This summary is based on the first quarter fiscal 2008 earnings call conducted by Orient-Express Hotels, Ltd. (OEH: chart) on May 8, 2008.

Management:

Vice President Corporate Communications: Pippa Isbell
Non-Executive Chairman of the Board: James B. Hurlock
President & Chief Executive Officer: Paul M. White
Chief Financial Officer & Vice President Finance: Martin O’Grady
Vice President, General Counsel & Secretary: Edwin S. Hetherington

Key Investors Issues

- EPS were a loss of 10 cents a share compared to 9 cents a share last year.
- Net loss was $4.3 million compared to a loss of $3.7 million a year ago.
- Revenue rose 23% to $119.9 million.

First Quarter Highlights

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 for most of the quarter.

The net loss was $4.3 million (loss of 10 cents per common share) on revenue of $119.9 million, compared with a net loss of $3.7 million (loss of 9 cents per common share) on revenue of $97.7 million in the first quarter of 2007. The net loss from continuing operations for the period was $2.4 million (loss of 6 cents per common share) compared with a net loss of $2.5 million (loss of 6 cents per common share) in the first quarter of 2007. The adjusted net loss from continuing operations for the period was $4 million (loss of 9 cents per common share) compared with an adjusted net loss of $2.6 million (loss of 6 cents per common share) in the first quarter of 2007.

Revenue from Owned Hotels was up $17.4 million or 23% over the prior year quarter, with growth across all regions.

- In Europe, Grand Hotel Europe in St. Petersburg showed the strongest revenue growth with revenues up $3.3 million, or 53% (41% in local currency). Reid''s Palace Hotel in Madeira, La Residencia, Mallorca and Le Manoir aux Quat''Saisons, Oxfordshire each recorded revenue growth.
- In the North American region, every property showed revenue growth, with same store RevPAR up 12%. The performance of Maroma Resort and Spa, Riviera Maya, and Casa de Sierra Nevada, San Miguel de Allende, both Mexican properties;
La Samanna, St Martin, French West Indies; and The Inn at Perry Cabin, St Michaels, Maryland underpinned the $3.5 million or 15% revenue growth.
- In the Rest of World region revenue increased by $7.9 million or 24% with Southern Africa, South America and Asia Pacific regions all performing ahead of 2007 levels.

EBITDA before Real Estate was $16.9 million, up 8% year-over-year.

EBITDA margins in the U.S. were up from 26% to 27%. Overall, margins were down from 16% to 14%, impacted by the open but not yet refurbished Hotel das Cataratas at Iguacu Falls, Brazil, the impact of the strong Euro on properties closed during the quarter and increased lower-margin non-room revenues. EBITDA after Real Estate for the quarter was $16.4 million, up 8% year-over-year.

The company has opened Las Casitas del Colca, a luxury 20-room eco-style lodge in the heart of the rural Andes in Peru.

- The company has agreed in principle to acquire the 14-room Royal Chundu Lodge in Zambia, situated next to the Zambezi River and a short drive from the famous Victoria Falls. The hotel site includes a half-mile long island of pristine jungle and is due to open in early 2009 when it will extend the Orient-Express Safaris experience for high-end travelers.
- The company has agreed in principle to acquire a 50% stake coupled with a management agreement for a new built, 126-key resort in Puglia, Italy. The property, which will complement the company''s existing Italian hotels, is due to open in mid-2009. It comprises a mix of hotel rooms and houses built in traditional Puglianese ""village"" style, includes extensive spa and resort facilities, with access to an 18-hole championship golf course and direct access to the Adriatic Sea.
- The company has completed the first phase of its detailed review of real estate opportunities. This review covered existing projects in St Martin and at Keswick Hall, Charlottesville, as well as potential projects in Mexico, Portugal and Thailand. As a result of this process, the company has contracted with S&P Real Estate, an international full-service real estate company that specializes in the envisioning, design, marketing and sale of resort and luxury real estate properties. S&P Real Estate will begin immediately marketing the Cupecoy Yacht Club condominiums and have been helping the company to assess the phasing and pricing of future sales in light of current market conditions.

Revenues were up 23% from $97.7 million to $119.9 million.

- EBITDA was up 8% from $15.2 million to $16.4 million. Same store RevPAR growth of Owned Hotels was up 14% in U.S. dollars (12% in local currency).

European revenues from Owned Hotels were up 28% year-over-year from $21.1 million to $27.1 million.

- The EBITDA loss was $3.7 million in 2008 versus $3.6 million in the prior year.
- Same store RevPAR increased by 30% in U.S dollars and by 16% in local currency. This local currency growth was primarily driven by Grand Hotel Europe, which benefited from a strong local market, the addition of 98 renovated rooms, and the introduction of an historic floor concept offering full butler service. However, as for many businesses operating in Russia, high inflation is becoming a challenge. Reid''s Palace, La Residencia and Le Manoir aux Quat''Saisons all had good year-on-year revenue growth. At Le Manoir aux Quat''Saisons, the company has signed an agreement with its founder and two Michelin star chef Raymond Blanc, extending his services until 2012.
- The Italian hotels were, as in previous years, closed for most of the first quarter, thereby generating EBITDA losses due to their fixed cost bases. The overall EBITDA loss for Europe was higher than the prior year when reported in U.S. dollars due to the 14% year-on-year appreciation of the Euro versus the U.S. dollar.

North America revenue increased by 15% to $26.7 million compared with the first quarter of 2007, and EBITDA increased by 19% to $7.3 million.

Same store RevPAR for the region increased by 12% from $285 to $319. In particular, Maroma Resort and Spa continued to perform well, driven by rate, occupancy and non-room revenues. Casa de Sierra Nevada also performed well, having completed refurbishments in 2007, contributing a positive EBITDA compared with an EBITDA loss in the first quarter of 2007. Windsor Court in New Orleans was impacted by the early timing of Easter in the first quarter but was able to sustain revenues at the same level as last year.