Orient-Express Hotels to Acquire Hotel in Peru's Sacred Valley

HAMILTON, Bermuda, December 29 - Orient-Express Hotels Ltd. (NYSE: OEH, www.orient-express.com),
owners or part-owners and managers of 49 luxury hotel, restaurant, tourist
train and river cruise properties operating in 25 countries, today announced
the acquisition of a fifth property in Peru, an existing hotel in the Sacred
Valley of the Incas.

The 21 suite property, which opened in April 2009, has been acquired from
Industrias Turistica Vagamundos SAC by Orient-Express Hotels' joint venture
company, Peru OEH SA (POEH) for US$7 million, funded from the POEH cash
reserves plus long term debt of $2.5 million.

Hotel Rio Sagrado, a rustic two storey property set in beautiful gardens
overlooking the Urubamba river with an imposing mountain backdrop, is three
kilometres from the town of Urubamba and fifteen minutes from Ollantaytambo,
home to an important Inca village and fortress as well as the main PeruRail
station stop en route to Machu Picchu. The hotel has eleven deluxe and ten
junior suites plus two 250 sq m villas, constructed from natural stone and
woods such as eucalyptus and cedar, with marble and onyx bathrooms and
flagstone terraces. Its 230 sq m spa has a large treatment room with views of
the mighty Urubamba, indoor and outdoor Jacuzzis and a sauna.

The Sacred Valley, located between Cuzco and Machu Picchu, is a popular
part of holiday itineraries in Peru. Green and fertile, the valley is an
important agricultural area, seen from its high towns as a patchwork of
fields and Inca terraces. Attractions include the famous Sunday Pisac craft
and produce market, Chinchero, according to legend the birthplace of the
rainbow, as well as important Inca ruins at Ollantaytambo. PeruRail, the rail
operator run by Orient-Express, stops regularly at Ollantaytambo station, as
well as Cuzco and Aguas Calientes (the station for Machu Picchu), allowing
guests to travel between the Company's hotels in style, while offering
fantastic views of the valley and the Andes.

Paul White, President and Chief Executive of Orient-Express Hotels said,
"Expanding the Orient-Express Peruvian experience to the Sacred Valley is a
natural as well as a strategic move and enables the company to provide its
guests with a luxury itinerary from arrival through to departure. The key
sights in this part of Peru are the city of Cuzco, the Inca sanctuary at
Machu Picchu and towns, antiquities and markets of the Sacred Valley -
arguably one of the most beautiful and scenic places in this wonderful
country."

This brings to five the number of Orient-Express properties in Peru. The
others are the Miraflores Park in Lima, the gateway to Cuzco, where
Orient-Express has Hotel Monasterio (next door, the Company has just
commenced the conversion of a historic convent into a 56 key hotel, Palacio
Nazarenas, due for completion in 2011); Machu Picchu Sanctuary Lodge adjacent
to the Inca Sanctuary; and Las Casitas del Colca in the Colca Canyon. The
Company also runs the luxury Hiram Bingham train between Cuzco and Machu
Picchu.

    Contact:

    Martin O'Grady
    Vice President, Chief Financial Officer
    Tel: +44-20-7921-4038
    E: martin.ogrady@orient-express.com

    Pippa Isbell
    Vice President, Corporate Communications
    Tel: +44-20-7921-4065
    E: pippa.isbell@orient-express.com

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