Orient-Express Hotels Acquires Remaining 50% of the Royal Scotsman Luxury Tourist Tra

[deanac24]

Orient-Express Hotels Ltd. (NYSE: OEH) today announced it had accelerated the acquisition of the remaining 50 per cent of The Royal Scotsman luxury tourist train from the L&R Group.
Orient-Express Hotels acquired the initial 50 per cent ownership of The Royal Scotsman in April, 2005 for approximately GBP700,000. It was originally intended that the additional 50 percent would be acquired in January 2008.

The company has agreed to acquire the remaining 50% of the equity for GBP1.4 million. In addition OEH will assume around GBP1 million of debt. The total transaction equates to a multiple of 4.5 times trailing EBITDA.

The Royal Scotsman is one of the world's leading luxury trains and offers a variety of fully inclusive itineraries throughout Scotland. It accommodates 36 guests in comfort and style served by a staff of 18, including 2 chefs. Travelling through breathtaking landscapes, The Royal Scotsman provides guests with traditional Scottish hospitality and fine dining combined with sumptuous surroundings and attentive service.

It is not only the journey that makes this travel experience so memorable but the people and places of Scotland encountered along the way. Insider access to the region is provided with private visits to Scotland's most prestigious estates, gardens and distilleries all situated in exceptional countryside. The train currently operates from April through October and has been in operation since 1985.

Nick Varian, Vice President, Trains and Cruises commented, "The Royal Scotsman established itself as a Scottish travel icon more than 20 years ago and fits very naturally with our trains portfolio. We became involved in the sales and marketing of the business two years ago when we acquired a stake and we have been able to expand the customer base within Europe, although Scotland will always be a favourite with guests from America as the train remains one of the best ways to experience Scotland's scenic beauty, as well as its cultural and sporting highlights."

The Royal Scotsman is one of three luxury Orient-Express tourist trains in the United Kingdom. The British Pullman, consisting of beautifully restored parlour cars of the 1920s and 1930s, operates in the south of England in association with the Venice Simplon-Orient-Express continental train. The Northern Belle, composed of post World War II first class parlour cars in the theme of the great estates of the north of England, operates from a base in Manchester.

This acquisition brings the luxury tourist train operations to six within the company worldwide. The others are the Venice Simplon-Orient-Express in Europe, the Eastern & Oriental Express in South East Asia and the Hiram Bingham in Peru.