Orient-Express Hotels reports a strong end to the year

Orient-Express Hotels enjoyed a strong end to the year with a surge in fourth quarter profit and turnover as it plans for a future without its founding family.

After a December announcement by group founder and chairman James Sherwood that he would step down from his role this summer, son and Orient-Express chief executive announced earlier this month he would also be leaving.

During 2006 the company completed the acquisition of seven hotels and refurbished many of its key properties including in Madeira, St Petersburg and Rio de Janeiro.

Orient-Express also wrote off debt to the tune of $1.5m (£767,175) and refinanced a number of its European and US hotels.

In the three months ended 31 December 2006 pre-tax profit leapt 115% to £11.84m (2005: £5.5m). Turnover was 132% higher at £138.6m (2005: £102.4m).

Orient-Express chief executive Simon Sherwood, said: "It has been a year of tremendous activity for the company. We undertook major refurbishment work in the year, some of which had a material impact on the year's results, particularly at Reid's Palace in Madeira."

In the year to 31 December 2006 the company made a pre-tax profit of £53.4m (2005: £49.08m) from turnover of £510.5m (2005: £447.7m).

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By Jessica Harvey

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