J.P. Morgan Comments On Orient-Express Hotels' NY Public Library Deal

In a report published by J.P. Morgan, Orient-Express Hotels OEH announces Completion of NY Public Library Deal. J.P. Morgan said that last night, OEH announced that it will be walking away from the “21” Hotel development (at the NY Public Library – Donnell branch – on 53rd St. between 5th and 6th Avenue). “OEH has entered into an agreement to assign its purchase and development agreements with NY Public Library, to Tribeca Associates, LLC and Starwood Capital Group Global, LLC. We view this announcement as a positive for OEH, as its financial development obligations at the site will be extinguished and OEH will recoup the cash deposits that it has made to date. We believe this announcement is a positive for OEH and will allow the company to 1) make further progress delivering its balance sheet, and 2) allows it to focus on its core strategy of owning, and operating luxury properties, rather than real estate development.” Orient-Express Hotels closed yesterday at $12.57.