Observatory was a chestnut horse bred in Kentucky by Juddmonte Farms, the breeding operation of his owner Khalid Abdulla.
[3] Observatory began his second season by finishing second in a Listed race at Newmarket Racecourse on 3 June and was then sent to Royal Ascot for the Group Three Jersey Stakes over seven furlongs.
[4] At Goodwood Racecourse on 4 August he added a win in the Lennox Stakes, beating Three Points by one and half lengths[5] but in the Celebration Mile at the same course later that month he was beaten into second by Medicean.
Starting the 11/10 favourite against four opponents he took the lead over 200 metres from the finish and held off a challenge from Hightori to win by a short head.
[7] At Royal Ascot in June he finished fourth behind Fantastic Light, Kalanisi and Hightori in the Prince of Wales's Stakes.