Orient-Express Provides Update on Strategic Actions That Drive Value and Further Enhance Unparalleled Portfolio of Luxury

   Orient-Express Provides Update on Strategic Actions That Drive Value and
         Further Enhance Unparalleled Portfolio of Luxury Properties

  PR Newswire

  HAMILTON, Bermuda, December 14, 2012

HAMILTON, Bermuda, December 14, 2012 /PRNewswire/ --

  *Completes sale of The Westcliff, Johannesburg
  *Enters into agreement to sell Porto Cupecoy, Sint Maarten
  *Combined cash price for both transactions of $45.0 million
  *Re-opens main building of Copacabana Palace, Rio de Janeiro after
    extensive renovation
  *Announces renovation plans at Grand Hotel Europe, St. Petersburg and
    Charleston Place, South Carolina

Orient-Express Hotels Ltd. ("Orient-Express" or the "Company") (NYSE: OEH)
today announced several actions reflecting the Company's strategy to increase
the earnings power of its properties, optimize its unique portfolio of luxury
travel assets, and further strengthen its balance sheet. The Company is
selling two non-strategic properties for a total of $45.0 million in cash, has
re-opened the main building of Copacabana Palace in Rio de Janeiro after an
extensive renovation, and has announced plans to commence significant
renovations at two of its top-performing properties.

"We are moving forward aggressively in executing our portfolio optimization
strategy. Consistent with our ongoing focus on redeploying capital into core,
high-value properties, we intend to use the proceeds from the divestitures of
The Westcliff and the Porto Cupecoy residential project to provide capital for
our active re-investment program, which is designed to drive revenue growth
and substantial incremental value from our one-of-a-kind properties and to
further strengthen our financial position," said John M. Scott, President and
Chief Executive Officer.

Mr. Scott continued: "The performance of our two recently refurbished Sicilian
hotels - Grand Hotel Timeo and Villa Sant'Andrea - which delivered
year-over-year local currency REVPAR growth of 25% for the nine months ended
September 30, 2012 despite the challenging economic environment in Europe,
shows the significant benefits of our portfolio re-investment strategy. In
addition, the renovation of the main building of Copacabana Palace, one of our
premier properties and South America's most famous hotel, puts us in an
excellent position to capitalize on the growing Brazilian market and the
upcoming World Cup and Olympics."

Completion of Sale of  The Westcliff, Johannesburg

The Company has closed the previously announced sale of The Westcliff,
Johannesburg. The purchaser, a joint venture partnership between Albwardy
Investment, a Dubai-based private investment company, and Hotels Properties
Limited, based in Singapore, will retain Orient-Express as the manager of the
hotel for a period of up to 12 months from closing while the new owner
develops its long-term refurbishment plans.

Sale Agreement for Porto Cupecoy, Sint Maarten

Orient-Express has executed a definitive agreement to sell Porto Cupecoy, a
real estate development in Sint Maarten, to a local buyer. Orient-Express has
retained ownership of four condominium units that were not part of the
purchase agreement but are under contract. The principal transaction is
expected to close within the next 30 days.

The combined price of both transactions is $45.0 million in cash, with net
proceeds of $41.1 million available to the Company for general corporate
purposes. The proceeds from the pending sale of the four condominium units at
Porto Cupecoy are expected to contribute an additional $3.9 million to this

Completion of Renovation of the Main Building of  Copacabana Palace, Rio de

Orient-Express has completed the final phase of an approximate $20.0 million
comprehensive refurbishment program at the main building of Copacabana Palace,
a landmark property on Copacabana beach in Rio de Janeiro. With a first phase
in 2011, this program included the refurbishment of all 145 rooms and suites
in the main building and significant enhancements to the lobby and public
areas. This iconic hotel is now fully operational and strong growth in 2013 is

Renovations at Grand Hotel Europe, St. Petersburg and Charleston Place, South

During 2013, the Company plans to commence significant enhancement programs at
two of its top-producing properties. At the iconic Grand Hotel Europe in St.
Petersburg, Russia, the Company will start a three-year project that will
include the conversion of 19 rooms into six ultra-luxurious suites, including
a two-bedroom presidential suite, a new food and beverage concept from a
world-class restaurant designer, a fully renovated and expanded spa, and
improved meeting rooms. The Company is arranging a new $50.0 million loan
agreement, which will provide $26.0 million for the renovation project, $5.2
million for the repayment of debt and costs, and the remaining $18.8 million
for general corporate purposes.

Also during 2013, the Company will initiate a phased, three-year rooms
refurbishment at Charleston Place, which is one of Orient-Express' largest
cash producers. In the first phase, which will be carried out over four months
during the hotel's low season, the Company will renovate 145 keys. This phase
is expected to be partially funded by $9.2 million of additional borrowings on
the hotel's existing loan facility.

About Orient-Express Hotels Ltd.

Orient-Express Hotels Ltd. is a luxury hotel company and sophisticated
adventure travel operator which seeks to deliver memorable experiences that
are the ultimate expression of each destination's authentic culture.The
Company has offered exceptional luxury travel experiences since 1976, when it
purchased Hotel Cipriani in Venice and then shortly thereafter recreated the
celebrated Venice Simplon-Orient-Express, linking London, Paris and Venice,
along with other European cities.Today the Orient-Express brand embraces 45
hotel, cruise and luxury rail businesses in 22 countries, including
distinctive properties such as Hotel Cipriani in Venice, Grand Hotel Europe in
St Petersburg, Hotel Ritz Madrid, Mount Nelson Hotel in Cape Town, Copacabana
Palace in Rio de Janeiro and Maroma Resort and Spa on Mexico's Riviera Maya.
The Company also operates six luxury tourist trains, two river cruise
operations and the '21' Club, one of New York's most iconic restaurants and
watering holes. http://www.orient-express.com

Safe Harbour Statement

This news release contains, in addition to historical information,
forward-looking statements that involve risks and uncertainties. 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 Orient-Express' operating costs,
fluctuations in interest rates and currency values, uncertainty of negotiating
and completing proposed asset sales, debt refinancings, capital expenditures
and acquisitions, inability to reduce funded debt as planned or to agree bank
loan agreement waivers or amendments, adequate sources of capital and
acceptability of finance terms, 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, adverse local weather conditions, changing global or
regional economic conditions and weakness in financial markets which may
adversely affect demand, legislative, regulatory and political developments,
possible challenges to Orient-Express' corporate governance structure, and the
repercussions of Orient-Express Board's recent rejection of the October 18,
2012 proposal by Indian Hotels Company Limited to acquire Orient-Express.
Further information regarding these and other factors is included in the
filings by Orient-Express with the U.S. Securities and Exchange Commission.

Contacts: Martin O'Grady  Vice President, Chief Financial Officer Tel:
+44(0)20-3117-1333 E: martin.ogrady@orient-express.com

Amy Brandt Director of Investor Relations Tel: +44(0)20-3117-1323 E:

Media enquiries: Vicky Legg Director, Corporate Communications Tel:
+44(0)20-3117-1380 E: vicky.legg@orient-express.com