Le Manoir Aux Quat' Saisons is located just off the M40 motorway between London and Birmingham, about a 45 minute drive from London's West End. The property has been developed by Britain's famous chef, Raymond Blanc, and the hotel's restaurant has two stars in the current Michelin Guide, placing it

Le Manoir Aux Quat' Saisons Church Road, Great Milton Oxford, UK

The core of Le Manoir is a 15th century manor house set in 27 acres of gardens. A $10 million expansion has been recently completed.
    
The hotel has 32 suites, each decorated in a different theme derived from Raymond Blanc's extensive travels. Chef Blanc has agreed to an 8 year commitment to continue his role with the property.
    
Allied to Le Manoir is the Petit Blanc restaurant chain which provides Raymond Blanc cuisine in a French contemporary environment, reasonably priced.  The chain is in a development phase with the Manchester outlet recently opened. The Birmingham unit is performing particularly well.
    
Deia, Spain is the hilltop village on Mallorca's rugged northwest coast which was promoted as a center for artists and intellectuals by the classic writer Robert Graves. The coast remains unspoiled by recent development which cannot be said for parts of mainland Spain. Mallorca has 7.9 million visitors per annum and a large state-of-the-art airport has recently opened. The island has very few truly five star hotel properties and certainly none which combine the beauty of the northwest coast, the charm of an historic village, the attraction of the cultural life and the picturesque Deia Cove on the sea within walking distance.
    
La Residencia has 63 rooms and the property occupies 30 acres. The core was created from 16th and 17th century houses. Three of the suites have their own pools and there is a large main pool and tennis courts. It is believed that expansion will be permitted provided it is done in the Mallorcan style.
 

The hotel's restaurant El Olivio is one of the best on the island. This property enjoyed 85% occupancy in 2001. The three properties acquired from Virgin Hotels had combined EBITDA of $6 million in 2001 so the purchase was made at an EBITDA multiple of 7.      These purchases compliment the Orient-Express Hotels group in that they provide for the first time a hotel presence in the U.K. and Spain. Each

La Residencia Deia, Spain

Simon Sherwood, President of Orient-Express Hotels, said that it was a great benefit to the group to have such a "star" as Raymond Blanc in the family. He stressed that these properties have not been affected by September 11th and serve the European market rather than the U.S. market.
    
Mr. James B. Sherwood, Chairman, said that these 3 properties bring Orient-Express Hotels' total to 40. He said that further acquisitions were currently under serious consideration and although the company generally tries to limit its purchases to 3 or 4 per year, industry conditions following September 11th have created a number of very special opportunities which need to be pursued.

This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties. These include statements regarding investment plans and similar matters that are not historical facts.