Full-service hotel operator Belmond Ltd. is evaluating strategic alternatives to boost shareholder value.
In an Aug. 8 release, Chairman Roland Hernandez said Belmond is considering a full range of strategic, operational and financial alternatives available to the company, including a potential sale. The company said it cannot make assurances about the outcome or timing of the review process.
In a same-day earnings release, Belmond President and CEO Roeland Vos noted that the company "delivered another solid operating performance" during the quarter.
The company also disclosed in its earnings that a $112.0 million loan secured by the Belmond Charleston Place hotel in South Carolina was refinanced in June, with the proceeds used to repay the outstanding balance on the revolving credit facility in July. The loan was expanded to $160.0 million and the maturity extended to June 2021.
In July, Belmond founder James Sherwood agreed to terminate his purchase rights with respect to the Belmond Hotel Cipriani in Venice, including a right of first refusal in the event of a sale of the hotel and a purchase option for the hotel in the event of a change in control of the company. In turn, Sherwood will receive a cash payment of $3.0 million, payable over two years, or up to $25 million under certain conditions.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisers to the board, with Weil Gotshal & Manges LLP serving as legal adviser in the strategic review.