Orient-Express Hotels Ltd. has confirmed that it has sold its Lisbon hotel, Lapa Palace, to a private Portuguese investor for approximately $41.8 million.
Orient-Express Hotels' President and Chief Executive Officer Paul White said, "We have previously stated our intention to dispose of non-core assets. Lapa Palace has become one of Europe's most distinctive hotels but we felt we had developed it and grown our business there as far as we could. While Lisbon is a key European capital city, it is not a prime leisure destination, and as such does not have sufficient appeal for our elite leisure audience. City RevPAR is constantly under pressure from the downward trend in corporate and conference business, which is not our primary market. We are very satisfied with this deal which represents 18 times 2007 EBITDA, 22 times 2008 EBITDA and is evidence that values of luxury hotel assets in Europe remain robust."