Orient-Express Hotels Reports Second Quarter 2009 Results

HAMILTON, Bermuda -

Second Quarter 2009 Earnings Summary - Second quarter total revenues, excluding Real Estate, of $132.0 million - Same store RevPAR down 24% in local currency, 33% in US dollars - Adjusted EBITDA before Real Estate of $26.7 million Key Events - Raised $141.3 million of cash in common share offering in May 2009 primarily for debt reduction - Completed sale of Lapa Palace for $42.0 million (EUR29.4 million), or 22x 2008 EBITDA - Entered into sale agreement for Windsor Court Hotel - Entered into agreement with the New York Public Library to spread future payments over 24 months - Same store revenue drop offset by 54% through fixed and variable overhead savings - Completed $16 million re-financing of Australian properties - Implemented launch of corporate brand strategy, including new website - Obtained tangible net worth covenant waivers on two facilities referenced in 2008 Form 10-K

Orient-Express Hotels Ltd. (NYSE: OEH, www.orient-express.com), owners or part-owners and managers of 50 luxury hotels, restaurants, tourist trains and river cruise properties operating in 25 countries, today announced its results for the second quarter ended June 30, 2009.

The net loss for the period was $24.3 million (loss of $0.36 per common share) on revenue of $132.0 million, compared with net earnings of $19.5 million ($0.46 per common share) on revenue of $177.5 million in the second quarter of 2008. The net loss from continuing operations for the period was $2.6 million (loss of $0.04 per common share) compared with net earnings from continuing operations of $21.3 million ($0.50 per common share) in the second quarter of 2008. The adjusted net loss from continuing operations for the period was $2.6 million (loss of $0.04 per common share) compared with adjusted net earnings from continuing operations of $19.7 million ($0.46 per common share) in the second quarter of 2008.

“During the second quarter, we saw demand begin to stabilize. The decline in booking trends and in revenue and profitability forecasts levelled off,” commented Paul White, President and Chief Executive Officer. “Same store RevPAR declined by 24% in local currency and revenue before Real Estate, excluding Charleston Place (consolidated from January 1, 2009), was down by 30% in US dollars or by $49.8 million. We are continuing to control costs and consequently this drop in revenue was offset by 54% through fixed and variable cost savings of $26.9 million.

“Cost reductions are key to managing through recession and are particularly challenging in the luxury sector where guest service must not be compromised. Creative initiatives, such as the introduction of flexible opening dates for hotels and restaurants and a reduction in the number of train trips to maximize occupancy, have ensured these cuts are not visible to our clients.

“The sale of the Lapa Palace, the successful extension of the New York Public Library agreement, the renegotiation of the Company’s two outstanding covenant issues, along with a well supported equity raise, have improved the balance sheet and significantly enhanced our liquidity position. The Company plans to make further disposals of non-core assets in the coming quarters as we continue to deleverage the Company in line with our target to reach a four to five times ratio of debt to average EBITDA by the end of 2011.

“The key to Orient-Express’ success lies in its ability to increase RevPAR premiums and grow market share in its core markets, in particular during the high seasons. We believe our collection of iconic properties, now underpinned by the relaunch of the Orient-Express brand, positions the Company well for the future.”

Business Highlights

Revenue, excluding Real Estate revenue, was $132.0 million in the second quarter of 2009, down $41.0 million from the second quarter of 2008. This reflected Owned Hotels same store RevPAR decline of 24% in local currency (33% in US dollars). Adjusted EBITDA before Real Estate was $26.7 million, down $23.6 million on the prior year quarter.

Revenue from Owned Hotels for the second quarter was $105.3 million, including $13.4 million from Charleston Place. This excludes revenue from Lapa Palace and Windsor Court Hotel, which are now accounted for as discontinued operations. On a same store basis, revenue from Owned Hotels declined by 29% year over year.

Trains and Cruises revenue fell by 29% or $9.0 million. As these operations have a high variable cost component, EBITDA fell by only $3.0 million.

Adjusted EBITDA before Real Estate was $26.7 million compared to $50.3 million in the prior year. The principal variances from the second quarter of 2008 included the results from Hotel Cipriani, Venice (down $2.8 million), Reid’s Palace, Madeira (down $1.3 million), Grand Hotel Europe, St Petersburg (down $7.2 million), Maroma Resort and Spa, Riviera Maya, Mexico (down $1.2 million) and the Venice Simplon-Orient-Express (down $2.9 million). Adjusted EBITDA excludes the $1.5 million contributed by Lapa Palace and Windsor Court Hotel, which is included in discontinued operations.

The Grand Hotel Europe in St. Petersburg re-opened ten 19th century historic suites in May 2009 after a meticulous restoration. Located on the Historic Floor of the hotel, the name of each suite reflects the rich history of both the hotel and St. Petersburg itself, with themes including Stravinsky, Fabergé and Romanov.

During the second phase of its refurbishment program, completed in April 2009, Hotel Cipriani completed a further 14 rooms in the San Marco wing, overlooking the Antique Gardens. The Casanova Wellness Centre was also enlarged, with a new Hammam and a couples massage room. Bar Gabbiano was refurbished and expanded, as was Porticciolo, the lagoon-front casual dining restaurant.

Following damage due to Cyclone Nargis in Burma in May 2008, the Road To Mandalay cruise ship has been completely refurbished and is scheduled to return to service in August 2009. The space and style of all cabins have been improved and capacity reduced from 108 beds to 82, improving the onboard experience. A new Governor’s Suite and an additional five State Suites have been created, bringing the total number of State Suites to 18.

Construction is close to completion on a new spa and suites at La Résidence d’Angkor, scheduled to open in September 2009. Located in a brand new wing of the boutique city resort, the spa will encompass six treatment rooms with eight 70msquared guest suites on the floor above. Once complete, the eight new suites will bring the total number of rooms at the hotel to 62.

Regional Performance

Europe: In the second quarter, revenues from Owned Hotels were $52.2 million, down 36% from $81.2 million in the second quarter of 2008. EBITDA was $17.2 million in 2009 versus $32.8 million in the prior year. Same store RevPAR decreased by 26% in local currency (39% in US dollars). In Europe, the hotel most impacted by the economic downturn was Grand Hotel Europe, St Petersburg, which experienced a $7.2 million fall in EBITDA, driven by a 42% fall in local currency RevPAR (57% in US dollars).

North America: Revenue was $26.8 million, including $13.4 million with respect to Charleston Place Hotel, South Carolina which was consolidated from January 1, 2009. Excluding this hotel, revenue was 21% lower than the second quarter of 2008. Including EBITDA of $4.1 million from Charleston Place Hotel, there was an EBITDA increase of $1.8 million. Same store RevPAR for the region fell by 30%. The region includes Maroma Resort and Spa, Riviera Maya, Mexico, which was impacted by the H1N1 (swine flu) crisis. The hotel suffered a 56% fall in RevPAR and EBITDA fell by $1.2 million.

Southern Africa: Revenue of $6.6 million was 20% lower year over year, and EBITDA of $1.1 million was 16% lower than in the second quarter of 2008. Local currency same store RevPAR was down by 15% year over year (down by 19% in US dollars).

South America: Revenue decreased by 12% to $11.1 million in the second quarter of 2009, from $12.6 million in the second quarter of 2008. Local currency same store RevPAR was up by 3%. EBITDA was $1.2 million, which was 14% greater than last year. Copacabana Palace revenues were down by $0.5 million year over year, and EBITDA was up by $0.3 million. The region’s EBITDA results were impacted by a $1.5 million EBITDA loss at Hotel das Cataratas which is scheduled to re-launch under the Orient-Express brand in October 2009, following the extensive upgrading of the property. The hotel’s 195 rooms (down from 203) include nine suites, and it has a new spa as well as remodelled restaurants and swimming pool.

Asia Pacific: Revenue for the second quarter of 2009 was $8.6 million, a decrease of 15% year over year. EBITDA was $1.4 million compared to $1.3 million in the second quarter of 2008. Same store RevPAR in local currency for the region fell by 15% from $153 to $129.

Hotel management and part-ownership interests: EBITDA for the second quarter of 2009 was $1.2 million compared to $7.7 million in the second quarter of 2008, which included $4.6 million of EBITDA earnings from Charleston Place Hotel.

Restaurants: Revenue from restaurants in the second quarter of 2009 was $3.6 million compared to $5.3 million in the same quarter of 2008, and EBITDA was $0.2 million compared with $0.9 million in 2008.

Trains and Cruises: Revenue was down $9.0 million in the second quarter of 2009, a decrease of 29% year over year, and EBITDA was down by $3.0 million, reflecting the high level of variable costs in the trains business.

Central costs: In the second quarter of 2009, central costs were $6.8 million compared with $7.2 million in the prior year period. In the quarter, a $0.6 million increase in the cost of non-cash equity-compensation awards was offset by a $1.0 million saving in staff costs.

Interest: The interest charge for the second quarter of 2009 was $7.6 million compared with $10.6 million in the second quarter of 2008.

Tax: The tax charge for the quarter was $11.0 million compared to a charge of $11.2 million in the same quarter in the prior year. The second quarter 2009 tax charge includes a net tax charge of $0.5 million following the resolution of a tax audit in Italy. In addition, the second quarter 2009 tax charge includes a deferred tax charge of $2.7 million arising in respect of fixed asset timing differences following appreciation of local currencies against the US dollar exchange rates in the quarter.

Discontinued Operations: The charge in the second quarter of 2009 was $21.7 million. Discontinued operations in the second quarter include the results of Lapa Palace, Lisbon, Windsor Court Hotel, New Orleans and Bora Bora Lagoon Resort. The charge included an operating loss in the quarter of $0.3 million, impairment charges, net of tax, of $14.4 million relating to Windsor Court and $12.0 million to Bora Bora Lagoon Resort, plus a gain on the sale of Lapa Palace of $5.0 million.

Investment: Capital expenditure in the second quarter was $14.7 million which was necessary to complete projects at, in particular, Grand Hotel Europe, Hotel Cipriani and Copacabana Palace. In addition, the Company invested $11.5 million during the quarter in the Company’s development at Porto Cupecoy and $2.8 million was invested in Hotel das Cataratas.

Liquidity and Capital Reserves

At June 30, 2009, the Company had total debt of $808.7 million, working capital loans of $31.9 million and cash balances of $156.7 million (including $13.1 million of restricted cash), giving a total net debt of $683.9 million compared with total net debt of $848.5 million at the end of the first quarter of 2009.

At June 30, 2009, undrawn amounts available to the Company under committed short-term lines of credit were $25.3 million and undrawn amounts available to the Company under secured revolving credit facilities were $32.0 million, bringing total cash availability at June 30, 2009, to $214.0 million, including restricted cash of $13.1 million. The Company’s liquidity and net debt position were improved by its equity offering, raising $141.3 million in May 2009, and by the sale of the Lapa Palace.

At June 30, 2009, approximately 54% of the Company’s debt was at fixed interest rates and 46% was at floating interest rates. The weighted average maturity of the debt was approximately 2.8 years and the weighted average interest rate (including margin) was approximately 3.8%.

In July 2009, the Company successfully completed an A$20 million ($16 million) refinancing of its two Australian properties. The existing loan was scheduled to mature in April 2010 and the Company has secured a three-year loan from a new lender at a rate of 2.5% over the Australian dollar lending rate.

Disposal of Non-Core Assets

In June 2009, the Company announced that it had sold its Lisbon hotel, Lapa Palace, to a private Portuguese investor for EUR29.4 million ($42.0 million).

In July 2009, the Company entered into a sale agreement for Windsor Court Hotel, New Orleans. Orient-Express will continue to operate the hotel until the sale is completed, which is expected to be in September 2009.

New York Public Library

Also in July, the Company reached agreement with the New York Public Library to secure and spread future payments over the next 24 months in connection with its acquisition of the land and building of the Donnell branch of the Library, adjoining the Company’s ‘21′ Club.

Outlook

“While the ongoing decline in demand that has characterized the last two quarters has slowed, I believe it is still too early to predict and return to growth,” said Paul White. “We will therefore continue with our prudent approach to cash management, including the tight control of costs and capital expenditure, and continue to expedite the sale of non-core assets and developed real estate. Our aim is to significantly deleverage the Company by the end of 2011, with a targeted ratio of debt to EBITDA on a stabilized basis, in the four to five times range.”

Reconciliation to reported earnings $’000 - except per share amounts Three months ended Six months ended June 30 June 30 2009 2008 2009 2008 EBITDA 26,091 49,852 26,985 65,362 Adjusted items: Legal costs(1) 114 - 629 - Management restructuring(2) - - 717 - Impairment(3) - - 7,048 - Adjusted EBITDA 26,205 49,852 35,379 65,362 (24,313) 19,464 (38,952) 15,126 US GAAP reported net (losses)/earnings Discontinued operations net of tax 21,667 1,848 23,796 4,688 Net (loss)/earnings from continuing operations (2,646) 21,312 (15,156) 19,814 Adjusted items net of tax: Legal costs(1) 114 - 629 - Management restructuring(2) - - 625 - Impairment(3) - - 7,048 - Interest rate swaps(4) (229) 295 852 (446) Foreign exchange(5) 141 (1,894) 2,998 (3,541) Adjusted net (loss)/earnings from continuing operations (2,620) 19,713 (3,004) 15,827 Reported EPS (0.36) 0.46 (0.66) 0.36 Reported EPS from continuing operations (0.04) 0.50 (0.25) 0.47 Adjusted EPS from continuing operations (0.04) 0.46 (0.05) 0.37 Number of shares (millions) 67.17 42.47 59.02 42.47 1. Costs associated with litigation challenging the Company’s class B common share structure, as reported in the 2008 Form 10-K. 2. Restructuring and redundancy costs incurred in 2009 as the final part of the Company’s cost reduction program. 3. Goodwill impairment charges recorded on four owned properties. 4. Swaps that did not qualify for hedge accounting. 5. Foreign exchange, net of tax, is a non-cash item arising on the translation of certain assets and liabilities denominated in currencies other than the reporting currency of the entity concerned.

Management evaluates the operating performance of the Company’s segments on the basis of segment net earnings before interest, foreign currency, tax (including tax on unconsolidated companies), depreciation and amortization (segment EBITDA), and believes that segment EBITDA is a useful measure of operating performance, for example to help determine the ability to incur capital expenditure or service indebtedness, because it is not affected by non-operating factors such as leverage and the historic cost of assets. EBITDA is also a financial performance measure commonly used in the hotel and leisure industry, although the Company’s segment EBITDA may not be comparable in all instances to that disclosed by other companies. Segment EBITDA does not represent net cash provided by operating, investing and financing activities under U.S. generally accepted accounting principles (U.S. GAAP), is not necessarily indicative of cash available to fund all cash flow needs, and should not be considered as an alternative to earnings from operations or net earnings under U.S. GAAP for purposes of evaluating operating performance.

Adjusted net earnings, adjusted net earnings from continuing operations, and adjusted E.P.S. are non-GAAP financial measures and do not have any standardized meanings prescribed by U.S. GAAP. They are, therefore, unlikely to be comparable to similar measures presented by other companies, which may be calculated differently, and should not be considered as an alternative to net earnings, cash flow from operating activities or any other measure of performance prescribed by U.S. GAAP. Management considers adjusted net earnings, adjusted net earnings from continuing operations, and adjusted E.P.S. to be meaningful indicators of operations and uses them as measures to assess operating performance because, when comparing current period performance with prior periods and with budgets, management does so after having adjusted for non-recurring items, foreign exchange (a non-cash item) and significant disposals of assets or investments, which could otherwise have a material effect on the comparability of the Company’s core operations. Adjusted net earnings, adjusted net earnings from continuing operations, and adjusted E.P.S. are also used by investors, analysts and lenders as measures of financial performance because, as adjusted in the foregoing manner, the measures provide a consistent basis on which the performance of the Company can be assessed.

This news release and related oral presentations by management contain, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding earnings outlook, investment plans, debt reduction, asset sales and similar matters that are not historical facts. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Factors that may cause a difference include, but are not limited to, those mentioned in the news release, unknown effects on the travel and leisure markets of terrorist activity and any police or military response, varying customer demand and competitive considerations, failure to realize hotel bookings and reservations and planned property development sales as actual revenue, inability to sustain price increases or to reduce costs, rising fuel costs adversely impacting customer travel and the Company’s operating costs, fluctuations in interest rates and currency values, uncertainty of completing proposed asset sales, adequate sources of capital and acceptability of finance terms made more difficult by the current crisis in financial markets and by weakening national economies, possible loss or amendment of planning permits and delays in construction schedules for expansion or development projects, delays in reopening properties closed for repair or refurbishment and possible cost overruns, shifting patterns of tourism and business travel and seasonality of demand, inability to reduce funded debt as planned or to agree loan agreement waivers or amendments, adverse local weather conditions, changing global and regional economic conditions in many parts of the world and weakness in financial markets, legislative, regulatory and political developments, and possible continuing challenges to the Company’s corporate governance structure. Further information regarding these and other factors is included in the filings by the company with the U.S. Securities and Exchange Commission.

Orient-Express Hotels will conduct a conference call on Thursday, August 6, 2009 at 10.00 am ET (15.00 BST) which is accessible at +1-866-966-5335 (US toll free) or +44(0)20-3037-9120 (Standard International access). The conference ID is ‘Orient-Express’. A replay of the conference call will be available until 5.00pm (ET) Thursday, August 13, 2009 and can be accessed by calling +1-866-583-1035 (US toll free) or +44(0)20-8196-1998 (Standard International) and entering replay access passcode: 3917290#. A replay will also be available on the company’s website: www.orient-expressinvestorinfo.com.

ORIENT-EXPRESS HOTELS LTD Three Months ended June 30, 2009 SUMMARY OF OPERATING RESULTS (Unaudited) Three months ended June 30 $’000 - except per share amount 2009 2008 Revenue and earnings from unconsolidated companies Owned hotels - Europe 52,226 81,239 - North America 26,825 16,989 - Rest of World 26,276 30,840 Hotel management & part ownership interests 1,223 7,736 Restaurants 3,561 5,288 Trains & Cruises 21,906 30,932 Revenue and earnings from unconsolidated companies before Real Estate 132,017 173,024 Real Estate - 4,443 Total(1) 132,017 177,467 Analysis of earnings Owned hotels - Europe 17,177 32,846 - North America 4,299 2,513 - Rest of World 3,692 3,633 Hotel management & part ownership interests 1,223 7,736 Restaurants 153 920 Trains & Cruises 6,854 9,826 Central overheads (6,833) (7,159) EBITDA before Real Estate and Impairment 26,565 50,315 Real Estate (474) (463) EBITDA 26,091 49,852 Depreciation & amortization (9,717) (9,351) Interest (7,574) (10,645) Foreign exchange (400) 2,617 Earnings before tax 8,400 32,473 Tax (11,046) (11,161) Net (losses)/earnings from continuing operations (2,646) 21,312 Discontinued operations (21,667) (1,848) Net (losses)/earnings on common shares (24,313) 19,464 (Losses)/earnings per common share (0.36) 0.46 Number of shares - millions 67.17 42.47 (1) Comprises earnings from unconsolidated companies of $2,799,000 (2008 - $7,277,000) and revenue of $129,218,000 (2008 - $170,190,000).

ORIENT-EXPRESS HOTELS LTD Three Months Ended June 30, 2009 SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS Three months ended June 30 2009 2008 Average Daily Rate (in U.S. dollars) Europe 753 978 North America 331 374 Rest of World 266 264 Worldwide 429 520 Rooms Available (000’s) Europe 79 81 North America 69 68 Rest of World 119 110 Worldwide 267 259 Rooms Sold (000’s) Europe 39 50 North America 40 49 Rest of World 53 61 Worldwide 132 160 RevPAR (in U.S. dollars) Europe 368 600 North America 190 267 Rest of World 119 148 Worldwide 211 321 Change % Same Store RevPAR Dollar Local (in U.S. dollars) currency Europe 368 600 -39% -26% North America 241 345 -30% -29% Rest of World 134 158 -15% -11% Worldwide 239 359 -33% -24%

ORIENT-EXPRESS HOTELS LTD Six Months ended June 30, 2009 SUMMARY OF OPERATING RESULTS (Unaudited) Six months ended June 30 $’000 - except per share amount 2009 2008 Revenue and earnings from unconsolidated companies Owned hotels - Europe 65,677 105,983 - North America 55,980 36,588 - Rest of World 56,165 71,607 Hotel management & part ownership interests 1,915 12,954 Restaurants 7,233 10,154 Trains & Cruises 28,261 42,117 Revenue and earnings from unconsolidated companies before Real Estate 215,231 279,403 Real Estate - 8,526 Total (1) 215,231 287,929 Analysis of earnings Owned hotels - Europe 11,762 29,372 - North America 12,025 8,636 - Rest of World 12,549 16,380 Hotel management & part ownership interests 1,915 12,954 Restaurants 216 1,569 Trains & Cruises 8,297 11,369 Central overheads (11,938) (13,958) EBITDA before Real Estate and Impairment 34,826 66,322 Real Estate (793) (960) EBITDA before Impairment 34,033 65,362 Impairment (7,048) - EBITDA 26,985 65,362 Depreciation & amortization (18,995) (18,735) Interest (16,807) (22,690) Foreign exchange (4,238) 4,662 (Losses)/earnings before tax (13,055) 28,599 Tax (2,101) (8,785) Net (losses)/earnings from continuing operations (15,156) 19,814 Discontinued operations (23,796) (4,688) Net (losses)/earnings on common shares (38,952) 15,126 (Losses)/earnings per common share (0.66) 0.36 Number of shares - millions 59.02 42.47 (1) Comprises earnings from unconsolidated companies of $4,350,000 (2008 - $12,525,000) and revenue of $210,881,000 (2008 - $275,404,000).

ORIENT-EXPRESS HOTELS LTD Six Months Ended June 30, 2009 SUMMARY OF OPERATING INFORMATION FOR OWNED HOTELS Six months ended June 30 2009 2008 Average Daily Rate (in U.S. dollars) Europe 645 818 North America 423 467 Rest of World 274 283 Worldwide 398 465 Rooms Available (000’s) Europe 131 135 North America 97 96 Rest of World 234 233 Worldwide 462 464 Rooms Sold (000’s) Europe 54 74 North America 56 67 Rest of World 119 144 Worldwide 229 285 RevPAR (in U.S. dollars) Europe 266 446 North America 245 326 Rest of World 139 174 Worldwide 197 284 Change % Same Store RevPAR Dollar Local (in U.S. dollars) currency Europe 266 447 -41% -28% North America 309 407 -24% -23% Rest of World 150 186 -20% -12% Worldwide 212 307 -31% -22%

ORIENT-EXPRESS HOTELS LTD CONSOLIDATED AND CONDENSED BALANCE SHEETS (Unaudited) June 30 December 31 $’000 2009 2008 Assets Cash 156,650 77,992 Accounts receivable 64,522 45,582 Due from related parties 13,060 9,985 Prepaid expenses 23,176 19,404 Inventories 44,328 43,512 Other assets held for sale 76,882 152,241 Real estate assets 102,094 83,983 Total current assets 480,712 432,699 Property, plant & equipment, net book value 1,400,977 1,356,089 Investments 68,787 67,464 Goodwill 146,923 154,054 Other intangible assets 20,504 20,255 Other assets 40,066 38,572 2,157,969 2,069,133 Liabilities and Equity Working capital facilities 31,851 54,179 Accounts payable 28,846 23,547 Accrued liabilities 86,755 72,404 Deferred revenue 66,269 55,988 Other liabilities held for sale 42,767 78,406 Current portion of long-term debt and capital leases 172,822 138,813 Total current liabilities 429,310 423,337 Long-term debt and obligations under capital leases 635,921 657,952 Deferred income taxes 161,454 162,199 Other liabilities 34,710 41,476 Total liabilities 1,261,395 1,284,964 Shareholders’ equity 894,947 782,598 Non-controlling interests 1,627 1,571 Total equity 896,574 784,169 2,157,969 2,069,133

Contact: Martin O’Grady Pippa Isbell Vice President, Chief Financial Vice President, Corporate Officer Communications Tel: +44-20-7921-4038 Tel: +44-20-7921-4065 E: martin.ogrady@orient-express.com E: pippa.isbell@orient-express.com

Source: Orient-Express Hotels Ltd

Contact: Martin O’Grady, Vice President, Chief Financial Officer, Tel: +44-20-7921-4038, E: martin.ogrady at orient-express.com; Pippa Isbell, Vice President, Corporate Communications, Tel: +44-20-7921-4065, E: pippa.isbell at orient-express.com