Orient-Express Hotels Ltd. (NYSE: OEH, www.orient-express.com), owner and operator of 50 deluxe leisure properties in 25 countries, today announced it has agreed to acquire a 100% interest in Napasai, a luxury hotel and villa development located on Koh Samui island in the Gulf of Siam, about one hour's flight from Bangkok.
The company will pay $25 million in total for the hotel, 8 adjacent villas that are available for sale and a large parcel of land suitable for development of about 40 additional villas. The hotel is being acquired for $13 million. Twelve month trailing EBITDA is over $1 million and 2006 calendar EBITDA is expected to be $1.4 million. The villas included in the sale are 8 remaining of an original 14 built (6 already sold) and are expected to be sold over the next twelve months for in excess of $6 million. The deal also includes $6 million of development land.
The property was developed by Pansea, the company's strategic partner in the South East Asia region and has been managed since its opening under the Pansea Orient-Express brand. Pansea recently acquired the full interest in the property by acquiring the shares of its local 50% partner and will now sell the property to Orient-Express Hotels.
Napasai was opened in February 2004 as a 55 key hotel together with 14 private villas for sale. The resort occupies around 100 rai of land (40 acres) in an exclusive beachfront location on the northern coast of the island. All of the existing cottages and villas which are set amidst coconut and cashew trees on sloping terrain have sea views and direct access to the beach which can only be accessed through the property. The existing resort development occupies around half of the available land leaving approximately 20 acres for further development. The island's leading golf course is close by. The famous Ang Thong marine nature reserve (the location of "The Beach" in the well known film) is a short distance by boat.
Simon Sherwood, President, said "The purchase of Napasai marks the first formal step in our agreed acquisition of the six property Pansea group of hotels. It was logical because the hotel is new and has real estate development potential which fits with our other property developments at La Samanna, St. Martin and Maroma Resort & Spa in Mexico.
"Koh Samui's proximity to the hub of Bangkok and its tranquil setting in the Gulf of Siam mean it is increasingly attracting the upper end travellers who used to go to Phuket. Special locations on the island are scarce and Napasai occupies one of the best". The hotel's occupancy is rising rapidly.
