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Assets held for sale and discontinued operations
 6 Months Ended
Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Assets held for sale and discontinued operations
Assets held for sale and discontinued operations

At June 30, 2015 and December 31, 2014, no properties were classified as held for sale. For the six months ended June 30, 2015 and 2014, the results of operations of Ubud Hanging Gardens, Bali, Indonesia and the Porto Cupecoy development on the Dutch side of St Martin, French West Indies have been presented as discontinued operations.

During the six months ended June 30, 2014, Inn at Perry Cabin by Belmond, St. Michaels, Maryland was sold. Due to Belmond's continuing involvement in managing the hotel, its results are presented within continuing operations.

(a)    Properties sold: Inn at Perry Cabin by Belmond

On March 21, 2014, Belmond completed the sale of the property and operations of Inn at Perry Cabin by Belmond for consideration of $39,700,000, of which $25,680,000 was paid in cash, $11,020,000 was settled directly with the lender to repay the debt facility secured by the property, and $3,000,000 was a key money contribution from Belmond to the buyer to be used for agreed capital enhancements. Belmond will continue to manage the hotel for the new owner under a management agreement with a ten-year term that permits termination on the fifth anniversary of the agreement. The disposal resulted in a gain of $6,704,000, of which $3,704,000 was recognized on completion on March 21, 2014 and $3,000,000 was deferred to be recognized over the initial period of the management agreement. The gain on sale of $3,704,000 recognized on March 21, 2014 and the subsequent release of the deferred gain is reported within gain on disposal of property, plant and equipment in the statements of condensed consolidated operations.

The following is a summary of net assets sold and the gain recorded on sale for Inn at Perry Cabin by Belmond:
 
 
Inn at Perry Cabin by Belmond
 
 
March 21,
2014
 
 
$'000
 
 
 
Property, plant and equipment
 
32,293

Net working capital deficit
 
(820
)
Net assets
 
31,473

Transfer of foreign currency translation loss/(gain)
 
—

 
 
31,473

Consideration:
 
 
Cash
 
25,680

Reduction in debt facility on sale of hotel
 
11,020

Key money retained by buyer
 
3,000

Less: Working capital adjustment
 
(1,130
)
Less: Costs to sell
 
(393
)
 
 
38,177

 
 
 
Gain on sale
 
6,704



(b)    Results of discontinued operations

Belmond had been operating the hotel Ubud Hanging Gardens under a long-term lease arrangement with a third-party owner. The existing lease arrangement continues to 2030. Following an unannounced dispossession of Belmond from the hotel by the owner in November 2013, however, Belmond has been unable to continue to operate the hotel. Belmond believes that the owner's actions are unlawful and constitute a wrongful dispossession and is pursuing its legal remedies under the lease. See Note 17. As Belmond is unable to operate Ubud Hanging Gardens for the foreseeable future, the hotel has been presented as a discontinued operation for all periods shown. The assets and liabilities of the hotel have not been classified as held for sale, as the hotel has not been disposed of through a sale transaction.

The Porto Cupecoy development was sold in January 2013, with the final unit disposed of in September 2014. Residual costs relating to Porto Cupecoy are presented within discontinued operations for all periods shown.

Summarized operating results of the properties classified as discontinued operations for the three and six months ended June 30, 2015 and 2014 are as follows:
 
 
Three months ended June 30, 2015
 
 
Ubud Hanging Gardens
 
Porto Cupecoy
 
Total
 
 
$'000
 
$'000
 
$'000
 
 
 
 
 
 
 
Revenue
 
—

 
—

 
—

 
 
 
 
 
 
 
Losses before tax, gain on sale and impairment
 
(42
)
 
(11
)
 
(53
)
Impairment
 
—

 
—

 
—

Gain on sale
 
—

 
—

 
—

 
 
 
 
 
 
 
Losses before tax
 
(42
)
 
(11
)
 
(53
)
Tax benefit
 
—

 
—

 
—

 
 
 
 
 
 
 
Net losses from discontinued operations
 
(42
)
 
(11
)
 
(53
)
 
 
Three months ended June 30, 2014
 
 
Ubud Hanging Gardens
 
Porto Cupecoy
 
Total
 
 
$'000
 
$'000
 
$'000
 
 
 
 
 
 
 
Revenue
 
—

 
—

 
—

 
 
 
 
 
 
 
Losses before tax, gain on sale and impairment
 
(241
)
 
(226
)
 
(467
)
 
 
 
 
 
 
 
Losses before tax
 
(241
)
 
(226
)
 
(467
)
 
 
 
 
 
 
 
Net losses from discontinued operations
 
(241
)
 
(226
)
 
(467
)
 
 
Six months ended June 30, 2015
 
 
Ubud Hanging Gardens
 
Porto Cupecoy
 
Total
 
 
$'000
 
$'000
 
$'000
 
 
 
 
 
 
 
Revenue
 
—

 
—

 
—

 
 
 
 
 
 
 
Losses before tax, gain on sale and impairment
 
(192
)
 
(51
)
 
(243
)
 
 
 
 
 
 
 
Losses before tax
 
(192
)
 
(51
)
 
(243
)
 
 
 
 
 
 
 
Net losses from discontinued operations
 
(192
)
 
(51
)
 
(243
)


 
 
Six months ended June 30, 2014
 
 
Ubud Hanging Gardens
 
Porto Cupecoy
 
Total
 
 
$'000
 
$'000
 
$'000
 
 
 
 
 
 
 
Revenue
 
—

 
—

 
—

 
 
 
 
 
 
 
Losses before tax, gain on sale and impairment
 
(918
)
 
(284
)
 
(1,202
)
 
 
 
 
 
 
 
Losses before tax
 
(918
)
 
(284
)
 
(1,202
)
 
 
 
 
 
 
 
Net losses from discontinued operations
 
(918
)
 
(284
)
 
(1,202
)


The results of discontinued operations for the three and six months ended June 30, 2015 include legal fees of $42,000 (June 30, 2014 - $241,000) and $192,000 (June 30, 2014 - $918,000), respectively, in relation to Ubud Hanging Gardens, as Belmond is pursuing legal remedies following its dispossession by the owner in November 2013. See Note 17.

(c)    Assets and liabilities held for sale
 
There were no properties classified as held for sale at June 30, 2015 and December 31, 2014.