Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | ||
Jun. 30, 2014 | Jul. 28, 2014 | Jul. 28, 2014 | |
Class A common shares at par value | Class B common shares at par value | ||
Entity Registrant Name | 'Belmond Ltd. | ' | ' |
Entity Central Index Key | '0001115836 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
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: | ' | 103,904,645 | 18,044,478 |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q2 | ' | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $132,940 | $123,159 |
Restricted cash | 1,914 | 6,003 |
Accounts receivable, net of allowances of $538 and $563 | 40,657 | 35,471 |
Due from unconsolidated companies | 9,789 | 11,795 |
Prepaid expenses and other | 28,154 | 25,896 |
Inventories | 44,478 | 45,056 |
Assets of discontinued operations held for sale | 720 | 34,416 |
Total current assets | 258,652 | 281,796 |
Property, plant and equipment, net of accumulated depreciation of $337,102 and $330,390 | 1,089,113 | 1,121,749 |
Property, plant and equipment of consolidated variable interest entities | 193,852 | 187,854 |
Investments in unconsolidated companies | 64,824 | 63,401 |
Goodwill | 149,601 | 156,916 |
Other intangible assets | 14,036 | 14,152 |
Other assets | 63,059 | 53,998 |
Total assets | 1,833,137 | 1,879,866 |
Liabilities and Equity | ' | ' |
Working capital loans | 0 | 138 |
Accounts payable | 26,172 | 23,744 |
Accrued liabilities | 76,585 | 74,187 |
Deferred revenue | 43,388 | 36,983 |
Liabilities of discontinued operations held for sale | 0 | 1,611 |
Current portion of long-term debt and obligations under capital leases | 5,514 | 71,011 |
Current portion of long-term debt of consolidated variable interest entities | 1,772 | 1,805 |
Total current liabilities | 153,431 | 209,479 |
Long-term debt and obligations under capital leases | 540,890 | 472,570 |
Long-term debt of consolidated variable interest entities | 93,477 | 94,345 |
Liability for pension benefit | 890 | 1,606 |
Other liabilities | 23,919 | 18,851 |
Deferred income taxes | 98,054 | 108,490 |
Deferred income taxes of consolidated variable interest entities | 61,176 | 60,892 |
Liability for uncertain tax positions | 3,228 | 2,988 |
Total liabilities | 975,065 | 969,221 |
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 | 995,947 | 992,860 |
Retained earnings/(deficit) | -7,032 | 7,643 |
Accumulated other comprehensive loss | -133,482 | -93,317 |
Less: Reduction due to class B common shares owned by a subsidiary b 18,044,478 (2013 b 18,044,478) | -181 | -181 |
Total shareholdersb equity | 856,471 | 908,222 |
Non-controlling interests | 1,601 | 2,423 |
Total equity | 858,072 | 910,645 |
Total liabilities and equity | 1,833,137 | 1,879,866 |
Class A common shares $0.01 par value (240,000,000 shares authorized): | ' | ' |
Shareholdersb equity: | ' | ' |
Common shares | 1,038 | 1,036 |
Class B common shares $0.01 par value (120,000,000 shares authorized): | ' | ' |
Shareholdersb equity: | ' | ' |
Common shares | $181 | $181 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowances | $538 | $563 |
Property, plant and equipment, accumulated depreciation | $337,102 | $330,390 |
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 | 103,843,345 | 103,604,245 |
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 | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $175,604 | $170,473 | $278,147 | $273,307 |
Expenses: | ' | ' | ' | ' |
Cost of services | 78,638 | 76,518 | 128,541 | 124,757 |
Selling, general and administrative | 58,224 | 57,253 | 108,996 | 111,237 |
Depreciation and amortization | 12,771 | 12,239 | 24,890 | 23,717 |
Impairment of property, plant and equipment | 0 | 0 | 0 | 35,680 |
Total operating costs and expenses | 149,633 | 146,010 | 262,427 | 295,391 |
Gain on disposal of property, plant and equipment | 153 | 0 | 3,857 | 0 |
Earnings/(losses) from operations | 26,124 | 24,463 | 19,577 | -22,084 |
Loss on extinguishment of debt | 0 | 0 | -14,506 | 0 |
Interest income | 298 | 285 | 700 | 522 |
Interest expense | -8,521 | -8,344 | -18,056 | -15,597 |
Foreign currency, net | -1,328 | 923 | -880 | 2,999 |
Earnings/(losses) before income taxes and earnings from unconsolidated companies, net of tax | 16,573 | 17,327 | -13,165 | -34,160 |
(Provision for)/benefit from income taxes | -11,561 | -3,652 | -1,319 | 2,258 |
Earnings/(losses) before earnings from unconsolidated companies, net of tax | 5,012 | 13,675 | -14,484 | -31,902 |
Earnings from unconsolidated companies, net of tax provision/(benefit) of $910, $(794), $585 and $(1,024) | 1,451 | 3,260 | 1,038 | 2,633 |
Earnings/(losses) from continuing operations | 6,463 | 16,935 | -13,446 | -29,269 |
Net (losses)/earnings from discontinued operations, net of tax provision/(benefit) of $Nil, $90, $Nil and $(296) | -467 | 402 | -1,202 | -400 |
Net earnings/(losses) | 5,996 | 17,337 | -14,648 | -29,669 |
Net losses/(earnings) attributable to non-controlling interests | 89 | 126 | -27 | -83 |
Net earnings/(losses) attributable to Belmond Ltd. | $6,085 | $17,463 | ($14,675) | ($29,752) |
Basic earnings per share | ' | ' | ' | ' |
Net earnings/(losses) from continuing operations (in dollars per share) | $0.06 | $0.16 | ($0.13) | ($0.28) |
Net earnings/(losses) from discontinued operations (in dollars per share) | ($0.01) | $0.00 | ($0.01) | ($0.00) |
Basic net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | $0.06 | $0.17 | ($0.14) | ($0.29) |
Diluted earnings per share | ' | ' | ' | ' |
Net earnings/(losses) from continuing operations (in dollars per share) | $0.06 | $0.16 | ($0.13) | ($0.28) |
Net earnings/(losses) from discontinued operations (in dollars per share) | ($0.00) | $0.00 | ($0.01) | ($0.00) |
Diluted net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | $0.06 | $0.17 | ($0.14) | ($0.29) |
Statements_of_Condensed_Consol1
Statements of Condensed Consolidated Operations (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Earnings from unconsolidated companies, tax (benefit)/provision | $910 | ($794) | $585 | ($1,024) |
Discontinued operations, tax (benefit)/provision | $0 | $90 | $0 | ($296) |
Statements_of_Condensed_Consol2
Statements of Condensed Consolidated Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings/(losses) | $5,996 | $17,337 | ($14,648) | ($29,669) |
Other comprehensive income/(losses), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustments, net of tax provision/(benefit) of $Nil, $(371), $Nil and $(257) | 10,602 | -9,224 | -41,495 | -25,662 |
Change in fair value of derivatives, net of tax provision/(benefit) of $Nil, $319, $1,503 and $633 | -2,144 | 830 | 481 | 2,041 |
Change in pension liability, net of tax provision/(benefit) of $Nil, $1, $Nil and $(52) | 0 | 18 | 0 | -116 |
Total other comprehensive income/(losses), net of tax | 8,458 | -8,376 | -41,014 | -23,737 |
Total comprehensive income/(losses) | 14,454 | 8,961 | -55,662 | -53,406 |
Comprehensive (income)/losses attributable to non-controlling interests | 60 | 126 | 822 | -89 |
Comprehensive income/(losses) attributable to Belmond Ltd. | $14,514 | $9,087 | ($54,840) | ($53,495) |
Statements_of_Condensed_Consol3
Statements of Condensed Consolidated Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Foreign currency translation adjustments, tax provision/(benefit) | $0 | ($371) | $0 | ($257) |
Change in fair value of derivatives, tax provision/(benefit) | 0 | 319 | 1,503 | 633 |
Change in pension liability, tax provision/(benefit) | $0 | $1 | $0 | ($52) |
Statements_of_Condensed_Consol4
Statements of Condensed Consolidated Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings/(losses) | ($14,648) | ($29,669) |
Less: Net losses from discontinued operations, net of tax | -1,202 | -400 |
Net losses from continuing operations | -13,446 | -29,269 |
Adjustments to reconcile net losses to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 24,890 | 23,717 |
Amortization of finance costs | 2,439 | 3,517 |
Impairment of property, plant and equipment | 0 | 35,680 |
Earnings from unconsolidated companies, net of tax | -1,038 | -2,633 |
Share-based compensation | 2,991 | 3,886 |
Excess share-based compensation tax benefit | -96 | 0 |
Loss/(gain) on derivatives | 752 | -171 |
Change in provisions for uncertain tax positions | 243 | -3,140 |
Change in deferred income tax | -8,039 | -8,238 |
Loss on extinguishment of debt | 14,506 | 0 |
Gain on disposal of property, plant and equipment | -3,857 | 0 |
Effect of exchange rates on net losses | -581 | -6,356 |
Change in assets and liabilities, net of effects from acquisitions: | ' | ' |
Accounts receivable | -5,077 | -7,225 |
Due from unconsolidated companies | -520 | -260 |
Prepaid expenses and other | 1,131 | -2,636 |
Inventories | 850 | -1,809 |
Escrow and prepaid customer deposits | -617 | 2,518 |
Accounts payable | 1,648 | 1,545 |
Accrued liabilities | 3,383 | 9,551 |
Deferred revenue | 10,050 | 11,024 |
Other, net | -5,438 | 257 |
Other cash movements: | ' | ' |
Dividends from equity method investees | 1,620 | 1,302 |
Proceeds from insurance settlements | 887 | 0 |
Payment of key money | -3,000 | 0 |
Payment of swap termination costs | -3,985 | 0 |
Net cash provided by operating activities from continuing operations | 19,696 | 31,260 |
Net cash used in operating activities from discontinued operations | -1,202 | -597 |
Net cash provided by operating activities | 18,494 | 30,663 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -40,040 | -38,337 |
Investments in unconsolidated companies | -4,844 | -4,804 |
Increase in restricted cash | -613 | -148 |
Release of restricted cash | 6,900 | 117 |
Proceeds from sale of property, plant and equipment | 37,842 | 0 |
Proceeds from insurance settlements | 97 | 234 |
Net cash used in investing activities from continuing operations | -658 | -42,938 |
Net cash provided by investing activities from discontinued operations | 0 | 18,924 |
Net cash used in investing activities | -658 | -24,014 |
Cash flows from financing activities: | ' | ' |
Proceeds from working capital loans | -137 | 0 |
Exercised stock options and vested share awards | 2 | 3 |
Excess share-based compensation tax benefit | 96 | 0 |
Issuance of long-term debt | 569,097 | 36,169 |
Debt issuance costs | -16,254 | -832 |
Principal payments under long-term debt | -561,934 | -20,870 |
Net cash (used in)/ provided by financing activities from continuing operations | -9,130 | 14,470 |
Net cash (used in)/provided by financing activities from discontinued operations | 0 | 0 |
Net cash (used in)/provided by financing activities | -9,130 | 14,470 |
Effect of exchange rate changes on cash and cash equivalents | 681 | -881 |
Net increase in cash and cash equivalents | 9,387 | 20,238 |
Cash and cash equivalents at beginning of period (includes $394 and $538 of cash presented within assets held for sale) | 123,159 | ' |
Cash and cash equivalents at end of period (includes $Nil and $367 of cash presented within assets held for sale) | $132,940 | ' |
Statements_of_Condensed_Consol5
Statements of Condensed Consolidated Cash Flows (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents | $132,940 | $123,159 | ' | ' |
Assets Held-for-sale [Member] | ' | ' | ' | ' |
Cash and cash equivalents | $0 | $394 | $367 | $538 |
Statements_of_Condensed_Consol6
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, 2012 | $938,323 | $0 | $1,029 | $181 | $982,106 | $39,202 | ($86,381) | ($181) | $2,367 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | 3,915 | ' | ' | ' | 3,915 | ' | ' | ' | ' |
Exercised stock options and vested share awards | 3 | ' | 3 | ' | ' | ' | ' | ' | ' |
Comprehensive loss: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net losses attributable to common shares | -29,669 | ' | ' | ' | ' | -29,752 | ' | ' | 83 |
Other comprehensive loss | -23,737 | ' | ' | ' | ' | ' | -23,743 | ' | 6 |
Balance at Jun. 30, 2013 | 888,835 | 0 | 1,032 | 181 | 986,021 | 9,450 | -110,124 | -181 | 2,456 |
Balance at Dec. 31, 2013 | 910,645 | 0 | 1,036 | 181 | 992,860 | 7,643 | -93,317 | -181 | 2,423 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation | 3,087 | ' | ' | ' | 3,087 | ' | ' | ' | ' |
Exercised stock options and vested share awards | 2 | ' | 2 | ' | ' | ' | ' | ' | ' |
Comprehensive loss: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net losses attributable to common shares | -14,648 | ' | ' | ' | ' | -14,675 | ' | ' | 27 |
Other comprehensive loss | -41,014 | ' | ' | ' | ' | ' | -40,165 | ' | -849 |
Balance at Jun. 30, 2014 | $858,072 | $0 | $1,038 | $181 | $995,947 | ($7,032) | ($133,482) | ($181) | $1,601 |
Basis_of_financial_statement_p
Basis of financial statement presentation | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of financial statement presentation | ' | |
Basis of financial statement presentation | ||
Business | ||
In this report Belmond Ltd. is referred to as the “Company”, and the Company and its consolidated subsidiaries are referred to collectively as “Belmond”. On June 30, 2014, the Company changed its name from Orient-Express Hotels Ltd. to Belmond Ltd. following approval by shareholders at the 2014 annual general meeting held on that date. On July 28, 2014, the Company changed the ticker symbol of its class A common shares listed on the New York Stock Exchange from OEH to BEL. | ||
At June 30, 2014, Belmond 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, 2014. | ||
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, 2013. See Note 2 to the consolidated financial statements in the 2013 Annual Report on Form 10-K for additional information regarding significant accounting policies. | ||
For interim reporting purposes, Belmond 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. Belmond 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 | ||
Discontinued operations and assets and liabilities held for sale were reclassified in the condensed consolidated financial statements for all periods presented. See Note 3 for a summary of the results of discontinued operations and assets and liabilities held for sale. | ||
Accounting policies | ||
The accounting policies used in preparing these condensed consolidated financial statements are the same as those applied in the prior year, except for a change in the functional currency of Belmond’s Brazilian operations and codified changes made to the ASC, as described below. | ||
Functional currency change | ||
Prior to 2014, Belmond’s Brazilian operations used the U.S. dollar as their functional currency. Effective January 1, 2014, Belmond changed the functional currency to the Brazilian real. Belmond believes that the growth in the Brazilian operations’ real-denominated revenues and expenses indicated a change in the economic facts and circumstances that justified the change in the functional currency. A foreign currency translation adjustment loss of $49,356,000 arising on the remeasurement of non-monetary assets and liabilities of Belmond’s Brazilian operations, of which the majority related to property, plant and equipment, is included in other comprehensive losses for the six months ended June 30, 2014. | ||
Accounting pronouncements adopted during the period | ||
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. 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 adoption of this guidance did not have a material effect on Belmond’s 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. The guidance should be applied prospectively from the beginning of the fiscal year of adoption. The adoption of this guidance did not have a material effect on Belmond’s 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. The adoption of this guidance did not have a material effect on Belmond’s consolidated financial position, results of operations and cash flows. | ||
Accounting pronouncements to be adopted | ||
In April 2014, the FASB issued guidance that amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions. The revised guidance will change how entities identify and disclose information about disposal transactions. The guidance is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. Belmond is assessing what impact, if any, the adoption of this guidance will have on its consolidated financial position, results of operations and cash flows. | ||
In May 2014, the FASB issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for the fiscal year beginning January 1, 2017. The Company is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements. |
Earnings_per_share
Earnings per share | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings per share | ' | ||||||||||||
Earnings 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 | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator ($'000) | |||||||||||||
Net earnings/(losses) from continuing operations | 6,463 | 16,935 | (13,446 | ) | (29,269 | ) | |||||||
Net earnings/(losses) from discontinued operations | (467 | ) | 402 | (1,202 | ) | (400 | ) | ||||||
Net losses/(earnings) attributable to non-controlling interests | 89 | 126 | (27 | ) | (83 | ) | |||||||
Net earnings/(losses) attributable to Belmond Ltd. | 6,085 | 17,463 | (14,675 | ) | (29,752 | ) | |||||||
Denominator (shares '000) | |||||||||||||
Basic weighted average shares outstanding | 103,734 | 103,063 | 103,727 | 103,037 | |||||||||
Effect of dilution | 2,184 | 2,249 | — | — | |||||||||
Diluted weighted average shares outstanding | 105,918 | 105,312 | 103,727 | 103,037 | |||||||||
$ | $ | $ | $ | ||||||||||
Basic earnings per share | |||||||||||||
Net earnings/(losses) from continuing operations | 0.062 | 0.164 | (0.130 | ) | (0.284 | ) | |||||||
Net earnings/(losses) from discontinued operations | (0.005 | ) | 0.004 | (0.012 | ) | (0.004 | ) | ||||||
Net losses/(earnings) attributable to non-controlling interests | 0.001 | 0.001 | — | (0.001 | ) | ||||||||
Net earnings/(losses) attributable to Belmond Ltd. | 0.058 | 0.169 | (0.142 | ) | (0.289 | ) | |||||||
Diluted earnings per share | |||||||||||||
Net earnings/(losses) from continuing operations | 0.061 | 0.161 | (0.130 | ) | (0.284 | ) | |||||||
Net earnings/(losses) from discontinued operations | (0.004 | ) | 0.004 | (0.012 | ) | (0.004 | ) | ||||||
Net losses/(earnings) attributable to non-controlling interests | 0.001 | 0.001 | — | (0.001 | ) | ||||||||
Net earnings/(losses) attributable to Belmond Ltd. | 0.058 | 0.166 | (0.142 | ) | (0.289 | ) | |||||||
For the six months ended June 30, 2014 and 2013, all share options and share-based awards were excluded from the calculation of the diluted weighted average number of shares because Belmond 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 | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Share options | 163,900 | 231,150 | 2,913,300 | 3,276,600 | |||||||||
Share-based awards | — | — | 1,503,000 | 1,601,463 | |||||||||
Total | 163,900 | 231,150 | 4,416,300 | 4,878,063 | |||||||||
The number of share options and share-based awards unexercised at June 30, 2014 was 4,416,300 (June 30, 2013 - 4,878,063). |
Assets_held_for_sale_and_disco
Assets held for sale and discontinued operations | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||
Assets held for sale and discontinued operations | ' | ||||||||||||
Assets held for sale and discontinued operations | |||||||||||||
At June 30, 2014, 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 in Sint Maarten as it was already under a separate sales contract at the time. During the six months ended June 30, 2014, Inn at Perry Cabin by Belmond, St Michaels, Maryland was sold. Due to Belmond's continuing involvement in managing the hotel, its results are presented within continuing operations. For the six months ended June 30, 2014, the results of operations of Ubud Hanging Gardens, Bali, Indonesia have been presented as discontinued operations, following the unannounced dispossession of Belmond from the hotel by the owner in November 2013. | |||||||||||||
During the six months ended June 30, 2013, Porto Cupecoy was sold. For the three and six months ended June 30, 2013, the results of operations of Porto Cupecoy have been presented as discontinued operations. | |||||||||||||
(a) Properties sold: Inn at Perry Cabin by Belmond and Porto Cupecoy | |||||||||||||
On March 21, 2014, Belmond completed the sale of the property and operations of Inn at Perry Cabin by Belmond for consideration of $39,700,000, of which $25,680,000 was paid in cash, $11,020,000 was settled directly with the lender to repay the debt facility secured by the property, and $3,000,000 was retained by the buyer as a key money contribution from Belmond to be used for agreed capital enhancements. Belmond will continue to manage the hotel for the new owner under a management agreement with a ten-year term that permits termination on the fifth anniversary of the agreement. The disposal resulted in a gain of $6,704,000, of which $3,704,000 was recognized on completion on March 21, 2014 and $3,000,000 has been deferred and will be recognized over the initial period of the management contract. The gain on sale of $3,704,000 recognized on March 21, 2014 and $153,000 recognized in the three months ended June 30, 2014 is reported within gain on disposal of property, plant and equipment in the statements of condensed consolidated operations. | |||||||||||||
On January 31, 2013, Belmond completed the sale of the property and operations of Porto Cupecoy for cash consideration of $19,000,000. The property was a part of Belmond’s former 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. | |||||||||||||
The following is a summary of net assets sold and the gain recorded on sale for Inn at Perry Cabin by Belmond and Porto Cupecoy: | |||||||||||||
Inn at Perry Cabin by Belmond | Porto Cupecoy | ||||||||||||
March 21, | January 31, | ||||||||||||
2014 | 2013 | ||||||||||||
$'000 | $'000 | ||||||||||||
Property, plant and equipment | 32,293 | 38 | |||||||||||
Real estate assets | — | 18,512 | |||||||||||
Net working capital (deficit)/surplus | (820 | ) | — | ||||||||||
Net assets | 31,473 | 18,550 | |||||||||||
Transfer of foreign currency translation loss/(gain) | — | — | |||||||||||
31,473 | 18,550 | ||||||||||||
Consideration: | |||||||||||||
Cash | 25,680 | 19,000 | |||||||||||
Reduction in debt facility on sale of hotel | 11,020 | — | |||||||||||
Key money retained by buyer | 3,000 | — | |||||||||||
Less: Working capital adjustment | (1,130 | ) | (11 | ) | |||||||||
Less: Costs to sell | (393 | ) | — | ||||||||||
38,177 | 18,989 | ||||||||||||
Gain on sale | 6,704 | 439 | |||||||||||
(b) Results of discontinued operations | |||||||||||||
Belmond had been operating the hotel Ubud Hanging Gardens under a long-term lease arrangement with a third-party owner. The existing lease arrangement continues to 2030. Following an unannounced dispossession of Belmond from the hotel by the owner in November 2013, however, Belmond has been unable to continue to operate the hotel. Belmond believes that the owner's actions are unlawful and constitute a wrongful dispossession and is pursuing its legal remedies under the lease. As Belmond is unable to operate Ubud Hanging Gardens for the foreseeable future, the hotel has been presented as a discontinued operation for all periods shown. The assets and liabilities of the hotel have not been classified as held for sale, as the hotel has not been disposed of through a sale transaction. | |||||||||||||
Summarized operating results of the properties classified as discontinued operations for the three and six months ended June 30, 2014 and 2013 are as follows: | |||||||||||||
Three months ended June 30, 2014 | |||||||||||||
Ubud Hanging Gardens | Porto Cupecoy | Total | |||||||||||
$'000 | $'000 | $'000 | |||||||||||
Revenue | — | — | — | ||||||||||
Losses before tax, gain on sale and impairment | (241 | ) | (226 | ) | (467 | ) | |||||||
Losses before tax | (241 | ) | (226 | ) | (467 | ) | |||||||
Net losses from discontinued operations | (241 | ) | (226 | ) | (467 | ) | |||||||
Three months ended June 30, 2013 | |||||||||||||
Ubud Hanging Gardens | Porto Cupecoy | Total | |||||||||||
$'000 | $'000 | $'000 | |||||||||||
Revenue | 1,377 | 8 | 1,385 | ||||||||||
Earnings before tax, gain on sale and impairment | 402 | 90 | 492 | ||||||||||
Earnings before tax | 402 | 90 | 492 | ||||||||||
Tax provision | (90 | ) | — | (90 | ) | ||||||||
Net earnings from discontinued operations | 312 | 90 | 402 | ||||||||||
Six months ended June 30, 2014 | |||||||||||||
Ubud Hanging Gardens | Porto Cupecoy | Total | |||||||||||
$'000 | $'000 | $'000 | |||||||||||
Revenue | — | — | — | ||||||||||
Losses before tax, gain on sale and impairment | (918 | ) | (284 | ) | (1,202 | ) | |||||||
Losses before tax | (918 | ) | (284 | ) | (1,202 | ) | |||||||
Net losses from discontinued operations | (918 | ) | (284 | ) | (1,202 | ) | |||||||
Six months ended June 30, 2013 | |||||||||||||
Ubud Hanging Gardens | Porto Cupecoy | The Westcliff | Total | ||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||
Revenue | 2,613 | 843 | — | 3,456 | |||||||||
Earnings/(losses) before tax, gain on sale and impairment | 531 | (1,589 | ) | — | (1,058 | ) | |||||||
Impairment | — | (77 | ) | — | (77 | ) | |||||||
Gain on sale | — | 439 | — | 439 | |||||||||
Earnings/(losses) before tax | 531 | (1,227 | ) | — | (696 | ) | |||||||
Tax (provision)/benefit | (126 | ) | — | 422 | 296 | ||||||||
Net earnings/(losses) from discontinued operations | 405 | (1,227 | ) | 422 | (400 | ) | |||||||
The results of discontinued operations for the three and six months ended June 30, 2014 include legal fees of $241,000 and $918,000, respectively, in relation to Ubud Hanging Gardens, as Belmond is pursuing legal remedies following its wrongful dispossession by the owner in November 2013. See Note 16. | |||||||||||||
The results of discontinued operations for the six months ended June 30, 2013 include a tax credit of $422,000 in relation to The Westcliff, Johannesburg, South Africa, which was sold in December 2012. This tax credit arose following the submission of the 2012 tax return in 2013. | |||||||||||||
(c) Assets and liabilities held for sale | |||||||||||||
Assets and liabilities of the properties classified as held for sale at June 30, 2014 and December 31, 2013 consist of the following: | |||||||||||||
June 30, | December 31, 2013 | ||||||||||||
2014 | |||||||||||||
Porto Cupecoy | Inn at Perry Cabin by Belmond | Porto Cupecoy | Total | ||||||||||
$’000 | $'000 | $’000 | $'000 | ||||||||||
Current assets | — | 1,503 | — | 1,503 | |||||||||
Real estate assets | 720 | — | 720 | 720 | |||||||||
Property, plant and equipment | — | 32,193 | — | 32,193 | |||||||||
Total assets held for sale | 720 | 33,696 | 720 | 34,416 | |||||||||
Current liabilities | — | (1,611 | ) | — | (1,611 | ) | |||||||
Total liabilities held for sale | — | (1,611 | ) | — | (1,611 | ) | |||||||
Assets of Porto Cupecoy at June 30, 2014 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 | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Variable interest entities | ' | ||||||||||||
Variable interest entities | |||||||||||||
(a) VIEs of which Belmond is the primary beneficiary | |||||||||||||
Belmond holds a 19.9% equity investment in Charleston Center LLC, owner of Belmond Charleston Place. Belmond has also made a number of loans to the hotel. Belmond concluded that Charleston Center LLC is a variable interest entity (“VIE”) 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 Belmond. Belmond 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 Belmond’s condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 are summarized as follows: | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
$’000 | $’000 | ||||||||||||
Current assets | 9,233 | 10,517 | |||||||||||
Property, plant and equipment | 193,852 | 187,854 | |||||||||||
Goodwill | 40,395 | 40,395 | |||||||||||
Other assets | 1,508 | 1,895 | |||||||||||
Total assets | 244,988 | 240,661 | |||||||||||
Current liabilities | 7,044 | 6,722 | |||||||||||
Third-party debt, including $1,722 and $1,805 current portion | 95,249 | 96,150 | |||||||||||
Long-term accrued interest on subordinated debt | 15,640 | 15,340 | |||||||||||
Deferred income taxes | 61,176 | 60,892 | |||||||||||
Total liabilities | 179,109 | 179,104 | |||||||||||
Net assets (before amounts payable to Belmond of $94,164 and $92,692) | 65,879 | 61,557 | |||||||||||
The third-party debt of Charleston Center LLC is secured by its net assets and is non-recourse to its members, including Belmond. The hotel’s separate assets are not available to pay the debts of Belmond and the hotel’s separate liabilities do not constitute obligations of Belmond. This non-recourse obligation is presented separately on the condensed consolidated balance sheets of Belmond. | |||||||||||||
(b) VIEs of which Belmond is not the primary beneficiary | |||||||||||||
Belmond 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. Belmond concluded that the Peru rail joint venture is a VIE 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, net of tax in the statements of condensed consolidated operations. | |||||||||||||
The carrying amounts and maximum exposures to loss as a result of Belmond’s involvement with its Peru rail joint venture are as follows: | |||||||||||||
Carrying amounts | Maximum exposure | ||||||||||||
June 30, | December 31, | June 30, | December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Investment | 39,915 | 38,095 | 39,915 | 38,095 | |||||||||
Due from unconsolidated company | 2,987 | 4,957 | 2,987 | 4,957 | |||||||||
Guarantees | — | — | 5,042 | 5,920 | |||||||||
Contingent guarantees | — | — | 12,709 | 14,731 | |||||||||
Total | 42,902 | 43,052 | 60,653 | 63,703 | |||||||||
The maximum exposure to loss for the Peru rail joint venture exceeds Belmond’s carrying amounts in the joint venture due to guarantees, which, as discussed below, 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 Belmond’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 June 30, 2014, Belmond 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 $5,042,000 and contingently guaranteed $6,279,000 of the debt obligations of the rail joint venture in Peru through 2017. 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 $6,430,000, through May 2015. | |||||||||||||
Long-term debt obligations of the rail joint venture in Peru at June 30, 2014 totaling $5,042,000 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 Belmond’s financial flexibility. |
Investments_in_unconsolidated_
Investments in unconsolidated companies | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
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 Belmond 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 by Belmond, the 25% ownership in Eastern and Oriental Express Ltd, and the Buzios land joint venture which is 50% owned and further described below. | |||||||||||||
In June 2007, Belmond acquired 50% of a company holding real estate in Buzios, Brazil for a cash consideration of $5,000,000. Belmond 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 an environmental park which is being created in the area. The compulsory purchase of the land is therefore expected to be carried out by the State of Rio de Janeiro. Belmond is currently in negotiation to recover its investment in the project and fully expects to do so. | |||||||||||||
Summarized financial data for Belmond’s unconsolidated companies are as follows: | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
$’000 | $’000 | ||||||||||||
Current assets | 67,656 | 64,145 | |||||||||||
Property, plant and equipment, net | 344,945 | 342,731 | |||||||||||
Other assets | 23,728 | 24,142 | |||||||||||
Non-current assets | 368,673 | 366,873 | |||||||||||
Total assets | 436,329 | 431,018 | |||||||||||
Current liabilities | 141,225 | 154,213 | |||||||||||
Long-term debt | 46,176 | 37,043 | |||||||||||
Other liabilities | 139,986 | 127,002 | |||||||||||
Non-current liabilities | 186,162 | 164,045 | |||||||||||
Total shareholders’ equity | 108,942 | 112,760 | |||||||||||
Total liabilities and shareholders’ equity | 436,329 | 431,018 | |||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Revenue | 45,626 | 44,447 | 80,341 | 79,607 | |||||||||
Gross profit1 | 28,052 | 25,579 | 46,533 | 44,841 | |||||||||
Net earnings2 | 2,948 | 6,490 | 2,596 | 5,496 | |||||||||
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 Belmond’s hotel and rail joint ventures in Peru, under which Belmond and the other 50% participant must contribute equally additional equity needed for the businesses. If the other participant does not meet this obligation, Belmond has the right to dilute the other participant and obtain a majority equity interest in the affected joint venture company. Belmond 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 condensed 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 Belmond’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred. As at June 30, 2014, Belmond does not expect that it will be required to fund these guarantees relating to these joint venture companies. | |||||||||||||
The Company has contingently guaranteed, through 2020, $20,000,000 of debt obligations of the joint venture in Peru that operates four hotels. See Note 4 for information regarding guarantees and long-term debt of the rail joint venture in Peru. | |||||||||||||
At June 30, 2014, long-term debt obligations totaling $77,355,000 of Hotel Ritz by Belmond in Madrid, Spain, in which Belmond 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. Belmond anticipates negotiations with the lender as to how to bring the hotel into long-term compliance. Belmond does not expect the loan to be called and, therefore, does not believe the Company will be required to fund its portion of the guarantees. Belmond and its joint venture partner have each guaranteed $10,268,000 of the debt obligations. |
Property_plant_and_equipment
Property, plant and equipment | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, plant and equipment | ' | ||||||
Property, plant and equipment | |||||||
The major classes of property, plant and equipment are as follows: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Land and buildings | 987,311 | 1,013,015 | |||||
Machinery and equipment | 210,760 | 210,992 | |||||
Fixtures, fittings and office equipment | 208,966 | 209,050 | |||||
River cruise ship and canal boats | 19,178 | 19,082 | |||||
1,426,215 | 1,452,139 | ||||||
Less: Accumulated depreciation | (337,102 | ) | (330,390 | ) | |||
Total property, plant and equipment, net of accumulated depreciation | 1,089,113 | 1,121,749 | |||||
The major classes of assets under capital leases included above are as follows: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Machinery and equipment | 757 | 889 | |||||
Fixtures, fittings and office equipment | 107 | 108 | |||||
864 | 997 | ||||||
Less: Accumulated depreciation | (718 | ) | (905 | ) | |||
Total assets under capital leases, net of accumulated depreciation | 146 | 92 | |||||
The depreciation charge on property, plant and equipment for the three and six months ended June 30, 2014 was $12,647,000 (June 30, 2013 - $12,101,000) and $24,698,000 (June 30, 2013 - $23,489,000), respectively. | |||||||
The property, plant and equipment of Charleston Center LLC, a consolidated VIE, of $193,852,000 at June 30, 2014 (December 31, 2013 - $187,854,000) is separately disclosed on the condensed consolidated balance sheets. | |||||||
There were no impairments in the three months ended June 30, 2014 (June 30, 2013 - $Nil). There were no impairments in the six months ended June 30, 2014. During the six months ended June 30, 2013, Belmond recorded a non-cash property, plant and equipment impairment charge of $35,680,000 in respect of Belmond La Samanna, St. Martin, French West Indies based on a strategic review of its assets. The carrying value was written down to the hotel’s fair value. | |||||||
For the three and six months ended June 30, 2014, Belmond capitalized interest in the amount of $Nil (June 30, 2013 - $Nil) and $Nil (June 30, 2013 - $1,088,000), respectively. All amounts capitalized were recorded in property, plant and equipment. |
Goodwill
Goodwill | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||
Goodwill | ' | ||||||||||||||||||
Goodwill | |||||||||||||||||||
The changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows: | |||||||||||||||||||
At January 1, 2014 | |||||||||||||||||||
Gross goodwill amount | Accumulated impairment | Net goodwill amount | Impairment | Foreign currency translation adjustment | Ending balance at June 30, 2014 | ||||||||||||||
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||||||||||||||
Owned hotels: | |||||||||||||||||||
Europe | 87,885 | (10,104 | ) | 77,781 | — | (991 | ) | 76,790 | |||||||||||
North America | 66,101 | (16,110 | ) | 49,991 | — | — | 49,991 | ||||||||||||
Rest of world | 29,220 | (8,113 | ) | 21,107 | — | (6,406 | ) | 14,701 | |||||||||||
Owned trains and cruises | 8,037 | — | 8,037 | — | 82 | 8,119 | |||||||||||||
Total | 191,243 | (34,327 | ) | 156,916 | — | (7,315 | ) | 149,601 | |||||||||||
There were no triggering events in the six months ended June 30, 2014 that would have required Belmond to reassess the carrying value of goodwill. |
Other_intangible_assets
Other intangible assets | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ||||||||||||
Other intangible assets | ' | ||||||||||||
Other intangible assets | |||||||||||||
Other intangible assets consist of the following as of June 30, 2014: | |||||||||||||
Favorable lease assets | Internet sites | Trade names | Total | ||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||
Carrying amount: | |||||||||||||
Balance at January 1, 2014 | 8,660 | 1,723 | 7,100 | 17,483 | |||||||||
Foreign currency translation adjustment | 75 | 52 | — | 127 | |||||||||
Balance at June 30, 2014 | 8,735 | 1,775 | 7,100 | 17,610 | |||||||||
Accumulated amortization: | |||||||||||||
Balance at January 1, 2014 | 2,268 | 1,063 | 3,331 | ||||||||||
Charge for the period | 121 | 71 | 192 | ||||||||||
Foreign currency translation adjustment | 18 | 32 | 50 | ||||||||||
Balance at June 30, 2014 | 2,407 | 1,166 | 3,573 | ||||||||||
Net book value: | |||||||||||||
At June 30, 2014 | 6,328 | 609 | 7,100 | 14,037 | |||||||||
At December 31, 2013 | 6,392 | 660 | 7,100 | 14,152 | |||||||||
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 six months ended June 30, 2014 was $124,000 (June 30, 2013 - $138,000) and $192,000 (June 30, 2013 - $228,000), respectively. Estimated total amortization expense for the remainder of the year ending December 31, 2014 is $192,000 and for each of the years ending December 31, 2015 to December 31, 2019 is $384,000. |
Debt_and_obligations_under_cap
Debt and obligations under capital lease | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
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 consist of the following: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Loans from banks and other parties collateralized by tangible and intangible personal property (excluding real estate) with a maturity of seven years (December 31, 2013 - one to nine years), with a weighted average interest rate of 4.52% (December 31, 2013 - 4.22%) | 548,991 | 543,567 | |||||
Obligations under capital lease | 62 | 14 | |||||
Total long-term debt and obligations under capital lease | 549,053 | 543,581 | |||||
Less: Current portion | 5,514 | 71,011 | |||||
Less: Discount on secured term loan | 2,649 | — | |||||
Non-current portion of long-term debt and obligations under capital lease | 540,890 | 472,570 | |||||
On March 21, 2014, Belmond entered into a $551,955,000 secured term loan and a $105,000,000 revolving credit facility, the proceeds of which were used to repay all outstanding funded debt apart from the debt of Charleston Center LLC, a consolidated VIE, and the debt of Belmond’s unconsolidated joint venture companies. | |||||||
The term loan consists of two tranches, a $345,000,000 U.S. dollar tranche and a €150,000,000 euro-denominated tranche (equivalent to $206,955,000 at drawdown). The dollar tranche bears interest at a rate of LIBOR plus 3% per annum, and the euro tranche bears interest at a rate of EURIBOR plus 3.25% per annum. Both tranches are subject to a 1% interest rate floor. The term loan matures in seven years and the annual mandatory amortization is 1% of the principal amount. | |||||||
The revolving credit facility has a maturity of five years and bears interest at a rate of LIBOR plus 2.75% per annum, with a commitment fee of 0.4% paid on the undrawn amount. | |||||||
The term loan and revolving credit facility are secured by pledges of shares in certain Company subsidiaries and by security interests in tangible and intangible personal property. There are no mortgages over real estate. | |||||||
The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at June 30, 2014: | |||||||
$’000 | |||||||
Remainder of 2014 | 2,759 | ||||||
2015 | 5,519 | ||||||
2016 | 5,519 | ||||||
2017 | 5,520 | ||||||
2018 | 5,508 | ||||||
2019 | 5,504 | ||||||
2020 and thereafter | 518,724 | ||||||
Total long-term debt and obligations under capital lease | 549,053 | ||||||
The Company has guaranteed $548,991,000 of the long-term debt of its subsidiary companies as at June 30, 2014 (December 31, 2013 - $384,818,000). | |||||||
Deferred financing costs related to the above outstanding long-term debt were $15,478,000 at June 30, 2014 (December 31, 2013 - $10,197,000) and are amortized to interest expense over the term of the corresponding long-term debt. These costs are included in Other assets on the condensed consolidated balance sheets. | |||||||
A loss on extinguishment of debt of $14,506,000 was recognized in the six months ended June 30, 2014 (June 30, 2013 - $Nil). The loss comprised costs associated with the March corporate debt refinancing, including $8,926,000 write-off of unamortized deferred financing costs, $3,985,000 swap cancellation costs and $1,330,000 of fees to prepay Belmond’s previous loans. | |||||||
The debt of Charleston Center LLC, a consolidated VIE, of $95,249,000 at June 30, 2014 (December 31, 2013 - $96,150,000) is non-recourse to Belmond and separately disclosed on the condensed consolidated balance sheets. The debt, entered into in October 2010, was extended at Charleston Center LLC’s option in October 2013 to give a revised maturity of October 2014, with a further one year extension option available to the borrower, and the interest rate is at LIBOR plus a margin of 3.50% per annum. Deferred financing costs related to this debt were $527,000 at June 30, 2014 (December 31, 2013 - $883,000). | |||||||
(b) Revolving credit and working capital facilities | |||||||
Belmond had approximately $107,249,000 of revolving credit and working capital facilities at June 30, 2014 (December 31, 2013 - $3,021,000) of which $5,518,000 has been allocated to an existing letter of credit and $101,731,000 was available (December 31, 2013 - $2,883,000). |
Other_liabilities
Other liabilities | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||
Other liabilities | ' | ||||||
Other liabilities | |||||||
The major balances in other liabilities are as follows: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Interest rate swaps (see Note 18) | 522 | 1,878 | |||||
Long-term accrued interest on subordinated debt at Belmond Charleston Place | 15,640 | 15,340 | |||||
Deferred lease incentive | 366 | 393 | |||||
Contingent consideration on acquisition of Belmond Grand Hotel Timeo and Belmond Villa Sant’Andrea (see Note 16) | 1,232 | 1,240 | |||||
Deferred gain on sale of Inn at Perry Cabin by Belmond (see Note 3) | 2,850 | — | |||||
Accrued income tax | 3,309 | — | |||||
Total other liabilities | 23,919 | 18,851 | |||||
Pensions
Pensions | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Pensions | ' | ||||||||||||
Pensions | |||||||||||||
Components of net periodic pension benefit cost are as follows: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Service cost | — | — | — | — | |||||||||
Interest cost on projected benefit obligation | 279 | 294 | 554 | 591 | |||||||||
Expected return on assets | (291 | ) | (227 | ) | (578 | ) | (456 | ) | |||||
Net amortization and deferrals | 140 | 228 | 279 | 458 | |||||||||
Net periodic benefit cost | 128 | 295 | 255 | 593 | |||||||||
During the three and six months ended June 30, 2014, contributions were made to Belmond’s U.K. defined benefit pension plan of $540,000 (June 30, 2013 - $497,000) and $1,077,000 (June 30, 2013 - $999,000), respectively. Belmond anticipates contributing an additional $1,250,000 to fund the plan in 2014 for a total of $2,327,000. |
Income_taxes
Income taxes | 6 Months Ended |
Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income taxes | ' |
Income taxes | |
In the three and six months ended June 30, 2014, the income tax provision was $11,561,000 (June 30, 2013 - $3,652,000) and $1,319,000 (June 30, 2013 - benefit of $2,258,000), respectively. | |
In the six months ended June 30, 2014, a provision for income taxes arises on losses before income taxes because the Company is unable to recognize a tax benefit in respect of losses in some territories in which Belmond operates. | |
The provision for income taxes in the three and six months ended June 30, 2014 was higher than in the three and six months ended June 30, 2013 due primarily to increased underlying earnings from operations in the three and six months ended June 30, 2014 and unfavorable changes in the profits mix. |
Supplemental_cash_flow_informa
Supplemental cash flow information | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||
Supplemental cash flow information | ' | ||||||
Supplemental cash flow information | |||||||
Six months ended | |||||||
June 30, | June 30, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Cash paid during the period for: | |||||||
Interest | 15,775 | 12,755 | |||||
Income taxes, net of refunds | 9,115 | 8,824 | |||||
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 $29,000 for the six months ended June 30, 2014 (June 30, 2013 - $630,000). |
Restricted_cash
Restricted cash | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||
Restricted cash | ' | ||||||
Restricted cash | |||||||
The major balances in restricted cash are as follows: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Cash deposit held with a bank pending completion of sale of Inn at Perry Cabin by Belmond | — | 4,000 | |||||
Cash deposits required to be held with lending banks as collateral | 2,044 | 8,391 | |||||
Escrow deposits and other restricted cash at Porto Cupecoy | — | 355 | |||||
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy | 1,707 | 681 | |||||
Security required under the European Union Package Travel Directive | 207 | 209 | |||||
Total restricted cash | 3,958 | 13,636 | |||||
Restricted cash classified as long-term and included in other assets on the condensed consolidated balance sheets at June 30, 2014 was $2,044,000 (December 31, 2013 - $7,633,000). |
Sharebased_compensation_plans
Share-based compensation plans | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Share-based compensation plans | ' | ||||||||||||||||
Share-based compensation plans | |||||||||||||||||
At June 30, 2014, Belmond had three share-based compensation plans. The compensation cost that has been charged to selling, general and administrative expense for these plans for the three and six months ended June 30, 2014 was $2,185,000 (June 30, 2013 - $2,335,000) and $2,976,000 (June 30, 2013 - $3,885,000), respectively. The total compensation cost related to unexercised options and unvested share awards at June 30, 2014 to be recognized over the period July 1, 2014 to June 30, 2017, was $11,468,000 and the weighted average period over which it is expected to be recognized is 25 months. Measured from the grant date, substantially all awards of deferred shares and restricted shares 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 six months ended June 30, 2014. | |||||||||||||||||
2009 share award and incentive plan | |||||||||||||||||
During the six months ended June 30, 2014, the following awards were made under the 2009 share award and incentive plan on the following dates. Estimates of fair values of share options and deferred shares without performance criteria were made using the Black-Scholes options pricing model. Estimates of fair values of deferred shares with performance criteria and market conditions were made using the Monte Carlo valuation model. | |||||||||||||||||
2009 share award and incentive plan | Class A common shares | Date granted | Date vested | Purchase price | Expected share price volatility | Risk-free interest rate | Expected dividends per share | Expected life of awards | |||||||||
Share options | 266,700 | June 20, 2014 | June 20, 2017 | $14.08 | 46% | 1.71% | $— | 4.5 years | |||||||||
Deferred shares without performance criteria | 94,000 | March 21, 2014 | March 21, 2017 | $0.01 | 46% | 0.91% | $— | 3 years | |||||||||
Deferred shares with performance criteria and market conditions | 251,400 | March 21, 2014 | March 21, 2017 | $0.01 | 46% | 0.89% | $— | 3 years |
Commitments_and_contingencies
Commitments and contingencies | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and contingencies | ' | |||
Commitments and contingencies | ||||
Outstanding contracts to purchase property, plant and equipment were approximately $14,168,000 at June 30, 2014 (December 31, 2013 - $21,867,000). | ||||
As part of the consideration for the acquisition of Belmond Grand Hotel Timeo and Belmond Villa Sant’Andrea in January 2010, Belmond 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 Belmond Grand Hotel Timeo and certain required permits are granted to expand and add a swimming pool to Belmond Villa Sant’Andrea. At June 30, 2014, €4,000,000 has been paid (equivalent to $5,250,000 at the dates paid). See Note 10. | ||||
In February 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 Belmond Copacabana Palace, relating to the recapitalization of CHP in 1995, but reduced the total award against SCL to approximately $27,000,000. SCL 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. In order to defend the hotel, in December 2013, CHP commenced a declaratory lawsuit in the Rio state court seeking judicial declarations that no fraud was committed against the SCL plaintiffs when the shares in CHP were sold to the Company in 2000 and that the sale of the shares did not render SCL insolvent. Pending rulings on those declarations, the court granted CHP an injunction preventing the SCL plaintiffs from provisionally enforcing their 2011 judgments against CHP. Management cannot estimate the range of possible loss if the SCL plaintiffs assert claims against the Company or CHP, and Belmond has made no reserves in respect of this matter. If any such claims were brought, Belmond would continue to defend its interests vigorously. | ||||
In November 2013, the third-party owner of Ubud Hanging Gardens dispossessed Belmond from the hotel under long-term lease to Belmond without prior notice. As a result, Belmond has been unable to continue operating the hotel and accordingly, to prevent any confusion to its guests, Belmond has ceased referring to the property in its sales and marketing materials, including all electronic marketing, for the time being. Belmond believes that the owner's actions are unlawful and in breach of the lease arrangement and constitute a wrongful dispossession. Belmond is pursuing its legal remedies under the lease which provides for resolution of disputes by arbitration in Singapore, where Belmond has sought emergency arbitral orders to return the hotel to Belmond's possession and management and to stay court proceedings in Indonesia brought by the owner seeking annulment of the lease and damages from Belmond. In December 2013, the arbitrator ordered the owner to suspend the Indonesian court proceedings while the Singapore arbitration continues. In April 2014, the Indonesian court dismissed the owner’s case for lack of jurisdiction due to the arbitration clause in the parties’ lease. Supplementally, Belmond commenced contempt proceedings in the High Court in London, England, where the owner resides, for pursuing the Indonesian proceedings contrary to an earlier High Court injunction, and obtained against the owner in July 2014 a contempt order and a committal order of imprisonment for 120 days. | ||||
While Belmond believes it has a strong case on the merits in the Ubud Hanging Gardens matter, it may ultimately be unsuccessful in recovering the hotel or otherwise in pursuing its remedies against the owner, and therefore Belmond has recorded Ubud Hanging Gardens as a discontinued operation and recorded a non-cash impairment charge relating to long-lived assets and goodwill of the hotel as well as a write-off of net current assets of the hotel in the fourth quarter of 2013. See Note 3. Management cannot estimate the range of possible additional loss to Belmond and has made no reserves in respect of this matter. | ||||
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, Belmond settled litigation for infringement of its “Cipriani” trademark in the European Union. An amount of $3,947,000 was paid by the defendants to Belmond in March 2010 with the balance of $9,833,000 being payable in installments over five years with interest. The remaining payments, totaling $1,633,000 at June 30, 2014, have not been recognized by Belmond because of the uncertainty of collectability. Despite the May 2010 settlement and Belmond's belief that the ownership issues over the “Cipriani” trademark in the European Union had been resolved in its favor, Belmond has recently initiated an infringement action in Spain against a company beneficially owned by members of the Cipriani family with whom Belmond had reached the 2010 settlement, and is defending an infringement claim made by certain members of the Cipriani family against Belmond in Italy. While Belmond believes that it has a meritorious defense to the claim in Italy and a strong case against the defendants in Spain, Belmond may fail to prevail in either of these actions. Management cannot estimate the range of possible additional loss to Belmond which has made no reserves in these matters. | ||||
Future rental payments as at June 30, 2014 under operating leases in respect of equipment rentals and leased premises are payable as follows: | ||||
$’000 | ||||
Remainder of 2014 | 5,895 | |||
2015 | 11,114 | |||
2016 | 11,083 | |||
2017 | 11,160 | |||
2018 | 10,684 | |||
2019 | 10,097 | |||
2020 and thereafter | 75,426 | |||
Future rental payments under operating leases | 135,459 | |||
Rental expense for the three and six months ended June 30, 2014 amounted to $3,146,000 (June 30, 2013 - $2,760,000) and $6,294,000 (June 30, 2013 - $5,313,000), respectively. | ||||
Belmond has granted to James Sherwood, a former director of the Company, a right of first refusal to purchase the Belmond Hotel Cipriani in Venice, Italy in the event Belmond 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. This right of first refusal and purchase option are not assignable and expire one year after Mr. Sherwood’s death. These agreements relating to the Belmond Hotel Cipriani between Mr. Sherwood and Belmond and its predecessor companies have been in place since 1983 and were last amended and restated in 2005. |
Fair_value_measurements
Fair value measurements | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair value measurements | ' | |||||||||||||||
Fair value measurements | ||||||||||||||||
(a) Financial instruments recorded at fair value | ||||||||||||||||
The following tables summarize the valuation of Belmond’s financial instruments recorded at fair value by the fair value hierarchy at June 30, 2014 and December 31, 2013: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
30-Jun-14 | $’000 | $’000 | $’000 | $’000 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||
Derivative financial instruments | — | (2,903 | ) | — | (2,903 | ) | ||||||||||
Total net liabilities | — | (2,903 | ) | — | (2,903 | ) | ||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-13 | $’000 | $’000 | $’000 | $’000 | ||||||||||||
Assets at fair value: | ||||||||||||||||
Derivative financial instruments | — | 2 | — | 2 | ||||||||||||
Total assets | — | 2 | — | 2 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||
Derivative financial instruments | — | (4,890 | ) | — | (4,890 | ) | ||||||||||
Total net liabilities | — | (4,888 | ) | — | (4,888 | ) | ||||||||||
During the three and six months ended June 30, 2014, 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 Belmond'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 Belmond's long-term debt as of June 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
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 | 548,991 | 602,964 | 543,567 | 562,588 | |||||||||||
Long-term debt, including current portion, held by consolidated variable interest entities | Level 3 | 95,249 | 102,025 | 96,150 | 97,775 | |||||||||||
(c) Non-financial assets measured at fair value on a non-recurring basis | ||||||||||||||||
There were no impairments in the six months ended June 30, 2014. The estimated fair value of Belmond’s non-financial assets measured on a non-recurring basis for the six months ended June 30, 2013 was as follows: | ||||||||||||||||
Fair value measurement inputs | ||||||||||||||||
Fair value | Level 2 | Total losses | ||||||||||||||
$’000 | Level 1 | $’000 | Level 3 | in the six | ||||||||||||
$’000 | $’000 | months ended | ||||||||||||||
June 30, | ||||||||||||||||
2013 | ||||||||||||||||
$’000 | ||||||||||||||||
Property, plant and equipment | 45,000 | — | — | 45,000 | (35,680 | ) | ||||||||||
During the six months ended June 30, 2013, property, plant and equipment at Belmond La Samanna with a carrying value of $80,680,000 was written down to fair value of $45,000,000, resulting in a non-cash impairment charge of $35,680,000. This impairment is included in earnings from continuing operations in the period incurred. See Note 6. |
Derivatives_and_hedging_activi
Derivatives and hedging activities | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivatives and hedging activities | ' | ||||||||||||
Derivatives and hedging activities | |||||||||||||
In connection with Belmond’s new corporate facility and the repayment of all of its outstanding funded debt (excluding the debt of Charleston Center LLC, a consolidated VIE, and the debt of Belmond’s unconsolidated joint venture companies), all of Belmond’s existing interest rate derivatives were terminated in March 2014. See Note 9. The termination costs incurred were $5,162,000. All amounts in other comprehensive income/ (loss) relating to these derivatives were reclassified to interest expense. New interest rate derivatives were entered into to fix an element of the floating interest rate on the new corporate facility. | |||||||||||||
Cash flow hedges of interest rate risk | |||||||||||||
As of June 30, 2014 and December 31, 2013, Belmond 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: | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
’000 | ’000 | ||||||||||||
Interest Rate Swaps | € | 74,813 | € | 137,469 | |||||||||
Interest Rate Swaps | $ | 172,069 | $ | 63,700 | |||||||||
Non-designated hedges of interest rate risk | |||||||||||||
Derivatives not designated as hedges are used to manage Belmond’s exposure to interest rate movements but do not meet the strict hedge accounting requirements prescribed in the authoritative accounting guidance. As of June 30, 2014, Belmond had notional amounts of €Nil and $58,520,000 (December 31, 2013 - €73,344,000 and $59,080,000) that were non-designated hedges of Belmond’s exposure to interest rate risk. | |||||||||||||
Fair value | |||||||||||||
The table below presents the fair value of Belmond’s derivative financial instruments and their classification as of June 30, 2014 and December 31, 2013: | |||||||||||||
Liability derivatives | |||||||||||||
Fair value as of | Fair value as of | ||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||
Balance sheet location | $’000 | $’000 | |||||||||||
Derivatives designated in a cash flow hedging relationship: | |||||||||||||
Interest rate swaps | Accrued liabilities | (2,381 | ) | (3,012 | ) | ||||||||
Interest rate swaps | Other liabilities | (522 | ) | (1,878 | ) | ||||||||
Total | (2,903 | ) | (4,890 | ) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Interest rate options | Other assets | — | 2 | ||||||||||
Total | — | 2 | |||||||||||
Offsetting | |||||||||||||
There was no offsetting within derivative assets or derivative liabilities at June 30, 2014 and December 31, 2013. However, these derivatives are subject to master netting arrangements. | |||||||||||||
Other comprehensive income | |||||||||||||
Information concerning the movements in other comprehensive income/(loss) for cash flow hedges of interest rate risk is shown in Note 19. At June 30, 2014, the amount accounted for in other comprehensive income/(loss) which is expected to be reclassified to interest expense in the next 12 months is $2,374,000. Movement in other comprehensive income/(loss) for net investment hedges recorded through foreign currency translation adjustments for the three and six months ended June 30, 2014 was a gain of $1,359,000 (June 30, 2013 - $1,183,000 loss) and $1,039,000 (June 30, 2013 - $72,000 loss), respectively. | |||||||||||||
Derivative movements not included in other comprehensive income/(loss) for the three and six months ended June 30, 2014 and 2013 were as follows: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Amount of gain recognized in interest expense for the ineffective portion of derivatives designated as cash flow hedges | — | — | — | 37 | |||||||||
Amount of loss recognized in interest expense for derivatives not designated as hedging instruments | — | (7 | ) | (2 | ) | (29 | ) | ||||||
Credit-risk-related contingent features | |||||||||||||
Belmond has agreements with some of its derivative counterparties that contain provisions under which, if Belmond defaults on the debt associated with the hedging instrument, Belmond could also be declared in default in respect of its derivative obligations. | |||||||||||||
As of June 30, 2014, 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 $2,903,000 (December 31, 2013 - $4,890,000). If Belmond breached any of the provisions, it would be required to settle its obligations under the agreements at their termination value of $2,899,000 (December 31, 2013 - $4,899,000). | |||||||||||||
Non-derivative financial instruments — net investment hedges | |||||||||||||
Belmond uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. Belmond designates its euro-denominated indebtedness as a net investment hedge of long-term investments in its euro-functional subsidiaries. These contracts are included in non-derivative hedging instruments. The notional value of non-derivative hedging instruments was $204,854,000 at June 30, 2014, being a liability of Belmond (December 31, 2013 - $26,249,000). |
Accumulated_other_comprehensiv
Accumulated other comprehensive income/loss | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated other comprehensive income/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 | ||||||||||
Six months ended June 30, 2014 | $’000 | $’000 | $’000 | $’000 | |||||||||
Balance at January 1, 2014 | (81,339 | ) | (3,381 | ) | (8,597 | ) | (93,317 | ) | |||||
Other comprehensive loss before reclassifications | (40,646 | ) | (724 | ) | — | (41,370 | ) | ||||||
Amounts reclassified from AOCI | — | 1,205 | — | 1,205 | |||||||||
Net current period other comprehensive income/(loss) | (40,646 | ) | 481 | — | (40,165 | ) | |||||||
Balance at June 30, 2014 | (121,985 | ) | (2,900 | ) | (8,597 | ) | (133,482 | ) | |||||
Foreign currency translation adjustments for the six months ended June 30, 2014 include a loss of $49,356,000 arising on the remeasurement of non-monetary assets and liabilities of Belmond’s Brazilian operations following a change in functional currency from the U.S. dollar to the Brazilian real, effective from January 1, 2014. See Note 1. | |||||||||||||
Reclassifications out of AOCI (net of tax) are as follows: | |||||||||||||
Amount reclassified from AOCI | |||||||||||||
Three months ended | |||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||
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 hedged debt instruments | 595 | 882 | Interest expense | ||||||||||
Total reclassifications for the period | 595 | 882 | |||||||||||
Amount reclassified from AOCI | |||||||||||||
Six months ended | |||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||
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 | 1,205 | 1,783 | Interest expense | ||||||||||
Total reclassifications for the period | 1,205 | 1,783 | |||||||||||
Segment_information
Segment information | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment information | ' | ||||||||||||
Segment information | |||||||||||||
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 (“segment profit/(loss)”). | |||||||||||||
Belmond's operating segments are aggregated into six reportable segments primarily around the type of service being provided—hotels, trains and cruises, and management business/part ownership interests—and are secondarily organized by geography for the hotels, as follows: | |||||||||||||
• | Owned hotels in each of Europe, North America and Rest of world which derive earnings from the hotels that Belmond owns including its one stand-alone restaurant; | ||||||||||||
• | Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; | ||||||||||||
• | Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns; and | ||||||||||||
• | Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages. | ||||||||||||
The following tables present information regarding these reportable segments. | |||||||||||||
Revenue from external customers by segment: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Owned hotels: | |||||||||||||
Europe | 78,179 | 75,190 | 92,715 | 91,237 | |||||||||
North America | 37,329 | 40,500 | 75,562 | 74,999 | |||||||||
Rest of world | 33,195 | 30,391 | 69,725 | 71,624 | |||||||||
Total owned hotels | 148,703 | 146,081 | 238,002 | 237,860 | |||||||||
Part-owned/managed hotels | 1,775 | 1,634 | 2,738 | 2,770 | |||||||||
Total hotels | 150,478 | 147,715 | 240,740 | 240,630 | |||||||||
Owned trains and cruises | 23,284 | 21,783 | 34,280 | 30,889 | |||||||||
Part-owned/managed trains | 1,842 | 975 | 3,127 | 1,788 | |||||||||
Total trains and cruises | 25,126 | 22,758 | 37,407 | 32,677 | |||||||||
Total revenue | 175,604 | 170,473 | 278,147 | 273,307 | |||||||||
Reconciliation of the total of segment profit/(loss) to consolidated net earnings/(losses) from operations: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Owned hotels: | |||||||||||||
Europe | 29,904 | 28,135 | 21,510 | 20,178 | |||||||||
North America | 6,889 | 8,177 | 14,206 | 14,534 | |||||||||
Rest of world | 6,690 | 4,782 | 17,466 | 17,596 | |||||||||
Total owned hotels | 43,483 | 41,094 | 53,182 | 52,308 | |||||||||
Part-owned/managed hotels | 1,811 | 1,792 | 1,306 | (209 | ) | ||||||||
Total hotels | 45,294 | 42,886 | 54,488 | 52,099 | |||||||||
Owned trains and cruises | 2,475 | 2,486 | 1,694 | 1,469 | |||||||||
Part-owned/managed trains | 3,956 | 3,194 | 5,837 | 5,277 | |||||||||
Total trains and cruises | 6,431 | 5,680 | 7,531 | 6,746 | |||||||||
Reconciliation to net earnings/(losses): | |||||||||||||
Total segment profit | 51,725 | 48,566 | 62,019 | 58,845 | |||||||||
Gain on disposal of property, plant and equipment | 153 | — | 3,857 | — | |||||||||
Impairment of property, plant and equipment | — | — | — | (35,680 | ) | ||||||||
Central overheads | (8,437 | ) | (7,063 | ) | (16,810 | ) | (16,038 | ) | |||||
Share-based compensation | (2,185 | ) | (2,335 | ) | (2,976 | ) | (3,885 | ) | |||||
Depreciation and amortization | (12,771 | ) | (12,239 | ) | (24,890 | ) | (23,717 | ) | |||||
Loss on extinguishment of debt | — | — | (14,506 | ) | — | ||||||||
Interest income | 298 | 285 | 700 | 522 | |||||||||
Interest expense | (8,521 | ) | (8,344 | ) | (18,056 | ) | (15,597 | ) | |||||
Foreign currency, net | (1,328 | ) | 923 | (880 | ) | 2,999 | |||||||
(Provision for)/benefit from income taxes | (11,561 | ) | (3,652 | ) | (1,319 | ) | 2,258 | ||||||
Share of (provision for)/benefit from income taxes of unconsolidated companies | (910 | ) | 794 | (585 | ) | 1,024 | |||||||
Earnings/(losses) from continuing operations | 6,463 | 16,935 | (13,446 | ) | (29,269 | ) | |||||||
(Losses)/earnings from discontinued operations | (467 | ) | 402 | (1,202 | ) | (400 | ) | ||||||
Net earnings/(losses) | 5,996 | 17,337 | (14,648 | ) | (29,669 | ) | |||||||
Earnings from unconsolidated companies, net of tax: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Part-owned/managed hotels | 114 | 586 | (752 | ) | (1,000 | ) | |||||||
Part-owned/managed trains | 1,337 | 2,674 | 1,790 | 3,633 | |||||||||
Total earnings from unconsolidated companies, net of tax | 1,451 | 3,260 | 1,038 | 2,633 | |||||||||
Reconciliation of capital expenditure by segment: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Owned hotels: | |||||||||||||
Europe | 10,913 | 2,813 | 19,920 | 6,441 | |||||||||
North America | 3,895 | 9,147 | 9,235 | 21,421 | |||||||||
Rest of world | 4,417 | 4,278 | 8,239 | 7,253 | |||||||||
Total owned hotels | 19,225 | 16,238 | 37,394 | 35,115 | |||||||||
Owned trains and cruises | 1,678 | 1,264 | 2,558 | 3,073 | |||||||||
Unallocated corporate | 16 | 125 | 88 | 149 | |||||||||
Total capital expenditure | 20,919 | 17,627 | 40,040 | 38,337 | |||||||||
Revenue from external customers in Belmond’s country of domicile and significant countries (based on the location of the property): | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Bermuda | — | — | — | — | |||||||||
Italy | 53,099 | 48,860 | 54,417 | 51,077 | |||||||||
United Kingdom | 22,975 | 20,435 | 31,566 | 28,097 | |||||||||
United States | 28,512 | 31,893 | 51,896 | 50,903 | |||||||||
Brazil | 22,221 | 18,024 | 43,508 | 41,516 | |||||||||
All other countries | 48,797 | 51,261 | 96,760 | 101,714 | |||||||||
Total revenue | 175,604 | 170,473 | 278,147 | 273,307 | |||||||||
Related_party_transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related party transactions | ' |
Related party transactions | |
Belmond manages, under long-term contract, the tourist train owned by Eastern and Oriental Express Ltd., in which Belmond has a 25% ownership interest. In the three and six months ended June 30, 2014, Belmond earned management fees from Eastern and Oriental Express Ltd. of $33,000 (June 30, 2013 - $48,000) and $205,000 (June 30, 2013 - $233,000), respectively, which are recorded in revenue. The amount due to Belmond from Eastern and Oriental Express Ltd. at June 30, 2014 was $4,419,000 (December 31, 2013 - $4,232,000). | |
Belmond manages, under long-term contracts in Peru, Belmond Hotel Monasterio, Belmond Palacio Nazarenas, Belmond Sanctuary Lodge, Belmond Hotel Rio Sagrado, Peru Rail and Ferrocarril Transandino, in all of which Belmond has a 50% ownership interest. Belmond provides loans, guarantees and other credit accommodation to these joint ventures. In the three and six months ended June 30, 2014, Belmond earned management and guarantee fees from its Peruvian joint ventures of $3,085,000 (June 30, 2013 - $2,224,000) and $4,884,000 (June 30, 2013 - $3,688,000), respectively, which are recorded in revenue. The amount due to Belmond from its Peruvian joint ventures at June 30, 2014 was $3,567,000 (December 31, 2013 - $5,726,000). | |
Belmond manages, under long-term contract, Hotel Ritz by Belmond, in which Belmond has a 50% ownership interest. In the three and six months ended June 30, 2014, Belmond earned $327,000 (June 30, 2013 - $299,000) and $555,000 (June 30, 2013 - $498,000), respectively, in management fees from Hotel Ritz by Belmond which are recorded in revenue, and $174,000 (June 30, 2013 - $154,000) and $326,000 (June 30, 2013 - $285,000), respectively, in interest income. The amount due to Belmond from Hotel Ritz by Belmond at June 30, 2014 was $33,455,000 (December 31, 2013 - $28,828,000). See Note 5 regarding a partial guarantee of the hotel’s bank indebtedness. |
Basis_of_financial_statement_p1
Basis of financial statement presentation (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of presentation | ' | |
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, 2014. | ||
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, 2013. See Note 2 to the consolidated financial statements in the 2013 Annual Report on Form 10-K for additional information regarding significant accounting policies. | ||
For interim reporting purposes, Belmond 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. Belmond 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 | ' | |
Reclassifications | ||
Discontinued operations and assets and liabilities held for sale were reclassified in the condensed consolidated financial statements for all periods presented. See Note 3 for a summary of the results of discontinued operations and assets and liabilities held for sale. | ||
Functional currency change | ' | |
Functional currency change | ||
Prior to 2014, Belmond’s Brazilian operations used the U.S. dollar as their functional currency. Effective January 1, 2014, Belmond changed the functional currency to the Brazilian real. Belmond believes that the growth in the Brazilian operations’ real-denominated revenues and expenses indicated a change in the economic facts and circumstances that justified the change in the functional currency. A foreign currency translation adjustment loss of $49,356,000 arising on the remeasurement of non-monetary assets and liabilities of Belmond’s Brazilian operations, of which the majority related to property, plant and equipment, is included in other comprehensive losses for the six months ended June 30, 2014. | ||
Accounting pronouncements adopted during the period and to be adopted | ' | |
Accounting pronouncements adopted during the period | ||
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. 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 adoption of this guidance did not have a material effect on Belmond’s 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. The guidance should be applied prospectively from the beginning of the fiscal year of adoption. The adoption of this guidance did not have a material effect on Belmond’s 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. The adoption of this guidance did not have a material effect on Belmond’s consolidated financial position, results of operations and cash flows. | ||
Accounting pronouncements to be adopted | ||
In April 2014, the FASB issued guidance that amends the definition of a discontinued operation and requires entities to provide additional disclosures about disposal transactions. The revised guidance will change how entities identify and disclose information about disposal transactions. The guidance is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014, with early adoption permitted. Belmond is assessing what impact, if any, the adoption of this guidance will have on its consolidated financial position, results of operations and cash flows. | ||
In May 2014, the FASB issued new guidance which is intended to improve the comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The guidance supersedes existing revenue recognition guidance and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance is effective for the fiscal year beginning January 1, 2017. The Company is currently evaluating the impact of the adoption of this guidance on its condensed consolidated financial statements. | ||
Segment reporting | ' | |
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 (“segment profit/(loss)”). | ||
Belmond's operating segments are aggregated into six reportable segments primarily around the type of service being provided—hotels, trains and cruises, and management business/part ownership interests—and are secondarily organized by geography for the hotels, as follows: | ||
• | Owned hotels in each of Europe, North America and Rest of world which derive earnings from the hotels that Belmond owns including its one stand-alone restaurant; | |
• | Part-owned/managed hotels which derive earnings from hotels that Belmond jointly owns or manages; | |
• | Owned trains and cruises which derive earnings from the train and cruise businesses that Belmond owns; and | |
• | Part-owned/managed trains which derive earnings from the train businesses that Belmond jointly owns or manages. |
Earnings_per_share_Tables
Earnings per share (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of earnings per share, basic and diluted | ' | ||||||||||||
The calculation of basic and diluted earnings per share including a reconciliation of the numerator and denominator is as follows: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Numerator ($'000) | |||||||||||||
Net earnings/(losses) from continuing operations | 6,463 | 16,935 | (13,446 | ) | (29,269 | ) | |||||||
Net earnings/(losses) from discontinued operations | (467 | ) | 402 | (1,202 | ) | (400 | ) | ||||||
Net losses/(earnings) attributable to non-controlling interests | 89 | 126 | (27 | ) | (83 | ) | |||||||
Net earnings/(losses) attributable to Belmond Ltd. | 6,085 | 17,463 | (14,675 | ) | (29,752 | ) | |||||||
Denominator (shares '000) | |||||||||||||
Basic weighted average shares outstanding | 103,734 | 103,063 | 103,727 | 103,037 | |||||||||
Effect of dilution | 2,184 | 2,249 | — | — | |||||||||
Diluted weighted average shares outstanding | 105,918 | 105,312 | 103,727 | 103,037 | |||||||||
$ | $ | $ | $ | ||||||||||
Basic earnings per share | |||||||||||||
Net earnings/(losses) from continuing operations | 0.062 | 0.164 | (0.130 | ) | (0.284 | ) | |||||||
Net earnings/(losses) from discontinued operations | (0.005 | ) | 0.004 | (0.012 | ) | (0.004 | ) | ||||||
Net losses/(earnings) attributable to non-controlling interests | 0.001 | 0.001 | — | (0.001 | ) | ||||||||
Net earnings/(losses) attributable to Belmond Ltd. | 0.058 | 0.169 | (0.142 | ) | (0.289 | ) | |||||||
Diluted earnings per share | |||||||||||||
Net earnings/(losses) from continuing operations | 0.061 | 0.161 | (0.130 | ) | (0.284 | ) | |||||||
Net earnings/(losses) from discontinued operations | (0.004 | ) | 0.004 | (0.012 | ) | (0.004 | ) | ||||||
Net losses/(earnings) attributable to non-controlling interests | 0.001 | 0.001 | — | (0.001 | ) | ||||||||
Net earnings/(losses) attributable to Belmond Ltd. | 0.058 | 0.166 | (0.142 | ) | (0.289 | ) | |||||||
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 | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Share options | 163,900 | 231,150 | 2,913,300 | 3,276,600 | |||||||||
Share-based awards | — | — | 1,503,000 | 1,601,463 | |||||||||
Total | 163,900 | 231,150 | 4,416,300 | 4,878,063 | |||||||||
Assets_held_for_sale_and_disco1
Assets held for sale and discontinued operations (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
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 | ' | ||||||||||||
Summarized operating results of the properties classified as discontinued operations for the three and six months ended June 30, 2014 and 2013 are as follows: | |||||||||||||
Three months ended June 30, 2014 | |||||||||||||
Ubud Hanging Gardens | Porto Cupecoy | Total | |||||||||||
$'000 | $'000 | $'000 | |||||||||||
Revenue | — | — | — | ||||||||||
Losses before tax, gain on sale and impairment | (241 | ) | (226 | ) | (467 | ) | |||||||
Losses before tax | (241 | ) | (226 | ) | (467 | ) | |||||||
Net losses from discontinued operations | (241 | ) | (226 | ) | (467 | ) | |||||||
Three months ended June 30, 2013 | |||||||||||||
Ubud Hanging Gardens | Porto Cupecoy | Total | |||||||||||
$'000 | $'000 | $'000 | |||||||||||
Revenue | 1,377 | 8 | 1,385 | ||||||||||
Earnings before tax, gain on sale and impairment | 402 | 90 | 492 | ||||||||||
Earnings before tax | 402 | 90 | 492 | ||||||||||
Tax provision | (90 | ) | — | (90 | ) | ||||||||
Net earnings from discontinued operations | 312 | 90 | 402 | ||||||||||
Six months ended June 30, 2014 | |||||||||||||
Ubud Hanging Gardens | Porto Cupecoy | Total | |||||||||||
$'000 | $'000 | $'000 | |||||||||||
Revenue | — | — | — | ||||||||||
Losses before tax, gain on sale and impairment | (918 | ) | (284 | ) | (1,202 | ) | |||||||
Losses before tax | (918 | ) | (284 | ) | (1,202 | ) | |||||||
Net losses from discontinued operations | (918 | ) | (284 | ) | (1,202 | ) | |||||||
Six months ended June 30, 2013 | |||||||||||||
Ubud Hanging Gardens | Porto Cupecoy | The Westcliff | Total | ||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||
Revenue | 2,613 | 843 | — | 3,456 | |||||||||
Earnings/(losses) before tax, gain on sale and impairment | 531 | (1,589 | ) | — | (1,058 | ) | |||||||
Impairment | — | (77 | ) | — | (77 | ) | |||||||
Gain on sale | — | 439 | — | 439 | |||||||||
Earnings/(losses) before tax | 531 | (1,227 | ) | — | (696 | ) | |||||||
Tax (provision)/benefit | (126 | ) | — | 422 | 296 | ||||||||
Net earnings/(losses) from discontinued operations | 405 | (1,227 | ) | 422 | (400 | ) | |||||||
Assets and liabilities of the properties classified as held for sale at June 30, 2014 and December 31, 2013 consist of the following: | |||||||||||||
June 30, | December 31, 2013 | ||||||||||||
2014 | |||||||||||||
Porto Cupecoy | Inn at Perry Cabin by Belmond | Porto Cupecoy | Total | ||||||||||
$’000 | $'000 | $’000 | $'000 | ||||||||||
Current assets | — | 1,503 | — | 1,503 | |||||||||
Real estate assets | 720 | — | 720 | 720 | |||||||||
Property, plant and equipment | — | 32,193 | — | 32,193 | |||||||||
Total assets held for sale | 720 | 33,696 | 720 | 34,416 | |||||||||
Current liabilities | — | (1,611 | ) | — | (1,611 | ) | |||||||
Total liabilities held for sale | — | (1,611 | ) | — | (1,611 | ) | |||||||
The following is a summary of net assets sold and the gain recorded on sale for Inn at Perry Cabin by Belmond and Porto Cupecoy: | |||||||||||||
Inn at Perry Cabin by Belmond | Porto Cupecoy | ||||||||||||
March 21, | January 31, | ||||||||||||
2014 | 2013 | ||||||||||||
$'000 | $'000 | ||||||||||||
Property, plant and equipment | 32,293 | 38 | |||||||||||
Real estate assets | — | 18,512 | |||||||||||
Net working capital (deficit)/surplus | (820 | ) | — | ||||||||||
Net assets | 31,473 | 18,550 | |||||||||||
Transfer of foreign currency translation loss/(gain) | — | — | |||||||||||
31,473 | 18,550 | ||||||||||||
Consideration: | |||||||||||||
Cash | 25,680 | 19,000 | |||||||||||
Reduction in debt facility on sale of hotel | 11,020 | — | |||||||||||
Key money retained by buyer | 3,000 | — | |||||||||||
Less: Working capital adjustment | (1,130 | ) | (11 | ) | |||||||||
Less: Costs to sell | (393 | ) | — | ||||||||||
38,177 | 18,989 | ||||||||||||
Gain on sale | 6,704 | 439 | |||||||||||
Variable_interest_entities_Tab
Variable interest entities (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ||||||||||||
Schedule of variable interest entities | ' | ||||||||||||
The carrying amounts and maximum exposures to loss as a result of Belmond’s involvement with its Peru rail joint venture are as follows: | |||||||||||||
Carrying amounts | Maximum exposure | ||||||||||||
June 30, | December 31, | June 30, | December 31, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Investment | 39,915 | 38,095 | 39,915 | 38,095 | |||||||||
Due from unconsolidated company | 2,987 | 4,957 | 2,987 | 4,957 | |||||||||
Guarantees | — | — | 5,042 | 5,920 | |||||||||
Contingent guarantees | — | — | 12,709 | 14,731 | |||||||||
Total | 42,902 | 43,052 | 60,653 | 63,703 | |||||||||
The carrying amount of consolidated assets and liabilities of Charleston Center LLC included within Belmond’s condensed consolidated balance sheets as of June 30, 2014 and December 31, 2013 are summarized as follows: | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
$’000 | $’000 | ||||||||||||
Current assets | 9,233 | 10,517 | |||||||||||
Property, plant and equipment | 193,852 | 187,854 | |||||||||||
Goodwill | 40,395 | 40,395 | |||||||||||
Other assets | 1,508 | 1,895 | |||||||||||
Total assets | 244,988 | 240,661 | |||||||||||
Current liabilities | 7,044 | 6,722 | |||||||||||
Third-party debt, including $1,722 and $1,805 current portion | 95,249 | 96,150 | |||||||||||
Long-term accrued interest on subordinated debt | 15,640 | 15,340 | |||||||||||
Deferred income taxes | 61,176 | 60,892 | |||||||||||
Total liabilities | 179,109 | 179,104 | |||||||||||
Net assets (before amounts payable to Belmond of $94,164 and $92,692) | 65,879 | 61,557 | |||||||||||
Investments_in_unconsolidated_1
Investments in unconsolidated companies (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||
Summarized financial data for unconsolidated companies | ' | ||||||||||||
Summarized financial data for Belmond’s unconsolidated companies are as follows: | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
$’000 | $’000 | ||||||||||||
Current assets | 67,656 | 64,145 | |||||||||||
Property, plant and equipment, net | 344,945 | 342,731 | |||||||||||
Other assets | 23,728 | 24,142 | |||||||||||
Non-current assets | 368,673 | 366,873 | |||||||||||
Total assets | 436,329 | 431,018 | |||||||||||
Current liabilities | 141,225 | 154,213 | |||||||||||
Long-term debt | 46,176 | 37,043 | |||||||||||
Other liabilities | 139,986 | 127,002 | |||||||||||
Non-current liabilities | 186,162 | 164,045 | |||||||||||
Total shareholders’ equity | 108,942 | 112,760 | |||||||||||
Total liabilities and shareholders’ equity | 436,329 | 431,018 | |||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Revenue | 45,626 | 44,447 | 80,341 | 79,607 | |||||||||
Gross profit1 | 28,052 | 25,579 | 46,533 | 44,841 | |||||||||
Net earnings2 | 2,948 | 6,490 | 2,596 | 5,496 | |||||||||
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) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
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: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Land and buildings | 987,311 | 1,013,015 | |||||
Machinery and equipment | 210,760 | 210,992 | |||||
Fixtures, fittings and office equipment | 208,966 | 209,050 | |||||
River cruise ship and canal boats | 19,178 | 19,082 | |||||
1,426,215 | 1,452,139 | ||||||
Less: Accumulated depreciation | (337,102 | ) | (330,390 | ) | |||
Total property, plant and equipment, net of accumulated depreciation | 1,089,113 | 1,121,749 | |||||
Schedule of major classes of assets under capital leases | ' | ||||||
The major classes of assets under capital leases included above are as follows: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Machinery and equipment | 757 | 889 | |||||
Fixtures, fittings and office equipment | 107 | 108 | |||||
864 | 997 | ||||||
Less: Accumulated depreciation | (718 | ) | (905 | ) | |||
Total assets under capital leases, net of accumulated depreciation | 146 | 92 | |||||
Goodwill_Tables
Goodwill (Tables) | 6 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||
Schedule of changes in carrying amount of goodwill | ' | ||||||||||||||||||
The changes in the carrying amount of goodwill for the six months ended June 30, 2014 are as follows: | |||||||||||||||||||
At January 1, 2014 | |||||||||||||||||||
Gross goodwill amount | Accumulated impairment | Net goodwill amount | Impairment | Foreign currency translation adjustment | Ending balance at June 30, 2014 | ||||||||||||||
$'000 | $'000 | $'000 | $'000 | $'000 | $'000 | ||||||||||||||
Owned hotels: | |||||||||||||||||||
Europe | 87,885 | (10,104 | ) | 77,781 | — | (991 | ) | 76,790 | |||||||||||
North America | 66,101 | (16,110 | ) | 49,991 | — | — | 49,991 | ||||||||||||
Rest of world | 29,220 | (8,113 | ) | 21,107 | — | (6,406 | ) | 14,701 | |||||||||||
Owned trains and cruises | 8,037 | — | 8,037 | — | 82 | 8,119 | |||||||||||||
Total | 191,243 | (34,327 | ) | 156,916 | — | (7,315 | ) | 149,601 | |||||||||||
Other_intangible_assets_Tables
Other intangible assets (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ' | ||||||||||||
Schedule of other intangible assets | ' | ||||||||||||
Other intangible assets consist of the following as of June 30, 2014: | |||||||||||||
Favorable lease assets | Internet sites | Trade names | Total | ||||||||||
$'000 | $'000 | $'000 | $'000 | ||||||||||
Carrying amount: | |||||||||||||
Balance at January 1, 2014 | 8,660 | 1,723 | 7,100 | 17,483 | |||||||||
Foreign currency translation adjustment | 75 | 52 | — | 127 | |||||||||
Balance at June 30, 2014 | 8,735 | 1,775 | 7,100 | 17,610 | |||||||||
Accumulated amortization: | |||||||||||||
Balance at January 1, 2014 | 2,268 | 1,063 | 3,331 | ||||||||||
Charge for the period | 121 | 71 | 192 | ||||||||||
Foreign currency translation adjustment | 18 | 32 | 50 | ||||||||||
Balance at June 30, 2014 | 2,407 | 1,166 | 3,573 | ||||||||||
Net book value: | |||||||||||||
At June 30, 2014 | 6,328 | 609 | 7,100 | 14,037 | |||||||||
At December 31, 2013 | 6,392 | 660 | 7,100 | 14,152 | |||||||||
Debt_and_obligations_under_cap1
Debt and obligations under capital lease (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Schedule of long-term debt and obligations under capital lease | ' | ||||||
Long-term debt and obligations under capital lease consist of the following: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Loans from banks and other parties collateralized by tangible and intangible personal property (excluding real estate) with a maturity of seven years (December 31, 2013 - one to nine years), with a weighted average interest rate of 4.52% (December 31, 2013 - 4.22%) | 548,991 | 543,567 | |||||
Obligations under capital lease | 62 | 14 | |||||
Total long-term debt and obligations under capital lease | 549,053 | 543,581 | |||||
Less: Current portion | 5,514 | 71,011 | |||||
Less: Discount on secured term loan | 2,649 | — | |||||
Non-current portion of long-term debt and obligations under capital lease | 540,890 | 472,570 | |||||
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 June 30, 2014: | |||||||
$’000 | |||||||
Remainder of 2014 | 2,759 | ||||||
2015 | 5,519 | ||||||
2016 | 5,519 | ||||||
2017 | 5,520 | ||||||
2018 | 5,508 | ||||||
2019 | 5,504 | ||||||
2020 and thereafter | 518,724 | ||||||
Total long-term debt and obligations under capital lease | 549,053 | ||||||
Other_liabilities_Tables
Other liabilities (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Other Liabilities Disclosure [Abstract] | ' | ||||||
Schedule of major balances in other liabilities | ' | ||||||
The major balances in other liabilities are as follows: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Interest rate swaps (see Note 18) | 522 | 1,878 | |||||
Long-term accrued interest on subordinated debt at Belmond Charleston Place | 15,640 | 15,340 | |||||
Deferred lease incentive | 366 | 393 | |||||
Contingent consideration on acquisition of Belmond Grand Hotel Timeo and Belmond Villa Sant’Andrea (see Note 16) | 1,232 | 1,240 | |||||
Deferred gain on sale of Inn at Perry Cabin by Belmond (see Note 3) | 2,850 | — | |||||
Accrued income tax | 3,309 | — | |||||
Total other liabilities | 23,919 | 18,851 | |||||
Pensions_Tables
Pensions (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
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 | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Service cost | — | — | — | — | |||||||||
Interest cost on projected benefit obligation | 279 | 294 | 554 | 591 | |||||||||
Expected return on assets | (291 | ) | (227 | ) | (578 | ) | (456 | ) | |||||
Net amortization and deferrals | 140 | 228 | 279 | 458 | |||||||||
Net periodic benefit cost | 128 | 295 | 255 | 593 | |||||||||
Supplemental_cash_flow_informa1
Supplemental cash flow information (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||
Schedule of supplemental cash flow information | ' | ||||||
Six months ended | |||||||
June 30, | June 30, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Cash paid during the period for: | |||||||
Interest | 15,775 | 12,755 | |||||
Income taxes, net of refunds | 9,115 | 8,824 | |||||
Restricted_cash_Tables
Restricted cash (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||
Major balances in restricted cash | ' | ||||||
The major balances in restricted cash are as follows: | |||||||
June 30, | December 31, | ||||||
2014 | 2013 | ||||||
$’000 | $’000 | ||||||
Cash deposit held with a bank pending completion of sale of Inn at Perry Cabin by Belmond | — | 4,000 | |||||
Cash deposits required to be held with lending banks as collateral | 2,044 | 8,391 | |||||
Escrow deposits and other restricted cash at Porto Cupecoy | — | 355 | |||||
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy | 1,707 | 681 | |||||
Security required under the European Union Package Travel Directive | 207 | 209 | |||||
Total restricted cash | 3,958 | 13,636 | |||||
Sharebased_compensation_plans_
Share-based compensation plans (Tables) (Class A common shares at par value, 2009 share award and incentive plan) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Class A common shares at par value | 2009 share award and incentive plan | ' | ||||||||||||||||
Share-based compensation plans | ' | ||||||||||||||||
Schedule of assumptions | ' | ||||||||||||||||
During the six months ended June 30, 2014, the following awards were made under the 2009 share award and incentive plan on the following dates. Estimates of fair values of share options and deferred shares without performance criteria were made using the Black-Scholes options pricing model. Estimates of fair values of deferred shares with performance criteria and market conditions were made using the Monte Carlo valuation model. | |||||||||||||||||
2009 share award and incentive plan | Class A common shares | Date granted | Date vested | Purchase price | Expected share price volatility | Risk-free interest rate | Expected dividends per share | Expected life of awards | |||||||||
Share options | 266,700 | June 20, 2014 | June 20, 2017 | $14.08 | 46% | 1.71% | $— | 4.5 years | |||||||||
Deferred shares without performance criteria | 94,000 | March 21, 2014 | March 21, 2017 | $0.01 | 46% | 0.91% | $— | 3 years | |||||||||
Deferred shares with performance criteria and market conditions | 251,400 | March 21, 2014 | March 21, 2017 | $0.01 | 46% | 0.89% | $— | 3 years |
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 6 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Schedule of future rental payments under operating leases | ' | |||
Future rental payments as at June 30, 2014 under operating leases in respect of equipment rentals and leased premises are payable as follows: | ||||
$’000 | ||||
Remainder of 2014 | 5,895 | |||
2015 | 11,114 | |||
2016 | 11,083 | |||
2017 | 11,160 | |||
2018 | 10,684 | |||
2019 | 10,097 | |||
2020 and thereafter | 75,426 | |||
Future rental payments under operating leases | 135,459 | |||
Fair_value_measurements_Tables
Fair value measurements (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule of assets and liabilities measured on a recurring basis | ' | |||||||||||||||
The following tables summarize the valuation of Belmond’s financial instruments recorded at fair value by the fair value hierarchy at June 30, 2014 and December 31, 2013: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
30-Jun-14 | $’000 | $’000 | $’000 | $’000 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||
Derivative financial instruments | — | (2,903 | ) | — | (2,903 | ) | ||||||||||
Total net liabilities | — | (2,903 | ) | — | (2,903 | ) | ||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
31-Dec-13 | $’000 | $’000 | $’000 | $’000 | ||||||||||||
Assets at fair value: | ||||||||||||||||
Derivative financial instruments | — | 2 | — | 2 | ||||||||||||
Total assets | — | 2 | — | 2 | ||||||||||||
Liabilities at fair value: | ||||||||||||||||
Derivative financial instruments | — | (4,890 | ) | — | (4,890 | ) | ||||||||||
Total net liabilities | — | (4,888 | ) | — | (4,888 | ) | ||||||||||
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 Belmond's long-term debt as of June 30, 2014 and December 31, 2013 were as follows: | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||
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 | 548,991 | 602,964 | 543,567 | 562,588 | |||||||||||
Long-term debt, including current portion, held by consolidated variable interest entities | Level 3 | 95,249 | 102,025 | 96,150 | 97,775 | |||||||||||
Schedule of estimated fair values of non-financial assets measured on non-recurring basis | ' | |||||||||||||||
The estimated fair value of Belmond’s non-financial assets measured on a non-recurring basis for the six months ended June 30, 2013 was as follows: | ||||||||||||||||
Fair value measurement inputs | ||||||||||||||||
Fair value | Level 2 | Total losses | ||||||||||||||
$’000 | Level 1 | $’000 | Level 3 | in the six | ||||||||||||
$’000 | $’000 | months ended | ||||||||||||||
June 30, | ||||||||||||||||
2013 | ||||||||||||||||
$’000 | ||||||||||||||||
Property, plant and equipment | 45,000 | — | — | 45,000 | (35,680 | ) | ||||||||||
Derivatives_and_hedging_activi1
Derivatives and hedging activities (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
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 June 30, 2014 and December 31, 2013, Belmond 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: | |||||||||||||
June 30, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
’000 | ’000 | ||||||||||||
Interest Rate Swaps | € | 74,813 | € | 137,469 | |||||||||
Interest Rate Swaps | $ | 172,069 | $ | 63,700 | |||||||||
Schedule of fair value of derivative financial instruments | ' | ||||||||||||
The table below presents the fair value of Belmond’s derivative financial instruments and their classification as of June 30, 2014 and December 31, 2013: | |||||||||||||
Liability derivatives | |||||||||||||
Fair value as of | Fair value as of | ||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||
Balance sheet location | $’000 | $’000 | |||||||||||
Derivatives designated in a cash flow hedging relationship: | |||||||||||||
Interest rate swaps | Accrued liabilities | (2,381 | ) | (3,012 | ) | ||||||||
Interest rate swaps | Other liabilities | (522 | ) | (1,878 | ) | ||||||||
Total | (2,903 | ) | (4,890 | ) | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Interest rate options | Other assets | — | 2 | ||||||||||
Total | — | 2 | |||||||||||
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/(loss) for the three and six months ended June 30, 2014 and 2013 were as follows: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Amount of gain recognized in interest expense for the ineffective portion of derivatives designated as cash flow hedges | — | — | — | 37 | |||||||||
Amount of loss recognized in interest expense for derivatives not designated as hedging instruments | — | (7 | ) | (2 | ) | (29 | ) | ||||||
Accumulated_other_comprehensiv1
Accumulated other comprehensive income/loss (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
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 | ||||||||||
Six months ended June 30, 2014 | $’000 | $’000 | $’000 | $’000 | |||||||||
Balance at January 1, 2014 | (81,339 | ) | (3,381 | ) | (8,597 | ) | (93,317 | ) | |||||
Other comprehensive loss before reclassifications | (40,646 | ) | (724 | ) | — | (41,370 | ) | ||||||
Amounts reclassified from AOCI | — | 1,205 | — | 1,205 | |||||||||
Net current period other comprehensive income/(loss) | (40,646 | ) | 481 | — | (40,165 | ) | |||||||
Balance at June 30, 2014 | (121,985 | ) | (2,900 | ) | (8,597 | ) | (133,482 | ) | |||||
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-Jun-14 | 30-Jun-13 | ||||||||||||
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 hedged debt instruments | 595 | 882 | Interest expense | ||||||||||
Total reclassifications for the period | 595 | 882 | |||||||||||
Amount reclassified from AOCI | |||||||||||||
Six months ended | |||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||
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 | 1,205 | 1,783 | Interest expense | ||||||||||
Total reclassifications for the period | 1,205 | 1,783 | |||||||||||
Segment_information_Tables
Segment information (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Reconciliation of revenue from segments to consolidated | ' | ||||||||||||
Revenue from external customers by segment: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Owned hotels: | |||||||||||||
Europe | 78,179 | 75,190 | 92,715 | 91,237 | |||||||||
North America | 37,329 | 40,500 | 75,562 | 74,999 | |||||||||
Rest of world | 33,195 | 30,391 | 69,725 | 71,624 | |||||||||
Total owned hotels | 148,703 | 146,081 | 238,002 | 237,860 | |||||||||
Part-owned/managed hotels | 1,775 | 1,634 | 2,738 | 2,770 | |||||||||
Total hotels | 150,478 | 147,715 | 240,740 | 240,630 | |||||||||
Owned trains and cruises | 23,284 | 21,783 | 34,280 | 30,889 | |||||||||
Part-owned/managed trains | 1,842 | 975 | 3,127 | 1,788 | |||||||||
Total trains and cruises | 25,126 | 22,758 | 37,407 | 32,677 | |||||||||
Total revenue | 175,604 | 170,473 | 278,147 | 273,307 | |||||||||
Reconciliation of adjusted earnings by segment to net earnings/losses | ' | ||||||||||||
Reconciliation of the total of segment profit/(loss) to consolidated net earnings/(losses) from operations: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Owned hotels: | |||||||||||||
Europe | 29,904 | 28,135 | 21,510 | 20,178 | |||||||||
North America | 6,889 | 8,177 | 14,206 | 14,534 | |||||||||
Rest of world | 6,690 | 4,782 | 17,466 | 17,596 | |||||||||
Total owned hotels | 43,483 | 41,094 | 53,182 | 52,308 | |||||||||
Part-owned/managed hotels | 1,811 | 1,792 | 1,306 | (209 | ) | ||||||||
Total hotels | 45,294 | 42,886 | 54,488 | 52,099 | |||||||||
Owned trains and cruises | 2,475 | 2,486 | 1,694 | 1,469 | |||||||||
Part-owned/managed trains | 3,956 | 3,194 | 5,837 | 5,277 | |||||||||
Total trains and cruises | 6,431 | 5,680 | 7,531 | 6,746 | |||||||||
Reconciliation to net earnings/(losses): | |||||||||||||
Total segment profit | 51,725 | 48,566 | 62,019 | 58,845 | |||||||||
Gain on disposal of property, plant and equipment | 153 | — | 3,857 | — | |||||||||
Impairment of property, plant and equipment | — | — | — | (35,680 | ) | ||||||||
Central overheads | (8,437 | ) | (7,063 | ) | (16,810 | ) | (16,038 | ) | |||||
Share-based compensation | (2,185 | ) | (2,335 | ) | (2,976 | ) | (3,885 | ) | |||||
Depreciation and amortization | (12,771 | ) | (12,239 | ) | (24,890 | ) | (23,717 | ) | |||||
Loss on extinguishment of debt | — | — | (14,506 | ) | — | ||||||||
Interest income | 298 | 285 | 700 | 522 | |||||||||
Interest expense | (8,521 | ) | (8,344 | ) | (18,056 | ) | (15,597 | ) | |||||
Foreign currency, net | (1,328 | ) | 923 | (880 | ) | 2,999 | |||||||
(Provision for)/benefit from income taxes | (11,561 | ) | (3,652 | ) | (1,319 | ) | 2,258 | ||||||
Share of (provision for)/benefit from income taxes of unconsolidated companies | (910 | ) | 794 | (585 | ) | 1,024 | |||||||
Earnings/(losses) from continuing operations | 6,463 | 16,935 | (13,446 | ) | (29,269 | ) | |||||||
(Losses)/earnings from discontinued operations | (467 | ) | 402 | (1,202 | ) | (400 | ) | ||||||
Net earnings/(losses) | 5,996 | 17,337 | (14,648 | ) | (29,669 | ) | |||||||
Reconciliation of other significant reconciling items from segments to consolidated | ' | ||||||||||||
Reconciliation of capital expenditure by segment: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Owned hotels: | |||||||||||||
Europe | 10,913 | 2,813 | 19,920 | 6,441 | |||||||||
North America | 3,895 | 9,147 | 9,235 | 21,421 | |||||||||
Rest of world | 4,417 | 4,278 | 8,239 | 7,253 | |||||||||
Total owned hotels | 19,225 | 16,238 | 37,394 | 35,115 | |||||||||
Owned trains and cruises | 1,678 | 1,264 | 2,558 | 3,073 | |||||||||
Unallocated corporate | 16 | 125 | 88 | 149 | |||||||||
Total capital expenditure | 20,919 | 17,627 | 40,040 | 38,337 | |||||||||
Earnings from unconsolidated companies, net of tax: | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Part-owned/managed hotels | 114 | 586 | (752 | ) | (1,000 | ) | |||||||
Part-owned/managed trains | 1,337 | 2,674 | 1,790 | 3,633 | |||||||||
Total earnings from unconsolidated companies, net of tax | 1,451 | 3,260 | 1,038 | 2,633 | |||||||||
Schedule of financial information regarding geographic areas based on the location of properties | ' | ||||||||||||
Revenue from external customers in Belmond’s country of domicile and significant countries (based on the location of the property): | |||||||||||||
Three months ended | Six months ended | ||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
$’000 | $’000 | $’000 | $’000 | ||||||||||
Bermuda | — | — | — | — | |||||||||
Italy | 53,099 | 48,860 | 54,417 | 51,077 | |||||||||
United Kingdom | 22,975 | 20,435 | 31,566 | 28,097 | |||||||||
United States | 28,512 | 31,893 | 51,896 | 50,903 | |||||||||
Brazil | 22,221 | 18,024 | 43,508 | 41,516 | |||||||||
All other countries | 48,797 | 51,261 | 96,760 | 101,714 | |||||||||
Total revenue | 175,604 | 170,473 | 278,147 | 273,307 | |||||||||
Basis_of_financial_statement_p2
Basis of financial statement presentation (Details) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Number of hotels | 35 |
Number of restaurants | 1 |
Number of trains | 6 |
Number of river cruise ship businesses | 2 |
Number of canal boat businesses | 1 |
Brazilian hotels | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Foreign currency translation adjustment loss | ($49,356) |
Earnings_per_share_Calculation
Earnings per share - Calculation of basic and diluted earnings per share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Numerator ($'000) | ' | ' | ' | ' |
Net earnings/(losses) from continuing operations | $6,463 | $16,935 | ($13,446) | ($29,269) |
Net (losses)/earnings from discontinued operations, net of tax provision/(benefit) of $Nil, $90, $Nil and $(296) | -467 | 402 | -1,202 | -400 |
Net losses/(earnings) attributable to non-controlling interests | 89 | 126 | -27 | -83 |
Net earnings/(losses) attributable to Belmond Ltd. | $6,085 | $17,463 | ($14,675) | ($29,752) |
Denominator (shares '000) | ' | ' | ' | ' |
Basic weighted average shares outstanding (in shares) | 103,734 | 103,063 | 103,727 | 103,037 |
Effect of dilution (in shares) | 2,184 | 2,249 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 105,918 | 105,312 | 103,727 | 103,037 |
Basic earnings per share | ' | ' | ' | ' |
Net earnings/(losses) from continuing operations (in dollars per share) | $0.06 | $0.16 | ($0.13) | ($0.28) |
Net earnings/(losses) from discontinued operations (in dollars per share) | ($0.01) | $0.00 | ($0.01) | ($0.00) |
Net losses/(earnings) attributable to non-controlling interests (in dollars per share) | $0.00 | $0.00 | $0 | ($0.00) |
Basic net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | $0.06 | $0.17 | ($0.14) | ($0.29) |
Diluted earnings per share | ' | ' | ' | ' |
Net earnings/(losses) from continuing operations (in dollars per share) | $0.06 | $0.16 | ($0.13) | ($0.28) |
Net earnings/(losses) from discontinued operations (in dollars per share) | ($0.00) | $0.00 | ($0.01) | ($0.00) |
Net losses/(earnings) attributable to non-controlling interests (in dollars per share) | $0.00 | $0.00 | $0 | ($0.00) |
Diluted net earnings/(losses) per share attributable to Belmond Ltd. (in dollars per share) | $0.06 | $0.17 | ($0.14) | ($0.29) |
Earnings_per_share_Securities_
Earnings per share - Securities excluded from the computation of diluted earnings per share (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
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) | 163,900 | 231,150 | 4,416,300 | 4,878,063 |
Number of share options and share-based awards unexercised (in shares) | 4,416,300 | 4,878,063 | 4,416,300 | 4,878,063 |
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) | 163,900 | 231,150 | 2,913,300 | 3,276,600 |
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 | 1,503,000 | 1,601,463 |
Assets_held_for_sale_and_disco2
Assets held for sale and discontinued operations - Summary of net assets sold and the gain/loss recorded on sale (Details) (USD $) | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 21, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 |
Inn at Perry Cabin by Belmond | Inn at Perry Cabin by Belmond | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | ||||
Net assets sold and gain on sale | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | $32,193 | $32,293 | $32,193 | $38 | ' | $0 | $0 |
Real estate assets | ' | ' | 720 | 0 | 0 | 18,512 | ' | 720 | 720 |
Net working capital (deficit)/surplus | ' | ' | ' | -820 | ' | 0 | ' | ' | ' |
Net assets | ' | ' | ' | 31,473 | ' | 18,550 | ' | ' | ' |
Transfer of foreign currency translation loss/(gain) | ' | ' | ' | 0 | ' | 0 | ' | ' | ' |
Net assets after adjustments | ' | ' | ' | 31,473 | ' | 18,550 | ' | ' | ' |
Consideration: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash consideration received on sale of hotel | ' | ' | ' | 25,680 | ' | 19,000 | ' | ' | ' |
Reduction in debt facility on sale of hotel | ' | ' | ' | 11,020 | ' | 0 | ' | ' | ' |
Key money retained by buyer | 3,000 | 0 | ' | 3,000 | ' | 0 | ' | ' | ' |
Less: Working capital adjustment | ' | ' | ' | -1,130 | ' | -11 | ' | ' | ' |
Less: Costs to sell | ' | ' | ' | -393 | ' | 0 | ' | ' | ' |
Net proceeds from divestiture of businesses | ' | ' | ' | 38,177 | ' | 18,989 | ' | ' | ' |
Disposal group, not discontinued operation, gain (loss) on disposal | ' | ' | ' | 6,704 | ' | ' | ' | ' | ' |
Gain on sale | ' | $439 | ' | ' | ' | $439 | $439 | ' | ' |
Assets_held_for_sale_and_disco3
Assets held for sale and discontinued operations - Summarized operating results for discontinued operations (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Operating results | ' | ' | ' | ' | ' |
Revenue | ' | $0 | $1,385 | $0 | $3,456 |
Earnings/(losses) before tax, gain on sale and impairment | ' | -467 | 492 | -1,202 | -1,058 |
Impairment | ' | ' | ' | ' | -77 |
Gain on sale | ' | ' | ' | ' | 439 |
Earnings/(losses) before tax | ' | -467 | 492 | -1,202 | -696 |
Tax (provision)/benefit | ' | 0 | -90 | 0 | 296 |
Net earnings/(losses) from discontinued operations | ' | -467 | 402 | -1,202 | -400 |
Ubud Hanging Gardens | ' | ' | ' | ' | ' |
Operating results | ' | ' | ' | ' | ' |
Revenue | ' | 0 | 1,377 | 0 | 2,613 |
Earnings/(losses) before tax, gain on sale and impairment | ' | -241 | 402 | -918 | 531 |
Impairment | ' | ' | ' | ' | 0 |
Gain on sale | ' | ' | ' | ' | 0 |
Earnings/(losses) before tax | ' | -241 | 402 | -918 | 531 |
Tax (provision)/benefit | ' | ' | -90 | ' | -126 |
Net earnings/(losses) from discontinued operations | ' | -241 | 312 | -918 | 405 |
Porto Cupecoy | ' | ' | ' | ' | ' |
Operating results | ' | ' | ' | ' | ' |
Revenue | ' | 0 | 8 | 0 | 843 |
Earnings/(losses) before tax, gain on sale and impairment | ' | -226 | 90 | -284 | -1,589 |
Impairment | ' | ' | ' | ' | -77 |
Gain on sale | 439 | ' | ' | ' | 439 |
Earnings/(losses) before tax | ' | -226 | 90 | -284 | -1,227 |
Tax (provision)/benefit | ' | ' | 0 | ' | 0 |
Net earnings/(losses) from discontinued operations | ' | -226 | 90 | -284 | -1,227 |
The Westcliff | ' | ' | ' | ' | ' |
Operating results | ' | ' | ' | ' | ' |
Revenue | ' | ' | ' | ' | 0 |
Earnings/(losses) before tax, gain on sale and impairment | ' | ' | ' | ' | 0 |
Impairment | ' | ' | ' | ' | 0 |
Gain on sale | ' | ' | ' | ' | 0 |
Earnings/(losses) before tax | ' | ' | ' | ' | 0 |
Tax (provision)/benefit | ' | ' | ' | ' | 422 |
Net earnings/(losses) from discontinued operations | ' | ' | ' | ' | $422 |
Assets_held_for_sale_and_disco4
Assets held for sale and discontinued operations - Assets and liabilities of properties classified as held for sale (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Mar. 21, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Inn at Perry Cabin by Belmond | Inn at Perry Cabin by Belmond | ||
Assets and liabilities | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | $1,503 | $0 | $0 | ' | ' | $1,503 |
Real estate assets | ' | 720 | 720 | 720 | 18,512 | 0 | 0 |
Property, plant and equipment | ' | 32,193 | 0 | 0 | 38 | 32,293 | 32,193 |
Total assets held for sale | 720 | 34,416 | 720 | 720 | ' | ' | 33,696 |
Current liabilities | ' | -1,611 | 0 | 0 | ' | ' | -1,611 |
Total liabilities held for sale | $0 | ($1,611) | $0 | $0 | ' | ' | ($1,611) |
Assets_held_for_sale_and_disco5
Assets held for sale and discontinued operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 21, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2013 |
property | property | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Porto Cupecoy | Inn at Perry Cabin by Belmond | Inn at Perry Cabin by Belmond | Ubud Hanging Gardens | Ubud Hanging Gardens | Ubud Hanging Gardens | Ubud Hanging Gardens | The Westcliff | ||||
Condominium | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discontinued operations, legal fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $241 | ' | $918 | ' | ' |
Discontinued operations, tax (benefit)/provision | 0 | 90 | 0 | -296 | ' | ' | 0 | 0 | ' | ' | ' | ' | 90 | ' | 126 | -422 |
Number of properties classified as held for sale | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of condominiums held for sale | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Cash consideration received on sale of hotel | ' | ' | ' | ' | ' | 19,000 | ' | ' | ' | 25,680 | ' | ' | ' | ' | ' | ' |
Gain on sale of hotel | ' | ' | ' | 439 | ' | 439 | ' | 439 | ' | ' | ' | ' | ' | ' | 0 | 0 |
Disposal group including discontinued operation, gain/(loss) before income tax, recognized on completion | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,704 | 153 | ' | ' | ' | ' | ' |
Deferred gain on sale of Inn at Perry Cabin by Belmond (see Note 3) | 2,850 | ' | 2,850 | ' | 0 | ' | ' | ' | ' | 3,000 | ' | ' | ' | ' | ' | ' |
Transfer of foreign currency translation amounts from accumulated other comprehensive income/loss | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Gross proceeds from divestiture of businesses, including reduction in debt facility on sale of asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,700 | ' | ' | ' | ' | ' | ' |
Reduction in debt facility on sale of hotel | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 11,020 | ' | ' | ' | ' | ' | ' |
Key money retained by buyer | ' | ' | 3,000 | 0 | ' | 0 | ' | ' | ' | 3,000 | ' | ' | ' | ' | ' | ' |
Management agreement term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' |
Disposal group, not discontinued operation, gain (loss) on disposal | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,704 | ' | ' | ' | ' | ' | ' |
Variable_interest_entities_Car
Variable interest entities - Carrying amounts of consolidated assets and liabilities of Charleston Center LLC (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Current assets | $258,652 | $281,796 |
Property, plant and equipment | 193,852 | 187,854 |
Goodwill | 149,601 | 156,916 |
Other assets | 63,059 | 53,998 |
Total assets | 1,833,137 | 1,879,866 |
Current liabilities | 153,431 | 209,479 |
Long-term accrued interest on subordinated debt | 15,640 | 15,340 |
Deferred income taxes of consolidated variable interest entities | 61,176 | 60,892 |
Total liabilities | 975,065 | 969,221 |
Current portion of long-term debt of consolidated variable interest entities | 1,772 | 1,805 |
Variable Interest Entity, Primary Beneficiary | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Third-party debt, including $1,722 and $1,805 current portion | 95,249 | 96,150 |
Charleston Center LLC | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Property, plant and equipment | 193,852 | 187,854 |
Charleston Center LLC | Variable Interest Entity, Primary Beneficiary | ' | ' |
Variable Interest Entity [Line Items] | ' | ' |
Current assets | 9,233 | 10,517 |
Property, plant and equipment | 193,852 | 187,854 |
Goodwill | 40,395 | 40,395 |
Other assets | 1,508 | 1,895 |
Total assets | 244,988 | 240,661 |
Current liabilities | 7,044 | 6,722 |
Third-party debt, including $1,722 and $1,805 current portion | 95,249 | 96,150 |
Long-term accrued interest on subordinated debt | 15,640 | 15,340 |
Deferred income taxes of consolidated variable interest entities | 61,176 | 60,892 |
Total liabilities | 179,109 | 179,104 |
Net assets (before amounts payable to Belmond of $94,164 and $92,692) | 65,879 | 61,557 |
Amounts payable to Belmond | 94,164 | 92,692 |
Current portion of long-term debt of consolidated variable interest entities | $1,722 | $1,805 |
Variable_interest_entities_Car1
Variable interest entities - Carrying amounts and maximum exposure to loss for Peru rail joint venture (Details) (Variable Interest Entity, Not Primary Beneficiary, Peruvian rail joint venture, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
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 | $42,902 | $43,052 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 60,653 | 63,703 |
Investment | ' | ' |
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items] | ' | ' |
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets | 39,915 | 38,095 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 39,915 | 38,095 |
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 | 2,987 | 4,957 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 2,987 | 4,957 |
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 | 5,042 | 5,920 |
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 | $12,709 | $14,731 |
Variable_interest_entities_Det
Variable interest entities (Details) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
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 | $5,042,000 |
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 | 5,042,000 |
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 | 6,279,000 |
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 | $6,430,000 |
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% |
Investments_in_unconsolidated_2
Investments in unconsolidated companies - Summarized financial data for investments in unconsolidated companies (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||||
Summarized financial data for OEH's unconsolidated companies | ' | ' | ' | ' | ' | ||||
Current assets | $67,656 | ' | $67,656 | ' | $64,145 | ||||
Property, plant and equipment, net | 344,945 | ' | 344,945 | ' | 342,731 | ||||
Other assets | 23,728 | ' | 23,728 | ' | 24,142 | ||||
Non-current assets | 368,673 | ' | 368,673 | ' | 366,873 | ||||
Total assets | 436,329 | ' | 436,329 | ' | 431,018 | ||||
Current liabilities | 141,225 | ' | 141,225 | ' | 154,213 | ||||
Long-term debt | 46,176 | ' | 46,176 | ' | 37,043 | ||||
Other liabilities | 139,986 | ' | 139,986 | ' | 127,002 | ||||
Non-current liabilities | 186,162 | ' | 186,162 | ' | 164,045 | ||||
Total shareholdersb equity | 108,942 | ' | 108,942 | ' | 112,760 | ||||
Total liabilities and shareholdersb equity | 436,329 | ' | 436,329 | ' | 431,018 | ||||
Revenue | 45,626 | 44,447 | 80,341 | 79,607 | ' | ||||
Gross profit | 28,052 | [1] | 25,579 | [1] | 46,533 | [1] | 44,841 | [1] | ' |
Net earnings | $2,948 | [2] | $6,490 | [2] | $2,596 | [2] | $5,496 | [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_3
Investments in unconsolidated companies (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2007 |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' |
Number of hotels | 35 | ' |
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 | 4 | ' |
Peruvian hotel and rail joint ventures | ' | ' |
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% | ' |
Buzios land joint venture | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | 50.00% |
Cash consideration paid | ' | $5,000,000 |
Hotel Ritz, Madrid | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' |
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 | 10,268,000 | ' |
Contingent Financial Guarantee Additional Debt 2018 | Peruvian hotel joint venture | ' | ' |
Schedule of Cost and Equity Method Investments [Line Items] | ' | ' |
Guarantor obligations, maximum exposure | 20,000,000 | ' |
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 | 77,355,000 | ' |
Property_plant_and_equipment_M
Property, plant and equipment - Major classes of property, plant and equipment (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | $1,426,215 | $1,452,139 |
Less: Accumulated depreciation | -337,102 | -330,390 |
Total property, plant and equipment, net of accumulated depreciation | 1,089,113 | 1,121,749 |
Land and buildings | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 987,311 | 1,013,015 |
Machinery and equipment | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 210,760 | 210,992 |
Fixtures, fittings and office equipment | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | 208,966 | 209,050 |
River cruise ship and canal boats | ' | ' |
Property, plant and equipment | ' | ' |
Property, plant and equipment, gross | $19,178 | $19,082 |
Property_plant_and_equipment_M1
Property, plant and equipment - Major classes of assets under capital leases (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets under capital leases | ' | ' |
Assets under capital leases, gross | $864 | $997 |
Less: Accumulated depreciation | -718 | -905 |
Total assets under capital leases, net of accumulated depreciation | 146 | 92 |
Machinery and equipment | ' | ' |
Assets under capital leases | ' | ' |
Assets under capital leases, gross | 757 | 889 |
Fixtures, fittings and office equipment | ' | ' |
Assets under capital leases | ' | ' |
Assets under capital leases, gross | $107 | $108 |
Property_plant_and_equipment_D
Property, plant and equipment (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Depreciation | $12,647,000 | $12,101,000 | $24,698,000 | $23,489,000 | ' |
Property, plant and equipment of consolidated variable interest entities | 193,852,000 | ' | 193,852,000 | ' | 187,854,000 |
Property, plant and equipment impairment charge | 0 | 0 | 0 | ' | ' |
Interest costs capitalized | 0 | 0 | 0 | 1,088,000 | ' |
Charleston Center LLC | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment of consolidated variable interest entities | 193,852,000 | ' | 193,852,000 | ' | 187,854,000 |
Property, plant and equipment | La Samanna | ' | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' |
Property, plant and equipment impairment charge | ' | ' | ' | $35,680,000 | ' |
Goodwill_Changes_in_carrying_a
Goodwill - Changes in carrying amount of goodwill (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Goodwill | ' | ' |
Gross goodwill amount | ' | $191,243 |
Accumulated impairment | ' | -34,327 |
Changes in the carrying amount of goodwill | ' | ' |
Net goodwill amount | 156,916 | ' |
Impairment | 0 | ' |
Foreign currency translation adjustment | -7,315 | ' |
Ending balance at June 30, 2014 | 149,601 | ' |
Segment: Owned hotels - Europe | ' | ' |
Goodwill | ' | ' |
Gross goodwill amount | ' | 87,885 |
Accumulated impairment | ' | -10,104 |
Changes in the carrying amount of goodwill | ' | ' |
Net goodwill amount | 77,781 | ' |
Impairment | 0 | ' |
Foreign currency translation adjustment | -991 | ' |
Ending balance at June 30, 2014 | 76,790 | ' |
Segment: Owned hotels - North America | ' | ' |
Goodwill | ' | ' |
Gross goodwill amount | ' | 66,101 |
Accumulated impairment | ' | -16,110 |
Changes in the carrying amount of goodwill | ' | ' |
Net goodwill amount | 49,991 | ' |
Impairment | 0 | ' |
Foreign currency translation adjustment | 0 | ' |
Ending balance at June 30, 2014 | 49,991 | ' |
Segment: Owned hotels - Rest of world | ' | ' |
Goodwill | ' | ' |
Gross goodwill amount | ' | 29,220 |
Accumulated impairment | ' | -8,113 |
Changes in the carrying amount of goodwill | ' | ' |
Net goodwill amount | 21,107 | ' |
Impairment | 0 | ' |
Foreign currency translation adjustment | -6,406 | ' |
Ending balance at June 30, 2014 | 14,701 | ' |
Segment: Owned trains and cruises | ' | ' |
Goodwill | ' | ' |
Gross goodwill amount | ' | 8,037 |
Accumulated impairment | ' | 0 |
Changes in the carrying amount of goodwill | ' | ' |
Net goodwill amount | 8,037 | ' |
Impairment | 0 | ' |
Foreign currency translation adjustment | 82 | ' |
Ending balance at June 30, 2014 | $8,119 | ' |
Other_intangible_assets_Rollfo
Other intangible assets - Rollforward of other intangible assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Carrying amount: | ' | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | $17,483 | ' | ' |
Foreign currency translation adjustment | ' | ' | 127 | ' | ' |
Balance at June 30, 2014 | 17,610 | ' | 17,610 | ' | ' |
Accumulated amortization: | ' | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | 3,331 | ' | ' |
Charge for the period | 124 | 138 | 192 | 228 | ' |
Foreign currency translation adjustment | ' | ' | 50 | ' | ' |
Balance at June 30, 2014 | 3,573 | ' | 3,573 | ' | ' |
Net book value: | ' | ' | ' | ' | ' |
Net book value | 14,037 | ' | 14,037 | ' | 14,152 |
Trade names | ' | ' | ' | ' | ' |
Carrying amount: | ' | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | 7,100 | ' | ' |
Foreign currency translation adjustment | ' | ' | 0 | ' | ' |
Balance at June 30, 2014 | 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, 2014 | ' | ' | 8,660 | ' | ' |
Foreign currency translation adjustment | ' | ' | 75 | ' | ' |
Balance at June 30, 2014 | 8,735 | ' | 8,735 | ' | ' |
Accumulated amortization: | ' | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | 2,268 | ' | ' |
Charge for the period | ' | ' | 121 | ' | ' |
Foreign currency translation adjustment | ' | ' | 18 | ' | ' |
Balance at June 30, 2014 | 2,407 | ' | 2,407 | ' | ' |
Net book value: | ' | ' | ' | ' | ' |
Net book value | 6,328 | ' | 6,328 | ' | 6,392 |
Internet sites | ' | ' | ' | ' | ' |
Carrying amount: | ' | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | 1,723 | ' | ' |
Foreign currency translation adjustment | ' | ' | 52 | ' | ' |
Balance at June 30, 2014 | 1,775 | ' | 1,775 | ' | ' |
Accumulated amortization: | ' | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | 1,063 | ' | ' |
Charge for the period | ' | ' | 71 | ' | ' |
Foreign currency translation adjustment | ' | ' | 32 | ' | ' |
Balance at June 30, 2014 | 1,166 | ' | 1,166 | ' | ' |
Net book value: | ' | ' | ' | ' | ' |
Net book value | $609 | ' | $609 | ' | $660 |
Other_intangible_assets_Detail
Other intangible assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Finite Lived Intangible Assets | ' | ' | ' | ' |
Amortization expense | $124 | $138 | $192 | $228 |
Remainder of 2014 | 192 | ' | 192 | ' |
2015 | 384 | ' | 384 | ' |
2016 | 384 | ' | 384 | ' |
2017 | 384 | ' | 384 | ' |
2018 | 384 | ' | 384 | ' |
2019 | 384 | ' | 384 | ' |
Favorable lease assets | ' | ' | ' | ' |
Finite Lived Intangible Assets | ' | ' | ' | ' |
Amortization expense | ' | ' | 121 | ' |
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 | ' | ' | $71 | ' |
Debt_and_obligations_under_cap2
Debt and obligations under capital lease - Long term debt and obligations under capital leases (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Loans from banks and other parties collateralized by tangible and intangible personal property (excluding real estate) with a maturity of seven years (December 31, 2013 - one to nine years), with a weighted average interest rate of 4.52% (December 31, 2013 - 4.22%) | 548,991 | 543,567 |
Obligations under capital lease | 62 | 14 |
Total long-term debt and obligations under capital lease | 549,053 | 543,581 |
Less: Current portion | 5,514 | 71,011 |
Less: Discount on secured term loan | 2,649 | 0 |
Non-current portion of long-term debt and obligations under capital lease | 540,890 | 472,570 |
Weighted-average interest rate | 4.52% | 4.22% |
Period of debt repayment | '7 years | ' |
Minimum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Period of debt repayment | ' | '1 year |
Maximum | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Period of debt repayment | ' | '9 years |
Debt_and_obligations_under_cap3
Debt and obligations under capital lease - Long term debt maturities, including obligations under capital leases (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Remainder of 2014 | $2,759 | ' |
2015 | 5,519 | ' |
2016 | 5,519 | ' |
2017 | 5,520 | ' |
2018 | 5,508 | ' |
2019 | 5,504 | ' |
2020 and thereafter | 518,724 | ' |
Total long-term debt and obligations under capital lease | $549,053 | $543,581 |
Debt_and_obligations_under_cap4
Debt and obligations under capital lease (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Mar. 21, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Mar. 21, 2014 | Mar. 21, 2014 | Mar. 21, 2014 | Mar. 21, 2014 | Mar. 21, 2014 | Mar. 21, 2014 | Mar. 21, 2014 | Jun. 30, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Belmond Ltd | Charleston Center LLC | Charleston Center LLC | Charleston Center LLC | Tranche One term loan | Tranche One term loan | Tranche Two term loan | Tranche Two term loan | Tranche Two term loan | Revolving credit facility | Revolving credit facility | Corporate Debt Refinancing [Member] | |
USD ($) | USD ($) | USD ($) | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | London Interbank Offered Rate (LIBOR) | Belmond Ltd | Belmond Ltd | Belmond Ltd | Belmond Ltd | Belmond Ltd | Belmond Ltd | Belmond Ltd | USD ($) | ||||||
USD ($) | USD ($) | Variable Interest Entity, Primary Beneficiary | USD ($) | London Interbank Offered Rate (LIBOR) | USD ($) | EUR (€) | European Interbank Offered Rate (EURIBOR) | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | ' | $551,955,000 | ' | ' | ' | $345,000,000 | ' | $206,955,000 | € 150,000,000 | ' | ' | ' | ' |
Description of variable interest rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | 'LIBOR | ' | ' | 'EURIBOR | ' | 'LIBOR | ' |
Basis spread on variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.50% | ' | 3.00% | ' | ' | 3.25% | ' | 2.75% | ' |
Derivative, Floor Interest Rate | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Term | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured term loan, annual mandatory amortization, percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extended period of maturity | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital facilities - maximum borrowing capacity | 107,249,000 | ' | 107,249,000 | ' | 3,021,000 | ' | ' | 105,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | 5,518,000 | ' | 5,518,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guaranteed debt of subsidiary | ' | ' | 548,991,000 | ' | 384,818,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs | 15,478,000 | ' | 15,478,000 | ' | 10,197,000 | 527,000 | 883,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of debt | 0 | 0 | 14,506,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,506,000 |
Write off of Deferred Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,926,000 |
Swap Termination Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,985,000 |
Payments of Debt Extinguishment Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,330,000 |
Debt of consolidated VIE | ' | ' | ' | ' | ' | 95,249,000 | 96,150,000 | ' | 95,249,000 | 96,150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital facilities - remaining borrowing capacity | $101,731,000 | ' | $101,731,000 | ' | $2,883,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving Credit Facility, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.40% | ' |
Other_liabilities_Details
Other liabilities (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Interest rate swaps (see Note 18) | $522 | $1,878 |
Long-term accrued interest on subordinated debt at Belmond Charleston Place | 15,640 | 15,340 |
Deferred lease incentive | 366 | 393 |
Contingent consideration on acquisition of Belmond Grand Hotel Timeo and Belmond Villa SantbAndrea (see Note 16) | 1,232 | 1,240 |
Deferred gain on sale of Inn at Perry Cabin by Belmond (see Note 3) | 2,850 | 0 |
Accrued income tax | 3,309 | 0 |
Total other liabilities | $23,919 | $18,851 |
Pensions_Components_of_net_per
Pensions - Components of net periodic pension benefit cost (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Components of net periodic pension benefit cost | ' | ' | ' | ' |
Service cost | $0 | $0 | $0 | $0 |
Interest cost on projected benefit obligation | 279 | 294 | 554 | 591 |
Expected return on assets | -291 | -227 | -578 | -456 |
Net amortization and deferrals | 140 | 228 | 279 | 458 |
Net periodic benefit cost | $128 | $295 | $255 | $593 |
Pensions_Details
Pensions (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Contribution by employer | $540 | $497 | $1,077 | $999 |
Anticipated additional contribution by employer to plan | ' | ' | 1,250 | ' |
Total contributions expected by employer in current fiscal year | ' | ' | $2,327 | ' |
Income_taxes_Details
Income taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Tax benefit/(expense) | $11,561 | $3,652 | $1,319 | ($2,258) |
Supplemental_cash_flow_informa2
Supplemental cash flow information (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash paid during the period for: | ' | ' |
Interest | $15,775 | $12,755 |
Income taxes, net of refunds | 9,115 | 8,824 |
Capital expenditures incurred but not yet paid | $29 | $630 |
Restricted_cash_Major_balances
Restricted cash - Major balances in restricted cash (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | $3,958 | $13,636 |
Cash deposit held with a bank pending completion of sale of Inn at Perry Cabin by Belmond | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 0 | 4,000 |
Cash deposits required to be held with lending banks as collateral | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 2,044 | 8,391 |
Escrow deposits and other restricted cash at Porto Cupecoy | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 0 | 355 |
Prepaid customer deposits which will be released to Belmond under its revenue recognition policy | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 1,707 | 681 |
Security required under the European Union Package Travel Directive | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash | 207 | 209 |
Other assets | ' | ' |
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' |
Restricted cash, long-term | $2,044 | $7,633 |
Sharebased_compensation_plans_1
Share-based compensation plans - Grants in period and fair value assumptions for share-based compensation plans (Details) (Class A common shares vesting in March 2017, 2009 share award and incentive plan, USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Share options | ' |
Share-based compensation plans | ' |
Granted deferred shares (in shares) | 266,700,000 |
Deferred shares, purchase price (in dollars per share) | $14,080 |
Expected share price volatility | 46.00% |
Risk-free interest rate | 1.71% |
Expected dividends per share | $0 |
Expected life of awards | '4 years 6 months |
Deferred shares without performance criteria | ' |
Share-based compensation plans | ' |
Granted deferred shares (in shares) | 94,000,000 |
Deferred shares, purchase price (in dollars per share) | $10 |
Expected share price volatility | 46.00% |
Risk-free interest rate | 0.91% |
Expected dividends per share | 0 |
Expected life of awards | '3 years |
Deferred shares with performance criteria | ' |
Share-based compensation plans | ' |
Granted deferred shares (in shares) | 251,400,000 |
Deferred shares, purchase price (in dollars per share) | $10 |
Expected share price volatility | 46.00% |
Risk-free interest rate | 0.89% |
Expected dividends per share | $0 |
Expected life of awards | '3 years |
Sharebased_compensation_plans_2
Share-based compensation plans (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based compensation plans | ' | ' | ' | ' |
Compensation cost | $2,185 | $2,335 | $2,976 | $3,885 |
Total unrecognized compensation cost related to unexercised stock options and unvested share awards | $11,468 | ' | $11,468 | ' |
Total unrecognized compensation cost related to unexercised stock options and unvested share awards, recognition period (in months) | ' | ' | '25 months | ' |
Maximum | Stock appreciation rights (SARs) | ' | ' | ' | ' |
Share-based compensation plans | ' | ' | ' | ' |
Expected life of awards | ' | ' | '3 years | ' |
Maximum | Share options | ' | ' | ' | ' |
Share-based compensation plans | ' | ' | ' | ' |
Expected life of awards | ' | ' | '10 years | ' |
Maximum | Deferred shares without performance criteria | ' | ' | ' | ' |
Share-based compensation plans | ' | ' | ' | ' |
Expected life of awards | ' | ' | '3 years | ' |
Maximum | Deferred shares with performance criteria | ' | ' | ' | ' |
Share-based compensation plans | ' | ' | ' | ' |
Expected life of awards | ' | ' | '3 years | ' |
Maximum | Restricted shares without performance criteria | ' | ' | ' | ' |
Share-based compensation plans | ' | ' | ' | ' |
Expected life of awards | ' | ' | '3 years | ' |
Commitments_and_contingencies_1
Commitments and contingencies - Future rental payments under operating leases (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Future rental payments under operating leases in respect of equipment rentals and leased premises | ' | ' | ' | ' |
Remainder of 2014 | $5,895 | ' | $5,895 | ' |
2015 | 11,114 | ' | 11,114 | ' |
2016 | 11,083 | ' | 11,083 | ' |
2017 | 11,160 | ' | 11,160 | ' |
2018 | 10,684 | ' | 10,684 | ' |
2019 | 10,097 | ' | 10,097 | ' |
2020 and thereafter | 75,426 | ' | 75,426 | ' |
Future rental payments under operating leases | 135,459 | ' | 135,459 | ' |
Rental expenses | $3,146 | $2,760 | $6,294 | $5,313 |
Commitments_and_contingencies_2
Commitments and contingencies (Details) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 53 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | |||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 02, 2010 | Jun. 30, 2014 | Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jan. 31, 2010 | Jan. 31, 2010 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 |
USD ($) | USD ($) | USD ($) | USD ($) | Infringement litigation of Cipriani | Infringement litigation of Cipriani | Unasserted claim | Grand Hotel Timeo and Villa Sant' Andrea | Grand Hotel Timeo and Villa Sant' Andrea | Grand Hotel Timeo and Villa Sant' Andrea | Grand Hotel Timeo and Villa Sant' Andrea | Purchase of property, plant and equipment | Purchase of property, plant and equipment | Ubud Hanging Gardens | |
installment | USD ($) | USD ($) | Copacabana Palace | USD ($) | EUR (€) | Vendor financing | Vendor financing | USD ($) | USD ($) | |||||
USD ($) | USD ($) | EUR (€) | ||||||||||||
Commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of outstanding contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,168 | $21,867 | ' |
Vendor financing | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,064 | 5,000 | ' | ' | ' |
Contingent consideration paid | ' | ' | ' | ' | ' | ' | ' | 5,250 | 4,000 | ' | ' | ' | ' | ' |
Maximum potential fine, not accrued | ' | ' | ' | ' | ' | ' | 27,000 | ' | ' | ' | ' | ' | ' | ' |
Litigation, period of imprisonment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '120 days |
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 | ' | ' | ' | ' | ' | 1,633 | ' | ' | ' | ' | ' | ' | ' | ' |
Rental expenses | $3,146 | $2,760 | $6,294 | $5,313 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant acquisitions and disposals, interest on installments for payment of purchase price by former director on exercise of purchase option, variable rate basis | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant acquisitions and disposals, length of time before expiry of former director's right of first refusal and purchase option after his death | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_value_measurements_Financ
Fair value measurements - Financial instruments recorded at fair value (Details) (Recurring basis, USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets at fair value: | ' | ' |
Derivative financial instruments | ' | $2 |
Total assets | ' | 2 |
Liabilities at fair value: | ' | ' |
Derivative financial instruments | -2,903 | -4,890 |
Total net liabilities | -2,903 | -4,888 |
Level 1 | ' | ' |
Assets at fair value: | ' | ' |
Derivative financial instruments | ' | 0 |
Total assets | ' | 0 |
Liabilities at fair value: | ' | ' |
Derivative financial instruments | 0 | 0 |
Total net liabilities | 0 | 0 |
Level 2 | ' | ' |
Assets at fair value: | ' | ' |
Derivative financial instruments | ' | 2 |
Total assets | ' | 2 |
Liabilities at fair value: | ' | ' |
Derivative financial instruments | -2,903 | -4,890 |
Total net liabilities | -2,903 | -4,888 |
Level 3 | ' | ' |
Assets at fair value: | ' | ' |
Derivative financial instruments | ' | 0 |
Total assets | ' | 0 |
Liabilities at fair value: | ' | ' |
Derivative financial instruments | 0 | 0 |
Total net liabilities | $0 | $0 |
Fair_value_measurements_Fair_v
Fair value measurements - Fair value of other financial instruments not recorded at fair value (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Estimated fair values of financial instruments (other than derivative financial instruments) | ' | ' |
Carrying amount - Long-term debt, including current portion | $548,991 | $543,567 |
Variable Interest Entity, Primary Beneficiary | ' | ' |
Estimated fair values of financial instruments (other than derivative financial instruments) | ' | ' |
Carrying amounts - Long-term debt, including current portion, held by consolidated variable interest entities | 95,249 | 96,150 |
Level 3 | ' | ' |
Estimated fair values of financial instruments (other than derivative financial instruments) | ' | ' |
Fair value - Long-term debt, including current portion | 602,964 | 562,588 |
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 | $102,025 | $97,775 |
Fair_value_measurements_Nonfin
Fair value measurements - Non-financial assets measured at fair value on a non-recurring basis (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment impairment charge | $0 | $0 | $0 | ' |
La Samanna | Fair Value, Measurements, Nonrecurring | ' | ' | ' | ' |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment | ' | 45,000,000 | ' | 45,000,000 |
Carrying value prior to impairment | La Samanna | ' | ' | ' | ' |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment | ' | 80,680,000 | ' | 80,680,000 |
Property, plant and equipment | La Samanna | ' | ' | ' | ' |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment impairment charge | ' | ' | ' | 35,680,000 |
Continuing operations | Fair Value, Measurements, Nonrecurring | ' | ' | ' | ' |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment | ' | 45,000,000 | ' | 45,000,000 |
Continuing operations | Fair Value, Measurements, Nonrecurring | Level 1 | ' | ' | ' | ' |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment | ' | 0 | ' | 0 |
Continuing operations | Fair Value, Measurements, Nonrecurring | Level 2 | ' | ' | ' | ' |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment | ' | 0 | ' | 0 |
Continuing operations | Fair Value, Measurements, Nonrecurring | Level 3 | ' | ' | ' | ' |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment | ' | 45,000,000 | ' | 45,000,000 |
Continuing operations | Property, plant and equipment | ' | ' | ' | ' |
Valuation of financial assets and liabilities by the fair value hierarchy | ' | ' | ' | ' |
Property, plant and equipment impairment charge | ' | ' | ' | $35,680,000 |
Derivatives_and_hedging_activi2
Derivatives and hedging activities - Notional amounts of outstanding interest rate derivatives (Details) (Interest Rate Swaps) | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | EUR (€) | USD ($) | EUR (€) |
Derivatives and hedging activities | ' | ' | ' | ' |
Derivative, notional amount | $172,069 | € 74,813 | $63,700 | € 137,469 |
Derivatives_and_hedging_activi3
Derivatives and hedging activities - Fair value of derivative financial instruments (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivatives designated in a cash flow hedging relationship | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Total net derivative liabilities | ($2,903) | ($4,890) |
Derivatives designated in a cash flow hedging relationship | Interest Rate Swaps | Accrued liabilities | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Fair value of derivative liabilities | -2,381 | -3,012 |
Derivatives designated in a cash flow hedging relationship | Interest Rate Swaps | Other liabilities | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Total net derivative liabilities | ' | -1,878 |
Derivatives designated in a cash flow hedging relationship | Interest Rate Swaps | Other assets | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Total net derivative liabilities | -522 | ' |
Derivatives not designated as hedges | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Total net derivative liabilities | 0 | 2 |
Derivatives not designated as hedges | Interest Rate Options | Other assets | ' | ' |
Fair value of derivative financial instruments | ' | ' |
Fair value of derivative assets | $0 | $2 |
Derivatives_and_hedging_activi4
Derivatives and hedging activities - Other comprehensive income and credit-risk-related contingent features (Details) (Interest Rate Swaps, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest Rate Swaps | ' | ' | ' | ' |
Effect of derivative financial instruments on the statements of consolidated operations and statement of consolidated comprehensive income | ' | ' | ' | ' |
Amount of gain recognized in interest expense for the ineffective portion of derivatives designated as cash flow hedges | $0 | $0 | $0 | $37 |
Amount of loss recognized in interest expense for derivatives not designated as hedging instruments | $0 | ($7) | ($2) | ($29) |
Derivatives_and_hedging_activi5
Derivatives and hedging activities (Details) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
USD ($) | 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] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Termination costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,162 | ' | ' | ' |
Derivative, notional amount | ' | ' | ' | ' | ' | ' | ' | 58,520 | 0 | 59,080 | 73,344 | 172,069 | 74,813 | 63,700 | 137,469 |
Amount recorded in other comprehensive income which is expected to be reclassified to interest expense in the next 12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,374 | ' | ' | ' |
Gain/(loss) recorded in other comprehensive income/(loss) | 1,359 | -1,183 | 1,039 | -72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of derivatives in a net liability position | 2,903 | ' | 2,903 | ' | 4,890 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets required to settle obligations under derivatives with credit-risk-related contingent features upon breach of provisions, termination value | 2,899 | ' | 2,899 | ' | 4,899 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of non-derivative hedging instruments | ' | ' | ' | ' | ' | $204,854 | $26,249 | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated_other_comprehensiv2
Accumulated other comprehensive income/loss - Changes in accumulated other comprehensive income/(loss) by component (net of tax) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | ($93,317) | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Total other comprehensive income/(losses), net of tax | 8,458 | -8,376 | -41,014 | -23,737 |
Balance at June 30, 2014 | -133,482 | ' | -133,482 | ' |
Foreign currency translation adjustments | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | -81,339 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Other comprehensive loss before reclassifications | ' | ' | -40,646 | ' |
Amounts reclassified from AOCI | ' | ' | 0 | ' |
Total other comprehensive income/(losses), net of tax | ' | ' | -40,646 | ' |
Balance at June 30, 2014 | -121,985 | ' | -121,985 | ' |
Derivative financial instruments | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | -3,381 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Other comprehensive loss before reclassifications | ' | ' | -724 | ' |
Amounts reclassified from AOCI | ' | ' | 1,205 | ' |
Total other comprehensive income/(losses), net of tax | ' | ' | 481 | ' |
Balance at June 30, 2014 | -2,900 | ' | -2,900 | ' |
Pension liability | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | -8,597 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Other comprehensive loss before reclassifications | ' | ' | 0 | ' |
Amounts reclassified from AOCI | ' | ' | 0 | ' |
Total other comprehensive income/(losses), net of tax | ' | ' | 0 | ' |
Balance at June 30, 2014 | -8,597 | ' | -8,597 | ' |
Accumulated other comprehensive income/(loss) | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' |
Balance at January 1, 2014 | ' | ' | -93,317 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Other comprehensive loss before reclassifications | ' | ' | -41,370 | ' |
Amounts reclassified from AOCI | ' | ' | 1,205 | ' |
Total other comprehensive income/(losses), net of tax | ' | ' | -40,165 | -23,743 |
Balance at June 30, 2014 | -133,482 | ' | -133,482 | ' |
Brazilian hotels | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ' | ' | ' | ' |
Foreign currency translation adjustment loss | ' | ' | ($49,356) | ' |
Accumulated_other_comprehensiv3
Accumulated other comprehensive income/loss - Reclassifications out of accumulated other comprehensive income/(loss) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Cash flows from derivative financial instruments related to interest payments made for hedged debt instruments | $8,521 | $8,344 | $18,056 | $15,597 |
Total reclassifications for the period | 5,996 | 17,337 | -14,648 | -29,669 |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Total reclassifications for the period | 595 | 882 | 1,205 | 1,783 |
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 hedged debt instruments | $595 | $882 | $1,205 | $1,783 |
Segment_information_Revenue_by
Segment information - Revenue by segment (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $175,604 | $170,473 | $278,147 | $273,307 |
Subtotal: Total hotels | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 150,478 | 147,715 | 240,740 | 240,630 |
Subtotal: Owned hotels | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 148,703 | 146,081 | 238,002 | 237,860 |
Segment: Owned hotels - Europe | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 78,179 | 75,190 | 92,715 | 91,237 |
Segment: Owned hotels - North America | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 37,329 | 40,500 | 75,562 | 74,999 |
Segment: Owned hotels - Rest of world | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 33,195 | 30,391 | 69,725 | 71,624 |
Segment: Hotels - part-owned/ managed | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 1,775 | 1,634 | 2,738 | 2,770 |
Subtotal: Total trains and cruises | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 25,126 | 22,758 | 37,407 | 32,677 |
Segment: Owned trains and cruises | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 23,284 | 21,783 | 34,280 | 30,889 |
Segment: Trains - part-owned/ managed | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $1,842 | $975 | $3,127 | $1,788 |
Segment_information_Segment_ea
Segment information - Segment earnings (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | $51,725 | $48,566 | $62,019 | $58,845 |
Gain on disposal of property, plant and equipment | 153 | 0 | 3,857 | 0 |
Impairment of property, plant and equipment | 0 | 0 | 0 | -35,680 |
Central overheads | -8,437 | -7,063 | -16,810 | -16,038 |
Share-based compensation | -2,185 | -2,335 | -2,976 | -3,885 |
Depreciation and amortization | -12,771 | -12,239 | -24,890 | -23,717 |
Loss on extinguishment of debt | 0 | 0 | -14,506 | 0 |
Interest income | 298 | 285 | 700 | 522 |
Interest expense | -8,521 | -8,344 | -18,056 | -15,597 |
Foreign currency, net | -1,328 | 923 | -880 | 2,999 |
(Provision for)/benefit from income taxes | -11,561 | -3,652 | -1,319 | 2,258 |
Share of (provision for)/benefit from income taxes of unconsolidated companies | -910 | 794 | -585 | 1,024 |
Earnings/(losses) from continuing operations | 6,463 | 16,935 | -13,446 | -29,269 |
Net (losses)/earnings from discontinued operations | -467 | 402 | -1,202 | -400 |
Net earnings/(losses) | 5,996 | 17,337 | -14,648 | -29,669 |
Subtotal: Total hotels | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | 45,294 | 42,886 | 54,488 | 52,099 |
Subtotal: Owned hotels | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | 43,483 | 41,094 | 53,182 | 52,308 |
Segment: Owned hotels - Europe | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | 29,904 | 28,135 | 21,510 | 20,178 |
Segment: Owned hotels - North America | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | 6,889 | 8,177 | 14,206 | 14,534 |
Segment: Owned hotels - Rest of world | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | 6,690 | 4,782 | 17,466 | 17,596 |
Segment: Hotels - part-owned/ managed | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | 1,811 | 1,792 | 1,306 | -209 |
Subtotal: Total trains and cruises | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | 6,431 | 5,680 | 7,531 | 6,746 |
Segment: Owned trains and cruises | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | 2,475 | 2,486 | 1,694 | 1,469 |
Segment: Trains - part-owned/ managed | ' | ' | ' | ' |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' |
Segment profit/(loss) | $3,956 | $3,194 | $5,837 | $5,277 |
Segment_information_Reconcilia
Segment information - Reconciliation of other significant reconciling items from segments to consolidated (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Earnings from unconsolidated companies, net of tax | $1,451 | $3,260 | $1,038 | $2,633 |
Capital expenditure | 20,919 | 17,627 | 40,040 | 38,337 |
Unallocated corporate | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Capital expenditure | 16 | 125 | 88 | 149 |
Subtotal: Owned hotels | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Capital expenditure | 19,225 | 16,238 | 37,394 | 35,115 |
Segment: Owned hotels - Europe | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Capital expenditure | 10,913 | 2,813 | 19,920 | 6,441 |
Segment: Owned hotels - North America | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Capital expenditure | 3,895 | 9,147 | 9,235 | 21,421 |
Segment: Owned hotels - Rest of world | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Capital expenditure | 4,417 | 4,278 | 8,239 | 7,253 |
Segment: Hotels - part-owned/ managed | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Earnings from unconsolidated companies, net of tax | 114 | 586 | -752 | -1,000 |
Segment: Owned trains and cruises | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Capital expenditure | 1,678 | 1,264 | 2,558 | 3,073 |
Segment: Trains - part-owned/ managed | ' | ' | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' | ' | ' |
Earnings from unconsolidated companies, net of tax | $1,337 | $2,674 | $1,790 | $3,633 |
Segment_information_Revenues_b
Segment information - Revenues by geography (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenue | $175,604 | $170,473 | $278,147 | $273,307 |
Bermuda | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenue | 0 | 0 | 0 | 0 |
Italy | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenue | 53,099 | 48,860 | 54,417 | 51,077 |
United Kingdom | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenue | 22,975 | 20,435 | 31,566 | 28,097 |
United States | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenue | 28,512 | 31,893 | 51,896 | 50,903 |
Brazil | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenue | 22,221 | 18,024 | 43,508 | 41,516 |
All other countries | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Revenue | $48,797 | $51,261 | $96,760 | $101,714 |
Segment_information_Details
Segment information (Details) | 6 Months Ended |
Jun. 30, 2014 | |
segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 6 |
Related_party_transactions_Det
Related party transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Related party transactions | ' | ' | ' | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' | 50.00% | ' | ' |
Eastern and Oriental Express Ltd. | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Ownership percentage in equity method investment | 25.00% | ' | 25.00% | ' | ' |
Management and guarantee fees earned | $33 | $48 | $205 | $233 | ' |
Amounts payable to Belmond | 4,419 | ' | 4,419 | ' | 4,232 |
Peruvian hotel and rail joint ventures | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' | 50.00% | ' | ' |
Management and guarantee fees earned | 3,085 | 2,224 | 4,884 | 3,688 | ' |
Amounts payable to Belmond | 3,567 | ' | 3,567 | ' | 5,726 |
Hotel Ritz, Madrid | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Ownership percentage in equity method investment | 50.00% | ' | 50.00% | ' | ' |
Management and guarantee fees earned | 327 | 299 | 555 | 498 | ' |
Interest income | 174 | 154 | 326 | 285 | ' |
Amounts payable to Belmond | $33,455 | ' | $33,455 | ' | $28,828 |