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Related party transactions
9 Months Ended
Sep. 30, 2011
Related party transactions 
Related party transactions

22.       Related party transactions

 

OEH manages under long-term contract the tourist train owned by Eastern and Oriental Express Ltd., in which OEH is an equity method investor, and guarantees its $3,000,000 working capital facility.  This guarantee was in place before December 31, 2004.  The amount due to OEH from Eastern and Oriental Express Ltd. at September 30, 2011 was $3,249,000 (December 31, 2010 - $1,126,000).

 

OEH manages under long-term contracts the Hotel Monasterio, Machu Picchu Sanctuary Lodge, Las Casitas del Colca and Hotel Rio Sagrado owned by its 50/50 joint venture with local Peruvian interests, as well as the 50/50 owned PeruRail and Ferrocaril Transandino rail operations, and provides loans, guarantees and other credit accommodation to these joint ventures.  See Note 6.  In the three months ended September 30, 2011, OEH earned management and guarantee fees of $2,103,000 (2010 - $1,725,000) which are recorded in revenue.  In the nine months ended September 30, 2011, OEH earned management and guarantee fees of $5,310,000 (2010 - $3,724,000) which are recorded in revenue. The amount due to OEH from its joint venture Peruvian operations at September 30, 2011 was $9,547,000 (December 31, 2010 - $2,826,000).

 

OEH manages under a long-term contract the Hotel Ritz in Madrid, Spain, in which OEH holds a 50% interest and which is accounted for under the equity method.  For the three months ended September 30, 2011, OEH earned $293,000 (2010 - $228,000) in management fees, which are recorded in revenue, and $148,000 (2010 - $98,000) in interest income which is recorded in interest income.  For the nine months ended September 30, 2011, OEH earned $886,000 (2010 - $788,000) in management fees, which are recorded in revenue, and $398,000 (2010 - $269,000) in interest income which is recorded in interest income.  The amount due to OEH from the Hotel Ritz at September 30, 2011 was $19,035,000 (December 31, 2010 - $15,689,000).