First Quarter 2009 Earnings Summary    - First quarter total revenues, excluding real estate, of $91.0 million,     down $24.9 million over prior year    - Same store RevPAR down 18% in local currency, 26% in US dollars    - Adjusted EBITDA before Real Estate of $9.9 million, down $7.0 million     over prior year    - First quarter net loss from continuing operations of $13.6 million    - EPS loss from continuing operations of $0.27 per common share    Key Events    - Raised $141.3 million of cash in common share offering primarily for     debt reduction    - Closed on new $30 million secured construction loan to complete Porto     Cupecoy    - Sold a total of 11 additional residences at Porto Cupecoy during 1Q 09    - Reduced impact of revenue decline on EBITDA by 72% through fixed and     variable cost savings    - Agreed in principle resolution of tangible net worth covenants on two     facilities referenced in 2008 Form 10-K    - Received deposit and signed Memorandum of Understanding for sale of a     European hotel and Letter of Intent signed on a second property    - Enhanced corporate brand strategy    - In discussions to amend agreements with the New York Public Library    

Orient-Express Hotels Ltd. , owners or part-owners and managers of 51 luxury hotels, restaurants, tourist trains and river cruise properties operating in 25 countries today announced its results for the first quarter ended March 31, 2009.

The net loss for the period was $14.6 million (loss of $0.29 per common share) on revenue of $91.0 million, compared with a net loss of $4.3 million (loss of $0.10 per common share) on revenue of $119.9 million in the first quarter of 2008. The net loss from continuing operations for the period was $13.6 million (loss of $0.27 per common share) compared with a net loss of $2.4 million (loss of $0.06 per common share) in the first quarter of 2008. The first quarter is traditionally a loss-making period for the Company because several of its European hotels are closed for most of the quarter and the Venice Simplon-Orient-Express and Royal Scotsman tourist trains and Afloat in France canal cruises do not operate. The adjusted net loss from continuing operations for the period was $1.4 million (loss of $0.03 per common share) compared with an adjusted net loss of $3.7 million (loss of $0.09 per common share) in the first quarter of 2008.

"While we, and our industry, continue to feel the effects of the global economic downturn with revenues declining, we have reduced the impact to EBITDA through stringent cost controls," said Paul White, President and Chief Executive Officer. "We also experienced some encouraging signs in our Real Estate business this quarter. We expect to complete the Porto Cupecoy project later this year and sold 11 condominiums in this quarter; a total of 84 of the 181 condominium units are now sold. We are also seeing progress in our strategy to sell non-core assets."

Business Highlights

Revenue, excluding Real Estate revenue, was $91.0 million in the first quarter of 2009, down $24.9 million from the first quarter of 2008. This reflected Owned Hotels same store RevPAR decline of 18% in local currency (26% in U.S. dollars). Adjusted EBITDA before Real Estate was $9.9 million, down $7.0 million on the prior year quarter.

Revenue from Owned Hotels for the first quarter was $80.2 million, including $11.5 million from Charleston Place. On a same store basis, revenue from Owned Hotels declined by 25% year over year. A decline of 9% in North America helped offset the impact of the 43% revenue decline in Europe and 16% in South America (excluding Hotel das Cataratas). The decision to delay opening the Italian hotels until April positively impacted EBITDA in Europe by $0.9 million but reduced revenues by $1.7 million. Restaurant revenues were down by 25% year over year.

Trains and Cruises revenue declined 43%. By reducing the number of journeys operated, EBITDA rose $0.6 million, excluding Road to Mandalay which was not operational during the period.

During the quarter the impact on EBITDA from the drop in revenue before Real Estate of $24.9 million was reduced by 72% through fixed and variable cost savings of $17.9 million.

Adjusted EBITDA before Real Estate was $9.9 million compared to $16.9 million in the prior year. The principal variances from last year included the results from Reid's Palace, Madeira (down $1.8 million), Grand Hotel Europe, St Petersburg (down $1.1 million) and Mount Nelson, Cape Town (down $1.4 million).

Financing Update

On May 4, 2009, the Company completed its public offering of 25,875,000 class A common shares including 3,375,000 shares covered by the underwriters' over-allotment option in the offering which was exercised in full. The Company intends to use the net proceeds, $141.3 million, primarily for debt reduction and general corporate purposes.

In April 2009, the Company closed a $30 million secured construction loan for its Porto Cupecoy residential mixed-use development project in Sint Maarten, Caribbean. The Company has drawn $5.2 million of this loan and has access to a further $12.7 million to fund future expenditure on the project, and may borrow additional amounts as new unit sales at Porto Cupecoy are closed. The Porto Cupecoy project is expected to be completed later this year, and as of March 31, 2009, 84 of the 181 condominium units had been sold.

The Company is currently negotiating with a lender to borrow $15 million (approximately $9 million after repayment of existing debt) which would be secured by its Maroma Resort and Spa in Mexico. Additionally, the Company is negotiating a new $18 million term facility relating to its two Australian hotels. The proceeds of this loan would be used to pay existing debt of $15 million that matures in 2010. No assurance can be given that the Company will be successful in closing the loan agreements that it is currently negotiating.

Update on Covenant Position

The Company's financing agreements with several commercial bank lenders contain financial covenants which among other things, require it to satisfy a quarter-end minimum debt service coverage ratio and minimum net worth amounts. At March 31, 2009, Orient-Express Hotels was in compliance with all major covenants except as noted below.

As disclosed in the Company's 2008 Form 10-K, the Company was concerned that it could violate a minimum $600 million tangible net worth covenant in two long-term debt facilities at the end of its first quarter of 2009. Approximately $102.3 million had been borrowed under these facilities at March 31, 2009. The Company has been negotiating with the bank lenders and has obtained agreement in principle to a waiver of these net worth covenants. To secure the waiver on one of these loans, the Company expects that it will be required to repay $9.7 million in June 2009. No assurance can be given that the Company will be successful in completing these negotiations and, therefore, the $102.3 million borrowings have been shown on the balance sheet at March 31, 2009 as a current liability.

Also as disclosed in the Company's 2008 Form 10-K, Hotel Ritz Madrid was out of compliance with a debt service coverage ratio in its first mortgage loan facility, which is non-recourse to and not credit-supported by the Company or its joint venture partner in that hotel. Orient-Express Hotels and its partner continue to fully service the debt and negotiate with the lender to determine how to bring the hotel back into compliance. No assurance can be given that these negotiations will be successful.

Liquidity and Capital Reserves

At March 31, 2009, the Company had total debt of $843.8 million, working capital loans of $59.5 million and cash balances of $54.8 million, giving a total net debt of $848.5 million compared with total net debt of $835.3 million at the end of the fourth quarter of 2008.

At March 31, 2009, undrawn amounts available to the Company under committed short-term lines of credit were $8.0 million and undrawn amounts available to the Company under secured revolving credit facilities were $32.0 million, bringing total cash availability at March 31, 2009, to $94.8 million, including restricted cash of $13.3 million. The Company's liquidity and net debt position was improved by $141.3 million from its equity offering, which was completed on May 4, 2009.

At March 31, 2009, approximately 40% of the Company's debt was at fixed interest rates and 60% was at floating interest rates. The weighted average maturity of the debt was approximately 3.1 years and the weighted average interest rate (including margin) was approximately 4.2%.

Disposal of Non-Core Assets

The Company has commenced a selective non-core asset disposal program, which management expects to be conducted in a measured timescale. In certain locales the Company has engaged brokers to help expedite the proposed sales, and to date the Company has received numerous offers from strategic and financial investors for several of these hotel assets, as well as for other assets that have not been placed on the market. Management continues to evaluate a number of prospective bids that it considers attractive from the perspective of both de-leveraging and return on invested capital. No assurance can be given that any of the proposed sales will be consummated.

In March 2009, Orient-Express Hotels signed a non-binding memorandum of understanding and received a refundable deposit from a prospective buyer for one of its European hotels. The potential buyer is currently conducting due diligence on the property. A non-binding letter of intent has also been signed with respect to another owned hotel.

One North American hotel is being actively listed for sale, effective March 2009. Offering memoranda were distributed publicly in early April 2009 and a final call for delivery of offers in May has been sent to all interested buyers.