Related party transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

Related party transactions

Related party transactions

Belmond manages, under long-term contract, the tourist train owned by Eastern and Oriental Express Ltd., in which Belmond has a 25% ownership interest. In the year ended December 31, 2016, Belmond earned management fees from Eastern and Oriental Express Ltd. of $236,000 (2015 - $292,000; 2014 - $362,000), which are recorded in revenue. The amount due to Belmond from Eastern and Oriental Express Ltd. at December 31, 2016 was $4,886,000 (2015 - $4,872,000).

Belmond manages, under long-term contracts in Peru, Belmond Hotel Monasterio, Belmond Palacio Nazarenas, Belmond Sanctuary Lodge, Belmond Hotel Rio Sagrado, PeruRail and Ferrocarril Transandino, in all of which Belmond has a 50% ownership interest. Belmond provides loans, guarantees and other credit accommodation to these joint ventures. In the year ended December 31, 2016, Belmond earned management and guarantee fees from its Peruvian joint ventures of $14,734,000 (2015 - $12,503,000; 2014 - $11,515,000) which are recorded in revenue. The amount due to Belmond from its Peruvian joint ventures at December 31, 2016 was $6,907,000 (2015 - $7,285,000).

Belmond owns 50% of a company holding real estate in Buzios, Brazil. The amount due to Belmond from the joint venture at December 31, 2016 was $372,000 (2015 - $272,000).

Belmond managed, under long-term contract, the Hotel Ritz by Belmond, in which Belmond had a 50% ownership interest. For the year ended December 31, 2016, Belmond earned $Nil (2015 - $328,000; 2014 - $1,111,000) in management fees from the Hotel Ritz by Belmond which are recorded in revenue, and $Nil (2015 - $301,000; 2014 - $904,000) in interest income. The amount due to Belmond from the Hotel Ritz by Belmond at December 31, 2016 was $Nil (2015 - $Nil). On May 21, 2015, Belmond sold its ownership interest in Hotel Ritz by Belmond. See Note 6.

On the April 19, 2016, Belmond completed the sale of the property, plant and equipment relating to the trains and carriages that were formerly operated as the Great South Pacific Express in Queensland, Australia for consideration of $2,362,400 to the Company’s PeruRail joint venture. The carriages were sold at their carrying value and no gain or loss arose on disposal.

During 2016, Belmond provided conference and banqueting services in the amount of $488,000 to Crawford & Co. and GHS Holdings, LLC, companies in which Mr. Harsha Agadi, who is a member of the board of directors of Belmond, is the Chief Executive Officer and President. Mr. Agadi was appointed Interim Chief Executive Officer and Interim President of Crawford & Co. in August 2015 and as Chief Executive Officer and President in June 2016.