Segment information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment information

Segment information

Following the appointment of a new Chief Executive Officer in late 2012, the Company has completed a re-evaluation of its reportable segments in the fourth quarter of 2013.

OEH’s operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker to assess performance and make decisions regarding the allocation of resources. Typically each hotel, restaurant, train or cruise operation meets the definition of an operating segment. The chief operating decision maker is the Chief Executive Officer.

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”).

OEH'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 OEH owns including its one stand-alone restaurant;

• Part-owned/managed hotels which derive earnings from hotels that OEH jointly owns or manages;

• Owned trains and cruises which derive earnings from the train and cruise businesses that OEH owns; and

• Part-owned/managed trains which derive earnings from the train businesses that OEH jointly owns or manages.

The changes in OEH's reportable segments from what was previously reported are (i) the previous hotels and restaurants segment has been disaggregated to show the hotels in their geographic areas, (ii) the one owned stand-alone restaurant in New York has been aggregated in Owned hotels—North America, (iii) trains and cruises have been disaggregated into Owned trains and cruises and Part-owned/managed trains and (iv) the previous real estate segment has been eliminated. The previous real estate reporting segment comprised the development and sale of owned real estate, but at December 31, 2013, OEH had no remaining real estate assets under development.

The following tables present financial information regarding these reportable segments. Prior periods have been restated to reflect the current period presentation.

Revenue from external customers by segment:

	2013	2012	2011
Year ended December 31,	$’000	$’000	$’000
Owned hotels:
Europe	222,047	202,342	213,232
North America	146,491	123,516	118,967
Rest of world	141,709	132,887	135,570
Total owned hotels	510,247	458,745	467,769
Part-owned/ managed hotels	5,861	5,482	5,809
Total hotels	516,108	464,227	473,578
Owned trains & cruises	73,728	70,897	72,461
Part-owned/ managed trains	4,245	3,828	3,316
Total trains & cruises	77,973	74,725	75,777
Total revenue	594,081	538,952	549,355

Reconciliation of the total of segment profit to consolidated net earnings/(losses) from operations:

	2013		2012		2011
Year ended December 31,	$’000		$’000		$’000
Owned hotels:
Europe	63,767		56,289		60,264
North America	23,233		21,684		13,485
Rest of world	35,958		32,726		31,624
Total owned hotels	122,958		110,699		105,373
Part-owned/ managed hotels	2,273		2,818		5,261
Total hotels	125,231		113,517		110,634
Owned trains & cruises	8,467		9,689		11,014
Part-owned/ managed trains	14,390		12,546		9,934
Total trains & cruises	22,857		22,235		20,948
Reconciliation to net earnings/(losses):
Total segment profit	148,088		135,752		131,582
Gain on disposal	—		1,514		16,544
Impairment of goodwill	—		(2,055	)	(11,907	)
Impairment of other intangible assets, other assets and property, plant and equipment	(36,430	)	(3,837	)	(8,153	)
Impairment of property, plant and equipment in unconsolidated company	—		—		(626	)
Central overheads	(30,647	)	(32,140	)	(30,343	)
Share-based compensation	(10,388	)	(6,834	)	(6,752	)
Depreciation and amortization	(48,740	)	(43,753	)	(43,633	)
Gain on extinguishment of debt	3,517		—		—
Interest income	1,067		1,065		2,365
Interest expense	(34,326	)	(30,862	)	(42,549	)
Foreign currency, net	1,000		(2,854	)	(4,538	)
Provision for income taxes	(17,628	)	(21,651	)	(19,611	)
Share of provision for income taxes of unconsolidated companies	(1,691	)	(5,771	)	(2,270	)
Losses from continuing operations	(26,178	)	(11,426	)	(19,891	)
Earnings/(losses) from discontinued operations	(5,318	)	4,538		(67,705	)
Net losses	(31,496	)	(6,888	)	(87,596	)

Reconciliation of assets by segment to total assets:

	2013	2012
December 31,	$’000	$’000
Owned hotels:
Europe	723,899	706,111
North America	494,919	544,957
Rest of world	342,831	320,541
Total owned hotels	1,561,649	1,571,609
Part-owned/ managed hotels	46,216	48,287
Total hotels	1,607,865	1,619,896
Owned trains & cruises	100,335	98,523
Part-owned/ managed trains	50,647	46,056
Total trains & cruises	150,982	144,579
Real estate	—	1,924
Unallocated corporate	86,603	68,588
Discontinued operations held for sale	34,416	57,040
Total assets	1,879,866	1,892,027

Reconciliation of capital expenditure by segment:

	2013	2012	2011
Year ended December 31,	$’000	$’000	$’000
Owned hotels:
Europe	13,238	17,187	18,660
North America	32,635	47,659	17,690
Rest of world	14,173	27,021	17,748
Total owned hotels	60,046	91,867	54,098
Owned trains & cruises	6,325	4,410	3,849
Unallocated corporate	275	771	1,962
Total capital expenditure	66,646	97,048	59,909

Carrying value of investment in equity method investees:

	2013	2012
December 31,	$’000	$’000
Eastern & Oriental Express	3,363	3,276
Peru hotels	16,619	15,543
Peru Rail	38,095	32,973
Hotel Ritz Madrid	—	1,736
Buzios	5,207	5,284
Total investment in equity method investees	63,284	58,812

Earnings from unconsolidated companies, net of tax:

	2013		2012	2011
Year ended December 31,	$’000		$’000	$’000
Part-owned/ managed hotels	(2,372	)	1,517	35
Part-owned/ managed trains	8,814		607	4,322
Total earnings from unconsolidated companies, net of tax	6,442		2,124	4,357

Revenue from external customers in OEH's country of domicile and significant countries (based on the location of the property):

	2013	2012	2011
Year ended December 31,	$’000	$’000	$’000
Bermuda	—	—	—
Italy	133,806	120,307	124,632
United Kingdom	65,865	67,647	71,313
United States	108,167	85,890	83,126
Brazil	80,537	74,731	82,181
All other countries	205,706	190,377	188,103
Total revenue	594,081	538,952	549,355

Property, plant and equipment (net), at book value in OEH's country of domicile and significant countries (based on the location of the property):

	2013	2012
December 31,	$’000	$’000
Bermuda	—	—
Italy	381,718	369,756
United Kingdom	63,964	64,047
United States	342,168	318,672
Brazil	148,012	147,408
All other countries	373,741	422,024
Total property, plant and equipment at book value	1,309,603	1,321,907