Information concerning financial reporting for segments and operations in different geographical areas

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Information concerning financial reporting for segments and operations in different geographical areas

Information concerning financial reporting for segments and operations in different geographical areas

OEH’s segment information has been prepared in accordance with the applicable accounting guidance. OEH has three reporting segments, (i) hotels and restaurants, (ii) tourist trains and cruises, and (iii) real estate and property development, which are grouped into various geographical regions. At September 30, 2012, hotels are located in the United States, Caribbean, Mexico, Europe, southern Africa, South America, and Southeast Asia, a restaurant is located in New York, tourist trains operate in Europe, Southeast Asia and Peru, a river cruise ship operates in Myanmar and five canal boats in France, and real estate developments are located in the Caribbean and Southeast Asia. Segment performance is evaluated based upon segment net earnings before interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization (“segment EBITDA”). Segment information is presented in accordance with the accounting policies described in Note 1. The chief operating decision maker is the Interim Chief Executive Officer.

Financial information regarding these business segments is as follows:

		Three months ended		Nine months ended
		September 30, 2012	September 30, 2011	September 30, 2012	September 30, 2011
		$’000	$’000	$’000	$’000
Revenue:
Hotels and restaurants
Owned hotels	- Europe	83,560	89,045	170,198	180,409
	- North America	21,659	20,921	80,719	75,948
	- Rest of world	25,890	30,370	98,306	99,655
Hotel management/part ownership interests		1,395	1,324	4,073	4,082
Restaurants		2,078	2,518	9,886	9,956
		134,582	144,178	363,182	370,050
Tourist trains and cruises		23,262	26,122	55,698	57,539
Real estate		2,131	3,875	5,164	7,190
		159,975	174,175	424,044	434,779

		Three months ended				Nine months ended
		September 30, 2012		September 30, 2011		September 30, 2012		September 30, 2011
		$’000		$’000		$’000		$’000
Depreciation and amortization:
Hotels and restaurants
Owned hotels	- Europe	4,399		4,659		13,306		13,863
	- North America	2,452		2,260		7,190		6,797
	- Rest of world	2,261		2,684		6,812		7,691
Restaurants		191		191		596		573
		9,303		9,794		27,904		28,924
Tourist trains and cruises		1,085		1,057		3,137		2,945
Total segment depreciation and amortization		10,388		10,851		31,041		31,869
Unallocated corporate		161		333		552		684
		10,549		11,184		31,593		32,553
Segment EBITDA:
Hotels and restaurants
Owned hotels	- Europe	34,517		36,739		53,720		58,698
	- North America	1,813		1,168		15,899		12,231
	- Rest of world	4,240		5,346		23,108		21,214
Hotel management/part ownership interests		809		1,313		1,701		3,623
Restaurants		(642	)	(1,832	)	181		(2,093	)
		40,737		42,734		94,609		93,673
Tourist trains and cruises		8,047		8,951		15,736		14,237
Real estate		(1,648	)	(1,438	)	(4,677	)	(4,358	)
Impairment		—		(40,853	)	—		(40,853	)
Central overheads		(8,184	)	(10,321	)	(27,833	)	(26,699	)
(Loss)/gain on disposal		—		(18	)	—		502
		38,952		(945	)	77,835		36,502
Segment EBITDA/net earnings/(losses) reconciliation:
Segment EBITDA		38,952		(945	)	77,835		36,502
Less:
Depreciation and amortization		10,549		11,184		31,593		32,553
Interest expense, net		8,938		12,703		22,556		32,830
Foreign currency, net		57		4,595		655		2,525
Provision for income taxes		6,590		1,205		13,316		5,819
Share of provision for income taxes of unconsolidated companies		761		985		1,748		1,422
Net earnings/(losses) from continuing operations		12,057		(31,617	)	7,967		(38,647	)
Net earnings/(losses) from discontinued operations		5,625		(18,450	)	5,993		(20,879	)
Net earnings/(losses)		17,682		(50,067	)	13,960		(59,526	)

		Three months ended			Nine months ended
		September 30, 2012		September 30, 2011	September 30, 2012		September 30, 2011
		$’000		$’000	$’000		$’000
Earnings from unconsolidated companies, net of tax:
Hotels and restaurants
Hotel management/part ownership interests		(106	)	280	(596	)	293
Tourist trains and cruises		1,865		1,949	4,658		2,932
		1,759		2,229	4,062		3,225
Capital expenditure:
Hotels and restaurants
Owned hotels	- Europe	3,350		2,305	14,439		13,936
	- North America	11,312		4,482	33,327		8,041
	- Rest of world	6,976		5,790	15,178		13,092
Restaurants		1,020		783	1,478		1,157
		22,658		13,360	64,422		36,226
Tourist trains and cruises		448		426	2,940		2,997
Real estate		1		—	32		—
Total segment capital expenditure		23,107		13,786	67,394		39,223
Unallocated corporate		72		77	609		508
		23,179		13,863	68,003		39,731

Financial information regarding geographic areas based on the location of properties is as follows:

	Three months ended		Nine months ended
	September 30, 2012	September 30, 2011	September 30, 2012	September 30, 2011
	$’000	$’000	$’000	$’000
Revenue:
Europe	105,027	113,277	220,700	232,950
North America	25,868	27,314	95,769	93,094
Rest of world	29,080	33,584	107,575	108,735
	159,975	174,175	424,044	434,779