Belmond is considering putting its 46 hotels, restaurant, train and river cruise properties on the market, as the board looks into ‘strategic alternatives to enhance shareholder value,’ it announced on Wednesday.
The company, which has owned Le Manoir since 2002, has also called on Goldman Sachs and JP Morgan as financial advisors and as well as Weil, Gotshal & Manges as legal advisor to conduct a ‘robust review’ of the business.
The board revealed that it will explore all ‘strategic, operational and financial alternatives’ available to the company, including a ‘possible sale’, Roland Hernandez, chairman of the Belmond board of directors, said in a statement. Following the announcement on Wednesday, Belmond’s stock value jumped 17% in after-hours trading.
The statement added: “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.”
While Belmond didn’t disclose when the review would be carried out, its second quarter earnings highlighted a net loss of $1.5 million, so its understandable that the company is keen to keep shareholders on side.
In a statement regarding Belmond’s earnings, chief executive officer Roeland Vos, said: “While constant currency RevPAR [revenue per available room] came in at the low end of the range we had targeted, adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] grew 6 percent versus the prior-year period, or 11 percent on a reported basis.”
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