Southern Africa revenue increased by 10% to $11.7 million compared with 2007, and EBITDA increased by 6% to $4.5 million.

- Same store RevPAR for the region increased by 11% from $181 to $202 (16% in local currency). The Mount Nelson in Cape Town celebrated the opening of the new Librisa Spa, which has been eagerly anticipated by guests and locals alike.
- South America revenue increased to $17.6 million from $12.6 million in the first quarter of 2007. EBITDA was $5.6 million in both 2008 and the prior year. Same store RevPAR for the region increased by 6% from $336 to $357. Hotel das Cataratas was acquired in October 2007 (and so is not included in the prior year results) generating $3.3 million of revenue in the quarter. The hotel is currently trading around the breakeven level and will commence its refurbishment program in the second quarter.

Asia Pacific revenue increased by 20% to $11.5 million when compared with last year.

EBITDA increased 16% from $2.2 million to $2.6 million. Same store RevPAR for the region increased by 15% from $138 to $159 (10% in local currency). The region continued to be impacted in the current quarter by the recent civil unrest in Burma. Excluding the Governor''s Residence in Rangoon, the region recorded an EBITDA increase of 25%. The other hotels in the region performed well when compared with last year, except for the Observatory in Sydney which benefited from a major sports tournament in the first quarter of 2007 and experienced a tighter corporate market in the current year.

Hotel management and part-ownership interests EBITDA was $5.2 million compared with $4.6 million last year.

- Approximately half of the growth over last year was driven by the performance of the Peru hotels, with Hotel Ritz Madrid and Charleston Place also showing improved performance over last year.
- Restaurants revenue from restaurants was $4.9 million compared with $5.3 million last year, and EBITDA was $0.6 million compared with $0.9 million last year. The results of ''21'' Club were impacted by a reduction in volume of corporate customers, although the average check was almost in line with last year.

Trains and Cruises revenue increased by 6% to $11.2 million compared with the first quarter in 2007, and EBITDA increased by 34% to $1.5 million.

As in the prior quarter, this segment, which includes the Road to Mandalay cruise operation, was impacted year-over-year by the unrest in Burma. Excluding this operation, the Trains and Cruises business increased revenues by 13%, with strong growth from PeruRail and early signs of a strong season for the Venice Simplon-Orient-Express.

- Central costs were $6.8 million and $5.7 million in first quarter of 2007. The charge in the current quarter reflects the high sterling based component of central costs and also includes, as required under SFAS 123R, a charge for stock options and performance share awards issued of $0.8 million.
- Cupecoy Yacht Club recorded an EBITDA loss of $0.4 million compared with a loss of $0.2 million in the same period in 2007. The pace of sales was slower than previously anticipated due to property market conditions affected by the global credit crunch. The company anticipates sales this year will be lower than previously expected. There were no recorded sales of the villas at La Samanna. There was one lot sale at Keswick Hall (none in the first quarter of last year).
- The interest charge was $12.9 million compared with $11.4 million in the fourth quarter of 2007 and $10.5 million in the first quarter of 2007. The increased charge reflects higher borrowings to finance the company''s investments as well as the currency impact of non-U.S. dollar borrowings.

- The tax benefit reported by the company was $2.4 million compared with a tax benefit of $1.5 million in the prior year. The company''s reported tax rate, including earnings from consolidated and unconsolidated operations and also discontinued operations, was 35.4% in 2008, compared with 29.5% for the same period in 2007. The difference in the reported tax rates over the two years reflects changes to the mix of income from lower to higher tax rate jurisdictions.
- The charge was $2 million. This represents the Bora Bora Lagoon Resort, French Polynesia, which is in the early stages of being marketed for sale by Jones Lang LaSalle.
- Total capital expenditure was $20.8 million, which included various projects at, in particular, El-Encanto, Hotel Cipriani, Grand Hotel Europe, Copacabana Palace, Le Manoir aux Quat''Saisons and Hotel de la Cite.

- A total of $8.4 million was invested in the company''s real estate developments at Cupecoy Yacht Club and the villas at La Samanna.
- At March 31, 2008, the company''s total debt was $848.3 million and cash balances amounted to $102.3 million, giving a total net debt of $746 million compared with total net debt of $692 million at the end of 2007.
- At March 31, 2008, debt was approximately 19% fixed and 81% floating. The weighted average maturity of the debt was 3.7 years and the weighted average interest rate (including margin) was 5.82%. The company had cash and funds available under revolving credit facilities totaling $137.2 million.

In April 2008, the company renewed a $47 million term loan secured on the Windsor Court hotel for a further 5 years.

- Also, in April 2008, the company fixed its floating interest rates (excluding margin) on $151.3 million of U.S. dollar debt at a weighted average rate of 3.74% for a weighted average term of 4.2 years.
- On Saturday, May 3, 2008, the southern part of Burma was hit by tropical cyclone Nargis. The Road to Mandalay river cruise ship was in Rangoon for a scheduled dry-docking. The ship was caught in the storm and sustained damage, the severity of which is currently being assessed. The Governor''s Residence also sustained some light damage, and will be repaired during the hotel''s scheduled closure in May and June. Both assets are covered under the company''s insurance program.

Key questions from the first quarter earnings call conducted by Orient-Express Hotels, Ltd. on May 8, 2008.

David Katz (Oppenheimer & Co.): Have you gotten to where you can quantify some of the impact for the Tycoon on this year?

Paul M. White: The way we are thinking at the moment is on the hotel side we have not accessed the damage but the pictures we have seen and the calls we have received is there is not a great deal of structural issues, there are a lot of trees down. I do not think that has any impact on the models whatsoever. The key issue is what is going to happen with the ship. If you remember, when we sort of put our guidance out at the beginning of the year Berma was undergoing a different type of strife so we have minimal earnings factored in to the numbers that we gave out from Berma. I do not think this is going to have a great deal of economic impact on the company, it is more the impact that it is having on employees, etc at the moment. We are well insured as you would expect us to be. We have got marine insurance for the ship and the normal insurance that we have for the company for the hotel. It is early for me to comment further than that at the moment as to what the impact might be on 2009 until we have a proper assessment of the damage to the ship.

David Katz (Oppenheimer & Co.): In Europe there is some of the movement in currency. There was some difference in movement among revenue versus EBITDA. Could you expand on that?

Paul M. White: The bottom line is the Euro has strengthened considerably and our Italian hotels are closed in the first quarter. The Italian hotels, like any hotels have cost inflation so in Euros the loss will have gone up by 3% or 4% but in dollars, that loss is even more enhanced. Then, that is offset in our European results by the Grand which have a functional currency which is the Ruble essentially dollar based and the results of the European hotels that are open. When you look at the second and third quarter the whole margins issue start to come through a lot clearer. If we continue to see the increase in the proportion of food and beverage and spa revenues versus rooms revenues that will make it more difficult to grow margins but it will see EBITDA growth coming through stronger.

Amanda Bryant (Merrill Lynch): Given your announcements for the hotel in Italy and the small property in Zambia what should we be modeling for total cap ex spend in 2008?

Paul M. White: What we are continually trying to do is ensure that we are spending the cap ex in the correct areas so overall maintenance cap ex remains unchanged. The combination of the Zambia project will involve approximately $4 million of initial investment plus another $8 or so of cap ex to finish the project off and to get it open in early 2009. The Italy investment is a 50% equity investment and the equity that is going in because this project is well financed is somewhere in the $10 million range.