HAMILTON, BERMUDA—Belmond Ltd. has revealed that its board of directors has initiated a comprehensive review of strategic alternatives to enhance shareholder value, including a possible sale.
The luxury hospitality company reported a net loss of $1.5 million in the second quarter, compared with a net loss of $4.9 million for prior-year quarter. Belmond lost $45 million last year.
It serves as owners, part-owners or managers of 46 luxury hotel, restaurant, train and river cruise properties, which operate in 24 countries. Belmond’s properties include Belmond Hotel Cipriani in Venice, Italy; Belmond Hotel Splendido in Portofino, Italy; Belmond Copacabana Palace in Rio de Janeiro; Belmond Le Manoir aux Quat’Saisons in Oxford, U.K.; Belmond Grand Hotel Europe in St. Petersburg, Russia; Belmond El Encanto in Santa Barbara, CA; and the 21 Club restaurant in New York.
“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,” said Roland Hernandez, chairman of the board of directors. “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.”
No further public comment will be made regarding the review until it has been completed or determines that disclosure is required or beneficial, according to the company.
The board has engaged Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as financial advisors and Weil, Gotshal & Manges LLP as legal advisor to assist in its review.
