0 |
Class A common shares at par value | ' | ' |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, shares authorized | 240,000,000 | 240,000,000 |
Common shares, shares issued | 103,398,222 | 102,897,311 |
Class B common shares at par value | ' | ' |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, shares authorized | 120,000,000 | 120,000,000 |
Common shares, shares issued | 18,044,478 | 18,044,478 |
Reduction due to Class B shares owned by a subsidiary (shares) | 18,044,478 | 18,044,478 |
Statements_of_Condensed_Consol
Statements of Condensed Consolidated Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Income Statement [Abstract] | ' | ' | ' | ' | ||
Revenue | $187,189 | $158,494 | $463,109 | $419,530 | [1] | |
Expenses: | ' | ' | ' | ' | ||
Cost of services | 80,440 | 70,350 | 206,032 | 188,564 | [1] | |
Selling, general and administrative | 58,055 | 50,676 | 170,454 | 154,876 | [1] | |
Depreciation and amortization | 10,702 | 10,545 | 34,514 | 31,580 | [1],[2] | |
Impairment of property, plant and equipment | 0 | 0 | 35,680 | 0 | [1],[2] | |
Total operating costs and expenses | 149,197 | 131,571 | 446,680 | 375,020 | [1] | |
Earnings/(losses) from operations | 37,992 | 26,923 | 16,429 | 44,510 | [1] | |
Interest income | 241 | 210 | 763 | 851 | [1] | |
Interest expense | -8,878 | -9,148 | -24,474 | -23,407 | [1] | |
Foreign currency, net | -2,480 | -57 | 528 | -655 | [1] | |
Earnings/(losses) before income taxes and earnings from unconsolidated companies, net of tax | 26,875 | 17,928 | -6,754 | 21,299 | [1] | |
(Provision)/benefit for income taxes | -11,767 | -6,590 | -9,635 | -13,316 | [1] | |
Earnings/(losses) before earnings from unconsolidated companies, net of tax | 15,108 | 11,338 | -16,389 | 7,983 | [1] | |
Earnings from unconsolidated companies, net of tax (benefit)/provision of $1,928, $761, $904 and $1,748 | 2,063 | 1,759 | 4,696 | 4,062 | [1] | |
Earnings/(losses) from continuing operations | 17,171 | 13,097 | -11,693 | 12,045 | [1],[2] | |
Net (losses)/earnings from discontinued operations, net of tax (benefit)/provision of $(648), $(426), $(1,070) and $257 | -1,046 | 4,585 | -1,851 | 3,528 | [1],[2] | |
Net earnings/(losses) | 16,125 | 17,682 | -13,544 | [1] | 15,573 | [1],[2] |
Net losses/(earnings) attributable to non-controlling interests | 15 | 43 | -68 | -132 | [1] | |
Net earnings/(losses) attributable to Orient-Express Hotels Ltd. | $16,140 | $17,725 | ($13,612) | $15,441 | [1] | |
Basic earnings per share | ' | ' | ' | ' | ||
Net earnings/(losses) from continuing operations (in dollars per share) | $0.17 | $0.13 | ($0.11) | $0.12 | [1] | |
Net earnings/(losses) from discontinued operations (in dollars per share) | ($0.01) | $0.05 | ($0.02) | $0.03 | [1] | |
Basic net earnings/(losses) per share attributable to Orient-Express Hotels Ltd. (in dollars per share) | $0.16 | $0.17 | ($0.13) | $0.15 | [1] | |
Diluted earnings per share | ' | ' | ' | ' | ||
Net earnings/(losses) from continuing operations (in dollars per share) | $0.16 | $0.12 | ($0.11) | $0.12 | [1] | |
Net earnings/(losses) from discontinued operations (in dollars per share) | ($0.01) | $0.04 | ($0.02) | $0.03 | [1] | |
Diluted net earnings/(losses) per share attributable to Orient-Express Hotels Ltd. (in dollars per share) | $0.15 | $0.17 | ($0.13) | $0.15 | [1] | |
Dividends per share (in dollars per share) | $0 | $0 | $0 | $0 | [1] | |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | |||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Statements_of_Condensed_Consol1
Statements of Condensed Consolidated Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' | |
Earnings from unconsolidated companies, tax (benefit)/provision | $1,928 | $761 | $904 | $1,748 | [1] |
Discontinued operations, tax (benefit)/provision | ($648) | ($426) | ($1,070) | $257 | |
[1] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Statements_of_Condensed_Consol2
Statements of Condensed Consolidated Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Net earnings/(losses) | $16,125 | $17,682 | ($13,544) | [1] | $15,573 | [1],[2] |
Other comprehensive income/(losses), net of tax: | ' | ' | ' | ' | ||
Foreign currency translation adjustments, net of tax provision/(benefit) of $260, $641, $3 and $222 | 13,153 | -1,512 | -12,509 | -23,929 | [1] | |
Change in fair value of derivatives, net of tax provision/(benefit) of $85, $469, $718 and $56 | 89 | 94 | 2,130 | -1,002 | [1] | |
Change in pension liability, net of tax provision/(benefit) of $52, $(145), $Nil and $(145) | -133 | -68 | -249 | -438 | [1] | |
Total other comprehensive income/(losses), net of tax | 13,109 | -1,486 | -10,628 | [1] | -25,369 | [1] |
Total comprehensive income/(loss) | 29,234 | 16,196 | -24,172 | -9,796 | [1] | |
Comprehensive (income)/loss attributable to non-controlling interests | 30 | 44 | -59 | -133 | [1] | |
Comprehensive income/(loss) attributable to Orient-Express Hotels Ltd. | $29,264 | $16,240 | ($24,231) | ($9,929) | [1] | |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | |||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Statements_of_Condensed_Consol3
Statements of Condensed Consolidated Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Foreign currency translation adjustments, tax provision/(benefit) | $260 | $641 | $3 | $222 |
Change in fair value of derivatives, tax provision/(benefit) | 85 | 469 | 718 | 56 |
Change in pension liability, tax provision/(benefit) | $52 | ($145) | $0 | ($145) |
Statements_of_Condensed_Consol4
Statements of Condensed Consolidated Cash Flows (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
Cash flows from operating activities: | ' | ' | ||
Net earnings/(losses) | ($13,544) | [1] | $15,573 | [1],[2] |
Less: Net (losses)/earnings from discontinued operations, net of tax | -1,851 | 3,528 | [1],[2] | |
Net (losses)/earnings from continuing operations | -11,693 | 12,045 | [1],[2] | |
Adjustments to reconcile net (losses)/earnings to net cash (used in)/provided by operating activities: | ' | ' | ||
Depreciation and amortization | 34,514 | 31,580 | [1],[2] | |
Amortization of finance costs | 5,162 | 3,930 | [2] | |
Impairment of property, plant and equipment | 35,680 | 0 | [1],[2] | |
Undistributed earnings of unconsolidated companies | -5,600 | -5,810 | [2] | |
Tax on earnings of unconsolidated companies | 904 | 1,748 | [2] | |
Share-based compensation | 6,531 | 4,327 | [2] | |
Change in deferred income tax | -2,631 | -5,946 | [2] | |
Change in provisions for uncertain tax positions | -2,140 | 78 | [2] | |
Dividends from equity method investees | 5,053 | 3,573 | [2] | |
Proceeds from insurance settlements | 0 | 320 | [2] | |
Effect of exchange rates on net (losses)/earnings | -4,100 | -2,650 | [2] | |
Change in assets and liabilities, net of effects from acquisitions: | ' | ' | ||
Accounts receivable | -7,067 | -2,545 | [2] | |
Due from unconsolidated companies | -1,254 | -4,395 | [2] | |
Prepaid expense and other | -1,833 | -189 | [2] | |
Inventories | -857 | -92 | [2] | |
Escrow and prepaid customer deposits | 3,124 | -432 | [2] | |
Accounts payable | -2,800 | -1,755 | [2] | |
Accrued liabilities | 19,320 | 12,852 | [2] | |
Deferred revenue | 11,064 | 9,795 | [2] | |
Other, net | 3,227 | -1,752 | [2] | |
Net cash provided by operating activities from continuing operations | 84,604 | 54,682 | [2] | |
Net cash (used in)/provided by operating activities from discontinued operations | -1,657 | 352 | [2] | |
Net cash provided by operating activities | 82,947 | 55,034 | [2] | |
Cash flows from investing activities: | ' | ' | ||
Capital expenditures | -52,453 | -68,949 | [2] | |
Investments in unconsolidated companies | -6,323 | -3,942 | [2] | |
Increase in restricted cash | -159 | -6,428 | [2] | |
Release of restricted cash | 2,042 | 0 | [2] | |
Proceeds from insurance settlements | 234 | 0 | [2] | |
Net cash used in investing activities from continuing operations | -56,659 | -79,319 | [2] | |
Net cash provided by investing activities from discontinued operations | 18,989 | 64,319 | [2] | |
Net cash used in investing activities | -37,670 | -15,000 | [2] | |
Cash flows from financing activities: | ' | ' | ||
Proceeds from working capital loans | 0 | 1,142 | [2] | |
Share options exercised | 5 | 3 | [2] | |
Issuance of long-term debt | 104,393 | 80,372 | [2] | |
Debt issuance costs | -2,664 | -2,726 | [2] | |
Principal payments under long-term debt | -88,319 | -107,561 | [2] | |
Net cash provided by/(used in) financing activities from continuing operations | 13,415 | -28,770 | [2] | |
Net cash used in financing activities from discontinued operations | 0 | 0 | [2] | |
Net cash provided by/(used in) financing activities | 13,415 | -28,770 | [2] | |
Effect of exchange rate changes on cash and cash equivalents | 1,070 | 168 | [2] | |
Net increase in cash and cash equivalents | 59,762 | 11,432 | [2] | |
Cash and cash equivalents at beginning of year | 93,382 | 90,104 | [2] | |
Cash and cash equivalents at end of year | $153,144 | $101,536 | [2] | |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | |||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Statements_of_Condensed_Consol5
Statements of Condensed Consolidated Total Equity (USD $) | Total | Preferred shares at par value | Common shares at par value | Common shares at par value | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income/(loss) | Common shares held by a subsidiary | Non-controlling interests | ||
In Thousands, unless otherwise specified | Class A common shares at par value | Class B common shares at par value | |||||||||
Balance at Dec. 31, 2011 | $952,525 | [1] | $0 | $1,026 | $181 | $975,330 | $46,263 | [1] | ($72,289) | ($181) | $2,195 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based compensation | 4,340 | [1] | ' | ' | ' | 4,340 | ' | ' | ' | ' | |
Share options exercised | 3 | [1] | ' | 3 | ' | ' | ' | ' | ' | ' | |
Comprehensive loss: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net losses on common shares | 15,573 | [1],[2] | ' | ' | ' | ' | 15,441 | [1] | ' | ' | 132 |
Other comprehensive loss | -25,369 | [1] | ' | ' | ' | ' | ' | -25,370 | ' | 1 | |
Balance at Sep. 30, 2012 | 947,072 | [1] | 0 | 1,029 | 181 | 979,670 | 61,704 | [1] | -97,659 | -181 | 2,328 |
Balance at Dec. 31, 2012 | 938,323 | [1] | 0 | 1,029 | 181 | 982,106 | 39,202 | [1] | -86,381 | -181 | 2,367 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Share-based compensation | 6,557 | [1] | ' | ' | ' | 6,557 | ' | ' | ' | ' | |
Share options exercised | 5 | [1] | ' | 5 | ' | ' | ' | ' | ' | ' | |
Comprehensive loss: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net losses on common shares | -13,544 | [1] | ' | ' | ' | ' | -13,612 | [1] | ' | ' | 68 |
Other comprehensive loss | -10,628 | [1] | ' | ' | ' | ' | ' | -10,619 | ' | -9 | |
Balance at Sep. 30, 2013 | $920,713 | [1] | $0 | $1,034 | $181 | $988,663 | $25,590 | [1] | ($97,000) | ($181) | $2,426 |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | ||||||||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Basis_of_financial_statement_p
Basis of financial statement presentation | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of financial statement presentation | ' | |
Basis of financial statement presentation | ||
Business | ||
In this report Orient-Express Hotels Ltd. is referred to as the “Company”, and the Company and its consolidated subsidiaries are referred to collectively as “OEH”. | ||
At September 30, 2013, OEH owned, invested in or managed 35 deluxe hotels and resort properties operating in the United States, Mexico, the Caribbean, Europe, Southern Africa, South America, and Southeast Asia, one stand-alone restaurant in New York, six tourist trains in Europe, Southeast Asia and Peru, two river cruise businesses in Myanmar (Burma) and one canal boat business in France. | ||
Basis of presentation | ||
The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reporting on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of the management of the Company, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, operating results and cash flows for the interim period have been included in these condensed consolidated financial statements. | ||
“FASB” means Financial Accounting Standards Board. “ASC” means the Accounting Standards Codification of the FASB and “ASU” means an Accounting Standards Update of the FASB. | ||
The interim results presented are not necessarily indicative of results that may be expected for any subsequent interim period or the fiscal year ending December 31, 2013. | ||
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. See Note 1 to the consolidated financial statements in the 2012 Annual Report on Form 10-K for additional information regarding significant accounting policies. | ||
For interim reporting purposes, OEH calculates its tax expense by estimating its global annual effective tax rate and applies that rate in providing for income taxes on a year-to-date basis. OEH has calculated an expected annual effective tax rate, excluding significant, unusual or extraordinary items, and the tax effect of jurisdictions with losses for which a tax benefit cannot be recognized. The income tax expense (or benefit) related to all other items is individually computed and recognized when the items occur. | ||
Certain prior period amounts have been reclassified or disaggregated to conform to the current period’s presentation. The reclassifications had no effect on net earnings, net assets, retained earnings or net cash flows. | ||
OEH's reclassifications in the statements of condensed consolidated operations were: | ||
• | Discontinued operations were reclassified for all periods presented. See Note 3 for a summary of the results of discontinued operations, certain assets held for sale and the balances and results associated with discontinued operations. | |
• | During the fourth quarter of 2012, an additional gain of $1,613,000 related to the sale of Keswick Hall was identified that should have been recorded in the first quarter of 2012. Discontinued operations for the nine months ended September 30, 2012 have been restated to include this gain. | |
• | Certain expenses that were previously recorded within costs of sales were reclassified into selling, general and administrative expenses to correct for an error in classification. The balances reclassified were $1,086,000 and $3,481,000 for the three and nine months ended September 30, 2012, respectively. | |
During 2012, management determined that certain amounts previously reported in the interim statements of condensed consolidated cash flows for the nine months ended September 30, 2012 should be reclassified, which had the following effects: | ||
• | Debt issuance costs, which were previously included in cash flows from operating activities, are separately stated as a cash flow from financing activities for all periods. The effect in the nine months ended September 30, 2012 was a decrease in cash flows from financing activities of $2,726,000, with a corresponding increase to cash flows from operating activities. | |
• | Debt repaid by a third party when a business is sold was previously considered a non-cash transaction. This $10,000,000 has been included as net cash provided by investing activities from discontinued operations and net cash used in financing activities from continuing operations for the nine months ended September 30, 2012. | |
The accounting policies used in preparing these condensed consolidated financial statements are the same as those applied in the prior year, except for codified changes made to the ASC, as described below. | ||
Accounting pronouncements adopted during the period | ||
In July 2013, the FASB issued guidance to allow entities to use the Fed Funds Effective Swap Rate, in addition to U.S. Treasury rates and LIBOR, as a benchmark interest rate in accounting for fair value and cash flow hedges in the United States. The ASU also eliminates the provision that prohibits the use of different benchmark rates for similar hedges except in rare and justifiable circumstances. The guidance is effective prospectively for qualifying new hedging relationships entered into on or after July 17, 2013, the issuance date of the guidance, and for hedging relationships redesignated on or after that date. The adoption of this guidance did not have a material effect on the Company’s consolidated financial position, results of operations and cash flows. | ||
In April 2013, the FASB issued guidance on applying the liquidation basis of accounting and the related disclosure requirements. Under this guidance, an entity must use the liquidation basis of accounting to present its financial statements when it determines that liquidation is imminent, unless the liquidation is the same as that under the plan specified in an entity's governing documents created at its inception. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). This guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Early adoption is permitted. The Company has early adopted this guidance. This guidance does not have an effect on the Company's consolidated financial position, results of operations and cash flows as it expects to continue as a going concern. | ||
In February 2013, the FASB issued guidance which requires entities to disclose the following additional information about items reclassified out of accumulated other comprehensive income (“AOCI”): | ||
• | Changes in AOCI balances by component (e.g., unrealized gains or losses on available-for-sale securities or foreign-currency items). | |
• | Significant items reclassified out of AOCI by component either on the face of the income statement or as a separate footnote to the consolidated financial statements. | |
The guidance does not change the current U.S. GAAP requirements for interim financial statement reporting of comprehensive income. That is, a total for comprehensive income must be reported in condensed consolidated interim financial statements in either (1) a single continuous statement or (2) two separate but consecutive statements. However, public entities would also need to include information about (1) changes in AOCI balances by component and (2) significant items reclassified out of AOCI in their interim reporting periods. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The amendments in the guidance should be applied prospectively. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein. | ||
In July 2012, the FASB issued guidance related to annual impairment assessment of intangible assets, other than goodwill, that gives companies the option to perform a qualitative assessment before calculating the fair value of the asset. Although the guidance revises the examples of events and circumstances that an entity should consider in interim periods, it does not revise the requirements to test indefinite-lived intangible assets (1) annually for impairment and (2) between annual tests if there is a change in events or circumstances that would indicate an impairment. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The adoption of this guidance did not have a material effect on OEH’s interim consolidated financial position, results of operations and cash flows and is not expected to have a material effect on the consolidated financial position, results of operations and cash flows for the year ended December 31, 2013. | ||
In December 2011, the FASB issued accounting guidance that requires companies to provide new disclosures about offsetting assets and liabilities and related arrangements for financial instruments and derivatives. In January 2013, the FASB issued guidance clarifying the scope of the previously issued guidance. The guidance clarifies the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. The provisions of this guidance were effective for annual reporting periods beginning on or after January 1, 2013. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein. | ||
Accounting pronouncements to be adopted | ||
In July 2013, the FASB issued guidance on financial statement presentation of an uncertain tax benefit (“UTB”) when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this guidance is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. Under the ASU, an entity must present a UTB, or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The ASU’s amendments are effective for public entities for fiscal years beginning after December 15, 2013, and interim periods within those years. Early adoption is permitted for all entities. The amendments should be applied to all UTBs that exist as of the effective date. Entities may choose to apply the amendments retrospectively to each prior reporting period presented. The Company is assessing the impact the adoption of this guidance will have, but does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows. | ||
In March 2013, the FASB issued guidance which indicates that the entire amount of a cumulative translation adjustment (“CTA”) related to an entity’s investment in a foreign entity should be released when there has been any of the following: | ||
• | Sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity. | |
• | Loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated). | |
• | Step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity). | |
The ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. This guidance is effective for fiscal years (and interim periods within those fiscal years) beginning on or after December 15, 2013. Early adoption is permitted and the guidance should be applied prospectively from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows. | ||
In February 2013, the FASB issued guidance which requires entities to measure obligations resulting from joint-and-several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of the obligation for all joint parties. The guidance permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint-and-several obligation). These disclosure requirements are incremental to the existing related party disclosure requirements. The guidance is effective for all prior periods in fiscal years beginning on or after December 15, 2013 (and interim reporting periods within those years). The guidance should be applied retrospectively to obligations with joint-and-several liability existing at the beginning of an entity’s fiscal year of adoption. Entities that elect to use hindsight in measuring their obligations during the comparative periods must disclose that fact. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows. |
Earnings_per_share
Earnings per share | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings per share | ' | ||||||||||||
Earnings per share | |||||||||||||
Basic earnings per share are based upon net earnings/(losses) attributable to OEH divided by the weighted average number of class A and B common shares outstanding for the period. Diluted earnings/(losses) per share reflect the increase in shares using the treasury stock method to reflect the impact of an equivalent number of shares as if share options were exercised and share-based awards were converted into common shares. Potentially dilutive shares are excluded when the effect would be to increase diluted earnings per share or reduce the diluted loss per share. | |||||||||||||
The calculation of basic and diluted earnings per share including a reconciliation of the numerator and denominator is as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Numerator ($'000) | |||||||||||||
Net earnings/(losses) from continuing operations | 17,171 | 13,097 | (11,693 | ) | 12,045 | ||||||||
Net earnings/(losses) from discontinued operations | (1,046 | ) | 4,585 | (1,851 | ) | 3,528 | |||||||
Net losses/(earnings) attributable to non-controlling interests | 15 | 43 | (68 | ) | (132 | ) | |||||||
Net earnings/(losses) attributable to Orient-Express Hotels Ltd. | 16,140 | 17,725 | (13,612 | ) | 15,441 | ||||||||
Denominator (shares '000) | |||||||||||||
Basic weighted average shares outstanding | 103,337 | 102,893 | 103,138 | 102,833 | |||||||||
Effect of dilution | 2,236 | 2,784 | — | 2,327 | |||||||||
Diluted weighted average shares outstanding | 105,573 | 105,677 | 103,138 | 105,160 | |||||||||
$ | $ | $ | $ | ||||||||||
Basic earnings per share | |||||||||||||
Net earnings/(losses) from continuing operations | 0.166 | 0.127 | (0.113 | ) | 0.117 | ||||||||
Net earnings/(losses) from discontinued operations | (0.010 | ) | 0.045 | (0.018 | ) | 0.034 | |||||||
Net losses/(earnings) attributable to non-controlling interests | — | — | (0.001 | ) | (0.001 | ) | |||||||
Net earnings/(losses) attributable to Orient-Express Hotels Ltd. | 0.156 | 0.172 | (0.132 | ) | 0.15 | ||||||||
Diluted earnings per share | |||||||||||||
Net earnings/(losses) from continuing operations | 0.163 | 0.124 | (0.113 | ) | 0.115 | ||||||||
Net earnings/(losses) from discontinued operations | (0.010 | ) | 0.043 | (0.018 | ) | 0.034 | |||||||
Net losses/(earnings) attributable to non-controlling interests | — | — | (0.001 | ) | (0.001 | ) | |||||||
Net earnings/(losses) attributable to Orient-Express Hotels Ltd. | 0.153 | 0.167 | (0.132 | ) | 0.148 | ||||||||
For the nine months ended September 30, 2013, all share options and share-based awards were excluded from the calculation of the diluted weighted average number of shares because OEH incurred a net loss in that period and the effect of their inclusion would be anti-dilutive. | |||||||||||||
The total number of share options and share-based awards excluded from computing diluted earnings per share were as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Share options | 208,600 | 1,241,150 | 3,130,450 | 1,241,150 | |||||||||
Share-based awards | — | — | 1,481,827 | — | |||||||||
Total | 208,600 | 1,241,150 | 4,612,277 | 1,241,150 | |||||||||
The number of share options and share-based awards unexercised at September 30, 2013 was 4,612,277 (September 30, 2012 - 4,025,349). |
Assets_held_for_sale_and_disco
Assets held for sale and discontinued operations | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||||
Assets held for sale and discontinued operations | ' | ||||||||||||||||||
Assets held for sale and discontinued operations | |||||||||||||||||||
At September 30, 2013, no properties were classified as held for sale, although there is one condominium relating to Porto Cupecoy which was excluded from the disposal of the Porto Cupecoy development as it was already under a separate sales contract at the time. During the nine months ended September 30, 2013, Porto Cupecoy, Sint Maarten was sold. For the three and nine months ended September 30, 2013, the results of operations of Porto Cupecoy have been presented as discontinued operations. | |||||||||||||||||||
During the nine months ended September 30, 2012, The Observatory Hotel, Sydney, Australia, Bora Bora Lagoon Resort, French Polynesia and Keswick Hall, Charlottesville, Virginia were sold. For the three and nine months ended September 30, 2012 the results of operations of Porto Cupecoy, The Westcliff, The Observatory Hotel, Bora Bora Lagoon Resort, and Keswick Hall have been presented as discontinued operations. | |||||||||||||||||||
(a) Properties sold: Porto Cupecoy, The Observatory Hotel, Bora Bora Lagoon Resort and Keswick Hall | |||||||||||||||||||
On January 31, 2013, OEH completed the sale of the property and operations of Porto Cupecoy for cash consideration of $19,000,000. The property was a part of OEH’s real estate segment. The disposal resulted in a gain of $439,000, which is reported within net earnings/(losses) from discontinued operations, net of tax. | |||||||||||||||||||
On August 8, 2012, OEH completed the sale of the property and operations of The Observatory Hotel in Sydney, Australia for a consideration of A$40,000,000 ($42,106,000), of which A$29,350,000 ($30,895,000) was paid in cash and A$10,650,000 ($11,211,000) was settled directly with the lender to repay the debt facility secured by the property. The hotel was a part of OEH’s hotels and restaurants segment. The disposal resulted in a gain on sale of $5,359,000 (including a $12,147,000 transfer of foreign currency translation amounts from accumulated other comprehensive loss), which is reported within net earnings/(losses) from discontinued operations, net of tax. | |||||||||||||||||||
On June 1, 2012, OEH completed the sale of the shares of Bora Bora Lagoon Resort in French Polynesia for cash consideration of $3,000,000. The hotel was a part of OEH’s hotels and restaurants segment. The disposal resulted in a gain on sale of $662,000 (including a $13,074,000 transfer of foreign currency translation amounts from accumulated other comprehensive loss), which is reported within net earnings/(losses) from discontinued operations, net of tax. | |||||||||||||||||||
On January 23, 2012, OEH completed the sale of the property and operations of Keswick Hall in Charlottesville, Virginia for consideration of $22,000,000, of which $12,000,000 was paid in cash and $10,000,000 was settled directly with the lender as a reduction in the debt facility secured by the property. The hotel was a part of OEH’s hotels and restaurants segment. The disposal resulted in a gain of $3,957,000, which is reported within net earnings/(losses) from discontinued operations, net of tax. | |||||||||||||||||||
The following is a summary of net assets sold and the gain recorded on sale for Porto Cupecoy, The Observatory Hotel, Bora Bora Lagoon Resort and Keswick Hall: | |||||||||||||||||||
Porto Cupecoy | The Observatory Hotel | Bora Bora Lagoon Resort | Keswick Hall | ||||||||||||||||
January 31, | August 8, | June 1, | January 23, | ||||||||||||||||
2013 | 2012 | 2012 | 2012 | ||||||||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||||||||
Property, plant and equipment | 38 | 48,096 | 15,827 | 18,590 | |||||||||||||||
Real estate assets | 18,512 | — | — | — | |||||||||||||||
Net working capital (deficit)/surplus | — | (299 | ) | (720 | ) | 401 | |||||||||||||
Other assets/(liabilities) | — | — | — | (1,891 | ) | ||||||||||||||
Deferred income taxes | — | — | — | — | |||||||||||||||
Net assets | 18,550 | 47,797 | 15,107 | 17,100 | |||||||||||||||
Transfer of foreign currency translation loss/(gain) | — | (12,147 | ) | (13,074 | ) | — | |||||||||||||
18,550 | 35,650 | 2,033 | 17,100 | ||||||||||||||||
Consideration: | |||||||||||||||||||
Cash | 19,000 | 30,895 | 3,000 | 12,000 | |||||||||||||||
Reduction in debt facility on sale of hotel | — | 11,211 | — | 10,000 | |||||||||||||||
Less: Working capital adjustment | (11 | ) | (447 | ) | — | (430 | ) | ||||||||||||
Less: Costs to sell | — | (650 | ) | (305 | ) | (513 | ) | ||||||||||||
18,989 | 41,009 | 2,695 | 21,057 | ||||||||||||||||
Gain on sale | 439 | 5,359 | 662 | 3,957 | |||||||||||||||
The gain on sale of The Observatory Hotel includes selling costs of $8,000 recorded in the three months ended December 31, 2012. | |||||||||||||||||||
The gain on sale of Bora Bora Lagoon Resort includes selling costs of $28,000 recorded in the three months ended December 31, 2012. | |||||||||||||||||||
(b) Results of discontinued operations | |||||||||||||||||||
In December 2012, OEH decided to sell Porto Cupecoy, its real estate development on the Dutch side of St. Martin, as an asset non-core to its future business, with the sale releasing funds for debt reduction, cash reserves and reinvestment in other OEH properties. The property development was included in the real estate segment. The property development has been reclassified as held for sale and its results have been presented as discontinued operations for all periods shown. The sale was completed in January 2013. | |||||||||||||||||||
On January 23, 2012, OEH completed the sale of the property and operations of Keswick Hall in Charlottesville, Virginia. In the three months ended September 30, 2013, an additional tax credit of $648,000 was realized in relation to the disposal of Keswick Hall. | |||||||||||||||||||
Summarized operating results of the properties classified as discontinued operations for the three and nine months ended September 30, 2013 and 2012 are as follows: | |||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||
Porto Cupecoy | Keswick Hall | Total | |||||||||||||||||
$'000 | $'000 | $'000 | |||||||||||||||||
Revenue | 692 | — | 692 | ||||||||||||||||
Losses before tax, gain on sale and impairment | (1,694 | ) | — | (1,694 | ) | ||||||||||||||
Impairment | — | — | — | ||||||||||||||||
Gain on sale | — | — | — | ||||||||||||||||
Losses before tax | (1,694 | ) | — | (1,694 | ) | ||||||||||||||
Tax benefit | — | 648 | 648 | ||||||||||||||||
Net (losses)/earnings from discontinued operations | (1,694 | ) | 648 | (1,046 | ) | ||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||
Porto Cupecoy | The Westcliff | The Observatory Hotel | Bora Bora Lagoon Resort | Keswick Hall | Total | ||||||||||||||
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||||||||||||||
Revenue | 1,481 | 2,404 | 1,204 | — | (15 | ) | 5,074 | ||||||||||||
(Losses)/earnings before tax, gain on sale and impairment | (1,040 | ) | 192 | (406 | ) | (28 | ) | 92 | (1,190 | ) | |||||||||
Impairment | — | — | — | — | — | — | |||||||||||||
Gain/(loss) on sale | — | — | 5,367 | (18 | ) | — | 5,349 | ||||||||||||
(Losses)/earnings before tax | (1,040 | ) | 192 | 4,961 | (46 | ) | 92 | 4,159 | |||||||||||
Tax benefit | — | — | 426 | — | — | 426 | |||||||||||||
Net (losses)/earnings from discontinued operations | (1,040 | ) | 192 | 5,387 | (46 | ) | 92 | 4,585 | |||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||
Porto Cupecoy | The Westcliff | Keswick Hall | Total | ||||||||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||||||||
Revenue | 1,535 | — | — | 1,535 | |||||||||||||||
Losses before tax, gain on sale and impairment | (3,283 | ) | — | — | (3,283 | ) | |||||||||||||
Impairment | (77 | ) | — | — | (77 | ) | |||||||||||||
Gain on sale | 439 | — | — | 439 | |||||||||||||||
Losses before tax | (2,921 | ) | — | — | (2,921 | ) | |||||||||||||
Tax benefit | — | 422 | 648 | 1,070 | |||||||||||||||
Net (losses)/earnings from discontinued operations | (2,921 | ) | 422 | 648 | (1,851 | ) | |||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||
Porto Cupecoy | The Westcliff | The Observatory Hotel | Bora Bora Lagoon Resort | Keswick Hall | Total | ||||||||||||||
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||||||||||||||
Revenue | 4,514 | 6,929 | 9,188 | — | 412 | 21,043 | |||||||||||||
Losses before tax, gain on sale and impairment | (4,078 | ) | (27 | ) | (1,034 | ) | (166 | ) | (924 | ) | (6,229 | ) | |||||||
Impairment | — | — | — | — | — | — | |||||||||||||
Gain on sale | — | — | 5,367 | 690 | 3,957 | 10,014 | |||||||||||||
(Losses)/earnings before tax | (4,078 | ) | (27 | ) | 4,333 | 524 | 3,033 | 3,785 | |||||||||||
Tax benefit/(provision) | — | — | 426 | — | (683 | ) | (257 | ) | |||||||||||
Net (losses)/earnings from discontinued operations | (4,078 | ) | (27 | ) | 4,759 | 524 | 2,350 | 3,528 | |||||||||||
(c) Assets and liabilities held for sale | |||||||||||||||||||
Assets and liabilities of the properties classified as held for sale consist of the following: | |||||||||||||||||||
September 30, | December 31, 2012 | ||||||||||||||||||
2013 | |||||||||||||||||||
Porto Cupecoy | Porto Cupecoy | ||||||||||||||||||
$’000 | $’000 | ||||||||||||||||||
Current assets | — | — | |||||||||||||||||
Real estate assets | 720 | 22,040 | |||||||||||||||||
Property, plant and equipment | — | 38 | |||||||||||||||||
Total assets held for sale | 720 | 22,078 | |||||||||||||||||
Current liabilities | — | (2,174 | ) | ||||||||||||||||
Total liabilities held for sale | — | (2,174 | ) | ||||||||||||||||
Assets of Porto Cupecoy at September 30, 2013 comprise one condominium which was excluded from the disposal of the Porto Cupecoy development as it was already under a separate sales contract at the time. |
Variable_interest_entities
Variable interest entities | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Variable interest entities | ' | ||||||||||||
Variable interest entities | |||||||||||||
OEH analyzes its variable interests, including loans, guarantees and equity investments, to determine if an entity is a variable interest entity (“VIE”). In that assessment, OEH’s analysis includes both quantitative and qualitative considerations. OEH bases its quantitative analysis on the forecast cash flows of the entity, and its qualitative analysis on a review of the design of the entity, organizational structure including decision-making ability, and relevant financial agreements. OEH also uses its quantitative and qualitative analysis to determine if OEH is the primary beneficiary and required to consolidate the VIE. | |||||||||||||
(a) VIEs of which OEH is the primary beneficiary | |||||||||||||
OEH holds a 19.9% equity investment in Charleston Center LLC, owner of Charleston Place Hotel. OEH has also made a number of loans to the hotel. OEH concluded that Charleston Center LLC is a variable interest entity because the total equity at risk is insufficient for the entity to fund its operations without additional subordinated financial support, the majority of which has been provided by OEH. OEH is the primary beneficiary of this VIE because it is expected to absorb a majority of the VIE’s expected losses and residual gains through the subordinated financial support it has provided, and has the power to direct the activities that impact the VIE’s performance, based on the current organizational structure. | |||||||||||||
The carrying amount of consolidated assets and liabilities of Charleston Center LLC included within OEH’s condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012 are summarized as follows: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
$’000 | $’000 | ||||||||||||
Current assets | 11,777 | 18,511 | |||||||||||
Property, plant and equipment | 186,543 | 183,793 | |||||||||||
Goodwill | 40,395 | 40,395 | |||||||||||
Other assets | 1,827 | 2,114 | |||||||||||
Total assets | 240,542 | 244,813 | |||||||||||
Current liabilities | 7,877 | 6,382 | |||||||||||
Third-party debt, including $1,751 and $1,795 current portion | 96,600 | 97,945 | |||||||||||
Long-term accrued interest on subordinated debt | 15,190 | 14,740 | |||||||||||
Deferred income taxes | 59,765 | 60,326 | |||||||||||
Total liabilities | 179,432 | 179,393 | |||||||||||
Net assets (before amounts payable to OEH of $92,062 and $90,807) | 61,110 | 65,420 | |||||||||||
The third-party debt of Charleston Center LLC is secured by its net assets and is non-recourse to its members, including OEH. The hotel’s separate assets are not available to pay the debts of OEH and the hotel’s separate liabilities do not constitute obligations of OEH. This non-recourse obligation is presented separately on the condensed consolidated balance sheets of OEH. | |||||||||||||
(b) VIEs of which OEH is not the primary beneficiary | |||||||||||||
OEH holds a 50% equity investment in its rail joint venture in Peru which operates the infrastructure, rolling stock, stations and services on a portion of the state-owned railways in Peru. OEH concluded that the Peru rail joint venture is a variable interest entity because the total equity at risk is insufficient for it to fund its operations without additional subordinated financial support. The joint venture is under joint control as all the budgetary and capital decisions require a majority of approval of the joint venture’s board of directors, which has equal representation from both joint venture partners. The joint venture is accounted for under the equity method of accounting and included in earnings/(losses) from unconsolidated companies in the statements of condensed consolidated operations. | |||||||||||||
The carrying amounts and maximum exposures to loss as a result of OEH’s involvement with its Peru rail joint venture are as follows: | |||||||||||||
Carrying amounts | Maximum exposure | ||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Investment | 36,677 | 32,973 | 36,677 | 32,973 | |||||||||
Due from unconsolidated company | 5,681 | 4,803 | 5,681 | 4,803 | |||||||||
Guarantees | — | — | 6,343 | 7,558 | |||||||||
Contingent guarantees | — | — | 15,468 | 17,149 | |||||||||
Total | 42,358 | 37,776 | 64,169 | 62,483 | |||||||||
The maximum exposure to loss for the Peru rail joint venture exceeds the carrying amount due to guarantees, discussed below, which are not recognized in the condensed consolidated financial statements. The contingent guarantees may only be enforced in the event there is a change in control in the joint venture, which would occur only if OEH’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred and is not expected to occur. As at September 30, 2013, OEH does not expect that it will be required to fund these guarantees relating to this joint venture as the entity has the ability to repay the loans. | |||||||||||||
The Company has guaranteed $6,343,000 and contingently guaranteed $8,492,000 of the debt obligations of the rail joint venture in Peru through 2016. The Company has also contingently guaranteed the rail joint venture’s obligations relating to the performance of its governmental rail concessions, currently in the amount of $6,976,000, through May 2014. | |||||||||||||
Long-term debt obligations of the rail joint venture in Peru at September 30, 2013 totaling $6,343,000 have been classified within current liabilities of the joint venture in its stand-alone financial statements, as it was out of compliance with a debt service coverage ratio covenant in its loan facilities. Discussions with the lenders to bring the joint venture into compliance are continuing, although this non-compliance is not expected to have a material impact on OEH’s financial flexibility. |
Investments_in_unconsolidated_
Investments in unconsolidated companies | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Investments in unconsolidated companies | ' | ||||||||||||
Investments in unconsolidated companies | |||||||||||||
Investments in unconsolidated companies represent equity interests of 50% or less and in which OEH exerts significant influence, but does not have effective control of these unconsolidated companies and, therefore, accounts for these investments using the equity method. These investments include the 50% ownership in rail and hotel joint venture operations in Peru and in Hotel Ritz, Madrid, and the 25% ownership in Eastern and Oriental Express Ltd. | |||||||||||||
Also included in investments in unconsolidated companies is the Buzios land joint venture which is 50% owned and accounted for using the cost method. In June 2007, OEH acquired 50% of a company holding real estate in Buzios, Brazil for a cash consideration of $5,000,000. OEH planned to build a hotel and villas on the acquired land and to purchase the remaining share of the company when the building permits were obtained from the local authorities. In February 2009, the Municipality of Buzios commenced a process for the compulsory purchase of the land by the municipality in exchange for a payment of fair compensation to the owners. In April 2011, the State of Rio de Janeiro declared the land an area of public interest, with the intention that it will become part of a State Environmental Park which is being created in the area. The compulsory purchase of the land will therefore be carried out by the State of Rio de Janeiro. OEH is currently in negotiation to recover its investment in the project based on the State’s decision to purchase the land. | |||||||||||||
Summarized financial data for OEH’s unconsolidated companies are as follows: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
$’000 | $’000 | ||||||||||||
Current assets | 63,958 | 75,339 | |||||||||||
Property, plant and equipment, net | 358,623 | 354,640 | |||||||||||
Other assets | 3,838 | 3,806 | |||||||||||
Non-current assets | 362,461 | 358,446 | |||||||||||
Total assets | 426,419 | 433,785 | |||||||||||
Current liabilities | 151,178 | 165,413 | |||||||||||
Long-term debt | 38,889 | 45,985 | |||||||||||
Other liabilities | 125,474 | 115,763 | |||||||||||
Non-current liabilities | 164,363 | 161,748 | |||||||||||
Total shareholders’ equity | 110,878 | 106,624 | |||||||||||
Total liabilities and shareholders’ equity | 426,419 | 433,785 | |||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Revenue | 45,484 | 41,635 | 125,091 | 115,498 | |||||||||
Gross profit1 | 21,929 | 25,495 | 66,770 | 64,835 | |||||||||
Net earnings2 | 3,763 | 3,202 | 9,259 | 7,881 | |||||||||
1 Gross profit is defined as revenues less cost of services of the unconsolidated companies. | |||||||||||||
2 There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies. | |||||||||||||
Included in unconsolidated companies are OEH’s hotel and rail joint ventures in Peru, under which OEH and the other 50% participant must contribute equally additional equity needed for the businesses. If the other participant does not meet this obligation, OEH has the right to dilute the other participant and obtain a majority equity interest in the affected joint venture company. OEH also has rights to purchase the other participant’s interests, which rights are exercisable in limited circumstances such as the other participant’s bankruptcy. | |||||||||||||
There are guarantees and contingent guarantees to unconsolidated companies which are not recognized in the consolidated financial statements. The contingent guarantees for each Peruvian joint venture may only be enforced in the event there is a change in control of the relevant joint venture, which would occur only if OEH’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred. As at September 30, 2013, OEH does not expect that it will be required to fund these guarantees relating to these joint venture companies. | |||||||||||||
The Company has contingently guaranteed, through 2018, $17,775,000 of debt obligations of the joint venture in Peru that operates four hotels and, through 2014, a further $1,353,000 of its debt obligations. See Note 4 for information regarding guarantees and long-term debt of the rail joint venture in Peru. | |||||||||||||
At September 30, 2013, long-term debt obligations totaling $81,901,000 of the Hotel Ritz, Madrid, in which OEH has a 50% equity investment, have been classified within current liabilities in the joint venture’s stand-alone financial statements as it was out of compliance with the debt service coverage ratio covenant in its first mortgage loan facility. Discussions with the lender to bring the hotel into long-term compliance are continuing, although this non-compliance is not expected to have a material impact on OEH’s financial flexibility. OEH and its joint venture partner have each guaranteed $10,153,000 of the debt obligations, and $674,000 of a working capital loan facility. |
Property_plant_and_equipment
Property, plant and equipment | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, plant and equipment | ' | ||||||
Property, plant and equipment | |||||||
The major classes of property, plant and equipment are as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Land and buildings | 1,027,016 | 1,054,171 | |||||
Machinery and equipment | 207,990 | 193,941 | |||||
Fixtures, fittings and office equipment | 223,261 | 206,135 | |||||
River cruise ship and canal boats | 18,549 | 18,255 | |||||
1,476,816 | 1,472,502 | ||||||
Less: Accumulated depreciation | (328,835 | ) | (300,899 | ) | |||
Total property, plant and equipment, net | 1,147,981 | 1,171,603 | |||||
The major classes of assets under capital leases included above are as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Land and buildings | — | — | |||||
Machinery and equipment | 891 | 918 | |||||
Fixtures, fittings and office equipment | 106 | 103 | |||||
997 | 1,021 | ||||||
Less: Accumulated depreciation | (884 | ) | (829 | ) | |||
Total assets under capital leases | 113 | 192 | |||||
The depreciation charge on property, plant and equipment for the three and nine months ended September 30, 2013 was $10,614,000 (September 30, 2012 - $10,421,000) and $34,198,000 (September 30, 2012 - $31,212,000), respectively. | |||||||
The property, plant and equipment of Charleston Center LLC, a consolidated VIE, of $186,543,000 at September 30, 2013 (December 31, 2012 - $183,793,000) is separately disclosed on the condensed consolidated balance sheets. | |||||||
During the nine months ended September 30, 2013, OEH recorded a non-cash property, plant and equipment impairment charge of $35,680,000 in respect of La Samanna, St. Martin, French West Indies based on a strategic review of its assets in the first quarter of 2013. The carrying value was written down to the hotel’s fair value. There were no impairments in the three months ended September 30, 2013 and the three and nine months ended September 30, 2012. | |||||||
For the three and nine months ended September 30, 2013, OEH capitalized interest in the amount of $Nil (September 30, 2012 - $1,003,000) and $1,088,000 (September 30, 2012 - $2,905,000), respectively. All amounts capitalized were recorded in property, plant and equipment. |
Goodwill
Goodwill | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||
Goodwill | ' | |||||||||
Goodwill | ||||||||||
The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 are as follows: | ||||||||||
Hotels & restaurants | Trains & cruises | Total | ||||||||
$'000 | $'000 | $'000 | ||||||||
Balance at January 1, 2013 | 153,287 | 7,991 | 161,278 | |||||||
Impairment | — | — | — | |||||||
Foreign currency translation adjustment | (1,659 | ) | (18 | ) | (1,677 | ) | ||||
Balance at September 30, 2013 | 151,628 | 7,973 | 159,601 | |||||||
The gross goodwill amount at January 1, 2013 was $192,418,000 and the accumulated impairment at that date was $31,140,000. All impairments to that date related to hotel and restaurant operations. | ||||||||||
The assessment and, if required, the determination of goodwill impairment to be recognized uses a discounted cash flow analysis to compute the fair value of the reporting unit. When determining the fair value of a reporting unit, OEH is required to make significant judgments that OEH believes are reasonable and supportable considering all available internal and external evidence at the time. However, these estimates and assumptions are, by their nature, highly judgmental. Fair value determinations are sensitive to changes in the underlying assumptions and factors including those relating to estimating future operating cash flows to be generated from the reporting unit which are dependent upon internal forecasts and projections developed as part of OEH’s routine, long-term planning process, available industry/market data (to the extent available), OEH’s strategic plans, estimates of long-term growth rates taking into account OEH’s assessment of the current economic environment and the timing and degree of any economic recovery, estimation of the useful life over which the cash flows will occur, and market participant assumptions. The assumptions with the most significant impact to the fair value of the reporting unit are those related to future operating cash flows which are forecast for a five-year period from management’s budget and planning process, the terminal value which is included for the period beyond five years from the balance sheet date based on the estimated cash flow in the fifth year and a terminal growth rate, and pre-tax discount rates. | ||||||||||
Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair values of OEH’s reporting units may include such items as (i) a prolonged weakness in the general economic conditions in which the reporting units operate and therefore negatively impacting occupancy and room rates, (ii) an economic recovery that significantly differs from OEH’s assumptions in timing and/or degree, (iii) volatility in the equity and debt markets which could result in a higher discount rate, (iv) shifts or changes in future travel patterns from OEH’s significant demographic markets that have not been anticipated, (v) changes in competitive supply, (vi) political and security instability in countries where OEH operates and (vii) deterioration of local economies due to the uncertainty over currencies or currency unions and other factors which could lead to changes in projected cash flows of OEH’s properties as customers reduce their discretionary spending. If the assumptions used in the impairment analysis are not met or materially change, OEH may be required to recognize additional goodwill impairment losses which may be material to the financial statements. | ||||||||||
There were no triggering events in the nine months ended September 30, 2013 that would have required OEH to reassess the carrying value of goodwill. |
Other_intangible_assets
Other intangible assets | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ||||||||||||
Other intangible assets | ' | ||||||||||||
Other intangible assets | |||||||||||||
Other intangible assets consist of the following as of September 30, 2013: | |||||||||||||
Favorable lease assets | Internet sites | Trade names | Total | ||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||
Carrying amount: | |||||||||||||
Balance at January 1, 2013 | 12,971 | 1,692 | 7,100 | 21,763 | |||||||||
Foreign currency translation adjustment | (1,298 | ) | (10 | ) | — | (1,308 | ) | ||||||
Balance at September 30, 2013 | 11,673 | 1,682 | 7,100 | 20,455 | |||||||||
Accumulated amortization: | |||||||||||||
Balance at January 1, 2013 | 2,248 | 907 | 3,155 | ||||||||||
Charge for the period | 215 | 101 | 316 | ||||||||||
Foreign currency translation adjustment | (241 | ) | (4 | ) | (245 | ) | |||||||
Balance at September 30, 2013 | 2,222 | 1,004 | 3,226 | ||||||||||
Net book value: | |||||||||||||
At September 30, 2013 | 9,451 | 678 | 7,100 | 17,229 | |||||||||
At December 31, 2012 | 10,723 | 785 | 7,100 | 18,608 | |||||||||
Favorable lease intangible assets are amortized over the terms of the leases, which are between 19 and 60 years. Internet sites are amortized over 10 years. Trade names have an indefinite life and therefore are not amortized, but are assessed for impairment annually or when events indicate that impairment may have occurred. | |||||||||||||
Total amortization expense for the three and nine months ended September 30, 2013 was $88,000 (September 30, 2012 - $124,000) and $316,000 (September 30, 2012 - $368,000), respectively. Estimated total amortization expense for the remainder of the year ending December 31, 2013 is $105,000 and for each of the years ending December 31, 2014 to December 31, 2018 is $421,000. |
Debt_and_obligations_under_cap
Debt and obligations under capital lease | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Debt and obligations under capital lease | ' | ||||||
Debt and obligations under capital lease | |||||||
(a) Long-term debt and obligations under capital lease | |||||||
Long-term debt and obligations under capital lease consists of the following: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Loans from banks and other parties collateralized by property, plant and equipment, payable over periods of one to 20 years, with a weighted average interest rate of 4.21% and 4.14%, respectively | 546,096 | 521,494 | |||||
Obligations under capital lease | 28 | 66 | |||||
Total long-term debt and obligations under capital lease | 546,124 | 521,560 | |||||
Less: Current portion | 194,823 | 90,115 | |||||
Non-current portion of long-term debt and obligations under capital lease | 351,301 | 431,445 | |||||
For the renovation of El Encanto hotel, OEH entered into a loan agreement in August 2011 for $45,000,000 to be drawn as construction progresses. At September 30, 2013, OEH had borrowed $40,269,000 (December 31, 2012 - $25,749,000) under this facility. The loan has a maturity of three years, with two one year extensions, at an annual interest rate based on monthly LIBOR plus 3.65%. | |||||||
In December 2012, OEH entered into a $50,000,000 loan secured by Grand Hotel Europe. The first tranche of $24,000,000 was drawn in the nine months ended September 30, 2013 and used for general corporate purposes, including repayment of $4,000,000 of existing debt secured by the hotel. The second tranche of $26,000,000 will be used for the hotel's refurbishment project. From this second tranche, $2,000,000 has been drawn in the nine months ended September 30, 2013. Annual interest on both tranches is 7.0% over LIBOR and the facility has a maturity of five years. | |||||||
In July 2013, OEH entered into a new loan facility for $24,000,000 secured by The Inn at Perry Cabin and ‘21’ Club. Annual interest is 3.0% over LIBOR and the facility has a maturity of five years. Of these loan proceeds, $17,130,000 was used to repay existing debt secured by these properties. | |||||||
In August 2013, OEH signed a new loan facility secured by Le Manoir aux Quat’Saisons and Reid’s Palace. The loan consists of two tranches – €15,000,000 (equivalent to $20,306,000 at September 30, 2013) relating to Reid’s Palace and £12,981,000 (equivalent to $21,030,000 at September 30, 2013) relating to Le Manoir aux Quat’Saisons. The euro tranche has annual interest of 4.0% above EURIBOR and a maturity of 18 months, and the sterling tranche has annual interest of 3.75% over LIBOR and a maturity of five years. The loan proceeds were used to repay existing debt secured by these properties. | |||||||
At September 30, 2013, one of OEH’s subsidiaries had not complied with certain financial covenants in a loan facility. The $741,000 outstanding on this loan has been classified as a current portion of debt. This facility matures in the first quarter of 2014. | |||||||
Most of OEH’s loan facilities relate to specific hotel or other properties and are secured by a mortgage on the particular property. In most cases, the Company is either the borrower or the subsidiary owning the property is the borrower, with the loan guaranteed by the Company. | |||||||
The loan facilities generally place restrictions on the property-owning company’s ability to incur additional debt and limit liens, and restrict mergers and asset sales, and include financial covenants. Where the property-owning subsidiary is the borrower, the financial covenants relate to the financial performance of the property financed and generally include covenants relating to interest coverage, debt service, and loan-to-value and debt-to-EBITDA tests. Most of the facilities under which the Company is the borrower or the guarantor also contain financial covenants which are based on the performance of OEH on a consolidated basis. The covenants include a quarterly interest coverage test, minimum cash requirement test and a quarterly net worth test. | |||||||
Many of OEH’s bank loan facilities include cross-default provisions under which a failure to pay principal or interest by the borrower or guarantor under other indebtedness in excess of a specified threshold amount would cause a default under the facilities. Under OEH’s largest loan facility, the specified cross-default threshold amount is $25,000,000. At September 30, 2013, no cross-default provision in a loan facility had been triggered. | |||||||
The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at September 30, 2013: | |||||||
$’000 | |||||||
Remainder of 2013 | 8,673 | ||||||
2014 | 190,851 | ||||||
2015 | 253,509 | ||||||
2016 | 11,675 | ||||||
2017 | 24,630 | ||||||
2018 | 34,294 | ||||||
2019 and thereafter | 22,492 | ||||||
Total long-term debt and obligations under capital lease | 546,124 | ||||||
The Company has guaranteed $410,098,000 of the long-term debt of its subsidiary companies as at September 30, 2013 (December 31, 2012 - $341,078,000). | |||||||
Deferred financing costs related to the above outstanding long-term debt were $11,408,000 at September 30, 2013 (December 31, 2012 - $13,694,000) and are amortized to interest expense over the term of the corresponding long-term debt. | |||||||
The debt of Charleston Center LLC, a consolidated VIE, of $96,600,000 at September 30, 2013 (December 31, 2012 - $97,945,000) is non-recourse to OEH and separately disclosed on the condensed consolidated balance sheets. The debt, entered into in October 2010, was extended at Charleston Center’s option in October 2013 to give a revised maturity of October 2014, with a further one year extension option, and the interest rate is at LIBOR plus a margin of 3.50% per annum. | |||||||
(b) Working capital facilities | |||||||
OEH had approximately $3,023,000 of working capital facilities at September 30, 2013 (December 31, 2012 - $4,473,000) of which $3,023,000 was undrawn at September 30, 2013 (December 31, 2012 - $4,473,000). |
Other_liabilities
Other liabilities | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||
Other liabilities | ' | ||||||
Other liabilities | |||||||
The major balances in other liabilities are as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Interest rate swaps (see Note 18) | 2,348 | 5,021 | |||||
Long-term accrued interest on subordinated debt at Charleston Place | 15,190 | 14,740 | |||||
Cash-settled stock appreciation rights plan | 70 | 96 | |||||
Deferred lease incentive | 398 | 468 | |||||
Contingent consideration on acquisition of Grand Hotel Timeo and Villa Sant’Andrea | 1,219 | 1,186 | |||||
Total other liabilities | 19,225 | 21,511 | |||||
Pensions
Pensions | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Pensions | ' | ||||||||||||
Pensions | |||||||||||||
Components of net periodic pension benefit cost are as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Service cost | — | — | — | — | |||||||||
Interest cost on projected benefit obligation | 297 | 288 | 888 | 862 | |||||||||
Expected return on assets | (230 | ) | (211 | ) | (686 | ) | (632 | ) | |||||
Net amortization and deferrals | 231 | 224 | 689 | 671 | |||||||||
Net periodic benefit cost | 298 | 301 | 891 | 901 | |||||||||
During the three and nine months ended September 30, 2013 contributions were made to OEH’s U.K. defined benefit pension plan of $504,000 (September 30, 2012 - $512,000) and $1,503,000 (September 30, 2012 - $1,484,000), respectively. OEH anticipates contributing an additional $665,000 to fund the plan in 2013 for a total of $2,168,000. |
Income_taxes
Income taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income taxes | ' |
Income taxes | |
In the three and nine months ended September 30, 2013, the income tax provisions were $11,767,000 (September 30, 2012 - $6,590,000) and $9,635,000 (September 30, 2012 - $13,316,000), respectively. | |
The provision for income taxes in the nine months ended September 30, 2013 was lower than the comparable periods ended September 30, 2012 due primarily to a release in uncertain tax provisions of $3,924,000 in the first quarter of 2013 following conclusion of inquiries by the tax authorities. The provision for income taxes in the three months to September 30, 2013 was higher than the three months to September 30, 2012 due primarily to increased earnings before tax in the three months ended September 30, 2013. |
Supplemental_cash_flow_informa
Supplemental cash flow information | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||
Supplemental cash flow information | ' | ||||||
Supplemental cash flow information | |||||||
Nine months ended | |||||||
September 30, | September 30, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Cash paid during the period for: | |||||||
Interest | 19,448 | 21,674 | |||||
Income taxes, net of refunds | 13,336 | 19,441 | |||||
To reflect the actual cash paid for capital expenditures, increases in accounts payable for capital expenditures are non-cash and excluded from capital expenditure, while decreases are cash payments and included. The change in accounts payable was an increase of $578,000 for the nine months ended September 30, 2013 (September 30, 2012 - $324,000). |
Restricted_cash
Restricted cash | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||
Restricted cash | ' | ||||||
Restricted cash | |||||||
The major balances in restricted cash are as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Cash deposits required to be held with lending banks for the duration of the debt to support OEH’s payment of interest and principal | 14,288 | 16,013 | |||||
Escrow deposits and other restricted cash at Porto Cupecoy | 347 | 4,079 | |||||
Prepaid customer deposits which will be released to OEH under its revenue recognition policy | 1,418 | 788 | |||||
Security required under the European Union Package Travel Directive | 206 | 200 | |||||
Total restricted cash | 16,259 | 21,080 | |||||
Restricted cash classified as long-term and included in other assets on the condensed consolidated balance sheet at September 30, 2013 was $12,947,000. |
Sharebased_compensation_plans
Share-based compensation plans | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Share-based compensation plans | ' | ||||||
Share-based compensation plans | |||||||
At September 30, 2013, OEH had four share-based compensation plans. The compensation cost that has been charged to selling, general and administrative expense for these plans for the three and nine months ended September 30, 2013 was $2,645,000 (September 30, 2012 - $818,000) and $6,531,000 (September 30, 2012 - $4,400,000), respectively. The total compensation cost related to unexercised options and unvested share awards at September 30, 2013 to be recognized over the period October 1, 2013 to September 30, 2016, was $13,430,000 and the weighted average period over which it is expected to be recognized is 28 months. Measured from the grant date, substantially all awards of deferred shares, restricted shares and stock appreciation rights have a maximum term of three years, and substantially all awards of share options have a maximum term of 10 years. There were no grants under the 2000 stock option plan or 2004 stock option plan during the nine months ended September 30, 2013. | |||||||
(a) 2007 stock appreciation rights plan | |||||||
Previously awarded cash-settled stock appreciation rights awarded under the Company’s 2007 stock appreciation rights plan have been recorded as other liabilities with a fair value of $70,000 at September 30, 2013 (December 31, 2012 - $96,000). See Note 10. | |||||||
(b) 2009 share award and incentive plan | |||||||
During the nine months ended September 30, 2013, the following awards were made under the 2009 share award and incentive plan on the following dates. | |||||||
Estimates of the fair value of share options and the fair value of deferred shares and restricted shares without performance criteria on the grant date were made using the Black-Scholes option pricing model, and estimates of the fair value of deferred shares with performance criteria and market conditions were made using the Monte Carlo valuation model, based on the assumptions shown. | |||||||
Expected volatilities are based on historical volatility of the Company’s class A common share price and other factors. The risk-free rate for periods within the expected life is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life represents the period that share-based awards are expected to be outstanding and was determined using historical experience, giving consideration to the contractual terms of the share-based awards and vesting schedules. | |||||||
February 21, 2013: | |||||||
• | share options on 31,700 class A common shares vesting on March 9, 2015 at an exercise price of $9.95 per share, | ||||||
• | deferred shares without performance criteria covering 6,600 class A common shares vesting on March 9, 2015 at a purchase price of $0.01 per share, and | ||||||
• | deferred shares with performance criteria and market conditions on up to 24,600 class A common shares vesting on March 9, 2015 at a purchase price of $0.01 per share. | ||||||
Share options | Deferred shares without performance criteria | Deferred shares with performance criteria | |||||
Expected share price volatility | 60% | 51% | 52% | ||||
Risk-free interest rate | 1.30% | 0.26% | 0.26% | ||||
Expected dividends per share | $— | $— | $— | ||||
Expected life of awards | 8 years | 2 years | 2 years | ||||
March 15, 2013: | |||||||
• | deferred shares without performance criteria covering 114,000 class A common shares vesting on March 15, 2016 at a purchase price of $0.01 per share, and | ||||||
• | deferred shares with performance criteria and market conditions on up to 290,400 class A common shares vesting on March 15, 2016 at a purchase price of $0.01 per share. | ||||||
Deferred shares without performance criteria | Deferred shares with performance criteria | ||||||
Expected share price volatility | 51% | 52% | |||||
Risk-free interest rate | 0.38% | 0.39% | |||||
Expected dividends per share | $— | $— | |||||
Expected life of awards | 3 years | 3 years | |||||
April 22, 2013: | |||||||
• | deferred shares without performance criteria covering 29,370 class A common shares vesting on July 22, 2013 at a purchase price of $0.01 per share. | ||||||
Deferred shares without performance criteria | |||||||
Expected share price volatility | 51% | ||||||
Risk-free interest rate | 0.06% | ||||||
Expected dividends per share | $— | ||||||
Expected life of awards | 3 months | ||||||
June 10, 2013: | |||||||
• | share options on 289,000 class A common shares vesting on June 10, 2016 at an exercise price of $11.74 per share, and | ||||||
• | deferred shares without performance criteria covering 34,400 class A common shares vesting on June 10, 2016 at a purchase price of $0.01 per share. | ||||||
Share Options | Deferred shares without performance criteria | ||||||
Expected share price volatility | 60% | 50% | |||||
Risk-free interest rate | 1.74% | 0.57% | |||||
Expected dividends per share | $— | $— | |||||
Expected life of awards | 8 years | 3 years | |||||
June 28, 2013: | |||||||
• | deferred shares without performance criteria covering 33,200 class A common shares vesting on June 28, 2016 at a purchase price of $0.01 per share, | ||||||
• | restricted shares without performance criteria covering 33,200 class A common shares vesting on June 28, 2016 at a purchase price of $0.01 per share, and | ||||||
• | restricted shares without performance criteria covering 12,400 class A common shares vesting on the earlier of June 28, 2014 or the day before the 2014 annual general meeting of the Company at a purchase price of $0.01 per share. | ||||||
Deferred shares without performance criteria | Restricted shares without performance criteria | Restricted shares without performance criteria | |||||
Expected share price volatility | 50% | 50% | 43% | ||||
Risk-free interest rate | 0.57% | 0.57% | 0.13% | ||||
Expected dividends per share | $— | $— | $— | ||||
Expected life of awards | 3 years | 3 years | 1 year | ||||
August 14, 2013: | |||||||
• | deferred shares without performance criteria covering 40,000 class A common shares vesting on August 14, 2016 at a purchase price of $0.01 per share. | ||||||
Deferred shares without performance criteria | |||||||
Expected share price volatility | 48% | ||||||
Risk-free interest rate | 0.67% | ||||||
Expected dividends per share | $— | ||||||
Expected life of awards | 3 years |
Commitments_and_contingencies
Commitments and contingencies | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and contingencies | ' | |||
Commitments and contingencies | ||||
Outstanding contracts to purchase property, plant and equipment were approximately $5,412,000 at September 30, 2013 (December 31, 2012 - $9,650,000). | ||||
As part of the consideration for the acquisition of Grand Hotel Timeo and Villa Sant’Andrea in January 2010, OEH agreed to pay the vendor a further €5,000,000 (equivalent to $7,064,000 at date of acquisition) if, by 2015, additional rooms are constructed at Grand Hotel Timeo and certain required permits are granted to expand and add a swimming pool to Villa Sant’Andrea. At September 30, 2013, €4,000,000 has been paid (equivalent to $5,250,000 at the dates paid). See Note 10. | ||||
In the three months ended March 31, 2013, Copacabana Palace hotel was inspected by the Rio State Consumer Protection Agency and found to be in violation of certain consumer protection regulations, thereby subjecting the hotel to a potential fine for these infractions up to a maximum amount of $3,600,000. On July 8, 2013, a fine in the amount of $140,000 was imposed by the agency. This amount was not disputed by OEH and has now been settled. | ||||
On February 5, 2013, the State of Rio de Janeiro Court of Justice affirmed a 2011 decision of a Rio state trial court against Sea Containers Ltd (“SCL”) in lawsuits brought against SCL by minority shareholders in Companhia Hoteis Palace (“CHP”), the company that owns the Copacabana Palace, relating to the recapitalization of CHP in 1995, but reduced the total award against SCL to approximately $27,000,000. SCL has further appealed the judgments during the second quarter of 2013 to the Superior Court of Justice in Brasilia. SCL sold its shares in CHP to the Company in 2000. Years later, in 2006, SCL entered insolvency proceedings in the U.S. and Bermuda which are continuing in Bermuda. Possible claims could be asserted against the Company or CHP in connection with this Brazilian litigation, although no claims have been asserted to date. Management cannot estimate the range of possible loss and OEH has made no reserves in respect of this matter. If any such claims were brought, OEH would vigorously defend its interests. | ||||
The Company and certain of its subsidiaries are parties to various legal proceedings arising in the normal course of business. These proceedings generally include matters relating to labor disputes, tax claims, personal injury cases, lease negotiations and ownership disputes. The outcome of each of these matters cannot be determined with certainty, and the liability that the relevant parties may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued for with respect to these matters. Where a reasonable estimate can be made, the additional losses or range of loss that may be incurred in excess of the amount recognized from the various legal proceedings arising in the normal course of business are disclosed separately for each claim, including a reference to where it is disclosed. However, for certain of the legal proceedings, management is unable to estimate the loss or range of loss that may result from these claims due to the highly complex nature or early stage of the legal proceedings. | ||||
In May 2010, OEH settled litigation for infringement of its “Cipriani” trademark in Europe. An amount of $3,947,000 was paid by the defendants to OEH on March 2, 2010 with the balance of $9,833,000 being payable in installments over five years with interest. The remaining payments, totaling $3,977,000 at September 30, 2013, have not been recognized by OEH because of the uncertainty of collectability. | ||||
Future rental payments as at September 30, 2013 under operating leases in respect of equipment rentals and leased premises are payable as follows: | ||||
$’000 | ||||
Remainder of 2013 | 2,445 | |||
2014 | 9,505 | |||
2015 | 9,425 | |||
2016 | 9,270 | |||
2017 | 9,267 | |||
2018 | 8,464 | |||
2019 and thereafter | 67,065 | |||
Future rental payments under operating leases | 115,441 | |||
Rental expense for the three and nine months ended September 30, 2013 amounted to $2,551,000 (September 30, 2012 - $2,426,000) and $7,864,000 (September 30, 2012 - $7,888,000), respectively. | ||||
OEH has granted to James Sherwood, a former director of the Company, a right of first refusal to purchase the Hotel Cipriani in Venice, Italy in the event OEH proposes to sell it. The purchase price would be the offered sale price in the case of a cash sale or the fair market value of the hotel, as determined by an independent valuer, in the case of a non-cash sale. Mr. Sherwood has also been granted an option to purchase the hotel at fair market value if a change in control of the Company occurs. Mr. Sherwood may elect to pay 80% of the purchase price if he exercises his right of first refusal, or 100% of the purchase price if he exercises his purchase option, by a non-recourse promissory note secured by the hotel payable in ten equal annual installments with interest at LIBOR. The option is not assignable and expires one year after Mr. Sherwood’s death. These agreements relating to the Hotel Cipriani between Mr. Sherwood and OEH and its predecessor companies have been in place since 1983 and were last amended and restated in 2005. |
Fair_value_measurements
Fair value measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value measurements | ' | |||||||||||||||
Fair value measurements | ||||||||||||||||
(a) Financial instruments recorded at fair value | ||||||||||||||||
Derivatives are recorded in the condensed consolidated balance sheets at fair value. The valuation process for the derivatives uses observable market data provided by third-party sources. Interest rate swaps are valued by using yield curves derived from observable interest rates to project future swap cash flows and then discount these cash flows back to present values. Interest rate caps are valued using a model that projects the probability of various levels of interest rates occurring in the future using observable volatilities. OEH incorporates credit valuation adjustments to reflect both its own and its respective counterparty’s non-performance risk in the fair value measurements. | ||||||||||||||||
In the determination of fair value of derivative instruments, a credit valuation adjustment is applied to OEH’s derivative exposures to take into account the risk of the counterparty defaulting with the derivative in an asset position and, when the derivative is in a liability position, the risk that OEH may default. The credit valuation adjustment is calculated by determining the total expected exposure of the derivatives (incorporating both the current and potential future exposure) and then applying each counterparty’s credit spread to the applicable exposure. For interest rate swaps, OEH’s own credit spread is applied to the counterparty’s exposure to OEH and the counterparties credit spread is applied to OEH’s exposure to the counterparty, and then the net credit valuation adjustment is reflected in the determination of the fair value of the derivative instrument. The credit spreads used as inputs in the fair value calculations represent implied credit default swaps obtained from a third-party credit data provider. Some of the inputs into the credit valuation adjustment are not observable and, therefore, they are considered to be Level 3 inputs. Where credit valuation adjustment exceeds 20% of the fair value of the derivatives, Level 3 inputs are assumed to have a significant impact on the fair value of the derivatives in their entirety and the derivative is classified as Level 3. OEH reviews its fair value hierarchy classifications quarterly. OEH’s policy is to recognize transfers in and transfers out as of the end of each quarterly reporting period. | ||||||||||||||||
The following tables summarize the valuation of OEH’s financial instruments recorded at fair value by the fair value hierarchy at September 30, 2013 and December 31, 2012: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
30-Sep-13 | $’000 | $’000 | $’000 | $’000 | ||||||||||||
Assets at fair value: | ||||||||||||||||
Derivative financial instruments | — | 8 | — | 8 | ||||||||||||
Total assets | — | 8 | — | 8 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||
Derivative financial instruments | — | (5,556 | ) | — | (5,556 | ) | ||||||||||
Total net liabilities | — | (5,548 | ) | — | (5,548 | ) | ||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-12 | $’000 | $’000 | $’000 | $’000 | ||||||||||||
Assets at fair value: | ||||||||||||||||
Derivative financial instruments | — | 6 | — | 6 | ||||||||||||
Total assets | — | 6 | — | 6 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||
Derivative financial instruments | — | (8,879 | ) | — | (8,879 | ) | ||||||||||
Total net liabilities | — | (8,873 | ) | — | (8,873 | ) | ||||||||||
During the three and nine months ended September 30, 2013, there were no transfers between levels of the fair value hierarchy. | ||||||||||||||||
(b) Other financial instruments | ||||||||||||||||
Certain methods and assumptions are used to estimate the fair value of each class of financial instruments. The carrying amount of current assets and current liabilities as disclosed on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of those instruments. | ||||||||||||||||
The fair value of OEH's long-term debt, excluding interest rate swaps and caps, is determined using the contractual cash flows and credit-adjusted discount curves. The fair value of the debt is the present value of those contractual cash flows which are discounted at the current market cost of debt and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral. | ||||||||||||||||
The estimated carrying values, fair values, and levels of the fair value hierarchy of OEH's long-term debt as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Carrying | Fair value | Carrying | Fair value | |||||||||||||
amounts | $’000 | amounts | $’000 | |||||||||||||
$’000 | $’000 | |||||||||||||||
Long-term debt, including current portion, excluding obligations under capital leases | Level 3 | 546,096 | 560,454 | 521,494 | 533,783 | |||||||||||
Long-term debt, including current portion, held by consolidated variable interest entities | Level 3 | 96,600 | 96,642 | 97,945 | 99,656 | |||||||||||
(c) Non-financial assets measured at fair value on a non-recurring basis | ||||||||||||||||
The estimated fair value of OEH’s non-financial assets measured on a non-recurring basis for the nine months ended September 30, 2013 was as follows: | ||||||||||||||||
Fair value measurement inputs | ||||||||||||||||
Fair value | Level 2 | Total losses | ||||||||||||||
$’000 | Level 1 | $’000 | Level 3 | in the nine | ||||||||||||
$’000 | $’000 | months ended | ||||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
$’000 | ||||||||||||||||
Property, plant and equipment | 45,000 | — | — | 45,000 | (35,680 | ) | ||||||||||
During the first quarter of 2013, OEH performed a strategic review of its assets and as a consequence, property, plant and equipment at La Samanna with a carrying value of $80,680,000 was written down to the hotel’s fair value of $45,000,000, resulting in a non-cash impairment charge of $35,680,000. There were no impairments in the three months ended September 30, 2013 or the three and nine months ended September 30, 2012. This impairment is included in earnings from continuing operations in the period incurred. See Note 6. |
Derivatives_and_hedging_activi
Derivatives and hedging activities | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivatives and hedging activities | ' | ||||||||||||
Derivatives and hedging activities | |||||||||||||
Risk management objective of using derivatives | |||||||||||||
OEH enters into derivative financial instruments with the objective to manage its exposures to future movements in interest rates on its borrowings. | |||||||||||||
Cash flow hedges of interest rate risk | |||||||||||||
OEH’s objective in using interest rate derivatives is to add certainty and stability to its interest expense and to manage its exposure to interest rate movements. To accomplish this objective, OEH primarily uses interest rate swaps as part of its interest rate risk management strategy. An interest rate swap is a transaction between two parties in which each agrees to exchange, or swap, interest payments where the interest payment amounts are tied to different interest rates or indices for a specified period of time and are based on a notional amount of principal. During the three and nine months ended September 30, 2013, interest rate swaps were used to hedge the variable cash flows associated with existing variable interest rate debt. | |||||||||||||
Derivative instruments are recorded on the condensed consolidated balance sheets at fair value. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in other comprehensive income/(loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. | |||||||||||||
As of September 30, 2013 and December 31, 2012, OEH had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
’000 | ’000 | ||||||||||||
Interest Rate Swaps | € | 138,625 | € | 142,094 | |||||||||
Interest Rate Swaps | $ | 69,650 | $ | 104,259 | |||||||||
Non-designated hedges of interest rate risk | |||||||||||||
Derivatives not designated as hedges are used to manage OEH’s exposure to interest rate movements but do not meet the strict hedge accounting requirements prescribed in the authoritative accounting guidance. As of September 30, 2013, OEH had interest rate options with a fair value of $8,000 (December 31, 2012 - $6,000) and a notional amount of €74,125,000 and $52,920,000 (December 31, 2012 - €76,469,000 and $53,760,000) that were non-designated hedges of OEH’s exposure to interest rate risk. | |||||||||||||
The table below presents the fair value of OEH’s derivative financial instruments and their classification as of September 30, 2013 and December 31, 2012: | |||||||||||||
Liability derivatives | |||||||||||||
Fair value as of | Fair value as of | ||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||
Balance sheet location | $’000 | $’000 | |||||||||||
Derivatives designated in a cash flow hedging relationship: | |||||||||||||
Interest Rate Swaps | Accrued liabilities | (3,208 | ) | (3,858 | ) | ||||||||
Interest Rate Swaps | Other liabilities | (2,348 | ) | (5,021 | ) | ||||||||
Total | (5,556 | ) | (8,879 | ) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Interest Rate Options | Other assets | 8 | 6 | ||||||||||
Interest Rate Swaps | Accrued liabilities | — | — | ||||||||||
Interest Rate Swaps | Other liabilities | — | — | ||||||||||
Total | 8 | 6 | |||||||||||
Offsetting | |||||||||||||
There was no offsetting within derivative assets or derivative liabilities at September 30, 2013 and December 31, 2012. However, these derivatives are subject to master netting arrangements. | |||||||||||||
Other comprehensive income | |||||||||||||
Information concerning the movements in other comprehensive income for cash flow hedges of interest rate risk is shown in Note 19. At September 30, 2013, the amount accounted for in other comprehensive income/(loss) which is expected to be reclassified to interest expense in the next 12 months is $3,113,000. During the three months ended September 30, 2013, the loan designated as a net investment hedge was repaid and no foreign currency translation adjustments were recorded. Movements in other comprehensive income/(loss) for net investment hedges, recorded through foreign currency translation adjustments for the three and nine months ended September 30, 2013 were $Nil (September 30, 2012 - $571,000 loss) and a $72,000 loss (September 30, 2012 - $249,000 gain), respectively. | |||||||||||||
Derivative movements not included in other comprehensive income for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives | — | (65 | ) | 37 | (218 | ) | |||||||
Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments | (35 | ) | (17 | ) | (64 | ) | (50 | ) | |||||
Credit-risk-related contingent features | |||||||||||||
OEH has agreements with some of its derivative counterparties that contain provisions under which, if OEH defaults on the debt associated with the hedging instrument, OEH could also be declared in default in respect of its derivative obligations. | |||||||||||||
As of September 30, 2013, the fair value of derivatives in a net liability position, which includes accrued interest and an adjustment for non-performance risk, related to these agreements was $5,556,000 (December 31, 2012 - $8,879,000). If OEH breached any of the provisions, it would be required to settle its obligations under the agreements at their termination value of $5,569,000 (December 31, 2012 - $8,946,000). | |||||||||||||
Non-derivative financial instruments — net investment hedges | |||||||||||||
OEH used certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. OEH’s designated its euro-denominated indebtedness as a net investment hedge of long-term investments in its euro-functional subsidiaries. During the three months ended September 30, 2013, the loan designated in the net investment hedge was repaid. These contracts were included in non-derivative hedging instruments. The notional value of non-derivative hedging instruments was $Nil at September 30, 2013 (December 31, 2012 - $44,166,000, being a liability of OEH). |
Accumulated_other_comprehensiv
Accumulated other comprehensive income/loss | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated other comprehensive loss | ' | ||||||||||||
Accumulated other comprehensive income/loss | |||||||||||||
Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) are as follows: | |||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension liability | Total | ||||||||||
Nine months ended September 30, 2013 | $’000 | $’000 | $’000 | $’000 | |||||||||
Balance at January 1, 2013 | (67,135 | ) | (5,976 | ) | (13,270 | ) | (86,381 | ) | |||||
Other comprehensive income/(loss) before reclassifications | (12,500 | ) | (566 | ) | (249 | ) | (13,315 | ) | |||||
Amounts reclassified from AOCI | — | 2,696 | — | 2,696 | |||||||||
Net current period other comprehensive income/(loss) | (12,500 | ) | 2,130 | (249 | ) | (10,619 | ) | ||||||
Balance at September 30, 2013 | (79,635 | ) | (3,846 | ) | (13,519 | ) | (97,000 | ) | |||||
Reclassifications out of AOCI (net of tax) are as follows: | |||||||||||||
Amount reclassified from AOCI | |||||||||||||
Three months ended | |||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||
Details about AOCI components | $’000 | $’000 | Affected line item in the statement of operations | ||||||||||
Derivative financial instruments: | |||||||||||||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | 912 | 3,126 | Interest expense | ||||||||||
Total reclassifications for the period | 912 | 3,126 | |||||||||||
Amount reclassified from AOCI | |||||||||||||
Nine months ended | |||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||
Details about AOCI components | $’000 | $’000 | Affected line item in the statement of operations | ||||||||||
Derivative financial instruments: | |||||||||||||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | 2,696 | 5,126 | Interest Expense | ||||||||||
Total reclassifications for the period | 2,696 | 5,126 | |||||||||||
Segment_information
Segment information | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment information | ' | ||||||||||||
Segment information | |||||||||||||
OEH’s operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker to assess performance and make decisions regarding the allocation of resources. The chief operating decision maker is the Chief Executive Officer. OEH’s operating segments are aggregated into three reporting segments, (i) hotels and restaurants - earnings derived from hotels and restaurants which it owns, jointly owns or manages, (ii) tourist trains and cruises - earnings derived from train and cruise businesses which it owns, jointly owns or manages, and (iii) real estate - earnings derived from the development and sale of real estate which it owns. OEH’s operating segments are grouped into various geographical regions. At September 30, 2013, hotels are located in the United States, Caribbean, Mexico, Europe, southern Africa, South America, and Southeast Asia, a restaurant is located in New York, tourist trains operate in Europe, Southeast Asia and Peru, two river cruise businesses operate in Myanmar (Burma) and one canal boat business operates in France, and real estate development is located in the Caribbean and Southeast Asia. Segment performance is evaluated by the chief operating decision maker based upon segment earnings before gains/(losses) on disposal, impairments, central overheads, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization (“adjusted earnings by segment”). | |||||||||||||
The following tables present revenues, adjusted earnings by segment, earnings from unconsolidated companies and capital expenditure for OEH’s reportable segments. | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue: | $’000 | $’000 | $’000 | $’000 | |||||||||
Owned hotels - Europe | 97,331 | 83,560 | 188,568 | 170,198 | |||||||||
- North America | 29,957 | 21,659 | 96,729 | 80,719 | |||||||||
- Rest of World | 31,937 | 25,890 | 106,174 | 98,306 | |||||||||
Hotel management/part ownership interests | 1,562 | 1,395 | 4,332 | 4,073 | |||||||||
Restaurants | 2,956 | 2,078 | 11,183 | 9,886 | |||||||||
Hotels and restaurants | 163,743 | 134,582 | 406,986 | 363,182 | |||||||||
Tourist trains and cruises | 23,446 | 23,262 | 56,123 | 55,698 | |||||||||
Real estate | — | 650 | — | 650 | |||||||||
Total revenue | 187,189 | 158,494 | 463,109 | 419,530 | |||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Adjusted earnings by segment: | $’000 | $’000 | $’000 | $’000 | |||||||||
Owned hotels - Europe | 43,103 | 34,517 | 63,281 | 53,720 | |||||||||
- North America | 3,481 | 1,813 | 17,156 | 15,899 | |||||||||
- Rest of World | 6,828 | 4,240 | 25,040 | 23,108 | |||||||||
Hotel management/part ownership interests | 1,506 | 809 | 1,297 | 1,701 | |||||||||
Restaurants | (603 | ) | (642 | ) | 256 | 181 | |||||||
Hotels and restaurants | 54,315 | 40,737 | 107,030 | 94,609 | |||||||||
Tourist trains and cruises | 7,834 | 8,047 | 14,580 | 15,736 | |||||||||
Real estate | — | (612 | ) | — | (612 | ) | |||||||
Reconciliation to net earnings/(losses): | |||||||||||||
Total adjusted earnings by segment | 62,149 | 48,172 | 121,610 | 109,733 | |||||||||
Impairment of property, plant and equipment | — | — | (35,680 | ) | — | ||||||||
Central overheads | (9,464 | ) | (8,184 | ) | (29,387 | ) | (27,833 | ) | |||||
Depreciation and amortization | (10,702 | ) | (10,545 | ) | (34,514 | ) | (31,580 | ) | |||||
Interest income | 241 | 210 | 763 | 851 | |||||||||
Interest expense | (8,878 | ) | (9,148 | ) | (24,474 | ) | (23,407 | ) | |||||
Foreign currency, net | (2,480 | ) | (57 | ) | 528 | (655 | ) | ||||||
Benefit/(provision) for income taxes | (11,767 | ) | (6,590 | ) | (9,635 | ) | (13,316 | ) | |||||
Share of benefit from/(provision for) income taxes of unconsolidated companies | (1,928 | ) | (761 | ) | (904 | ) | (1,748 | ) | |||||
Earnings/(losses) from continuing operations | 17,171 | 13,097 | (11,693 | ) | 12,045 | ||||||||
Earnings/(losses) from discontinued operations | (1,046 | ) | 4,585 | (1,851 | ) | 3,528 | |||||||
Net earnings/(losses) | 16,125 | 17,682 | (13,544 | ) | 15,573 | ||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Earnings from unconsolidated companies, net of tax: | $’000 | $’000 | $’000 | $’000 | |||||||||
Hotels and restaurants | |||||||||||||
Hotel management/part ownership interests | (485 | ) | (1,880 | ) | (1,485 | ) | (596 | ) | |||||
Tourist trains and cruises | 2,548 | 3,639 | 6,181 | 4,658 | |||||||||
Total earnings from unconsolidated companies, net of tax | 2,063 | 1,759 | 4,696 | 4,062 | |||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Capital expenditure: | $’000 | $’000 | $’000 | $’000 | |||||||||
Owned hotels - Europe | 2,076 | 3,741 | 8,517 | 15,755 | |||||||||
- North America | 8,237 | 10,810 | 29,539 | 33,327 | |||||||||
- Rest of World | 2,080 | 8,291 | 9,398 | 14,840 | |||||||||
Restaurants | 78 | 1,040 | 197 | 1,478 | |||||||||
Hotels and restaurants | 12,471 | 23,882 | 47,651 | 65,400 | |||||||||
Tourist trains and cruises | 1,539 | 487 | 4,612 | 2,940 | |||||||||
Unallocated corporate | 41 | 72 | 190 | 609 | |||||||||
Total capital expenditure | 14,051 | 24,441 | 52,453 | 68,949 | |||||||||
Financial information regarding geographic areas based on the location of properties is as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue: | $’000 | $’000 | $’000 | $’000 | |||||||||
Europe | 118,199 | 105,027 | 235,869 | 220,700 | |||||||||
North America | 32,913 | 24,387 | 107,912 | 91,255 | |||||||||
Rest of World | 36,077 | 29,080 | 119,328 | 107,575 | |||||||||
Total revenue | 187,189 | 158,494 | 463,109 | 419,530 | |||||||||
Related_party_transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related party transactions | ' |
Related party transactions | |
OEH manages, under long-term contract, the tourist train owned by Eastern and Oriental Express Ltd., in which OEH has a 25% ownership interest. In the three and nine months ended September 30, 2013, OEH earned management fees from Eastern and Oriental Express Ltd. of $12,000 (September 30, 2012 - $50,000) and $245,000 (September 30, 2012 - $232,000), respectively, which are recorded in revenue. The amount due to OEH from Eastern and Oriental Express Ltd. at September 30, 2013 was $5,801,000 (December 31, 2012 - $5,005,000). | |
OEH manages, under long-term contracts in Peru, the Hotel Monasterio, Palacio Nazarenas, Machu Picchu Sanctuary Lodge, Hotel Rio Sagrado, Peru Rail and Ferrocarril Transandino, in all of which OEH has a 50% ownership interest. OEH provides loans, guarantees and other credit accommodation to these joint ventures. In the three and nine months ended September 30, 2013, OEH earned management and guarantee fees from its Peruvian joint ventures of $2,386,000 (September 30, 2012 - $2,206,000) and $6,074,000 (September 30, 2012 - $5,940,000), respectively, which are recorded in revenue. The amount due to OEH from its Peruvian joint ventures at September 30, 2013 was $5,632,000 (December 31, 2012 - $6,398,000). | |
OEH manages, under long-term contract, the Hotel Ritz, Madrid, in which OEH has a 50% ownership interest. In the three and nine months ended September 30, 2013, OEH earned $248,000 (September 30, 2012 - $247,000) and $746,000 (September 30, 2012 - $765,000), respectively, in management fees from the Hotel Ritz, Madrid which are recorded in revenue, and $152,000 (September 30, 2012 - $162,000) and $437,000 (September 30, 2012 - $502,000), respectively, in interest income. The amount due to OEH from the Hotel Ritz, Madrid at September 30, 2013 was $28,871,000 (December 31, 2012 - $24,128,000). See Note 5 regarding a partial guarantee of the hotel’s bank indebtedness. |
Basis_of_financial_statement_p1
Basis of financial statement presentation (Policies) | 9 Months Ended | |
Sep. 30, 2013 | ||
Accounting Policies [Abstract] | ' | |
Basis of accounting | ' | |
Basis of presentation | ||
The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reporting on Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. In the opinion of the management of the Company, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, operating results and cash flows for the interim period have been included in these condensed consolidated financial statements. | ||
“FASB” means Financial Accounting Standards Board. “ASC” means the Accounting Standards Codification of the FASB and “ASU” means an Accounting Standards Update of the FASB. | ||
The interim results presented are not necessarily indicative of results that may be expected for any subsequent interim period or the fiscal year ending December 31, 2013. | ||
These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. See Note 1 to the consolidated financial statements in the 2012 Annual Report on Form 10-K for additional information regarding significant accounting policies. | ||
For interim reporting purposes, OEH calculates its tax expense by estimating its global annual effective tax rate and applies that rate in providing for income taxes on a year-to-date basis. OEH has calculated an expected annual effective tax rate, excluding significant, unusual or extraordinary items, and the tax effect of jurisdictions with losses for which a tax benefit cannot be recognized. The income tax expense (or benefit) related to all other items is individually computed and recognized when the items occur. | ||
Reclassifications | ' | |
Certain prior period amounts have been reclassified or disaggregated to conform to the current period’s presentation. The reclassifications had no effect on net earnings, net assets, retained earnings or net cash flows. | ||
OEH's reclassifications in the statements of condensed consolidated operations were: | ||
• | Discontinued operations were reclassified for all periods presented. See Note 3 for a summary of the results of discontinued operations, certain assets held for sale and the balances and results associated with discontinued operations. | |
• | During the fourth quarter of 2012, an additional gain of $1,613,000 related to the sale of Keswick Hall was identified that should have been recorded in the first quarter of 2012. Discontinued operations for the nine months ended September 30, 2012 have been restated to include this gain. | |
• | Certain expenses that were previously recorded within costs of sales were reclassified into selling, general and administrative expenses to correct for an error in classification. The balances reclassified were $1,086,000 and $3,481,000 for the three and nine months ended September 30, 2012, respectively. | |
During 2012, management determined that certain amounts previously reported in the interim statements of condensed consolidated cash flows for the nine months ended September 30, 2012 should be reclassified, which had the following effects: | ||
• | Debt issuance costs, which were previously included in cash flows from operating activities, are separately stated as a cash flow from financing activities for all periods. The effect in the nine months ended September 30, 2012 was a decrease in cash flows from financing activities of $2,726,000, with a corresponding increase to cash flows from operating activities. | |
• | Debt repaid by a third party when a business is sold was previously considered a non-cash transaction. This $10,000,000 has been included as net cash provided by investing activities from discontinued operations and net cash used in financing activities from continuing operations for the nine months ended September 30, 2012. | |
Accounting pronouncements adopted during the period and to be adopted | ' | |
Accounting pronouncements adopted during the period | ||
In July 2013, the FASB issued guidance to allow entities to use the Fed Funds Effective Swap Rate, in addition to U.S. Treasury rates and LIBOR, as a benchmark interest rate in accounting for fair value and cash flow hedges in the United States. The ASU also eliminates the provision that prohibits the use of different benchmark rates for similar hedges except in rare and justifiable circumstances. The guidance is effective prospectively for qualifying new hedging relationships entered into on or after July 17, 2013, the issuance date of the guidance, and for hedging relationships redesignated on or after that date. The adoption of this guidance did not have a material effect on the Company’s consolidated financial position, results of operations and cash flows. | ||
In April 2013, the FASB issued guidance on applying the liquidation basis of accounting and the related disclosure requirements. Under this guidance, an entity must use the liquidation basis of accounting to present its financial statements when it determines that liquidation is imminent, unless the liquidation is the same as that under the plan specified in an entity's governing documents created at its inception. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). This guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Early adoption is permitted. The Company has early adopted this guidance. This guidance does not have an effect on the Company's consolidated financial position, results of operations and cash flows as it expects to continue as a going concern. | ||
In February 2013, the FASB issued guidance which requires entities to disclose the following additional information about items reclassified out of accumulated other comprehensive income (“AOCI”): | ||
• | Changes in AOCI balances by component (e.g., unrealized gains or losses on available-for-sale securities or foreign-currency items). | |
• | Significant items reclassified out of AOCI by component either on the face of the income statement or as a separate footnote to the consolidated financial statements. | |
The guidance does not change the current U.S. GAAP requirements for interim financial statement reporting of comprehensive income. That is, a total for comprehensive income must be reported in condensed consolidated interim financial statements in either (1) a single continuous statement or (2) two separate but consecutive statements. However, public entities would also need to include information about (1) changes in AOCI balances by component and (2) significant items reclassified out of AOCI in their interim reporting periods. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The amendments in the guidance should be applied prospectively. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein. | ||
In July 2012, the FASB issued guidance related to annual impairment assessment of intangible assets, other than goodwill, that gives companies the option to perform a qualitative assessment before calculating the fair value of the asset. Although the guidance revises the examples of events and circumstances that an entity should consider in interim periods, it does not revise the requirements to test indefinite-lived intangible assets (1) annually for impairment and (2) between annual tests if there is a change in events or circumstances that would indicate an impairment. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The adoption of this guidance did not have a material effect on OEH’s interim consolidated financial position, results of operations and cash flows and is not expected to have a material effect on the consolidated financial position, results of operations and cash flows for the year ended December 31, 2013. | ||
In December 2011, the FASB issued accounting guidance that requires companies to provide new disclosures about offsetting assets and liabilities and related arrangements for financial instruments and derivatives. In January 2013, the FASB issued guidance clarifying the scope of the previously issued guidance. The guidance clarifies the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. The provisions of this guidance were effective for annual reporting periods beginning on or after January 1, 2013. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein. | ||
Accounting pronouncements to be adopted | ||
In July 2013, the FASB issued guidance on financial statement presentation of an uncertain tax benefit (“UTB”) when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The FASB’s objective in issuing this guidance is to eliminate diversity in practice resulting from a lack of guidance on this topic in current U.S. GAAP. Under the ASU, an entity must present a UTB, or a portion of a UTB, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The ASU’s amendments are effective for public entities for fiscal years beginning after December 15, 2013, and interim periods within those years. Early adoption is permitted for all entities. The amendments should be applied to all UTBs that exist as of the effective date. Entities may choose to apply the amendments retrospectively to each prior reporting period presented. The Company is assessing the impact the adoption of this guidance will have, but does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows. | ||
In March 2013, the FASB issued guidance which indicates that the entire amount of a cumulative translation adjustment (“CTA”) related to an entity’s investment in a foreign entity should be released when there has been any of the following: | ||
• | Sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity. | |
• | Loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated). | |
• | Step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity). | |
The ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. This guidance is effective for fiscal years (and interim periods within those fiscal years) beginning on or after December 15, 2013. Early adoption is permitted and the guidance should be applied prospectively from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows. | ||
In February 2013, the FASB issued guidance which requires entities to measure obligations resulting from joint-and-several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of the obligation for all joint parties. The guidance permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint-and-several obligation). These disclosure requirements are incremental to the existing related party disclosure requirements. The guidance is effective for all prior periods in fiscal years beginning on or after December 15, 2013 (and interim reporting periods within those years). The guidance should be applied retrospectively to obligations with joint-and-several liability existing at the beginning of an entity’s fiscal year of adoption. Entities that elect to use hindsight in measuring their obligations during the comparative periods must disclose that fact. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows. | ||
Earnings per share | ' | |
Basic earnings per share are based upon net earnings/(losses) attributable to OEH divided by the weighted average number of class A and B common shares outstanding for the period. Diluted earnings/(losses) per share reflect the increase in shares using the treasury stock method to reflect the impact of an equivalent number of shares as if share options were exercised and share-based awards were converted into common shares. Potentially dilutive shares are excluded when the effect would be to increase diluted earnings per share or reduce the diluted loss per share. | ||
Variable interest entities | ' | |
OEH analyzes its variable interests, including loans, guarantees and equity investments, to determine if an entity is a variable interest entity (“VIE”). In that assessment, OEH’s analysis includes both quantitative and qualitative considerations. OEH bases its quantitative analysis on the forecast cash flows of the entity, and its qualitative analysis on a review of the design of the entity, organizational structure including decision-making ability, and relevant financial agreements. OEH also uses its quantitative and qualitative analysis to determine if OEH is the primary beneficiary and required to consolidate the VIE. | ||
Goodwill | ' | |
The assessment and, if required, the determination of goodwill impairment to be recognized uses a discounted cash flow analysis to compute the fair value of the reporting unit. When determining the fair value of a reporting unit, OEH is required to make significant judgments that OEH believes are reasonable and supportable considering all available internal and external evidence at the time. However, these estimates and assumptions are, by their nature, highly judgmental. Fair value determinations are sensitive to changes in the underlying assumptions and factors including those relating to estimating future operating cash flows to be generated from the reporting unit which are dependent upon internal forecasts and projections developed as part of OEH’s routine, long-term planning process, available industry/market data (to the extent available), OEH’s strategic plans, estimates of long-term growth rates taking into account OEH’s assessment of the current economic environment and the timing and degree of any economic recovery, estimation of the useful life over which the cash flows will occur, and market participant assumptions. The assumptions with the most significant impact to the fair value of the reporting unit are those related to future operating cash flows which are forecast for a five-year period from management’s budget and planning process, the terminal value which is included for the period beyond five years from the balance sheet date based on the estimated cash flow in the fifth year and a terminal growth rate, and pre-tax discount rates. | ||
Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair values of OEH’s reporting units may include such items as (i) a prolonged weakness in the general economic conditions in which the reporting units operate and therefore negatively impacting occupancy and room rates, (ii) an economic recovery that significantly differs from OEH’s assumptions in timing and/or degree, (iii) volatility in the equity and debt markets which could result in a higher discount rate, (iv) shifts or changes in future travel patterns from OEH’s significant demographic markets that have not been anticipated, (v) changes in competitive supply, (vi) political and security instability in countries where OEH operates and (vii) deterioration of local economies due to the uncertainty over currencies or currency unions and other factors which could lead to changes in projected cash flows of OEH’s properties as customers reduce their discretionary spending. If the assumptions used in the impairment analysis are not met or materially change, OEH may be required to recognize additional goodwill impairment losses which may be material to the financial statements. | ||
Fair value measurements | ' | |
Derivatives are recorded in the condensed consolidated balance sheets at fair value. The valuation process for the derivatives uses observable market data provided by third-party sources. Interest rate swaps are valued by using yield curves derived from observable interest rates to project future swap cash flows and then discount these cash flows back to present values. Interest rate caps are valued using a model that projects the probability of various levels of interest rates occurring in the future using observable volatilities. OEH incorporates credit valuation adjustments to reflect both its own and its respective counterparty’s non-performance risk in the fair value measurements. | ||
In the determination of fair value of derivative instruments, a credit valuation adjustment is applied to OEH’s derivative exposures to take into account the risk of the counterparty defaulting with the derivative in an asset position and, when the derivative is in a liability position, the risk that OEH may default. The credit valuation adjustment is calculated by determining the total expected exposure of the derivatives (incorporating both the current and potential future exposure) and then applying each counterparty’s credit spread to the applicable exposure. For interest rate swaps, OEH’s own credit spread is applied to the counterparty’s exposure to OEH and the counterparties credit spread is applied to OEH’s exposure to the counterparty, and then the net credit valuation adjustment is reflected in the determination of the fair value of the derivative instrument. The credit spreads used as inputs in the fair value calculations represent implied credit default swaps obtained from a third-party credit data provider. Some of the inputs into the credit valuation adjustment are not observable and, therefore, they are considered to be Level 3 inputs. Where credit valuation adjustment exceeds 20% of the fair value of the derivatives, Level 3 inputs are assumed to have a significant impact on the fair value of the derivatives in their entirety and the derivative is classified as Level 3. OEH reviews its fair value hierarchy classifications quarterly. OEH’s policy is to recognize transfers in and transfers out as of the end of each quarterly reporting period. | ||
Derivative financial instruments | ' | |
Derivative instruments are recorded on the condensed consolidated balance sheets at fair value. The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in other comprehensive income/(loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. | ||
Segment reporting | ' | |
OEH’s operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker to assess performance and make decisions regarding the allocation of resources. The chief operating decision maker is the Chief Executive Officer. OEH’s operating segments are aggregated into three reporting segments, (i) hotels and restaurants - earnings derived from hotels and restaurants which it owns, jointly owns or manages, (ii) tourist trains and cruises - earnings derived from train and cruise businesses which it owns, jointly owns or manages, and (iii) real estate - earnings derived from the development and sale of real estate which it owns. OEH’s operating segments are grouped into various geographical regions. At September 30, 2013, hotels are located in the United States, Caribbean, Mexico, Europe, southern Africa, South America, and Southeast Asia, a restaurant is located in New York, tourist trains operate in Europe, Southeast Asia and Peru, two river cruise businesses operate in Myanmar (Burma) and one canal boat business operates in France, and real estate development is located in the Caribbean and Southeast Asia. Segment performance is evaluated by the chief operating decision maker based upon segment earnings before gains/(losses) on disposal, impairments, central overheads, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization (“adjusted earnings by segment”). |
Earnings_per_share_Tables
Earnings per share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of earnings per share, basic and diluted | ' | ||||||||||||
reconciliation of the numerator and denominator is as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Numerator ($'000) | |||||||||||||
Net earnings/(losses) from continuing operations | 17,171 | 13,097 | (11,693 | ) | 12,045 | ||||||||
Net earnings/(losses) from discontinued operations | (1,046 | ) | 4,585 | (1,851 | ) | 3,528 | |||||||
Net losses/(earnings) attributable to non-controlling interests | 15 | 43 | (68 | ) | (132 | ) | |||||||
Net earnings/(losses) attributable to Orient-Express Hotels Ltd. | 16,140 | 17,725 | (13,612 | ) | 15,441 | ||||||||
Denominator (shares '000) | |||||||||||||
Basic weighted average shares outstanding | 103,337 | 102,893 | 103,138 | 102,833 | |||||||||
Effect of dilution | 2,236 | 2,784 | — | 2,327 | |||||||||
Diluted weighted average shares outstanding | 105,573 | 105,677 | 103,138 | 105,160 | |||||||||
$ | $ | $ | $ | ||||||||||
Basic earnings per share | |||||||||||||
Net earnings/(losses) from continuing operations | 0.166 | 0.127 | (0.113 | ) | 0.117 | ||||||||
Net earnings/(losses) from discontinued operations | (0.010 | ) | 0.045 | (0.018 | ) | 0.034 | |||||||
Net losses/(earnings) attributable to non-controlling interests | — | — | (0.001 | ) | (0.001 | ) | |||||||
Net earnings/(losses) attributable to Orient-Express Hotels Ltd. | 0.156 | 0.172 | (0.132 | ) | 0.15 | ||||||||
Diluted earnings per share | |||||||||||||
Net earnings/(losses) from continuing operations | 0.163 | 0.124 | (0.113 | ) | 0.115 | ||||||||
Net earnings/(losses) from discontinued operations | (0.010 | ) | 0.043 | (0.018 | ) | 0.034 | |||||||
Net losses/(earnings) attributable to non-controlling interests | — | — | (0.001 | ) | (0.001 | ) | |||||||
Net earnings/(losses) attributable to Orient-Express Hotels Ltd. | 0.153 | 0.167 | (0.132 | ) | 0.148 | ||||||||
Schedule of antidilutive securities excluded from computation of earnings per share | ' | ||||||||||||
The total number of share options and share-based awards excluded from computing diluted earnings per share were as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Share options | 208,600 | 1,241,150 | 3,130,450 | 1,241,150 | |||||||||
Share-based awards | — | — | 1,481,827 | — | |||||||||
Total | 208,600 | 1,241,150 | 4,612,277 | 1,241,150 | |||||||||
Assets_held_for_sale_and_disco1
Assets held for sale and discontinued operations (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||||
Net Assets Sold and Gain on Sale, Summarized Operating Results of Discontinued Operations, and Assets and Liabilities Held for Sale | ' | ||||||||||||||||||
Assets and liabilities of the properties classified as held for sale consist of the following: | |||||||||||||||||||
September 30, | December 31, 2012 | ||||||||||||||||||
2013 | |||||||||||||||||||
Porto Cupecoy | Porto Cupecoy | ||||||||||||||||||
$’000 | $’000 | ||||||||||||||||||
Current assets | — | — | |||||||||||||||||
Real estate assets | 720 | 22,040 | |||||||||||||||||
Property, plant and equipment | — | 38 | |||||||||||||||||
Total assets held for sale | 720 | 22,078 | |||||||||||||||||
Current liabilities | — | (2,174 | ) | ||||||||||||||||
Total liabilities held for sale | — | (2,174 | ) | ||||||||||||||||
Summarized operating results of the properties classified as discontinued operations for the three and nine months ended September 30, 2013 and 2012 are as follows: | |||||||||||||||||||
Three months ended September 30, 2013 | |||||||||||||||||||
Porto Cupecoy | Keswick Hall | Total | |||||||||||||||||
$'000 | $'000 | $'000 | |||||||||||||||||
Revenue | 692 | — | 692 | ||||||||||||||||
Losses before tax, gain on sale and impairment | (1,694 | ) | — | (1,694 | ) | ||||||||||||||
Impairment | — | — | — | ||||||||||||||||
Gain on sale | — | — | — | ||||||||||||||||
Losses before tax | (1,694 | ) | — | (1,694 | ) | ||||||||||||||
Tax benefit | — | 648 | 648 | ||||||||||||||||
Net (losses)/earnings from discontinued operations | (1,694 | ) | 648 | (1,046 | ) | ||||||||||||||
Three months ended September 30, 2012 | |||||||||||||||||||
Porto Cupecoy | The Westcliff | The Observatory Hotel | Bora Bora Lagoon Resort | Keswick Hall | Total | ||||||||||||||
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||||||||||||||
Revenue | 1,481 | 2,404 | 1,204 | — | (15 | ) | 5,074 | ||||||||||||
(Losses)/earnings before tax, gain on sale and impairment | (1,040 | ) | 192 | (406 | ) | (28 | ) | 92 | (1,190 | ) | |||||||||
Impairment | — | — | — | — | — | — | |||||||||||||
Gain/(loss) on sale | — | — | 5,367 | (18 | ) | — | 5,349 | ||||||||||||
(Losses)/earnings before tax | (1,040 | ) | 192 | 4,961 | (46 | ) | 92 | 4,159 | |||||||||||
Tax benefit | — | — | 426 | — | — | 426 | |||||||||||||
Net (losses)/earnings from discontinued operations | (1,040 | ) | 192 | 5,387 | (46 | ) | 92 | 4,585 | |||||||||||
Nine months ended September 30, 2013 | |||||||||||||||||||
Porto Cupecoy | The Westcliff | Keswick Hall | Total | ||||||||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||||||||
Revenue | 1,535 | — | — | 1,535 | |||||||||||||||
Losses before tax, gain on sale and impairment | (3,283 | ) | — | — | (3,283 | ) | |||||||||||||
Impairment | (77 | ) | — | — | (77 | ) | |||||||||||||
Gain on sale | 439 | — | — | 439 | |||||||||||||||
Losses before tax | (2,921 | ) | — | — | (2,921 | ) | |||||||||||||
Tax benefit | — | 422 | 648 | 1,070 | |||||||||||||||
Net (losses)/earnings from discontinued operations | (2,921 | ) | 422 | 648 | (1,851 | ) | |||||||||||||
Nine months ended September 30, 2012 | |||||||||||||||||||
Porto Cupecoy | The Westcliff | The Observatory Hotel | Bora Bora Lagoon Resort | Keswick Hall | Total | ||||||||||||||
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||||||||||||||
Revenue | 4,514 | 6,929 | 9,188 | — | 412 | 21,043 | |||||||||||||
Losses before tax, gain on sale and impairment | (4,078 | ) | (27 | ) | (1,034 | ) | (166 | ) | (924 | ) | (6,229 | ) | |||||||
Impairment | — | — | — | — | — | — | |||||||||||||
Gain on sale | — | — | 5,367 | 690 | 3,957 | 10,014 | |||||||||||||
(Losses)/earnings before tax | (4,078 | ) | (27 | ) | 4,333 | 524 | 3,033 | 3,785 | |||||||||||
Tax benefit/(provision) | — | — | 426 | — | (683 | ) | (257 | ) | |||||||||||
Net (losses)/earnings from discontinued operations | (4,078 | ) | (27 | ) | 4,759 | 524 | 2,350 | 3,528 | |||||||||||
The following is a summary of net assets sold and the gain recorded on sale for Porto Cupecoy, The Observatory Hotel, Bora Bora Lagoon Resort and Keswick Hall: | |||||||||||||||||||
Porto Cupecoy | The Observatory Hotel | Bora Bora Lagoon Resort | Keswick Hall | ||||||||||||||||
January 31, | August 8, | June 1, | January 23, | ||||||||||||||||
2013 | 2012 | 2012 | 2012 | ||||||||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||||||||
Property, plant and equipment | 38 | 48,096 | 15,827 | 18,590 | |||||||||||||||
Real estate assets | 18,512 | — | — | — | |||||||||||||||
Net working capital (deficit)/surplus | — | (299 | ) | (720 | ) | 401 | |||||||||||||
Other assets/(liabilities) | — | — | — | (1,891 | ) | ||||||||||||||
Deferred income taxes | — | — | — | — | |||||||||||||||
Net assets | 18,550 | 47,797 | 15,107 | 17,100 | |||||||||||||||
Transfer of foreign currency translation loss/(gain) | — | (12,147 | ) | (13,074 | ) | — | |||||||||||||
18,550 | 35,650 | 2,033 | 17,100 | ||||||||||||||||
Consideration: | |||||||||||||||||||
Cash | 19,000 | 30,895 | 3,000 | 12,000 | |||||||||||||||
Reduction in debt facility on sale of hotel | — | 11,211 | — | 10,000 | |||||||||||||||
Less: Working capital adjustment | (11 | ) | (447 | ) | — | (430 | ) | ||||||||||||
Less: Costs to sell | — | (650 | ) | (305 | ) | (513 | ) | ||||||||||||
18,989 | 41,009 | 2,695 | 21,057 | ||||||||||||||||
Gain on sale | 439 | 5,359 | 662 | 3,957 | |||||||||||||||
Variable_interest_entities_Tab
Variable interest entities (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Schedule of variable interest entities | ' | ||||||||||||
The carrying amount of consolidated assets and liabilities of Charleston Center LLC included within OEH’s condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012 are summarized as follows: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
$’000 | $’000 | ||||||||||||
Current assets | 11,777 | 18,511 | |||||||||||
Property, plant and equipment | 186,543 | 183,793 | |||||||||||
Goodwill | 40,395 | 40,395 | |||||||||||
Other assets | 1,827 | 2,114 | |||||||||||
Total assets | 240,542 | 244,813 | |||||||||||
Current liabilities | 7,877 | 6,382 | |||||||||||
Third-party debt, including $1,751 and $1,795 current portion | 96,600 | 97,945 | |||||||||||
Long-term accrued interest on subordinated debt | 15,190 | 14,740 | |||||||||||
Deferred income taxes | 59,765 | 60,326 | |||||||||||
Total liabilities | 179,432 | 179,393 | |||||||||||
Net assets (before amounts payable to OEH of $92,062 and $90,807) | 61,110 | 65,420 | |||||||||||
The carrying amounts and maximum exposures to loss as a result of OEH’s involvement with its Peru rail joint venture are as follows: | |||||||||||||
Carrying amounts | Maximum exposure | ||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Investment | 36,677 | 32,973 | 36,677 | 32,973 | |||||||||
Due from unconsolidated company | 5,681 | 4,803 | 5,681 | 4,803 | |||||||||
Guarantees | — | — | 6,343 | 7,558 | |||||||||
Contingent guarantees | — | — | 15,468 | 17,149 | |||||||||
Total | 42,358 | 37,776 | 64,169 | 62,483 | |||||||||
Investments_in_unconsolidated_1
Investments in unconsolidated companies (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Summarized financial data for unconsolidated companies | ' | ||||||||||||
Summarized financial data for OEH’s unconsolidated companies are as follows: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
$’000 | $’000 | ||||||||||||
Current assets | 63,958 | 75,339 | |||||||||||
Property, plant and equipment, net | 358,623 | 354,640 | |||||||||||
Other assets | 3,838 | 3,806 | |||||||||||
Non-current assets | 362,461 | 358,446 | |||||||||||
Total assets | 426,419 | 433,785 | |||||||||||
Current liabilities | 151,178 | 165,413 | |||||||||||
Long-term debt | 38,889 | 45,985 | |||||||||||
Other liabilities | 125,474 | 115,763 | |||||||||||
Non-current liabilities | 164,363 | 161,748 | |||||||||||
Total shareholders’ equity | 110,878 | 106,624 | |||||||||||
Total liabilities and shareholders’ equity | 426,419 | 433,785 | |||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Revenue | 45,484 | 41,635 | 125,091 | 115,498 | |||||||||
Gross profit1 | 21,929 | 25,495 | 66,770 | 64,835 | |||||||||
Net earnings2 | 3,763 | 3,202 | 9,259 | 7,881 | |||||||||
1 Gross profit is defined as revenues less cost of services of the unconsolidated companies. | |||||||||||||
2 There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies. |
Property_plant_and_equipment_T
Property, plant and equipment (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Schedule of major classes of property plant and equipment | ' | ||||||
The major classes of property, plant and equipment are as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Land and buildings | 1,027,016 | 1,054,171 | |||||
Machinery and equipment | 207,990 | 193,941 | |||||
Fixtures, fittings and office equipment | 223,261 | 206,135 | |||||
River cruise ship and canal boats | 18,549 | 18,255 | |||||
1,476,816 | 1,472,502 | ||||||
Less: Accumulated depreciation | (328,835 | ) | (300,899 | ) | |||
Total property, plant and equipment, net | 1,147,981 | 1,171,603 | |||||
Schedule of major classes of assets under capital leases | ' | ||||||
The major classes of assets under capital leases included above are as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Land and buildings | — | — | |||||
Machinery and equipment | 891 | 918 | |||||
Fixtures, fittings and office equipment | 106 | 103 | |||||
997 | 1,021 | ||||||
Less: Accumulated depreciation | (884 | ) | (829 | ) | |||
Total assets under capital leases | 113 | 192 | |||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||
Schedule of changes in carrying amount of goodwill | ' | |||||||||
The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 are as follows: | ||||||||||
Hotels & restaurants | Trains & cruises | Total | ||||||||
$'000 | $'000 | $'000 | ||||||||
Balance at January 1, 2013 | 153,287 | 7,991 | 161,278 | |||||||
Impairment | — | — | — | |||||||
Foreign currency translation adjustment | (1,659 | ) | (18 | ) | (1,677 | ) | ||||
Balance at September 30, 2013 | 151,628 | 7,973 | 159,601 | |||||||
Other_intangible_assets_Tables
Other intangible assets (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ||||||||||||
Schedule of other intangible assets | ' | ||||||||||||
Other intangible assets consist of the following as of September 30, 2013: | |||||||||||||
Favorable lease assets | Internet sites | Trade names | Total | ||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||
Carrying amount: | |||||||||||||
Balance at January 1, 2013 | 12,971 | 1,692 | 7,100 | 21,763 | |||||||||
Foreign currency translation adjustment | (1,298 | ) | (10 | ) | — | (1,308 | ) | ||||||
Balance at September 30, 2013 | 11,673 | 1,682 | 7,100 | 20,455 | |||||||||
Accumulated amortization: | |||||||||||||
Balance at January 1, 2013 | 2,248 | 907 | 3,155 | ||||||||||
Charge for the period | 215 | 101 | 316 | ||||||||||
Foreign currency translation adjustment | (241 | ) | (4 | ) | (245 | ) | |||||||
Balance at September 30, 2013 | 2,222 | 1,004 | 3,226 | ||||||||||
Net book value: | |||||||||||||
At September 30, 2013 | 9,451 | 678 | 7,100 | 17,229 | |||||||||
At December 31, 2012 | 10,723 | 785 | 7,100 | 18,608 | |||||||||
Debt_and_obligations_under_cap1
Debt and obligations under capital lease (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Schedule of long-term debt and obligations under capital lease | ' | ||||||
Long-term debt and obligations under capital lease consists of the following: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Loans from banks and other parties collateralized by property, plant and equipment, payable over periods of one to 20 years, with a weighted average interest rate of 4.21% and 4.14%, respectively | 546,096 | 521,494 | |||||
Obligations under capital lease | 28 | 66 | |||||
Total long-term debt and obligations under capital lease | 546,124 | 521,560 | |||||
Less: Current portion | 194,823 | 90,115 | |||||
Non-current portion of long-term debt and obligations under capital lease | 351,301 | 431,445 | |||||
Summary of the aggregate maturities of long-term debt including obligations under capital lease | ' | ||||||
The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at September 30, 2013: | |||||||
$’000 | |||||||
Remainder of 2013 | 8,673 | ||||||
2014 | 190,851 | ||||||
2015 | 253,509 | ||||||
2016 | 11,675 | ||||||
2017 | 24,630 | ||||||
2018 | 34,294 | ||||||
2019 and thereafter | 22,492 | ||||||
Total long-term debt and obligations under capital lease | 546,124 | ||||||
Other_liabilities_Tables
Other liabilities (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||
Schedule of major balances in other liabilities | ' | ||||||
The major balances in other liabilities are as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Interest rate swaps (see Note 18) | 2,348 | 5,021 | |||||
Long-term accrued interest on subordinated debt at Charleston Place | 15,190 | 14,740 | |||||
Cash-settled stock appreciation rights plan | 70 | 96 | |||||
Deferred lease incentive | 398 | 468 | |||||
Contingent consideration on acquisition of Grand Hotel Timeo and Villa Sant’Andrea | 1,219 | 1,186 | |||||
Total other liabilities | 19,225 | 21,511 | |||||
Pensions_Tables
Pensions (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Schedule of components of net periodic pension benefit cost | ' | ||||||||||||
Components of net periodic pension benefit cost are as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Service cost | — | — | — | — | |||||||||
Interest cost on projected benefit obligation | 297 | 288 | 888 | 862 | |||||||||
Expected return on assets | (230 | ) | (211 | ) | (686 | ) | (632 | ) | |||||
Net amortization and deferrals | 231 | 224 | 689 | 671 | |||||||||
Net periodic benefit cost | 298 | 301 | 891 | 901 | |||||||||
Supplemental_cash_flow_informa1
Supplemental cash flow information (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||
Schedule of supplemental cash flow information | ' | ||||||
Nine months ended | |||||||
September 30, | September 30, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Cash paid during the period for: | |||||||
Interest | 19,448 | 21,674 | |||||
Income taxes, net of refunds | 13,336 | 19,441 | |||||
Restricted_cash_Tables
Restricted cash (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||
Major balances in restricted cash | ' | ||||||
The major balances in restricted cash are as follows: | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
$’000 | $’000 | ||||||
Cash deposits required to be held with lending banks for the duration of the debt to support OEH’s payment of interest and principal | 14,288 | 16,013 | |||||
Escrow deposits and other restricted cash at Porto Cupecoy | 347 | 4,079 | |||||
Prepaid customer deposits which will be released to OEH under its revenue recognition policy | 1,418 | 788 | |||||
Security required under the European Union Package Travel Directive | 206 | 200 | |||||
Total restricted cash | 16,259 | 21,080 | |||||
Sharebased_compensation_plans_
Share-based compensation plans (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Schedule of assumptions used to estimate fair value | ' | ||||||
Share Options | Deferred shares without performance criteria | ||||||
Expected share price volatility | 60% | 50% | |||||
Risk-free interest rate | 1.74% | 0.57% | |||||
Expected dividends per share | $— | $— | |||||
Expected life of awards | 8 years | 3 years | |||||
Deferred shares without performance criteria | |||||||
Expected share price volatility | 51% | ||||||
Risk-free interest rate | 0.06% | ||||||
Expected dividends per share | $— | ||||||
Expected life of awards | 3 months | ||||||
Deferred shares without performance criteria | Deferred shares with performance criteria | ||||||
Expected share price volatility | 51% | 52% | |||||
Risk-free interest rate | 0.38% | 0.39% | |||||
Expected dividends per share | $— | $— | |||||
Expected life of awards | 3 years | 3 years | |||||
Share options | Deferred shares without performance criteria | Deferred shares with performance criteria | |||||
Expected share price volatility | 60% | 51% | 52% | ||||
Risk-free interest rate | 1.30% | 0.26% | 0.26% | ||||
Expected dividends per share | $— | $— | $— | ||||
Expected life of awards | 8 years | 2 years | 2 years | ||||
Deferred shares without performance criteria | |||||||
Expected share price volatility | 48% | ||||||
Risk-free interest rate | 0.67% | ||||||
Expected dividends per share | $— | ||||||
Expected life of awards | 3 years | ||||||
Deferred shares without performance criteria | Restricted shares without performance criteria | Restricted shares without performance criteria | |||||
Expected share price volatility | 50% | 50% | 43% | ||||
Risk-free interest rate | 0.57% | 0.57% | 0.13% | ||||
Expected dividends per share | $— | $— | $— | ||||
Expected life of awards | 3 years | 3 years | 1 year |
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of future rental payments under operating leases | ' | |||
Future rental payments as at September 30, 2013 under operating leases in respect of equipment rentals and leased premises are payable as follows: | ||||
$’000 | ||||
Remainder of 2013 | 2,445 | |||
2014 | 9,505 | |||
2015 | 9,425 | |||
2016 | 9,270 | |||
2017 | 9,267 | |||
2018 | 8,464 | |||
2019 and thereafter | 67,065 | |||
Future rental payments under operating leases | 115,441 | |||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of assets and liabilities measured on a recurring basis | ' | |||||||||||||||
The following tables summarize the valuation of OEH’s financial instruments recorded at fair value by the fair value hierarchy at September 30, 2013 and December 31, 2012: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
30-Sep-13 | $’000 | $’000 | $’000 | $’000 | ||||||||||||
Assets at fair value: | ||||||||||||||||
Derivative financial instruments | — | 8 | — | 8 | ||||||||||||
Total assets | — | 8 | — | 8 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||
Derivative financial instruments | — | (5,556 | ) | — | (5,556 | ) | ||||||||||
Total net liabilities | — | (5,548 | ) | — | (5,548 | ) | ||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-12 | $’000 | $’000 | $’000 | $’000 | ||||||||||||
Assets at fair value: | ||||||||||||||||
Derivative financial instruments | — | 6 | — | 6 | ||||||||||||
Total assets | — | 6 | — | 6 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||
Derivative financial instruments | — | (8,879 | ) | — | (8,879 | ) | ||||||||||
Total net liabilities | — | (8,873 | ) | — | (8,873 | ) | ||||||||||
Schedule of estimated fair values of financial instruments (other than derivative financial instruments) | ' | |||||||||||||||
The estimated carrying values, fair values, and levels of the fair value hierarchy of OEH's long-term debt as of September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | |||||||||||||||
Carrying | Fair value | Carrying | Fair value | |||||||||||||
amounts | $’000 | amounts | $’000 | |||||||||||||
$’000 | $’000 | |||||||||||||||
Long-term debt, including current portion, excluding obligations under capital leases | Level 3 | 546,096 | 560,454 | 521,494 | 533,783 | |||||||||||
Long-term debt, including current portion, held by consolidated variable interest entities | Level 3 | 96,600 | 96,642 | 97,945 | 99,656 | |||||||||||
Schedule of estimated fair values of non-financial assets measured on non-recurring basis | ' | |||||||||||||||
The estimated fair value of OEH’s non-financial assets measured on a non-recurring basis for the nine months ended September 30, 2013 was as follows: | ||||||||||||||||
Fair value measurement inputs | ||||||||||||||||
Fair value | Level 2 | Total losses | ||||||||||||||
$’000 | Level 1 | $’000 | Level 3 | in the nine | ||||||||||||
$’000 | $’000 | months ended | ||||||||||||||
September 30, | ||||||||||||||||
2013 | ||||||||||||||||
$’000 | ||||||||||||||||
Property, plant and equipment | 45,000 | — | — | 45,000 | (35,680 | ) | ||||||||||
Derivatives_and_hedging_activi1
Derivatives and hedging activities (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Schedule of notional amounts of outstanding interest rate derivatives that were designated as cash flow hedges | ' | ||||||||||||
As of September 30, 2013 and December 31, 2012, OEH had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: | |||||||||||||
September 30, | December 31, | ||||||||||||
2013 | 2012 | ||||||||||||
’000 | ’000 | ||||||||||||
Interest Rate Swaps | € | 138,625 | € | 142,094 | |||||||||
Interest Rate Swaps | $ | 69,650 | $ | 104,259 | |||||||||
Schedule of fair value of derivative financial instruments | ' | ||||||||||||
The table below presents the fair value of OEH’s derivative financial instruments and their classification as of September 30, 2013 and December 31, 2012: | |||||||||||||
Liability derivatives | |||||||||||||
Fair value as of | Fair value as of | ||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||
Balance sheet location | $’000 | $’000 | |||||||||||
Derivatives designated in a cash flow hedging relationship: | |||||||||||||
Interest Rate Swaps | Accrued liabilities | (3,208 | ) | (3,858 | ) | ||||||||
Interest Rate Swaps | Other liabilities | (2,348 | ) | (5,021 | ) | ||||||||
Total | (5,556 | ) | (8,879 | ) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Interest Rate Options | Other assets | 8 | 6 | ||||||||||
Interest Rate Swaps | Accrued liabilities | — | — | ||||||||||
Interest Rate Swaps | Other liabilities | — | — | ||||||||||
Total | 8 | 6 | |||||||||||
Schedule of effect of derivative financial instruments on the statements of consolidated operations and statements of consolidated comprehensive income | ' | ||||||||||||
Derivative movements not included in other comprehensive income for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives | — | (65 | ) | 37 | (218 | ) | |||||||
Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments | (35 | ) | (17 | ) | (64 | ) | (50 | ) |
Accumulated_other_comprehensiv1
Accumulated other comprehensive income/loss (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of changes in accumulated other comprehensive income/(loss) by component (net of tax) | ' | ||||||||||||
Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) are as follows: | |||||||||||||
Foreign currency translation adjustments | Derivative financial instruments | Pension liability | Total | ||||||||||
Nine months ended September 30, 2013 | $’000 | $’000 | $’000 | $’000 | |||||||||
Balance at January 1, 2013 | (67,135 | ) | (5,976 | ) | (13,270 | ) | (86,381 | ) | |||||
Other comprehensive income/(loss) before reclassifications | (12,500 | ) | (566 | ) | (249 | ) | (13,315 | ) | |||||
Amounts reclassified from AOCI | — | 2,696 | — | 2,696 | |||||||||
Net current period other comprehensive income/(loss) | (12,500 | ) | 2,130 | (249 | ) | (10,619 | ) | ||||||
Balance at September 30, 2013 | (79,635 | ) | (3,846 | ) | (13,519 | ) | (97,000 | ) | |||||
Schedule of reclassification out of accumulated other comprehensive income/(loss) | ' | ||||||||||||
Reclassifications out of AOCI (net of tax) are as follows: | |||||||||||||
Amount reclassified from AOCI | |||||||||||||
Three months ended | |||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||
Details about AOCI components | $’000 | $’000 | Affected line item in the statement of operations | ||||||||||
Derivative financial instruments: | |||||||||||||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | 912 | 3,126 | Interest expense | ||||||||||
Total reclassifications for the period | 912 | 3,126 | |||||||||||
Amount reclassified from AOCI | |||||||||||||
Nine months ended | |||||||||||||
30-Sep-13 | 30-Sep-12 | ||||||||||||
Details about AOCI components | $’000 | $’000 | Affected line item in the statement of operations | ||||||||||
Derivative financial instruments: | |||||||||||||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | 2,696 | 5,126 | Interest Expense | ||||||||||
Total reclassifications for the period | 2,696 | 5,126 | |||||||||||
Segment_information_Tables
Segment information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Reconciliation of revenue from segments to consolidated | ' | ||||||||||||
The following tables present revenues, adjusted earnings by segment, earnings from unconsolidated companies and capital expenditure for OEH’s reportable segments. | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue: | $’000 | $’000 | $’000 | $’000 | |||||||||
Owned hotels - Europe | 97,331 | 83,560 | 188,568 | 170,198 | |||||||||
- North America | 29,957 | 21,659 | 96,729 | 80,719 | |||||||||
- Rest of World | 31,937 | 25,890 | 106,174 | 98,306 | |||||||||
Hotel management/part ownership interests | 1,562 | 1,395 | 4,332 | 4,073 | |||||||||
Restaurants | 2,956 | 2,078 | 11,183 | 9,886 | |||||||||
Hotels and restaurants | 163,743 | 134,582 | 406,986 | 363,182 | |||||||||
Tourist trains and cruises | 23,446 | 23,262 | 56,123 | 55,698 | |||||||||
Real estate | — | 650 | — | 650 | |||||||||
Total revenue | 187,189 | 158,494 | 463,109 | 419,530 | |||||||||
Reconciliation of adjusted earnings by segment to net earnings/losses | ' | ||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Adjusted earnings by segment: | $’000 | $’000 | $’000 | $’000 | |||||||||
Owned hotels - Europe | 43,103 | 34,517 | 63,281 | 53,720 | |||||||||
- North America | 3,481 | 1,813 | 17,156 | 15,899 | |||||||||
- Rest of World | 6,828 | 4,240 | 25,040 | 23,108 | |||||||||
Hotel management/part ownership interests | 1,506 | 809 | 1,297 | 1,701 | |||||||||
Restaurants | (603 | ) | (642 | ) | 256 | 181 | |||||||
Hotels and restaurants | 54,315 | 40,737 | 107,030 | 94,609 | |||||||||
Tourist trains and cruises | 7,834 | 8,047 | 14,580 | 15,736 | |||||||||
Real estate | — | (612 | ) | — | (612 | ) | |||||||
Reconciliation to net earnings/(losses): | |||||||||||||
Total adjusted earnings by segment | 62,149 | 48,172 | 121,610 | 109,733 | |||||||||
Impairment of property, plant and equipment | — | — | (35,680 | ) | — | ||||||||
Central overheads | (9,464 | ) | (8,184 | ) | (29,387 | ) | (27,833 | ) | |||||
Depreciation and amortization | (10,702 | ) | (10,545 | ) | (34,514 | ) | (31,580 | ) | |||||
Interest income | 241 | 210 | 763 | 851 | |||||||||
Interest expense | (8,878 | ) | (9,148 | ) | (24,474 | ) | (23,407 | ) | |||||
Foreign currency, net | (2,480 | ) | (57 | ) | 528 | (655 | ) | ||||||
Benefit/(provision) for income taxes | (11,767 | ) | (6,590 | ) | (9,635 | ) | (13,316 | ) | |||||
Share of benefit from/(provision for) income taxes of unconsolidated companies | (1,928 | ) | (761 | ) | (904 | ) | (1,748 | ) | |||||
Earnings/(losses) from continuing operations | 17,171 | 13,097 | (11,693 | ) | 12,045 | ||||||||
Earnings/(losses) from discontinued operations | (1,046 | ) | 4,585 | (1,851 | ) | 3,528 | |||||||
Net earnings/(losses) | 16,125 | 17,682 | (13,544 | ) | 15,573 | ||||||||
Reconciliation of other significant reconciling items from segments to consolidated | ' | ||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Earnings from unconsolidated companies, net of tax: | $’000 | $’000 | $’000 | $’000 | |||||||||
Hotels and restaurants | |||||||||||||
Hotel management/part ownership interests | (485 | ) | (1,880 | ) | (1,485 | ) | (596 | ) | |||||
Tourist trains and cruises | 2,548 | 3,639 | 6,181 | 4,658 | |||||||||
Total earnings from unconsolidated companies, net of tax | 2,063 | 1,759 | 4,696 | 4,062 | |||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Capital expenditure: | $’000 | $’000 | $’000 | $’000 | |||||||||
Owned hotels - Europe | 2,076 | 3,741 | 8,517 | 15,755 | |||||||||
- North America | 8,237 | 10,810 | 29,539 | 33,327 | |||||||||
- Rest of World | 2,080 | 8,291 | 9,398 | 14,840 | |||||||||
Restaurants | 78 | 1,040 | 197 | 1,478 | |||||||||
Hotels and restaurants | 12,471 | 23,882 | 47,651 | 65,400 | |||||||||
Tourist trains and cruises | 1,539 | 487 | 4,612 | 2,940 | |||||||||
Unallocated corporate | 41 | 72 | 190 | 609 | |||||||||
Total capital expenditure | 14,051 | 24,441 | 52,453 | 68,949 | |||||||||
Schedule of financial information regarding geographic areas based on the location of properties | ' | ||||||||||||
Financial information regarding geographic areas based on the location of properties is as follows: | |||||||||||||
Three months ended | Nine months ended | ||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Revenue: | $’000 | $’000 | $’000 | $’000 | |||||||||
Europe | 118,199 | 105,027 | 235,869 | 220,700 | |||||||||
North America | 32,913 | 24,387 | 107,912 | 91,255 | |||||||||
Rest of World | 36,077 | 29,080 | 119,328 | 107,575 | |||||||||
Total revenue | 187,189 | 158,494 | 463,109 | 419,530 | |||||||||
Basis_of_financial_statement_p2
Basis of financial statement presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
hotel | hotel | ||||
canalboat | canalboat | ||||
train | train | ||||
restaurant | restaurant | ||||
Business | Business | ||||
ship | ship | ||||
Accounting Policies [Abstract] | ' | ' | ' | ' | |
Number of hotels and resorts owned, invested in or managed | 35 | ' | 35 | ' | |
Number of restaurants | 1 | ' | 1 | ' | |
Number of tourist trains | 6 | ' | 6 | ' | |
Number of river cruise ship businesses | 2 | ' | 2 | ' | |
Number of canal boat businesses | 1 | ' | 1 | ' | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ' | ' | ' | ' | |
Restatement of discontinued operations to included additional gain | ($1,046) | $4,585 | ($1,851) | $3,528 | [1],[2] |
Reclassification from costs of sales into selling, general and administrative expenses | 58,055 | 50,676 | 170,454 | 154,876 | [1] |
Reclassification of debt issuance costs from operating activities to investing activities | ' | ' | 2,664 | 2,726 | [2] |
Debt repaid by a third party, previously considered non-cash, included as net cash provided by investing activities from discontinued operations and net cash used in financing activities from continuing operations | ' | ' | 18,989 | 64,319 | [2] |
Income Statement Reclassification [Member] | Restatement Adjustment [Member] | ' | ' | ' | ' | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ' | ' | ' | ' | |
Restatement of discontinued operations to included additional gain | ' | ' | ' | 1,613 | |
Reclassification from costs of sales into selling, general and administrative expenses | ' | 1,086 | ' | 3,481 | |
Cash Flow Reclassification [Member] | Restatement Adjustment [Member] | ' | ' | ' | ' | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ' | ' | ' | ' | |
Reclassification of debt issuance costs from operating activities to investing activities | ' | ' | ' | 2,726 | |
Debt repaid by a third party, previously considered non-cash, included as net cash provided by investing activities from discontinued operations and net cash used in financing activities from continuing operations | ' | ' | ' | $10,000 | |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | ||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Calculation_of_basic_and_dilut
Calculation of basic and diluted earnings per share (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Numerator ($'000) | ' | ' | ' | ' | |
Net earnings/(losses) from continuing operations | $17,171 | $13,097 | ($11,693) | $12,045 | [1],[2] |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | -1,046 | 4,585 | -1,851 | 3,528 | [1],[2] |
Net losses/(earnings) attributable to non-controlling interests | 15 | 43 | -68 | -132 | [1] |
Net earnings/(losses) attributable to Orient-Express Hotels Ltd. | $16,140 | $17,725 | ($13,612) | $15,441 | [1] |
Denominator (shares '000) | ' | ' | ' | ' | |
Basic weighted average shares outstanding (in shares) | 103,337 | 102,893 | 103,138 | 102,833 | |
Effect of dilution (in shares) | 2,236 | 2,784 | 0 | 2,327 | |
Diluted weighted average shares outstanding (in shares) | 105,573 | 105,677 | 103,138 | 105,160 | |
Basic earnings per share | ' | ' | ' | ' | |
Net earnings/(losses) from continuing operations (in dollars per share) | $0.17 | $0.13 | ($0.11) | $0.12 | [1] |
Net earnings/(losses) from discontinued operations (in dollars per share) | ($0.01) | $0.05 | ($0.02) | $0.03 | [1] |
Net losses/(earnings) attributable to non-controlling interests (in dollars per share) | $0 | $0 | ($0.00) | ($0.00) | |
Basic net earnings/(losses) per share attributable to Orient-Express Hotels Ltd. (in dollars per share) | $0.16 | $0.17 | ($0.13) | $0.15 | [1] |
Diluted earnings per share | ' | ' | ' | ' | |
Net earnings/(losses) from continuing operations (in dollars per share) | $0.16 | $0.12 | ($0.11) | $0.12 | [1] |
Net earnings/(losses) from discontinued operations (in dollars per share) | ($0.01) | $0.04 | ($0.02) | $0.03 | [1] |
Net losses/(earnings) attributable to non-controlling interests (in dollars per share) | $0 | $0 | ($0.00) | ($0.00) | |
Diluted net earnings/(losses) per share attributable to Orient-Express Hotels Ltd. (in dollars per share) | $0.15 | $0.17 | ($0.13) | $0.15 | [1] |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | ||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Securities_excluded_from_the_c
Securities excluded from the computation of diluted earnings per share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 208,600 | 1,241,150 | 4,612,277 | 1,241,150 |
Number of share options and share-based awards unexercised (in shares) | 4,612,277 | 4,025,349 | 4,612,277 | 4,025,349 |
Share options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 208,600 | 1,241,150 | 3,130,450 | 1,241,150 |
Share-based awards | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Number of share options and share-based awards excluded from computation of earnings per share (in shares) | 0 | 0 | 1,481,827 | 0 |
Summary_of_net_assets_sold_and
Summary of net assets sold and the gain/loss recorded on sale (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Aug. 08, 2012 | Aug. 08, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 01, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Jan. 23, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | The Observatory Hotel | The Observatory Hotel | The Observatory Hotel | The Observatory Hotel | The Observatory Hotel | Bora Bora Lagoon Resort | Bora Bora Lagoon Resort | Bora Bora Lagoon Resort | Bora Bora Lagoon Resort | Keswick Hall | Keswick Hall | Keswick Hall | Keswick Hall | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | AUD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||
Net assets sold and gain on sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | $38 | $0 | ' | $0 | ' | $38 | $48,096 | ' | ' | ' | ' | $15,827 | ' | ' | ' | $18,590 | ' | ' | ' |
Real estate assets | ' | ' | ' | ' | 18,512 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' |
Net working capital (deficit)/surplus | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -299 | ' | ' | ' | ' | -720 | ' | ' | ' | 401 | ' | ' | ' |
Other assets/(liabilities) | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | -1,891 | ' | ' | ' |
Deferred income taxes | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' |
Net assets | ' | ' | ' | ' | 18,550 | ' | ' | ' | ' | ' | 47,797 | ' | ' | ' | ' | 15,107 | ' | ' | ' | 17,100 | ' | ' | ' |
Transfer of foreign currency translation loss/(gain) | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -12,147 | ' | ' | ' | ' | -13,074 | ' | ' | ' | 0 | ' | ' | ' |
Net assets after adjustments | ' | ' | ' | ' | 18,550 | ' | ' | ' | ' | ' | 35,650 | ' | ' | ' | ' | 2,033 | ' | ' | ' | 17,100 | ' | ' | ' |
Consideration: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration received on sale of hotel | ' | ' | ' | ' | 19,000 | ' | ' | ' | ' | ' | 30,895 | 29,350 | ' | ' | ' | 3,000 | ' | ' | ' | 12,000 | ' | ' | ' |
Reduction in debt facility on sale of hotel | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 11,211 | 10,650 | ' | ' | ' | 0 | ' | ' | ' | 10,000 | ' | ' | ' |
Less: Working capital adjustment | ' | ' | ' | ' | -11 | ' | ' | ' | ' | ' | -447 | ' | ' | ' | ' | 0 | ' | ' | ' | -430 | ' | ' | ' |
Less: Costs to sell | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | -650 | ' | -8 | ' | ' | -305 | -28 | ' | ' | -513 | ' | ' | ' |
Net Proceeds from Divestiture of Businesses | ' | ' | ' | ' | 18,989 | ' | ' | ' | ' | ' | 41,009 | ' | ' | ' | ' | 2,695 | ' | ' | ' | 21,057 | ' | ' | ' |
Gain on sale | $0 | $5,349 | $439 | $10,014 | $439 | $0 | $0 | $439 | $0 | ' | $5,359 | ' | ' | $5,367 | $5,367 | $662 | ' | ($18) | $690 | $3,957 | $0 | $0 | $3,957 |
Summarized_operating_results_f
Summarized operating results for discontinued operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 08, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Jan. 23, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 01, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | |
Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | The Westcliff | The Westcliff | The Westcliff | The Observatory Hotel | The Observatory Hotel | The Observatory Hotel | Keswick Hall | Keswick Hall | Keswick Hall | Keswick Hall | Bora Bora Lagoon Resort | Bora Bora Lagoon Resort | Bora Bora Lagoon Resort | ||||||
Operating results | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenue | $692 | $5,074 | $1,535 | $21,043 | ' | $692 | $1,481 | $1,535 | $4,514 | $2,404 | $0 | $6,929 | ' | $1,204 | $9,188 | ' | $0 | ($15) | $412 | ' | $0 | $0 | |
Earnings/(losses) before tax, gain on sale and impairment | -1,694 | -1,190 | -3,283 | -6,229 | ' | -1,694 | -1,040 | -3,283 | -4,078 | 192 | 0 | -27 | ' | -406 | -1,034 | ' | 0 | 92 | -924 | ' | -28 | -166 | |
Impairment | 0 | 0 | -77 | 0 | ' | 0 | 0 | -77 | 0 | 0 | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | 0 | ' | 0 | 0 | |
Gain/(Loss) on sale | 0 | 5,349 | 439 | 10,014 | 439 | 0 | 0 | 439 | 0 | 0 | 0 | 0 | 5,359 | 5,367 | 5,367 | 3,957 | 0 | 0 | 3,957 | 662 | -18 | 690 | |
Earnings/(losses) before tax | -1,694 | 4,159 | -2,921 | 3,785 | ' | -1,694 | -1,040 | -2,921 | -4,078 | 192 | 0 | -27 | ' | 4,961 | 4,333 | ' | 0 | 92 | 3,033 | ' | -46 | 524 | |
Tax benefit | 648 | 426 | 1,070 | -257 | ' | 0 | 0 | 0 | 0 | 0 | 422 | 0 | ' | 426 | 426 | ' | 648 | 0 | -683 | ' | 0 | 0 | |
Net earnings/(losses) from discontinued operations | ($1,046) | $4,585 | ($1,851) | $3,528 | [1],[2] | ' | ($1,694) | ($1,040) | ($2,921) | ($4,078) | $192 | $422 | ($27) | ' | $5,387 | $4,759 | ' | $648 | $92 | $2,350 | ' | ($46) | $524 |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | ||||||||||||||||||||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Assets_and_liabilities_of_prop
Assets and liabilities of properties classified as held for sale (Details) (USD $) | Sep. 30, 2013 | Jan. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets and liabilities | ' | ' | ' |
Total assets held for sale | $720 | ' | $22,078 |
Total liabilities held for sale | 0 | ' | -2,174 |
Porto Cupecoy | ' | ' | ' |
Assets and liabilities | ' | ' | ' |
Current assets | 0 | ' | 0 |
Real estate assets | 720 | ' | 22,040 |
Property, plant and equipment | 0 | 38 | 38 |
Total assets held for sale | 720 | ' | 22,078 |
Current liabilities | 0 | ' | -2,174 |
Total liabilities held for sale | $0 | ' | ($2,174) |
Assets_held_for_sale_and_disco2
Assets held for sale and discontinued operations (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 08, 2012 | Aug. 08, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 01, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Jan. 23, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 |
USD ($) | USD ($) | USD ($) | USD ($) | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | The Observatory Hotel | The Observatory Hotel | The Observatory Hotel | The Observatory Hotel | Bora Bora Lagoon Resort | Bora Bora Lagoon Resort | Bora Bora Lagoon Resort | Keswick Hall | Keswick Hall | Keswick Hall | Keswick Hall | |
property | property | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | AUD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||
Condominium | Condominium | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties classified as held for sale | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of condominiums held for sale | ' | ' | ' | ' | ' | 1 | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration received on sale of hotel | ' | ' | ' | ' | $19,000 | ' | ' | ' | ' | $30,895 | 29,350 | ' | ' | $3,000 | ' | ' | $12,000 | ' | ' | ' |
Gain on sale of hotel | 0 | 5,349 | 439 | 10,014 | 439 | 0 | 0 | 439 | 0 | 5,359 | ' | 5,367 | 5,367 | 662 | -18 | 690 | 3,957 | 0 | 0 | 3,957 |
Transfer of foreign currency translation amounts from accumulated other comprehensive income/loss | ' | ' | ' | ' | 0 | ' | ' | ' | ' | -12,147 | ' | ' | ' | -13,074 | ' | ' | 0 | ' | ' | ' |
Gross proceeds from divestiture of businesses, including reduction in debt facility on sale of asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,106 | 40,000 | ' | ' | ' | ' | ' | 22,000 | ' | ' | ' |
Reduction in debt facility on sale of hotel | ' | ' | ' | ' | $0 | ' | ' | ' | ' | $11,211 | 10,650 | ' | ' | $0 | ' | ' | $10,000 | ' | ' | ' |
Carrying_amounts_of_consolidat
Carrying amounts of consolidated assets and liabilities of Charleston Center LLC (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Current assets | $284,773 | $255,996 |
Property, plant and equipment | 186,543 | 183,793 |
Goodwill | 159,601 | 161,278 |
Other assets | 60,320 | 41,825 |
Total assets | 1,918,534 | 1,892,027 |
Current liabilities | 356,272 | 227,304 |
Long-term accrued interest on subordinated debt | 15,190 | 14,740 |
Deferred income taxes of consolidated variable interest entities | 59,765 | 60,326 |
Total liabilities | 997,821 | 953,704 |
Current portion of long-term debt of consolidated variable interest entities | 1,751 | 1,795 |
Variable Interest Entity, Primary Beneficiary | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Third-party debt, including $1,751 and $1,795 current portion | 96,600 | 97,945 |
Charleston Center LLC | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Property, plant and equipment | 186,543 | 183,793 |
Charleston Center LLC | Variable Interest Entity, Primary Beneficiary | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Current assets | 11,777 | 18,511 |
Property, plant and equipment | 186,543 | 183,793 |
Goodwill | 40,395 | 40,395 |
Other assets | 1,827 | 2,114 |
Total assets | 240,542 | 244,813 |
Current liabilities | 7,877 | 6,382 |
Third-party debt, including $1,751 and $1,795 current portion | 96,600 | 97,945 |
Long-term accrued interest on subordinated debt | 15,190 | 14,740 |
Deferred income taxes of consolidated variable interest entities | 59,765 | 60,326 |
Total liabilities | 179,432 | 179,393 |
Net assets (before amounts payable to OEH of $92,062 and $90,807) | 61,110 | 65,420 |
Amounts payable to OEH | 92,062 | 90,807 |
Current portion of long-term debt of consolidated variable interest entities | $1,751 | $1,795 |
Carrying_amounts_and_maximum_e
Carrying amounts and maximum exposure to loss for Peru rail joint venture (Details) (Variable Interest Entity, Not Primary Beneficiary, Peruvian Rail Joint Venture, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net | $42,358 | $37,776 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 64,169 | 62,483 |
Investment | ' | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 36,677 | 32,973 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 36,677 | 32,973 |
Due from unconsolidated company | ' | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 5,681 | 4,803 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 5,681 | 4,803 |
Guarantees | ' | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 0 | 0 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 6,343 | 7,558 |
Contingent guarantees | ' | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities | 0 | 0 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $15,468 | $17,149 |
Variable_interest_entities_Det
Variable interest entities (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Variable Interest Entity, Not Primary Beneficiary | Peruvian Rail Joint Venture | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' |
Ownership percentage in variable interest entity | 50.00% |
Guarantor obligations, triggering event, ownership percentage falls below 50% | 50.00% |
Long-term debt default amount classified in current liabilities | $6,343 |
Variable Interest Entity, Not Primary Beneficiary | Financial Guarantee Additional Debt 2016 | Peruvian Rail Joint Venture | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' |
Guarantor obligations, maximum exposure | 6,343 |
Variable Interest Entity, Not Primary Beneficiary | Contingent Financial Guarantee Debt 2016 | Peruvian Rail Joint Venture | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' |
Guarantor obligations, maximum exposure | 8,492 |
Variable Interest Entity, Not Primary Beneficiary | Guarantee of Governmental Concession | Peruvian Rail Joint Venture | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' |
Guarantor obligations, maximum exposure | $6,976 |
Charleston Center LLC | Variable Interest Entity, Primary Beneficiary | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' |
Ownership percentage in variable interest entity | 19.90% |
Summarized_financial_data_for_
Summarized financial data for investments in unconsolidated companies (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Summarized financial data for OEH's unconsolidated companies | ' | ' | ' | ' | ' | ||||
Current assets | $63,958 | ' | $63,958 | ' | $75,339 | ||||
Property, plant and equipment, net | 358,623 | ' | 358,623 | ' | 354,640 | ||||
Other assets | 3,838 | ' | 3,838 | ' | 3,806 | ||||
Non-current assets | 362,461 | ' | 362,461 | ' | 358,446 | ||||
Total assets | 426,419 | ' | 426,419 | ' | 433,785 | ||||
Current liabilities | 151,178 | ' | 151,178 | ' | 165,413 | ||||
Long-term debt | 38,889 | ' | 38,889 | ' | 45,985 | ||||
Other liabilities | 125,474 | ' | 125,474 | ' | 115,763 | ||||
Non-current liabilities | 164,363 | ' | 164,363 | ' | 161,748 | ||||
Total shareholdersb equity | 110,878 | ' | 110,878 | ' | 106,624 | ||||
Total liabilities and shareholdersb equity | 426,419 | ' | 426,419 | ' | 433,785 | ||||
Revenue | 45,484 | 41,635 | 125,091 | 115,498 | ' | ||||
Gross profit | 21,929 | [1] | 25,495 | [1] | 66,770 | [1] | 64,835 | [1] | ' |
Net earnings | $3,763 | [2] | $3,202 | [2] | $9,259 | [2] | $7,881 | [2] | ' |
[1] | Gross profit is defined as revenues less cost of services of the unconsolidated companies. | ||||||||
[2] | There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies. |
Investments_in_unconsolidated_2
Investments in unconsolidated companies (Details) (USD $) | Sep. 30, 2013 | Jun. 30, 2007 |
In Thousands, unless otherwise specified | ||
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Number of hotels operated by joint venture | 35 | ' |
Buzios land joint venture | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in cost method investment | 50.00% | 50.00% |
Cash consideration paid | ' | $5,000 |
Maximum | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' |
Peruvian Rail Joint Venture | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' |
Peruvian Hotel Joint Venture | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' |
Number of hotels operated by joint venture | 4 | ' |
Peruvian hotel and rail joint ventures | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' |
Hotel Ritz, Madrid | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' |
Eastern and Oriental Express Ltd. | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 25.00% | ' |
Guarantees | Peruvian hotel and rail joint ventures | Minimum | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' |
Guarantees | Hotel Ritz, Madrid | Debt | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Guarantor obligations, maximum exposure | 10,153 | ' |
Guarantees | Hotel Ritz, Madrid | Working Capital Loan Facility | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Guarantor obligations, maximum exposure | 674 | ' |
Contingent Financial Guarantee Additional Debt 2018 | Peruvian Hotel Joint Venture | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Guarantor obligations, maximum exposure | 17,775 | ' |
Contingent Financial Guarantee Additional Debt 2014 | Peruvian Hotel Joint Venture | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Guarantor obligations, maximum exposure | 1,353 | ' |
First Mortgage Loan Facility | Hotel Ritz, Madrid | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Long-term debt default amount classified in current liabilities | 81,901 | ' |
Major_classes_of_property_plan
Major classes of property, plant and equipment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | $1,476,816 | $1,472,502 |
Less: Accumulated depreciation | -328,835 | -300,899 |
Total property, plant and equipment, net | 1,147,981 | 1,171,603 |
Land and buildings | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 1,027,016 | 1,054,171 |
Machinery and equipment | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 207,990 | 193,941 |
Fixtures, fittings and office equipment | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 223,261 | 206,135 |
River cruise ship and canal boats | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | $18,549 | $18,255 |
Major_classes_of_assets_under_
Major classes of assets under capital leases (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets under capital leases | ' | ' |
Assets under capital leases, gross | $997 | $1,021 |
Less: Accumulated depreciation | -884 | -829 |
Total assets under capital leases | 113 | 192 |
Land and buildings | ' | ' |
Assets under capital leases | ' | ' |
Assets under capital leases, gross | 0 | 0 |
Machinery and equipment | ' | ' |
Assets under capital leases | ' | ' |
Assets under capital leases, gross | 891 | 918 |
Fixtures, fittings and office equipment | ' | ' |
Assets under capital leases | ' | ' |
Assets under capital leases, gross | $106 | $103 |
Property_plant_and_equipment_D
Property, plant and equipment (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
La Samanna | Charleston Center LLC | Charleston Center LLC | ||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | $10,614,000 | $10,421,000 | $34,198,000 | $31,212,000 | ' | ' | ' | ' |
Property, plant and equipment of consolidated variable interest entities | 186,543,000 | ' | 186,543,000 | ' | 183,793,000 | ' | 186,543,000 | 183,793,000 |
Property, plant and equipment impairment charge | 0 | 0 | 35,680,000 | 0 | ' | 35,680,000 | ' | ' |
Interest costs capitalized | $0 | $1,003,000 | $1,088,000 | $2,905,000 | ' | ' | ' | ' |
Changes_in_carrying_amount_of_
Changes in carrying amount of goodwill (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Changes in the carrying amount of goodwill | ' |
Balance at January 1, 2013 | $161,278 |
Impairment | 0 |
Foreign currency translation adjustment | -1,677 |
Balance at September 30, 2013 | 159,601 |
Hotels & restaurants | ' |
Changes in the carrying amount of goodwill | ' |
Balance at January 1, 2013 | 153,287 |
Impairment | 0 |
Foreign currency translation adjustment | -1,659 |
Balance at September 30, 2013 | 151,628 |
Trains & cruises | ' |
Changes in the carrying amount of goodwill | ' |
Balance at January 1, 2013 | 7,991 |
Impairment | 0 |
Foreign currency translation adjustment | -18 |
Balance at September 30, 2013 | $7,973 |
Goodwill_Details
Goodwill (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Goodwill and impairment of goodwill | ' | ' |
Gross amount of goodwill | ' | $192,418 |
Accumulated impairment of goodwill | ' | $31,140 |
Determination of goodwill impairment | ' | ' |
Operating cash flows forecast period assumed in goodwill impairment analysis (in years) | '5 years | ' |
Minimum period for which terminal value is included from the balance sheet date for goodwill impairment analysis (in years) | '5 years | ' |
Rollforward_of_other_intangibl
Rollforward of other intangible assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Carrying amount: | ' | ' | ' | ' | ' |
Balance at January 1, 2013 | ' | ' | $21,763 | ' | ' |
Foreign currency translation adjustment | ' | ' | -1,308 | ' | ' |
Balance at September 30, 2013 | 20,455 | ' | 20,455 | ' | ' |
Accumulated amortization: | ' | ' | ' | ' | ' |
Balance at January 1, 2013 | ' | ' | 3,155 | ' | ' |
Charge for the period | 88 | 124 | 316 | 368 | ' |
Foreign currency translation adjustment | ' | ' | -245 | ' | ' |
Balance at September 30, 2013 | 3,226 | ' | 3,226 | ' | ' |
Net book value: | ' | ' | ' | ' | ' |
Net book value | 17,229 | ' | 17,229 | ' | 18,608 |
Trade names | ' | ' | ' | ' | ' |
Carrying amount: | ' | ' | ' | ' | ' |
Balance at January 1, 2013 | ' | ' | 7,100 | ' | ' |
Foreign currency translation adjustment | ' | ' | 0 | ' | ' |
Balance at September 30, 2013 | 7,100 | ' | 7,100 | ' | ' |
Net book value: | ' | ' | ' | ' | ' |
Net book value | 7,100 | ' | 7,100 | ' | 7,100 |
Favorable lease assets | ' | ' | ' | ' | ' |
Carrying amount: | ' | ' | ' | ' | ' |
Balance at January 1, 2013 | ' | ' | 12,971 | ' | ' |
Foreign currency translation adjustment | ' | ' | -1,298 | ' | ' |
Balance at September 30, 2013 | 11,673 | ' | 11,673 | ' | ' |
Accumulated amortization: | ' | ' | ' | ' | ' |
Balance at January 1, 2013 | ' | ' | 2,248 | ' | ' |
Charge for the period | ' | ' | 215 | ' | ' |
Foreign currency translation adjustment | ' | ' | -241 | ' | ' |
Balance at September 30, 2013 | 2,222 | ' | 2,222 | ' | ' |
Net book value: | ' | ' | ' | ' | ' |
Net book value | 9,451 | ' | 9,451 | ' | 10,723 |
Internet sites | ' | ' | ' | ' | ' |
Carrying amount: | ' | ' | ' | ' | ' |
Balance at January 1, 2013 | ' | ' | 1,692 | ' | ' |
Foreign currency translation adjustment | ' | ' | -10 | ' | ' |
Balance at September 30, 2013 | 1,682 | ' | 1,682 | ' | ' |
Accumulated amortization: | ' | ' | ' | ' | ' |
Balance at January 1, 2013 | ' | ' | 907 | ' | ' |
Charge for the period | ' | ' | 101 | ' | ' |
Foreign currency translation adjustment | ' | ' | -4 | ' | ' |
Balance at September 30, 2013 | 1,004 | ' | 1,004 | ' | ' |
Net book value: | ' | ' | ' | ' | ' |
Net book value | $678 | ' | $678 | ' | $785 |
Other_intangible_assets_Detail
Other intangible assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Finite Lived Intangible Assets | ' | ' | ' | ' |
Amortization expense | $88 | $124 | $316 | $368 |
Remainder of 2013 | 105 | ' | 105 | ' |
2014 | 421 | ' | 421 | ' |
2015 | 421 | ' | 421 | ' |
2016 | 421 | ' | 421 | ' |
2017 | 421 | ' | 421 | ' |
2018 | 421 | ' | 421 | ' |
Favorable lease assets | ' | ' | ' | ' |
Finite Lived Intangible Assets | ' | ' | ' | ' |
Amortization expense | ' | ' | 215 | ' |
Favorable lease assets | Minimum | ' | ' | ' | ' |
Finite Lived Intangible Assets | ' | ' | ' | ' |
Amortization period (in years) | ' | ' | '19 years | ' |
Favorable lease assets | Maximum | ' | ' | ' | ' |
Finite Lived Intangible Assets | ' | ' | ' | ' |
Amortization period (in years) | ' | ' | '60 years | ' |
Internet sites | ' | ' | ' | ' |
Finite Lived Intangible Assets | ' | ' | ' | ' |
Amortization period (in years) | ' | ' | '10 years | ' |
Amortization expense | ' | ' | $101 | ' |
Long_term_debt_and_obligations
Long term debt and obligations under capital leases (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Minimum | Maximum | ||
Debt Instrument [Line Items] | ' | ' | ' | ' |
Loans from banks and other parties collateralized by property, plant and equipment, payable over periods of one to 20 years, with a weighted average interest rate of 4.21% and 4.14%, respectively | $546,096 | $521,494 | ' | ' |
Obligations under capital lease | 28 | 66 | ' | ' |
Total long-term debt and obligations under capital lease | 546,124 | 521,560 | ' | ' |
Less: Current portion | 194,823 | 90,115 | ' | ' |
Non-current portion of long-term debt and obligations under capital lease | $351,301 | $431,445 | ' | ' |
Weighted-average interest rate | 4.21% | 4.14% | ' | ' |
Period of debt repayment | ' | ' | '1 year | '20 years |
Long_term_debt_maturities_incl
Long term debt maturities, including obligations under capital leases (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Remainder of 2013 | $8,673 | ' |
2014 | 190,851 | ' |
2015 | 253,509 | ' |
2016 | 11,675 | ' |
2017 | 24,630 | ' |
2018 | 34,294 | ' |
2019 and thereafter | 22,492 | ' |
Total long-term debt and obligations under capital lease | $546,124 | $521,560 |
Debt_and_obligations_under_cap2
Debt and obligations under capital lease (Details) | 9 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Jul. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Aug. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 31, 2011 | Dec. 31, 2012 | Jul. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
USD ($) | USD ($) | El Encanto | El Encanto | El Encanto | Grand Hotel Europe | Inn at Perry Cabin and '21' Club | Inn at Perry Cabin and '21' Club | One Subsidiary | Tranche One Term Loan | Tranche One Term Loan | Tranche One Term Loan | Tranche One Term Loan | Tranche Two Term Loan | Tranche Two Term Loan | Tranche Two Term Loan | Tranche Two Term Loan | Tranche Two Term Loan | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Euro Interbank Offered Rate (EURIBOR) | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Grand Hotel Europe | Le Manoir aux QuatbSaisons and Reidbs Palace | Le Manoir aux QuatbSaisons and Reidbs Palace | Le Manoir aux QuatbSaisons and Reidbs Palace | Grand Hotel Europe | Grand Hotel Europe | Le Manoir aux QuatbSaisons and Reidbs Palace | Le Manoir aux QuatbSaisons and Reidbs Palace | Le Manoir aux QuatbSaisons and Reidbs Palace | El Encanto | Grand Hotel Europe | Inn at Perry Cabin and '21' Club | Tranche Two Term Loan | Tranche One Term Loan | USD ($) | USD ($) | Charleston Center LLC | Charleston Center LLC | London Interbank Offered Rate (LIBOR) | |||
option | subsidiary | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | GBP (£) | Le Manoir aux QuatbSaisons and Reidbs Palace | Le Manoir aux QuatbSaisons and Reidbs Palace | USD ($) | USD ($) | Charleston Center LLC | |||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | $45,000,000 | ' | ' | $50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $26,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed | ' | ' | ' | 40,269,000 | 25,749,000 | ' | ' | 24,000,000 | ' | 24,000,000 | ' | 20,306,000 | 15,000,000 | 2,000,000 | ' | ' | 21,030,000 | 12,981,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity term | ' | ' | '3 years | ' | ' | '5 years | '5 years | ' | ' | ' | '18 months | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of options to extend maturity | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended period of maturity | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Description of variable interest rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'EURIBOR | ' | ' | ' | ' | 'LIBOR |
Basis spread on variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.65% | 7.00% | 3.00% | 3.75% | 4.00% | ' | ' | ' | ' | 3.50% |
Working capital facilities - maximum borrowing capacity | 3,023,000 | 4,473,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Debt | ' | ' | ' | ' | ' | ' | 17,130,000 | ' | ' | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries covenant noncompliance | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt default amount classified in current liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 741,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cross-default threshold amount | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranteed debt of subsidiary | 410,098,000 | 341,078,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | 11,408,000 | 13,694,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt of consolidated VIE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 96,600,000 | 97,945,000 | 96,600,000 | 97,945,000 | ' |
Working capital facilities - remaining borrowing capacity | $3,023,000 | $4,473,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_liabilities_Details
Other liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Interest rate swaps (see Note 18) | $2,348 | $5,021 |
Long-term accrued interest on subordinated debt at Charleston Place | 15,190 | 14,740 |
Cash-settled stock appreciation rights plan | 70 | 96 |
Deferred lease incentive | 398 | 468 |
Contingent consideration on acquisition of Grand Hotel Timeo and Villa SantbAndrea | 1,219 | 1,186 |
Total other liabilities | $19,225 | $21,511 |
Components_of_net_periodic_pen
Components of net periodic pension benefit cost (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Components of net periodic pension benefit cost | ' | ' | ' | ' |
Service cost | $0 | $0 | $0 | $0 |
Interest cost on projected benefit obligation | 297 | 288 | 888 | 862 |
Expected return on assets | -230 | -211 | -686 | -632 |
Net amortization and deferrals | 231 | 224 | 689 | 671 |
Net periodic benefit cost | $298 | $301 | $891 | $901 |
Pensions_Details
Pensions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Contribution by employer | $504 | $512 | $1,503 | $1,484 |
Anticipated additional contribution by employer to plan | ' | ' | 665 | ' |
Total contributions expected by employer in current fiscal year | ' | ' | $2,168 | ' |
Income_taxes_Details
Income taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | |
Tax benefit/(expense) | $11,767 | $6,590 | $9,635 | $13,316 | [1] |
Release in uncertain tax provisions | $3,924 | ' | ' | ' | |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Supplemental_cash_flow_informa2
Supplemental cash flow information (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash paid during the period for: | ' | ' |
Interest | $19,448 | $21,674 |
Income taxes, net of refunds | 13,336 | 19,441 |
Capital expenditures incurred but not yet paid | $578 | $324 |
Major_balances_in_restricted_c
Major balances in restricted cash (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $16,259 | $21,080 |
Cash deposits required to be held with lending banks for the duration of the debt to support OEHbs payment of interest and principal | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 14,288 | 16,013 |
Escrow deposits and other restricted cash at Porto Cupecoy | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 347 | 4,079 |
Prepaid customer deposits which will be released to OEH under its revenue recognition policy | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 1,418 | 788 |
Security required under the European Union Package Travel Directive | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 206 | 200 |
Other assets | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash, long-term | $12,947 | ' |
Fair_value_assumptions_for_sha
Fair value assumptions for share-based compensation plans (Details) (2009 share award and incentive plan, USD $) | 0 Months Ended | |||||||||||
Feb. 21, 2013 | Feb. 21, 2013 | Feb. 21, 2013 | Mar. 15, 2013 | Mar. 15, 2013 | Apr. 22, 2013 | Jun. 10, 2013 | Jun. 10, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Aug. 14, 2013 | |
Class A common shares vesting in March 2015 | Class A common shares vesting in March 2015 | Class A common shares vesting in March 2015 | Class A common shares vesting in March 2016 | Class A common shares vesting in March 2016 | Class A common shares vesting in July 2013 | Class A common shares vesting on June 10, 2016 | Class A common shares vesting on June 10, 2016 | Class A common shares vesting on June 28, 2016 | Class A common shares vesting on June 28, 2016 | Class A common shares vesting on the earlier of June 28, 2014 or the day before the 2014 annual general meeting of the Company | Common Class A Vesting on 14 August 2016 | |
Share options | Deferred shares without performance criteria | Deferred shares with performance criteria | Deferred shares without performance criteria | Deferred shares with performance criteria | Deferred shares without performance criteria | Share options | Deferred shares without performance criteria | Deferred shares without performance criteria | Restricted shares without performance criteria | Restricted shares without performance criteria | Deferred shares without performance criteria | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected share price volatility | 60.00% | 51.00% | 52.00% | 51.00% | 52.00% | 51.00% | 60.00% | 50.00% | 50.00% | 50.00% | 43.00% | 48.00% |
Risk-free interest rate | 1.30% | 0.26% | 0.26% | 0.38% | 0.39% | 0.06% | 1.74% | 0.57% | 0.57% | 0.57% | 0.13% | 0.67% |
Expected dividends per share | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Expected life of awards | '8 years | '2 years | '2 years | '3 years | '3 years | '3 months | '8 years | '3 years | '3 years | '3 years | '1 year | '3 years |
Sharebased_compensation_plans_1
Share-based compensation plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Feb. 21, 2013 | Jun. 10, 2013 | Mar. 15, 2013 | Feb. 21, 2013 | Apr. 22, 2013 | Jun. 10, 2013 | Jun. 28, 2013 | Aug. 14, 2013 | Mar. 15, 2013 | Feb. 21, 2013 | Jun. 28, 2013 | Jun. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
share_based_plan | share_based_plan | 2007 stock appreciation rights plan | 2007 stock appreciation rights plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | 2009 share award and incentive plan | Maximum | Maximum | Maximum | Maximum | Maximum | |||
Stock appreciation rights (SARs) | Stock appreciation rights (SARs) | Share options | Share options | Deferred shares without performance criteria | Deferred shares without performance criteria | Deferred shares without performance criteria | Deferred shares without performance criteria | Deferred shares without performance criteria | Deferred shares without performance criteria | Deferred shares with performance criteria | Deferred shares with performance criteria | Restricted shares without performance criteria | Restricted shares without performance criteria | Stock appreciation rights (SARs) | Share options | Deferred shares without performance criteria | Deferred shares with performance criteria | Restricted shares without performance criteria | |||||
Class A common shares vesting in March 2015 | Class A common shares vesting on June 10, 2016 | Class A common shares vesting in March 2016 | Class A common shares vesting in March 2015 | Class A common shares vesting in July 2013 | Class A common shares vesting on June 10, 2016 | Class A common shares vesting on June 28, 2016 | Common Class A Vesting on 14 August 2016 | Class A common shares vesting in March 2016 | Class A common shares vesting in March 2015 | Class A common shares vesting on June 28, 2016 | Class A common shares vesting on the earlier of June 28, 2014 or the day before the 2014 annual general meeting of the Company | ||||||||||||
Share-based compensation plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of share-based compensation plans | 4 | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation cost | $2,645 | $818 | $6,531 | $4,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to unexercised stock options and unvested share awards | 13,430 | ' | 13,430 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to unexercised stock options and unvested share awards, recognition period (in months) | ' | ' | '28 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected life of awards | ' | ' | ' | ' | ' | ' | '8 years | '8 years | '3 years | '2 years | '3 months | '3 years | '3 years | '3 years | '3 years | '2 years | '3 years | '1 year | '3 years | '10 years | '3 years | '3 years | '3 years |
Fair value of liability | ' | ' | ' | ' | $70 | $96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted options (in shares) | ' | ' | ' | ' | ' | ' | 31,700 | 289,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant price (in dollars per share) | ' | ' | ' | ' | ' | ' | $9.95 | $11.74 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted deferred shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 114,000 | 6,600 | 29,370 | 34,400 | 33,200 | 40,000 | 290,400 | 24,600 | 33,200 | 12,400 | ' | ' | ' | ' | ' |
Deferred shares, purchase price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | ' | ' | ' | ' | ' |
Future_rental_payments_under_o
Future rental payments under operating leases (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Future rental payments under operating leases in respect of equipment rentals and leased premises | ' | ' | ' | ' |
Remainder of 2013 | $2,445 | ' | $2,445 | ' |
2014 | 9,505 | ' | 9,505 | ' |
2015 | 9,425 | ' | 9,425 | ' |
2016 | 9,270 | ' | 9,270 | ' |
2017 | 9,267 | ' | 9,267 | ' |
2018 | 8,464 | ' | 8,464 | ' |
2019 and thereafter | 67,065 | ' | 67,065 | ' |
Future rental payments under operating leases | 115,441 | ' | 115,441 | ' |
Rental expenses | $2,551 | $2,426 | $7,864 | $7,888 |
Commitments_and_contingencies_1
Commitments and contingencies (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 45 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 02, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 05, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jan. 10, 2010 | Jan. 10, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Infringement litigation of Cipriani | Infringement litigation of Cipriani | Copacabana Palace | Unasserted claim | Grand Hotel Timeo and Villa Sant' Andrea | Grand Hotel Timeo and Villa Sant' Andrea | Grand Hotel Timeo and Villa Sant' Andrea | Grand Hotel Timeo and Villa Sant' Andrea | Purchase of property, plant and equipment | Purchase of property, plant and equipment | Maximum | |
installment | USD ($) | USD ($) | USD ($) | Copacabana Palace | USD ($) | EUR (€) | Vendor financing | Vendor financing | USD ($) | USD ($) | Violation of certain consumer protection regulations | ||||
USD ($) | USD ($) | EUR (€) | Copacabana Palace | ||||||||||||
USD ($) | |||||||||||||||
Commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of outstanding contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,412 | $9,650 | ' |
Vendor financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,064 | 5,000 | ' | ' | ' |
Contingent consideration paid | ' | ' | ' | ' | ' | ' | ' | ' | 5,250 | 4,000 | ' | ' | ' | ' | ' |
Maximum potential fine, not accrued | ' | ' | ' | ' | ' | ' | ' | 27,000 | ' | ' | ' | ' | ' | ' | 3,600 |
Payment of accrued fine | ' | ' | ' | ' | ' | ' | 140 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount received from defendants | ' | ' | ' | ' | 3,947 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount receivable from defendants in installments | ' | ' | ' | ' | 9,833 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for receivable amount from defendants in installments (in years) | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount receivable from defendants not yet recognized | ' | ' | ' | ' | ' | 3,977 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expenses | $2,551 | $2,426 | $7,864 | $7,888 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of purchase price to be paid for purchase of Hotel Cipriani in Venice, Italy by James Sherwood on exercise of first refusal right | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of purchase price to be paid for purchase of Hotel Cipriani in Venice, Italy by James Sherwood on exercise of purchase option by non-recourse promissory note | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of installments for payment of purchase price for Hotel Cipriani in Venice Italy by James Sherwood on exercise of purchase option by non-recourse promissory note | ' | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financial_instruments_recorded
Financial instruments recorded at fair value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' |
Credit value adjustment, percentage of fair value of derivatives for Level 3 classification greater than | 20.00% | ' |
Recurring basis | ' | ' |
Assets at fair value: | ' | ' |
Derivative financial instruments | $8 | $6 |
Total assets | 8 | 6 |
Liabilities at fair value: | ' | ' |
Derivative financial instruments | -5,556 | -8,879 |
Total net liabilities | -5,548 | -8,873 |
Recurring basis | Level 1 | ' | ' |
Assets at fair value: | ' | ' |
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities at fair value: | ' | ' |
Derivative financial instruments | 0 | 0 |
Total net liabilities | 0 | 0 |
Recurring basis | Level 2 | ' | ' |
Assets at fair value: | ' | ' |
Derivative financial instruments | 8 | 6 |
Total assets | 8 | 6 |
Liabilities at fair value: | ' | ' |
Derivative financial instruments | -5,556 | -8,879 |
Total net liabilities | -5,548 | -8,873 |
Recurring basis | Level 3 | ' | ' |
Assets at fair value: | ' | ' |
Derivative financial instruments | 0 | 0 |
Total assets | 0 | 0 |
Liabilities at fair value: | ' | ' |
Derivative financial instruments | 0 | 0 |
Total net liabilities | $0 | $0 |
Fair_value_of_other_financial_
Fair value of other financial instruments not recorded at fair value (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Estimated fair values of financial instruments (other than derivative financial instruments) | ' | ' |
Carrying amount - Long-term debt, including current portion | $546,096 | $521,494 |
Variable Interest Entity, Primary Beneficiary | ' | ' |
Estimated fair values of financial instruments (other than derivative financial instruments) | ' | ' |
Variable Interest Entity, Carrying Amount Of Long-term Debt Consolidated VIE Including Current Portion | 96,600 | 97,945 |
Level 3 | ' | ' |
Estimated fair values of financial instruments (other than derivative financial instruments) | ' | ' |
Fair value - Long-term debt, including current portion | 560,454 | 533,783 |
Level 3 | Variable Interest Entity, Primary Beneficiary | ' | ' |
Estimated fair values of financial instruments (other than derivative financial instruments) | ' | ' |
Fair value - Long-term debt, including current portion | $96,642 | $99,656 |
Nonfinancial_assets_measured_a
Non-financial assets measured at fair value on a non-recurring basis (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | |
Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | Fair Value, Measurements, Nonrecurring | La Samanna | La Samanna | Carrying value prior to impairment | ||||||
Level 1 | Level 2 | Level 3 | Fair Value, Measurements, Nonrecurring | La Samanna | ||||||||
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | $45,000,000 | $0 | $0 | $45,000,000 | ' | $45,000,000 | ' |
Property, plant and equipment impairment charge | 0 | 0 | -35,680,000 | 0 | ' | ' | ' | ' | ' | -35,680,000 | ' | ' |
Property, plant and equipment, carrying value | $1,147,981,000 | ' | $1,147,981,000 | ' | $1,171,603,000 | ' | ' | ' | ' | ' | ' | $80,680,000 |
Notional_amounts_of_outstandin
Notional amounts of outstanding interest rate derivatives (Details) (Interest Rate Swaps) | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | USD ($) | EUR (€) | USD ($) | EUR (€) |
Derivatives and hedging activities | ' | ' | ' | ' |
Derivative, notional amount | $69,650 | € 138,625 | $104,259 | € 142,094 |
Fair_value_of_derivative_finan
Fair value of derivative financial instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives designated in a cash flow hedging relationship | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Total net derivative liabilities | ($5,556) | ($8,879) |
Derivatives designated in a cash flow hedging relationship | Interest Rate Swaps | Accrued liabilities | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Fair value of derivative liabilities | -3,208 | -3,858 |
Derivatives designated in a cash flow hedging relationship | Interest Rate Swaps | Other liabilities | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Fair value of derivative liabilities | -2,348 | -5,021 |
Derivatives not designated as hedges | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Total net derivative liabilities | 8 | 6 |
Derivatives not designated as hedges | Interest Rate Swaps | Accrued liabilities | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Fair value of derivative liabilities | 0 | 0 |
Derivatives not designated as hedges | Interest Rate Swaps | Other liabilities | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Fair value of derivative liabilities | 0 | 0 |
Derivatives not designated as hedges | Interest Rate Options | Other assets | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Fair value of derivative assets | $8 | $6 |
Other_comprehensive_income_and
Other comprehensive income and credit-risk-related contingent features (Details) (Interest Rate Swaps, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Rate Swaps | ' | ' | ' | ' |
Effect of derivative financial instruments on the statements of consolidated operations and statement of consolidated comprehensive income | ' | ' | ' | ' |
Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives | $0 | ($65) | $37 | ($218) |
Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments | ($35) | ($17) | ($64) | ($50) |
Derivatives_and_hedging_activi2
Derivatives and hedging activities (Details) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Net Investment Hedging [Member] | Net Investment Hedging [Member] | Interest Rate Option [Member] | Interest Rate Option [Member] | Interest Rate Option [Member] | Interest Rate Option [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | |
USD ($) | USD ($) | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | Derivatives not designated as hedges | USD ($) | EUR (€) | USD ($) | EUR (€) | ||||||
USD ($) | EUR (€) | USD ($) | EUR (€) | ||||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivative assets not designated as hedges | ' | ' | ' | ' | ' | ' | ' | $8,000 | ' | $6,000 | ' | ' | ' | ' | ' |
Derivative, notional amount | ' | ' | ' | ' | ' | ' | ' | 52,920,000 | 74,125,000 | 53,760,000 | 76,469,000 | 69,650,000 | 138,625,000 | 104,259,000 | 142,094,000 |
Amount recorded in other comprehensive income which is expected to be reclassified to interest expense in the next 12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,113,000 | ' | ' | ' |
Amounts recorded in other comprehensive income/(loss) | 0 | -571,000 | -72,000 | 249,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivatives in a net liability position | -5,556,000 | ' | -5,556,000 | ' | -8,879,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets required to settle obligations under derivatives with credit-risk-related contingent features upon breach of provisions, termination value | 5,569,000 | ' | 5,569,000 | ' | 8,946,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of non-derivative hedging instruments | ' | ' | ' | ' | ' | $0 | $44,166,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Changes_in_accumulated_other_c
Changes in accumulated other comprehensive income/(loss) by component (net of tax) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ||
Balance at January 1, 2013 | ' | ' | ($86,381) | ' | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ||
Net current period other comprehensive income/(loss) | 13,109 | -1,486 | -10,628 | [1] | -25,369 | [1] |
Balance at September 30, 2013 | -97,000 | ' | -97,000 | ' | ||
Foreign currency translation adjustments | ' | ' | ' | ' | ||
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ||
Balance at January 1, 2013 | ' | ' | -67,135 | ' | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ||
Other comprehensive income/(loss) before reclassifications | ' | ' | -12,500 | ' | ||
Amounts reclassified from AOCI | ' | ' | 0 | ' | ||
Net current period other comprehensive income/(loss) | ' | ' | -12,500 | ' | ||
Balance at September 30, 2013 | -79,635 | ' | -79,635 | ' | ||
Derivative financial instruments | ' | ' | ' | ' | ||
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ||
Balance at January 1, 2013 | ' | ' | -5,976 | ' | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ||
Other comprehensive income/(loss) before reclassifications | ' | ' | -566 | ' | ||
Amounts reclassified from AOCI | ' | ' | 2,696 | ' | ||
Net current period other comprehensive income/(loss) | ' | ' | 2,130 | ' | ||
Balance at September 30, 2013 | -3,846 | ' | -3,846 | ' | ||
Pension liability | ' | ' | ' | ' | ||
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ||
Balance at January 1, 2013 | ' | ' | -13,270 | ' | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ||
Other comprehensive income/(loss) before reclassifications | ' | ' | -249 | ' | ||
Amounts reclassified from AOCI | ' | ' | 0 | ' | ||
Net current period other comprehensive income/(loss) | ' | ' | -249 | ' | ||
Balance at September 30, 2013 | -13,519 | ' | -13,519 | ' | ||
Accumulated other comprehensive income/(loss) | ' | ' | ' | ' | ||
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ||
Balance at January 1, 2013 | ' | ' | -86,381 | ' | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' | ||
Other comprehensive income/(loss) before reclassifications | ' | ' | -13,315 | ' | ||
Amounts reclassified from AOCI | ' | ' | 2,696 | ' | ||
Net current period other comprehensive income/(loss) | ' | ' | -10,619 | -25,370 | ||
Balance at September 30, 2013 | ($97,000) | ' | ($97,000) | ' | ||
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Reclassifications_out_of_accum
Reclassifications out of accumulated other comprehensive income/(loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | $8,878 | $9,148 | $24,474 | $23,407 | [1] | |
Total reclassifications for the period | 16,125 | 17,682 | -13,544 | [1] | 15,573 | [1],[2] |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Total reclassifications for the period | 912 | 3,126 | 2,696 | 5,126 | ||
Derivative financial instruments | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument | $912 | $3,126 | $2,696 | $5,126 | ||
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | |||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Revenue_by_segment_Details
Revenue by segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | $187,189 | $158,494 | $463,109 | $419,530 | [1] |
Europe | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 118,199 | 105,027 | 235,869 | 220,700 | |
North America | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 32,913 | 24,387 | 107,912 | 91,255 | |
Rest of World | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 36,077 | 29,080 | 119,328 | 107,575 | |
Hotels & restaurants | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 163,743 | 134,582 | 406,986 | 363,182 | |
Hotels & restaurants | Owned Hotels | Europe | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 97,331 | 83,560 | 188,568 | 170,198 | |
Hotels & restaurants | Owned Hotels | North America | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 29,957 | 21,659 | 96,729 | 80,719 | |
Hotels & restaurants | Owned Hotels | Rest of World | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 31,937 | 25,890 | 106,174 | 98,306 | |
Hotels & restaurants | Hotel Management or Part Ownership Interests | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 1,562 | 1,395 | 4,332 | 4,073 | |
Hotels & restaurants | Restaurants | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 2,956 | 2,078 | 11,183 | 9,886 | |
Tourist Trains and Cruises | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | 23,446 | 23,262 | 56,123 | 55,698 | |
Real Estate | ' | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | |
Revenue | $0 | $650 | $0 | $650 | |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Segment_earnings_Details
Segment earnings (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | $62,149 | $48,172 | $121,610 | $109,733 | ||
Impairment of property, plant and equipment | 0 | 0 | -35,680 | 0 | ||
Central overheads | -9,464 | -8,184 | -29,387 | -27,833 | ||
Depreciation and amortization | -10,702 | -10,545 | -34,514 | -31,580 | [1],[2] | |
Interest income | 241 | 210 | 763 | 851 | [1] | |
Interest expense | -8,878 | -9,148 | -24,474 | -23,407 | [1] | |
Foreign currency, net | -2,480 | -57 | 528 | -655 | [1] | |
(Provision)/benefit for income taxes | -11,767 | -6,590 | -9,635 | -13,316 | [1] | |
Share of benefit from/(provision for) income taxes of unconsolidated companies | -1,928 | -761 | -904 | -1,748 | [2] | |
Earnings/(losses) from continuing operations | 17,171 | 13,097 | -11,693 | 12,045 | [1],[2] | |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | -1,046 | 4,585 | -1,851 | 3,528 | [1],[2] | |
Net earnings/(losses) | 16,125 | 17,682 | -13,544 | [1] | 15,573 | [1],[2] |
Hotels and Restaurants | ' | ' | ' | ' | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | 54,315 | 40,737 | 107,030 | 94,609 | ||
Tourist Trains and Cruises | ' | ' | ' | ' | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | 7,834 | 8,047 | 14,580 | 15,736 | ||
Real Estate | ' | ' | ' | ' | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | 0 | -612 | 0 | -612 | ||
Owned Hotels | Hotels and Restaurants | Europe | ' | ' | ' | ' | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | 43,103 | 34,517 | 63,281 | 53,720 | ||
Owned Hotels | Hotels and Restaurants | North America | ' | ' | ' | ' | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | 3,481 | 1,813 | 17,156 | 15,899 | ||
Owned Hotels | Hotels and Restaurants | Rest of World | ' | ' | ' | ' | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | 6,828 | 4,240 | 25,040 | 23,108 | ||
Hotel Management or Part Ownership Interests | Hotels and Restaurants | ' | ' | ' | ' | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | 1,506 | 809 | 1,297 | 1,701 | ||
Restaurants | Hotels and Restaurants | ' | ' | ' | ' | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||
Adjusted earnings by segment | ($603) | ($642) | $256 | $181 | ||
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | |||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Reconciliation_of_other_signif
Reconciliation of other significant reconciling items from segments to consolidated (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Earnings from unconsolidated companies, net of tax | $2,063 | $1,759 | $4,696 | $4,062 | [1] |
Capital expenditure | 14,051 | 24,441 | 52,453 | 68,949 | [2] |
Unallocated corporate | ' | ' | ' | ' | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Capital expenditure | 41 | 72 | 190 | 609 | |
Hotels & restaurants | ' | ' | ' | ' | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Capital expenditure | 12,471 | 23,882 | 47,651 | 65,400 | |
Hotels & restaurants | Hotel Management or Part Ownership Interests | ' | ' | ' | ' | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Earnings from unconsolidated companies, net of tax | -485 | -1,880 | -1,485 | -596 | |
Hotels & restaurants | Owned Hotels | Europe | ' | ' | ' | ' | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Capital expenditure | 2,076 | 3,741 | 8,517 | 15,755 | |
Hotels & restaurants | Owned Hotels | North America | ' | ' | ' | ' | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Capital expenditure | 8,237 | 10,810 | 29,539 | 33,327 | |
Hotels & restaurants | Owned Hotels | Rest of World | ' | ' | ' | ' | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Capital expenditure | 2,080 | 8,291 | 9,398 | 14,840 | |
Hotels & restaurants | Restaurants | ' | ' | ' | ' | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Capital expenditure | 78 | 1,040 | 197 | 1,478 | |
Tourist Trains and Cruises | ' | ' | ' | ' | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' | |
Earnings from unconsolidated companies, net of tax | 2,548 | 3,639 | 6,181 | 4,658 | |
Capital expenditure | $1,539 | $487 | $4,612 | $2,940 | |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. | ||||
[2] | Certain cash flow balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Revenues_by_geography_Details
Revenues by geography (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |
Revenue | $187,189 | $158,494 | $463,109 | $419,530 | [1] |
Europe | ' | ' | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |
Revenue | 118,199 | 105,027 | 235,869 | 220,700 | |
North America | ' | ' | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |
Revenue | 32,913 | 24,387 | 107,912 | 91,255 | |
Rest of World | ' | ' | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | |
Revenue | $36,077 | $29,080 | $119,328 | $107,575 | |
[1] | Certain statement of operations balances in the nine months ended September 30, 2012 have been restated. See Note 1. |
Segment_information_Details
Segment information (Details) | 9 Months Ended |
Sep. 30, 2013 | |
segment | |
canalboat | |
ship | |
Business | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 3 |
Number of river cruise ship businesses | 2 |
Number of canal boat businesses | 1 |
Related_party_transactions_Det
Related party transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Eastern and Oriental Express Ltd. | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Ownership percentage in equity method investment | 25.00% | ' | 25.00% | ' | ' |
Management and guarantee fees earned | $12 | $50 | $245 | $232 | ' |
Amounts payable to OEH | 5,801 | ' | 5,801 | ' | 5,005 |
Peruvian hotel and rail joint ventures | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' | 50.00% | ' | ' |
Management and guarantee fees earned | 2,386 | 2,206 | 6,074 | 5,940 | ' |
Amounts payable to OEH | 5,632 | ' | 5,632 | ' | 6,398 |
Hotel Ritz, Madrid | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' | 50.00% | ' | ' |
Management and guarantee fees earned | 248 | 247 | 746 | 765 | ' |
Interest income | 152 | 162 | 437 | 502 | ' |
Amounts payable to OEH | $28,871 | ' | $28,871 | ' | $24,128 |