This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Orient-Express Names John M. Scott III President And Chief Executive Officer

Orient-Express is one of the premier hospitality brands in the world. We own a unique and irreplaceable portfolio of iconic ultra-luxury properties - including the Hotel Cipriani, Copacabana Palace, the Venice Simplon-Orient-Express, Hotel Splendido and the '21' Club.  Despite a difficult operating environment, we continue to perform well.  The Board believes the Company is well positioned to deliver substantial value to our shareholders in 2013 and the coming years.  

You continue to state publicly that you are offering a significant premium, but your opportunistic proposal was made at a time when the price of Orient-Express shares has been significantly depressed.  Orient-Express shares have been negatively impacted by various factors including economic turbulence, particularly in Europe, important properties in the midst of refurbishment projects, and the transition to a new CEO.  In short, we strongly believe your proposal is significantly below the value of Orient-Express.  

Our opportunity to grow earnings and cash flow is significant, as many of our core properties are expected to achieve in 2012 substantially less than their peak EBITDA.  In addition, we expect EBITDA to benefit materially as properties undergoing renovations reopen and major new properties commence operations.  We are encouraged by the growth in our advance bookings for 2013, which are currently well ahead of last year at this time.  In addition, the market value of our unique properties is underscored by the prices per key paid in some recent sales of iconic assets.

For all these reasons, the Board is convinced that Orient-Express has a very bright future.  Importantly, we have announced today the hiring of John M. Scott as our new President and Chief Executive Officer.  Mr. Scott has superb industry experience, a deep understanding of the luxury customer and a track record of success with high-end assets.  We are convinced his leadership will usher in an exciting new era at Orient-Express.  We believe he will help build the value of the Orient-Express brand, drive substantial incremental value from our properties, and deliver strong long-term returns to our shareholders.  

The members of the Orient-Express Board have great respect for your company.  We have taken, and will continue to take, our responsibilities to Orient-Express shareholders extremely seriously. We remain deeply committed to the goal of delivering superior value to our shareholders.  For the reasons described above, our Board has unanimously concluded that your proposal significantly undervalues Orient-Express, and that now would be a highly disadvantageous time to sell the Company.  Accordingly, our Board has unanimously determined that it is not in the best interests of Orient-Express and its shareholders to pursue your proposal.

3 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%
YHOO $36.59 -0.97%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs