Orient-Express Hotels (NYSE: OEH) is a hotel and leisure group, which is focused on the luxury market. The company owns and operates luxury hotels, restaurants, tourist trains, and river cruises in over 25 countries. The company earned $457 million in revenue and $69 million in net income in 2009.
OEH's hotels, many operated only seasonally, target luxury travelers, while other luxury operators, such as Marriott International (MAR)'s Ritz-Carlton, Starwood Hotels & Resorts Worldwide (HOT), and FOUR SEASONS HOTEL (FS) primarily target business travelers. Since high-end luxury hotels can only be added in select locations, company has been pursuing growth by adding rooms to existing hotels and acquiring other luxury hotels. The firm is also selling private residences attached to its luxury properties.
Just as other luxury hotel chains, OEH's is impacted by threats of terrorism, contagious diseases, economic cycles, and swigns in airline travel. Owing to these problems, people either stop traveling to those areas or choose alternative destinations for travel, which has a negative impact on the company.
OEH has three main business divisions:
OEH is siginificantly smaller than its competitors in its geographic presence, but it operates higher end properties which have a higher revenue per available room or RevPAR, a key performance indicator within the hotel industry. The company competes with businesses like: