1115836--3/2/2009--ORIENT_EXPRESS_HOTELS

related topics

{competitive, industry, competition}

{acquisition, growth, future}

{stock, price, share}

{loss, insurance, financial}

{regulation, change, law}

{cost, contract, operation}

{condition, economic, financial}

{operation, natural, condition}

{loan, real, estate}

{cost, operation, labor}

{provision, law, control}

{property, intellectual, protect}

{stock, price, operating}

{operation, international, foreign}

OEH s operations are subject to adverse factors generally encountered in the lodging, hospitality and travel industries. The hospitality industry is highly competitive, both for acquisitions of new hotels and restaurants and for customers at OEH s properties. The hospitality industry is heavily regulated, including with respect to food and beverage sales, employee relations, construction and environmental concerns, and compliance with these laws could reduce revenues and profits of properties owned or managed by OEH. OEH s acquisition, expansion and development strategy may be less successful than expected and, therefore, its growth may be limited. OEH may be unable to obtain the necessary additional capital to finance the growth of its business. OEH s operations may be adversely affected by extreme weather conditions and the impact of natural disasters. If the relationships between OEH and its employees were to deteriorate, OEH may be faced with labor shortages or stoppages, which would adversely affect its ability to operate its facilities. OEH s plans to expand existing properties, develop new ones and build residential units for sale at its properties are subject to project cost, completion and resale risks. OEH s owned hotels and restaurants are subject to risks generally incidental to the ownership of commercial real estate and often beyond its control. Loss or infringement of OEH s brand names could adversely affect its business. The current uncertainty in the financial markets and sustained weakening of the economies of many countries could impact OEH s business and financial condition. The financial uncertainty and economic weakening identified in the previous risk factor could adversely impact OEH s liquidity and financial condition, in particular OEH s ability to raise additional funds for its cash requirements for working capital, commitments and debt service. Covenants in OEH s financing agreements could be breached or could limit OEH s discretion in operating its businesses, causing it to make less advantageous business decisions; OEH s indebtedness is collateralized by substantially all of its properties. OEH s substantial indebtedness could adversely affect its financial health. Increases in prevailing interest rates may increase OEH s interest payment obligations. Currency fluctuations may have a material adverse effect on OEH s financial statements and/or its operating margins. The Company s ability to pay dividends on the Class A common shares is limited. OEH is subject to accounting regulations and uses certain accounting estimates and judgments that may differ significantly from actual results. The Company is not restricted from issuing additional Class A or B common shares, and any sales could negatively affect the trading price and book value of the Class A common shares outstanding. The price of the Class A common shares may fluctuate significantly, which may make it difficult for shareholders to sell the Class A common shares when they want or at desired prices. A subsidiary of the Company, which has three Company directors on its Board of Directors, may control the outcome of most matters submitted to a vote of the Company s shareholders. Provisions in the Company s charter documents, and the preferred share purchase rights currently attached to the Class A and B common shares, may discourage a potential acquisition of OEH, even one that the holders of a majority of the Class A common shares might favor. A judgment of a United States court for liabilities under U.S. securities laws might not be enforceable in Bermuda, or an original action might not be brought in Bermuda against OEH for liabilities under U.S. securities laws.

Full 10-K form ▸

1115836--3/2/2009--ORIENT_EXPRESS_HOTELS_LTD