Assets held for sale and discontinued operations

6 Months Ended

Jun. 30, 2017

Discontinued Operations and Disposal Groups [Abstract]

Assets held for sale and discontinued operations

Assets held for sale and discontinued operations

(a)    Properties sold: Great South Pacific Express

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 $2,362,000 to the Company’s PeruRail joint venture. The carriages were sold at their carrying value and no gain or loss arose on disposal.

(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 the owner's unannounced dispossession of Belmond from the hotel in November 2013, however, Belmond was unable to continue to operate the hotel. Belmond believed that the owner's actions were unlawful and constituted a wrongful dispossession and has pursued its legal remedies under the lease. See Note 18. 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 the sale of 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 endedJune 30, 2017 and 2016 are as follows:

	Three months ended June 30, 2017
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Earnings/(losses) before tax, gain on sale and impairment	100	(7	)	93
Earnings/(losses) before tax	100	(7	)	93
Net earnings/(losses) from discontinued operations	100	(7	)	93

	Three months ended June 30, 2016
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Earnings/(losses) before tax, gain on sale and impairment	170	(14	)	156
Earnings/(losses) before tax	170	(14	)	156
Net earnings/(losses) from discontinued operations	170	(14	)	156

	Six months ended June 30, 2017
	Ubud Hanging Gardens	Porto Cupecoy	Total
	$'000	$'000	$'000
Revenue	—	—	—
Earnings before tax, gain on sale and impairment	100	28	128
Earnings before tax	100	28	128
Net earnings from discontinued operations	100	28	128

	Six months ended June 30, 2016
	Ubud Hanging Gardens	Porto Cupecoy		Total
	$'000	$'000		$'000
Revenue	—	—		—
Earnings/(losses) before tax, gain on sale and impairment	73	(18	)	55
Earnings/(losses) before tax	73	(18	)	55
Net earnings/(losses) from discontinued operations	73	(18	)	55

The results of discontinued operations for the three and six months endedJune 30, 2017 included earnings of $100,000 and $100,000, respectively, due to the partial release of legal fee accruals in relation to Ubud Hanging Gardens, where Belmond is pursuing legal remedies following its dispossession by the owner in November 2013. See Note 18.

(c)    Assets and liabilities held for sale

There were no assets or liabilities classified as held for sale at June 30, 2017 and December 31, 2016.