Segment information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment information

Segment information

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/(loss)”).

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 following tables present information regarding these reportable segments.

Revenue from external customers by segment:

	Three months ended
	March 31, 2014	March 31, 2013
	$’000	$’000
Owned hotels:
Europe	14,536	16,047
North America	38,233	34,499
Rest of world	36,530	41,233
Total owned hotels	89,299	91,779
Part-owned/managed hotels	963	1,136
Total hotels	90,262	92,915
Owned trains and cruises	10,996	9,106
Part-owned/managed trains	1,285	813
Total trains and cruises	12,281	9,919
Total revenue	102,543	102,834

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

	Three months ended
	March 31, 2014		March 31, 2013
	$’000		$’000
Owned hotels:
Europe	(8,394	)	(7,957	)
North America	7,317		6,357
Rest of world	10,776		12,814
Total owned hotels	9,699		11,214
Part-owned/managed hotels	(505	)	(2,001	)
Total hotels	9,194		9,213
Owned trains and cruises	(781	)	(1,017	)
Part-owned/managed trains	1,881		2,083
Total trains and cruises	1,100		1,066
Reconciliation to net earnings/(losses):
Total segment profit/(loss)	10,294		10,279
Gain on disposal of property, plant and equipment	3,704		—
Impairment of property, plant and equipment	—		(35,680	)
Central overheads	(8,373	)	(8,975	)
Share-based compensation	(791	)	(1,550	)
Depreciation and amortization	(12,119	)	(11,478	)
Loss on extinguishment of debt	(14,506	)	—
Interest income	402		237
Interest expense	(9,535	)	(7,253	)
Foreign currency, net	448		2,076
Benefit from income taxes	10,242		5,910
Share of benefit from income taxes of unconsolidated companies	325		230
Losses from continuing operations	(19,909	)	(46,204	)
Losses from discontinued operations	(735	)	(802	)
Net losses	(20,644	)	(47,006	)

Earnings from unconsolidated companies, net of tax:

	Three months ended
	March 31, 2014		March 31, 2013
	$’000		$’000
Part-owned/managed hotels	(866	)	(1,586	)
Part-owned/managed trains	453		959
Total earnings from unconsolidated companies, net of tax	(413	)	(627	)

Reconciliation of capital expenditure by segment:

	Three months ended
	March 31, 2014	March 31, 2013
	$’000	$’000
Owned hotels:
Europe	8,216	3,628
North America	4,937	12,274
Rest of world	3,867	2,949
Total owned hotels	17,020	18,851
Owned trains and cruises	906	1,809
Unallocated corporate	72	25
Total capital expenditure	17,998	20,685

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

	Three months ended
	March 31, 2014	March 31, 2013
	$’000	$’000
Bermuda	—	—
Italy	1,318	2,217
United Kingdom	8,591	7,662
United States	23,384	19,010
Brazil	21,287	23,492
All other countries	47,963	50,453
Total revenue	102,543	102,834