Gabelli Maintains Hold on Orient Express Hotels (OEH)

Gabelli is out with its report this morning on Orient Express Hotels OEH, maintains Hold. In a note to clients, Gabelli states, "We employ Net Asset Valuation on OEH using our 2010 forecasts, when we expect OEH to generate $103MM in EBITDA, and a loss of $0.06 per share. Applying a 5-7% capitalization rate range to OEH's FY 2011E owned hotel EBITDA of $112MM, a 15x multiple for managed hotel EBITDA of $2MM, and an 8x multiple on estimated 2011E Restaurant, Trains and Cruises EBITDA of $21MM, we calculate a midpoint NAV of $13 per share. Trading at 18x our 2011E EBITDA, Orient-Express remains a Hold." Shares of OEH closed Friday at $12.74.