Belmond considers sale to boost shareholder value

UK: The board of Belmond, which owns Le Manoir aux Quat’Saisons and Hotel Cipriani, is considering putting the company up for sale.

The company, formerly known as Orient Express Hotels, is considering putting its 46 hotels, restaurants, train and river cruise properties on the market, as the board looks into “strategic alternatives to enhance shareholder value”.

The company, which has owned Le Manoir since 2002, has appointed Goldman Sachs and JP Morgan as financial advisors, and Weil, Gotshal & Manges as legal advisors to conduct a review of the business.

Roland Hernandez, chairman of Belmond’s board of directors, said: “The board is committed to pursuing a path that is in the best interests of all Belmond shareholders. Accordingly, we are conducting a robust review of the full range of strategic, operational and financial alternatives available to the company, including a possible sale.”

“We have made meaningful progress toward our long-term strategic goals, including growing earnings, increasing brand awareness, and expanding our global footprint. We believe that now is the right time to conduct a strategic review process in order to enhance value for shareholders, given Belmond’s truly exceptional and unique collection of iconic owned properties and strong fundamentals in our markets around the world,” he added.

Belmond’s share price rose by nearly 19 per cent in after-hours trading following the announcement of the news.

Other hotels in Belmond’s portfolio include Belmond Hotel Splendido in Portofino and Belmond Villa Sant’Andrea, in Taormina Mare, Sicily. Later this year, it will open its second UK hotel, the 54-key Belmond Cadogan in Chelsea, London.

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