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 Orient-Express Hotels Ltd. Sells the Hotel Quinta
do Lago, Algarve, Portugal for $40 million;
16 times Current Year EBITDA

 
Orient-Express purchased the hotel in 1998 for $27 million
from Prince Khalid bin Fahd Al Faisal
HAMILTON, Bermuda, Nov. 6, 2003 - Orient-Express Hotels Ltd. (NYSE: OEH), owner of 39 deluxe hotel, restaurant, tourist train and river cruise properties in 17 countries, announced today it has sold the Hotel Quinta do Lago, Algarve, Portugal for $40 million which is 16 times current year EBITDA. The company also announced it has filed a registration statement for a proposed offering of 3,000,000 class A common shares, with an additional 450,000 shares available to cover an over-allotment option. Merrill Lynch is acting as sole book-running 
Hotel Quinta do Lago
Almancil
Algarve, Portugal
manager for the proposed offering.

Mr James B Sherwood, Chairman, said that the primary purpose of the hotel sale and sale of common shares is to raise additional capital for purchase of hotels and related businesses and to fund capital investment in some existing owned properties. The Hotel Quinta do Lago sale was considered appropriate in that this property lacked its own golf course while intensive development of small homes in the area has put enormous pressure on the nearby golf courses for start times. Another luxury hotel with its own golf course is currently under construction on the same estate. A significant gain on sale of the hotel will be realized and be included in fourth quarter results.

Mr Simon Sherwood, President, said that the company has a number of interesting investment opportunities which are under negotiation and also wishes to fund an annex building for its Windsor Court Hotel in New Orleans and a large spa at Reid's Palace Hotel in Madeira. In order to complete these investments without straining equity to debt ratios the board has deemed it prudent to raise a moderate amount of additional capital. The company currently has 30.8 million shares outstanding so the sale of 3 million additional shares would increase the shares outstanding by 10%.

The registration statement relating to the offering has been filed but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. 


 
Contact:
www.orient-express.com
Also See: Quinta Do Lago Resort Hotel on Portugal's Algarve Coast Acquired by Sea Containers' Orient-Express Hotels / June 1998
Orient-Express Hotels Ltd. and Omega Capital Acquire One of Madridís Leading Hotels, The Ritz, for US$135 million / April 2003


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