10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2013

OR
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to

Commission File Number 001-16017

ORIENT-EXPRESS HOTELS LTD.

(Exact name of registrant as specified in its charter) 

Bermuda	98-0223493
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

22 Victoria Street,

Hamilton HM 12, Bermuda

(Address of principal executive offices)(Zip code)

Registrant’s telephone number, including area code:  (441) 295-2244

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

 Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Act.

Large Accelerated Filer x	Accelerated Filer o
Non-Accelerated Filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o  No x

 As of July 29, 2013, 103,297,922 class A common shares and 18,044,478 class B common shares of the registrant were outstanding.  All of the class B shares are owned by a subsidiary of the registrant.

Table of Contents

		Page
	PART I—FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)	2
	Condensed Consolidated Balance Sheets	2
	Statements of Condensed Consolidated Operations	3
	Statements of Condensed Consolidated Comprehensive Income	5
	Statements of Condensed Consolidated Cash Flows	6
	Statements of Condensed Consolidated Total Equity	8
	Notes to Condensed Consolidated Financial Statements	9
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	39
Item 3	Quantitative and Qualitative Disclosures About Market Risk	58
Item 4	Controls and Procedures	58
	PART II—OTHER INFORMATION
Item 6	Exhibits	60
	Signatures	60

1

PART I — FINANCIAL INFORMATION

ITEM 1. Financial Statements

Orient-Express Hotels Ltd. and Subsidiaries

Condensed Consolidated Balance Sheets (unaudited)

	June 30, 2013		December 31, 2012
	$’000		$’000
Assets
Cash and cash equivalents	113,620		93,382
Restricted cash	5,781		21,080
Accounts receivable, net of allowances of $493 and $472	42,972		36,533
Due from unconsolidated companies	16,333		15,200
Prepaid expenses and other	28,793		21,244
Inventories	45,225		44,555
Assets of discontinued operations held for sale	2,925		22,078
Real estate assets	1,898		1,924
Total current assets	257,547		255,996
Property, plant and equipment, net of accumulated depreciation of $313,153 and $300,899	1,125,464		1,171,603
Property, plant and equipment of consolidated variable interest entities	185,078		183,793
Investments in unconsolidated companies	59,040		58,924
Goodwill	158,303		161,278
Other intangible assets	18,184		18,608
Other assets	56,248		41,825
Total assets	1,859,864		1,892,027
Liabilities and Equity
Working capital loans	—		—
Accounts payable	26,662		25,182
Accrued liabilities	82,357		77,519
Deferred revenue	40,557		30,519
Liabilities of discontinued operations held for sale	1,413		2,174
Current portion of long-term debt and obligations under capital leases	93,370		90,115
Current portion of long-term debt of consolidated variable interest entities	1,795		1,795
Total current liabilities	246,154		227,304
Long-term debt and obligations under capital leases	438,123		431,445
Long-term debt of consolidated variable interest entities	95,254		96,150
Liability for pension benefit	7,717		8,275
Other liabilities	19,253		21,511
Deferred income taxes	102,787		104,112
Deferred income taxes of consolidated variable interest entities	59,952		60,326
Liability for uncertain tax positions	1,789		4,581
Total liabilities	971,029		953,704
Commitments and contingencies (Note 16)
Equity:
Shareholders’ equity:
Preferred shares $0.01 par value (30,000,000 shares authorized, issued Nil)	—		—
Class A common shares $0.01 par value (240,000,000 shares authorized):
Issued — 103,174,362 (2012 — 102,897,311)	1,032		1,029
Class B common shares $0.01 par value (120,000,000 shares authorized):
Issued — 18,044,478 (2012 — 18,044,478)	181		181
Additional paid-in capital	986,021		982,106
Retained earnings	9,450		39,202
Accumulated other comprehensive loss	(110,124	)	(86,381	)
Less: Reduction due to class B common shares owned by a subsidiary — 18,044,478	(181	)	(181	)
Total shareholders’ equity	886,379		935,956
Non-controlling interests	2,456		2,367
Total equity	888,835		938,323
Total liabilities and equity	1,859,864		1,892,027

See notes to condensed consolidated financial statements.

2

Orient-Express Hotels Ltd. and Subsidiaries

Statements of Condensed Consolidated Operations (unaudited)

	Three months ended				Six months ended
							Restated (1)
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$’000		$’000		$’000		$’000
Revenue	171,850		160,489		275,920		261,036
Expenses:
Cost of services	76,948		70,678		125,592		118,214
Selling, general and administrative	57,776		54,046		112,399		104,200
Depreciation and amortization	12,271		10,514		23,812		21,035
Impairment of property, plant and equipment	—		—		35,680		—
Total operating costs and expenses	146,995		135,238		297,483		243,449
Earnings/(losses) from operations	24,855		25,251		(21,563	)	17,587
Interest income	284		309		522		641
Interest expense	(8,342	)	(6,711	)	(15,596	)	(14,259	)
Foreign currency, net	932		(1,525	)	3,008		(598	)
Net finance costs	(7,126	)	(7,927	)	(12,066	)	(14,216	)
Earnings/(losses) before income taxes and earnings from unconsolidated companies, net of tax	17,729		17,324		(33,629	)	3,371
(Provision)/benefit for income taxes	(3,742	)	(6,478	)	2,132		(6,726	)
Earnings/(losses) before earnings from unconsolidated companies, net of tax	13,987		10,846		(31,497	)	(3,355	)
Earnings from unconsolidated companies, net of tax (benefit)/provision of $(794), $1,001, $(1,024) and $987	3,260		2,335		2,633		2,303
Earnings/(losses) from continuing operations	17,247		13,181		(28,864	)	(1,052	)
Net earnings/(losses) from discontinued operations, net of tax (benefit)/provision of $Nil, $Nil, $(422) and $683	90		(1,503	)	(805	)	(1,057	)
Net earnings/(losses)	17,337		11,678		(29,669	)	(2,109	)
Net losses/(earnings) attributable to non-controlling interests	126		96		(83	)	(175	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	17,463		11,774		(29,752	)	(2,284	)
(1) Certain statement of operations balances in the six months ended June 30, 2012 have been restated. See Note 1.

See notes to condensed consolidated financial statements.

3

Orient-Express Hotels Ltd. and Subsidiaries

Statements of Condensed Consolidated Operations (unaudited) (continued)

	Three months ended			Six months ended
	June 30, 2013	June 30, 2012		June 30, 2013		June 30, 2012
	$	$		$		$
Basic earnings per share:
Net earnings/(losses) from continuing operations	0.17	0.13		(0.28	)	(0.01	)
Net earnings/(losses) from discontinued operations	—	(0.01	)	(0.01	)	(0.01	)
Basic net earnings/(losses) per share attributable to Orient-Express Hotels Ltd.	0.17	0.11		(0.29	)	(0.02	)
Diluted earnings per share:
Net earnings/(losses) from continuing operations	0.16	0.13		(0.28	)	(0.01	)
Net earnings/(losses) from discontinued operations	—	(0.01	)	(0.01	)	(0.01	)
Diluted net earnings/(losses) per share attributable to Orient-Express Hotels Ltd.	0.17	0.11		(0.29	)	(0.02	)
Dividends per share	—	—		—		—

See notes to condensed consolidated financial statements.

4

Orient-Express Hotels Ltd. and Subsidiaries

Statements of Condensed Consolidated Comprehensive Income (unaudited)

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$’000		$’000		$’000		$’000
Net earnings/(losses)	17,337		11,678		(29,669	)	(2,109	)
Other comprehensive income/(losses), net of tax:
Foreign currency translation adjustments, net of tax provision/(benefit) of $(371), $Nil, $(257) and $Nil	(9,224	)	(42,060	)	(25,662	)	(22,417	)
Change in fair value of derivatives, net of tax provision/(benefit) of $319, $(326), $633 and $(413)	830		(576	)	2,041		(1,096	)
Change in pension liability, net of tax provision/(benefit) of $1, $Nil, $(52) and $Nil	18		(192	)	(116	)	(370	)
Total other comprehensive losses, net of tax	(8,376	)	(42,828	)	(23,737	)	(23,883	)
Total comprehensive income/(loss)	8,961		(31,150	)	(53,406	)	(25,992	)
Comprehensive (income)/loss attributable to non-controlling interests	126		92		(89	)	(177	)
Comprehensive income/(loss) attributable to Orient-Express Hotels Ltd.	9,087		(31,058	)	(53,495	)	(26,169	)

See notes to condensed consolidated financial statements.

5

Orient-Express Hotels Ltd. and Subsidiaries

Statements of Condensed Consolidated Cash Flows (unaudited)

	Six months ended
			Restated (1)
	June 30, 2013		June 30, 2012
	$'000		$'000
Cash flows from operating activities:
Net losses	(29,669	)	(2,109	)
Less: Net losses from discontinued operations, net of tax	(805	)	(1,057	)
Net losses from continuing operations	(28,864	)	(1,052	)
Adjustments to reconcile net (losses)/earnings to net cash (used in)/provided by operating activities:
Depreciation and amortization	23,812		21,035
Amortization of finance costs	3,517		2,571
Impairment of property, plant and equipment	35,680		—
Undistributed earnings of unconsolidated companies	(1,609	)	(3,290	)
Tax on earnings of unconsolidated companies	(1,024	)	987
Share-based compensation	3,886		3,509
Change in deferred income tax	(8,238	)	(2,567	)
Change in provisions for uncertain tax positions	(3,140	)	(16	)
Dividends from equity method investees	1,302		1,822
Proceeds from insurance settlements	—		320
Effect of exchange rates on net losses	(6,356	)	(5,467	)
Change in assets and liabilities, net of effects from acquisitions:
Accounts receivable	(7,191	)	(6,625	)
Due from unconsolidated companies	(260	)	(4,801	)
Prepaid expense and other	(2,674	)	(1,437	)
Inventories	(1,793	)	(567	)
Escrow, prepaid customer deposits and security for package travel	2,518		(1,439	)
Accounts payable	1,541		(859	)
Accrued liabilities	9,652		8,549
Deferred revenue	11,099		8,824
Other, net	208		534
Net cash provided by operating activities from continuing operations	32,066		20,031
Net cash (used in)/provided by operating activities from discontinued operations	(1,403	)	932
Net cash provided by operating activities	30,663		20,963
(1) Certain cash flow balances in the six months ended June 30, 2012 have been restated. See Note 1.

See notes to condensed consolidated financial statements.

6

Orient-Express Hotels Ltd. and Subsidiaries

Statements of Condensed Consolidated Cash Flows (unaudited) (continued)

	Six months ended
			Restated (1)
	June 30, 2013		June 30, 2012
	$'000		$'000
Cash flows from investing activities:
Capital expenditures	(38,402	)	(44,508	)
Investments in unconsolidated companies	(4,804	)	(3,729	)
Increase in restricted cash	(148	)	—
Release of restricted cash	117		39
Proceeds from insurance settlements	234		—
Net cash used in investing activities from continuing operations	(43,003	)	(48,198	)
Net cash provided by investing activities from discontinued operations	18,989		23,302
Net cash used in investing activities	(24,014	)	(24,896	)
Cash flows from financing activities:
Proceeds from working capital loans	—		501
Share options exercised	3		2
Issuance of long-term debt	36,169		23,703
Debt issuance costs	(832	)	(1,463	)
Principal payments under long-term debt	(20,870	)	(36,601	)
Net cash provided by/(used in) financing activities from continuing operations	14,470		(13,858	)
Net cash used in financing activities from discontinued operations	—		—
Net cash provided by/(used in) financing activities	14,470		(13,858	)
Effect of exchange rate changes on cash and cash equivalents	(881	)	(751	)
Net increase/(decrease) in cash and cash equivalents	20,238		(18,542	)
Cash and cash equivalents at beginning of year	93,382		90,104
Cash and cash equivalents at end of year	113,620		71,562
(1) Certain cash flow balances in the six months ended June 30, 2012 have been restated. See Note 1.

See notes to condensed consolidated financial statements.

7

Orient-Express Hotels Ltd. and Subsidiaries

Statements of Condensed Consolidated Total Equity (unaudited)

	Preferred shares at par value $’000	Class A common shares at par value $’000	Class B common shares at par value $’000	Additional paid-in capital $’000	Retained earnings $’000		Accumulated other comprehensive income/ (loss) $’000		Common shares held by a subsidiary $’000		Non- controlling interests $’000	Total $’000
Balance, January 1, 2012	—	1,026	181	975,330	46,263		(72,289	)	(181	)	2,195	952,525
Share based compensation	—	—	—	3,537	—		—		—		—	3,537
Share options exercised	—	2	—	—	—		—		—		—	2
Comprehensive loss:
Net losses on common shares	—	—	—	—	(2,284	)	—		—		175	(2,109	)
Other comprehensive loss	—	—	—	—	—		(23,885	)	—		2	(23,883	)
Balance, June 30, 2012	—	1,028	181	978,867	43,979		(96,174	)	(181	)	2,372	930,072
Balance, January 1, 2013	—	1,029	181	982,106	39,202		(86,381	)	(181	)	2,367	938,323
Share based compensation	—	—	—	3,915	—		—		—		—	3,915
Share options exercised	—	3	—	—	—		—		—		—	3
Comprehensive loss:
Net losses on common shares	—	—	—	—	(29,752	)	—		—		83	(29,669	)
Other comprehensive loss	—	—	—	—	—		(23,743	)	—		6	(23,737	)
Balance, June 30, 2013	—	1,032	181	986,021	9,450		(110,124	)	(181	)	2,456	888,835

See notes to condensed consolidated financial statements.

8

Orient-Express Hotels Ltd. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (unaudited)

1.    Basis of financial statement presentation

Business

In this report Orient-Express Hotels Ltd. is referred to as the “Company”, and the Company and its subsidiaries are referred to collectively as “OEH”.

At June 30, 2013, OEH owned, invested in or managed 35 deluxe hotels and resorts located in the United States, Mexico, Caribbean, Europe, Southern Africa, South America, and Southeast Asia, one stand-alone restaurant in New York, six tourist trains in Europe, Southeast Asia and Peru, two river cruise businesses in Myanmar (Burma) and one canal boat business in France.

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reporting on Form 10-Q.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements.  In the opinion of the management of the Company, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, operating results and cash flows for the interim period have been included in these condensed consolidated financial statements.

“FASB” means Financial Accounting Standards Board.  “ASC” means the Accounting Standards Codification of the FASB and “ASU” means an Accounting Standards Update of the FASB.

The interim results presented are not necessarily indicative of results that may be expected for any subsequent interim period or the fiscal year ending December 31, 2013.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  See Note 1 to the consolidated financial statements in the 2012 Annual Report on Form 10-K for additional information regarding significant accounting policies.

For interim income tax reporting purposes, OEH generally determines its best estimate of an annual effective tax rate and applies that rate on a year-to-date basis applicable to its ordinary income. OEH’s estimated annual effective tax rate excludes significant, unusual or infrequently occurring items, jurisdictions for which a reliable estimate cannot be made or where the estimated benefit of losses cannot be recognized, and certain other items excluded pursuant to the U.S. GAAP authoritative guidance.  The income tax expense (or benefit) related to all other items is individually computed and recognized when the items occur.

Certain prior period amounts have been reclassified or disaggregated to conform to the current period’s presentation. The reclassifications had no effect on net earnings, net assets, retained earnings or net cash flows.

OEH's reclassifications in the statements of condensed consolidated operations were:

• Discontinued operations were reclassified for all periods presented. See Note 3 for a summary of the results of discontinued operations, certain assets held for sale and the balances and results associated with discontinued operations.

• During the fourth quarter of 2012, an additional gain of $1,613,000 related to the sale of Keswick Hall was identified that should have been recorded in the first quarter of 2012. Discontinued operations for the six months ended June 30, 2012 have been restated to include this gain.

• Certain expenses that were previously recorded within costs of sales were reclassified into selling, general and administrative expenses to correct for an error in classification. The balances reclassified were $1,174,000 and $2,395,000 for the three and six months endedJune 30, 2012, respectively.

9

During 2012, management determined that certain amounts previously reported in the interim statements of condensed consolidated cash flows for the six months endedJune 30, 2012 should be reclassified, which had the following effects:

• Debt issuance costs, which were previously included in cash flows from operating activities, are separately stated as a cash flow from financing activities for all periods. The effect in the six months endedJune 30, 2012 was a decrease in cash flows from financing activities of $1,463,000, with a corresponding increase to cash flows from operating activities.

• Debt repaid by a third party when a business is sold was previously considered a non-cash transaction. This $10,000,000 has been included as net cash provided by investing activities from discontinued operations and net cash used in financing activities from continuing operations for the six months endedJune 30, 2012.

The accounting policies used in preparing these condensed consolidated financial statements are the same as those applied in the prior year, except for codified changes made to the ASC, as described below.

Accounting pronouncements adopted during the period

In April 2013, the FASB issued guidance on applying the liquidation basis of accounting and the related disclosure requirements. Under this guidance, an entity must use the liquidation basis of accounting to present its financial statements when it determines that liquidation is imminent, unless the liquidation is the same as that under the plan specified in an entity's governing documents created at its inception. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). This guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Early adoption is permitted. The Company has early adopted this guidance. This guidance does not have an effect on the Company's consolidated financial position, results of operations and cash flows as it expects to continue as a going concern.

In February 2013, the FASB issued guidance which requires entities to disclose the following additional information about items reclassified out of accumulated other comprehensive income (“AOCI”):

• Changes in AOCI balances by component (e.g., unrealized gains or losses on available-for-sale securities or foreign-currency items).

• Significant items reclassified out of AOCI by component either on the face of the income statement or as a separate footnote to the consolidated financial statements.

The guidance does not change the current U.S. GAAP requirements for interim financial statement reporting of comprehensive income. That is, a total for comprehensive income must be reported in condensed consolidated interim financial statements in either (1) a single continuous statement or (2) two separate but consecutive statements. However, public entities would also need to include information about (1) changes in AOCI balances by component and (2) significant items reclassified out of AOCI in their interim reporting periods. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The amendments in the guidance should be applied prospectively. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein.

In July 2012, the FASB issued guidance related to annual impairment assessment of intangible assets, other than goodwill, that gives companies the option to perform a qualitative assessment before calculating the fair value of the asset. Although the guidance revises the examples of events and circumstances that an entity should consider in interim periods, it does not revise the requirements to test indefinite-lived intangible assets (1) annually for impairment and (2) between annual tests if there is a change in events or circumstances that would indicate an impairment. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The adoption of this guidance did not have a material effect on OEH’s interim consolidated financial position, results of operations and cash flows and is not expected to have a material effect on the consolidated financial position, results of operations and cash flows for the year ended December 31, 2013.

In December 2011, the FASB issued accounting guidance that requires companies to provide new disclosures about offsetting assets and liabilities and related arrangements for financial instruments and derivatives. In January 2013, the FASB issued guidance clarifying the scope of the previously issued guidance. The guidance clarifies the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance

10

sheet or subject to an enforceable master netting arrangement or similar agreement. The provisions of this guidance were effective for annual reporting periods beginning on or after January 1, 2013. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein.

Accounting pronouncements to be adopted

In March 2013, the FASB issued guidance which indicates that the entire amount of a cumulative translation adjustment (“CTA”) related to an entity’s investment in a foreign entity should be released when there has been any of the following:

• Sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity.

• Loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated).

• Step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity).

The ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. This guidance is effective for fiscal years (and interim periods within those fiscal years) beginning on or after December 15, 2013. Early adoption is permitted and the guidance should be applied prospectively from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows.

In February 2013, the FASB issued guidance which requires entities to measure obligations resulting from joint-and-several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of the obligation for all joint parties. The guidance permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint-and-several obligation). These disclosure requirements are incremental to the existing related party disclosure requirements. The guidance is effective for all prior periods in fiscal years beginning on or after December 15, 2013 (and interim reporting periods within those years). The guidance should be applied retrospectively to obligations with joint-and-several liability existing at the beginning of an entity’s fiscal year of adoption. Entities that elect to use hindsight in measuring their obligations during the comparative periods must disclose that fact. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows.

2.     Earnings per share

Basic earnings per share are based upon net earnings/(losses) attributable to OEH divided by the weighted average number of class A and B common shares outstanding for the period. Diluted earnings/(losses) per share reflect the increase in shares using the treasury stock method to reflect the impact of an equivalent number of shares as if share options were exercised and share-based awards were converted into common shares. Potentially dilutive shares are excluded when the effect would be to increase diluted earnings per share or reduce the diluted loss per share. 

11

A reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share is as follows:

	Three months ended			Six months ended
	June 30, 2013	June 30, 2012		June 30, 2013		June 30, 2012
Numerator ($'000):
Net earnings/(losses) from continuing operations	17,247	13,181		(28,864	)	(1,052	)
Net earnings/(losses) from discontinued operations	90	(1,503	)	(805	)	(1,057	)
Net losses/(earnings) attributable to non-controlling interests	126	96		(83	)	(175	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	17,463	11,774		(29,752	)	(2,284	)
Denominator (shares '000):
Basic weighted average shares outstanding	103,063	102,890		103,037		102,803
Effect of dilution	2,249	973		—		—
Diluted weighted average shares outstanding	105,312	103,863		103,037		102,803
	$	$		$		$
Basic earnings per share:
Net earnings/(losses) from continuing operations	0.167	0.128		(0.280	)	(0.010	)
Net earnings/(losses) from discontinued operations	0.001	(0.015	)	(0.008	)	(0.010	)
Net losses/(earnings) attributable to non-controlling interests	0.001	0.001		(0.001	)	(0.002	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	0.169	0.114		(0.289	)	(0.022	)
Diluted earnings per share:
Net earnings/(losses) from continuing operations	0.164	0.127		(0.280	)	(0.010	)
Net earnings/(losses) from discontinued operations	0.001	(0.014	)	(0.008	)	(0.010	)
Net losses/(earnings) attributable to non-controlling interests	0.001	0.001		(0.001	)	(0.002	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	0.166	0.114		(0.289	)	(0.022	)

For the six months ended June 30, 2013 and 2012, all share options and share-based awards were excluded from the calculation of the diluted weighted average number of shares because OEH incurred a net loss in those periods and the effect of their inclusion would be anti-dilutive.

The total number of share options and share-based awards excluded from computing diluted earnings per share were as follows: 

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Share options	231,150	1,593,622	3,276,600	2,956,559
Share-based awards	—	2,116	1,601,463	755,374
Total	231,150	1,595,738	4,878,063	3,711,933

The number of share options and share-based awards unexercised at June 30, 2013 was 4,878,063 (June 30, 2012 - 4,039,349).

12

3.    Assets held for sale and discontinued operations

At June 30, 2013, no properties were classified as held for sale, although there are three condominiums relating to Porto Cupecoy which were excluded from the disposal of the Porto Cupecoy development as they were already under separate sales contracts at the time. During the six months endedJune 30, 2013, Porto Cupecoy, Sint Maarten was sold. For the three and six months endedJune 30, 2013, the results of operations of Porto Cupecoy have been presented as discontinued operations.

During the six months endedJune 30, 2012, Bora Bora Lagoon Resort, French Polynesia and Keswick Hall, Charlottesville, Virginia were sold. For the three and six months endedJune 30, 2012 the results of operations of Porto Cupecoy, The Westcliff, The Observatory Hotel, Bora Bora Lagoon Resort, and Keswick Hall have been presented as discontinued operations.

(a)    Properties sold: Porto Cupecoy, Bora Bora Lagoon Resort and Keswick Hall

On January 31, 2013, OEH completed the sale of the property and operations of Porto Cupecoy for cash consideration of $19,000,000. The property was a part of OEH’s real estate segment. The disposal resulted in a gain of $439,000, which is reported within earnings/(losses) from discontinued operations, net of tax.

On June 1, 2012, OEH completed the sale of the shares of Bora Bora Lagoon Resort in French Polynesia for cash consideration of $3,000,000. The hotel was a part of OEH’s hotels and restaurants segment. The disposal resulted in a gain on sale of $662,000 (including a $13,074,000 transfer of foreign currency translation amounts from accumulated other comprehensive loss), which is reported within earnings/(losses) from discontinued operations, net of tax.

On January 23, 2012, OEH completed the sale of the property and operations of Keswick Hall in Charlottesville, Virginia for consideration of $22,000,000, of which $12,000,000 was paid in cash and $10,000,000 was settled directly with the lender as a reduction in the debt facility secured by the property. The hotel was a part of OEH’s hotels and restaurants segment. The disposal resulted in a gain of $3,957,000, which is reported within earnings/(losses) from discontinued operations, net of tax.

The following is a summary of net assets sold and the gain recorded on sale for Porto Cupecoy, Bora Bora Lagoon Resort and Keswick Hall:

	Porto Cupecoy		Bora Bora Lagoon Resort		Keswick Hall
	January 31, 2013		June 1, 2012		January 23, 2012
	$'000		$'000		$'000
Property, plant & equipment, net	38		15,827		18,590
Real estate assets	18,512		—		—
Net working capital (deficit)/surplus	—		(720	)	401
Other assets/(liabilities)	—		—		(1,891	)
Deferred income taxes	—		—		—
Net assets	18,550		15,107		17,100
Transfer of foreign currency translation loss/(gain)	—		(13,074	)	—
	18,550		2,033		17,100
Consideration:
Cash	19,000		3,000		12,000
Reduction in debt facility on sale of hotel	—		—		10,000
Less: Working capital adjustment	(11	)	—		(430	)
Less: Costs to sell	—		(305	)	(513	)
	18,989		2,695		21,057
Gain/(loss) on sale	439		662		3,957

The gain on sale of Bora Bora Lagoon Resort includes selling costs of $18,000 recorded in the three months ended September 30, 2012 and selling costs of $28,000 recorded in the three months ended December 31, 2012.

13

(b)    Results of discontinued operations

In December 2012, OEH decided to sell Porto Cupecoy, its real estate development on the Dutch side of St. Martin, as an asset non-core to its future business, with the sale releasing funds for debt reduction, cash reserves and reinvestment in other OEH properties. The property development was included in the real estate segment. The property development has been reclassified as held for sale and its results have been presented as discontinued operations for all periods shown. The sale was completed in January 2013.

Summarized operating results of the properties classified as discontinued operations for the three and six months endedJune 30, 2013 and 2012 are as follows:

	Three months ended June 30, 2013
	Porto Cupecoy	Total
	$'000	$'000
Revenue	8	8
Earnings before tax, gain on sale and impairment	90	90
Impairment	—	—
Gain on sale	—	—
Earnings before tax	90	90
Tax (provision)/benefit	—	—
Net earnings from discontinued operations	90	90

	Three months ended June 30, 2012
	Porto Cupecoy		The Westcliff		The Observatory Hotel		Bora Bora Lagoon Resort		Keswick Hall		Total
	$'000		$'000		$'000		$'000		$'000		$'000
Revenue	1,219		2,311		3,707		—		—		7,237
Losses before tax, gain on sale and impairment	(1,509	)	(102	)	(417	)	(76	)	(99	)	(2,203	)
Impairment	—		—		—		—		—		—
Gain on sale	—		—		—		708		(8	)	700
(Losses)/earnings before tax	(1,509	)	(102	)	(417	)	632		(107	)	(1,503	)
Tax (provision)/benefit	—		—		—		—		—		—
Net (losses)/earnings from discontinued operations	(1,509	)	(102	)	(417	)	632		(107	)	(1,503	)

14

	Six months ended June 30, 2013
	Porto Cupecoy		The Westcliff	Total
	$'000		$'000	$'000
Revenue	843		—	843
Earnings/(losses) before tax, gain on sale and impairment	(1,589	)	—	(1,589	)
Impairment	(77	)	—	(77	)
Gain on sale	439		—	439
Losses before tax	(1,227	)	—	(1,227	)
Tax (provision)/benefit	—		422	422
Net (losses)/earnings from discontinued operations	(1,227	)	422	(805	)

	Six months ended June 30, 2012
	Porto Cupecoy		The Westcliff		The Observatory Hotel		Bora Bora Lagoon Resort		Keswick Hall		Total
	$'000		$'000		$'000		$'000		$'000		$'000
Revenue	3,033		4,525		7,984		—		427		15,969
Losses before tax, gain on sale and impairment	(3,038	)	(219	)	(628	)	(138	)	(1,016	)	(5,039	)
Impairment	—		—		—		—		—		—
Gain on sale	—		—		—		708		3,957		4,665
(Losses)/earnings before tax	(3,038	)	(219	)	(628	)	570		2,941		(374	)
Tax (provision)/benefit	—		—		—		—		(683	)	(683	)
Net (losses)/earnings from discontinued operations	(3,038	)	(219	)	(628	)	570		2,258		(1,057	)

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(c)    Assets and liabilities held for sale

Assets and liabilities of the properties classified as held for sale consist of the following:

	June 30, 2013		December 31, 2012
	Porto Cupecoy		Porto Cupecoy
	$’000		$’000
Current assets	—		—
Real estate assets	2,925		22,040
Property, plant and equipment, net	—		38
Total assets held for sale	2,925		22,078
Current liabilities	(1,413	)	(2,174	)
Total liabilities held for sale	(1,413	)	(2,174	)

Assets of Porto Cupecoy at June 30, 2013 comprise condominiums which were excluded from the disposal of the Porto Cupecoy development as they were already under separate sales contracts at the time.

4.    Variable interest entities

OEH analyzes its variable interests, including loans, guarantees and equity investments, to determine if an entity is a variable interest entity (“VIE”).  In that assessment, OEH’s analysis includes both quantitative and qualitative considerations. OEH bases its quantitative analysis on the forecast cash flows of the entity, and its qualitative analysis on a review of the design of the entity, organizational structure including decision-making ability, and relevant financial agreements.  OEH also uses its quantitative and qualitative analysis to determine if OEH is the primary beneficiary and required to consolidate the VIE.

(a)    VIEs of which OEH is the primary beneficiary

OEH holds a 19.9% equity investment in Charleston Center LLC, owner of Charleston Place Hotel.  OEH has also made a number of loans to the hotel.  OEH concluded that Charleston Center LLC is a variable interest entity because the total equity at risk is insufficient for the entity to fund its operations without additional subordinated financial support, the majority of which has been provided by OEH. OEH is the primary beneficiary of this VIE because it is expected to absorb a majority of the VIE’s expected losses and residual gains through the subordinated financial support it has provided, and has the power to direct the activities that impact the VIE’s performance, based on the current organizational structure.

16

The carrying amount of consolidated assets and liabilities of Charleston Center LLC included within OEH’s condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012 are summarized as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Current assets	15,611	18,511
Property, plant and equipment	185,078	183,793
Goodwill	40,395	40,395
Other assets	1,814	2,114
Total assets	242,898	244,813
Current liabilities	6,920	6,382
Third-party debt, including $1,795 and $1,795 current portion	97,049	97,945
Long-term accrued interest on subordinated debt	15,040	14,740
Deferred income taxes	59,952	60,326
Total liabilities	178,961	179,393
Net assets (before amounts payable to OEH of $86,662 and $90,807)	63,937	65,420

The third-party debt of Charleston Center LLC is secured by its net assets and is non-recourse to its members, including OEH. The hotel’s separate assets are not available to pay the debts of OEH and the hotel’s separate liabilities do not constitute obligations of OEH.  This non-recourse obligation is presented separately on the condensed consolidated balance sheets of OEH.

(b)    VIEs of which OEH is not the primary beneficiary

OEH holds a 50% equity investment in its rail joint venture in Peru which operates the infrastructure, rolling stock, stations and services on a portion of the state-owned railways in Peru. OEH concluded that the Peru rail joint venture is a variable interest entity because the total equity at risk is insufficient for it to fund its operations without additional subordinated financial support. The joint venture is under joint control as all the budgetary and capital decisions require a majority of approval of the joint venture’s board of directors, which has equal representation from both joint venture partners. The joint venture is accounted for under the equity method of accounting and included in earnings/(losses) from unconsolidated companies in the statements of condensed consolidated operations.

The carrying amounts and maximum exposures to loss as a result of OEH’s involvement with its Peru rail joint venture are as follows:

	Carrying Amounts		Maximum Exposure
	June 30, 2013	December 31, 2012	June 30, 2013	December 31, 2012
	$’000	$’000	$’000	$’000
Investment	33,939	32,973	33,939	32,973
Due from unconsolidated company	6,272	4,803	6,272	4,803
Guarantees	—	—	6,757	7,558
Contingent guarantees	—	—	16,204	17,149
Total	40,211	37,776	63,172	62,483

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The maximum exposure to loss for the Peru rail joint venture exceeds the carrying amount due to guarantees, discussed below, which are not recognized in the condensed consolidated financial statements. The contingent guarantees may only be enforced in the event there is a change in control in the joint venture, which would occur only if OEH’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred. As at June 30, 2013, OEH does not expect that it will be required to fund these guarantees relating to this joint venture as the entity has the ability to repay the loans.

The Company has guaranteed $6,757,000 and contingently guaranteed $9,228,000 of the debt obligations of the rail joint venture in Peru through 2016. The Company has also contingently guaranteed the rail joint venture’s obligations relating to the performance of its governmental rail concessions, currently in the amount of $6,976,000, through May 2014.

Long-term debt obligations of the rail joint venture in Peru at June 30, 2013 totaling $6,757,000 have been classified within current liabilities of the joint venture in its stand-alone financial statements, as it was out of compliance with a debt service coverage ratio covenant in its loan facilities. Discussions with the lenders to bring the joint venture into compliance are continuing, although this non-compliance is not expected to have a material impact on OEH’s financial flexibility.

5.    Investments in unconsolidated companies

Investments in unconsolidated companies represent equity interests of 50% or less and in which OEH exerts significant influence, but does not have effective control of these unconsolidated companies and, therefore, accounts for these investments using the equity method. These investments include the 50% ownership in rail and hotel joint venture operations in Peru and in Hotel Ritz, Madrid, and the 25% ownership in Eastern and Oriental Express Ltd.

Also included in investments in unconsolidated companies is the Buzios land joint venture which is 50% owned and accounted for using the cost method. In June 2007, OEH acquired 50% of a company holding real estate in Buzios, Brazil for a cash consideration of $5,000,000.  OEH planned to build a hotel and villas on the acquired land and to purchase the remaining 50% of the company when the building permits were obtained from the local authorities. In February 2009, the Municipality of Buzios commenced a process for the compulsory purchase of the land by the municipality in exchange for a payment of fair compensation to the owners. In April 2011, the State of Rio de Janeiro declared the land an area of public interest, with the intention that it will become part of a State Environmental Park which is being created in the area. The compulsory purchase of the land will therefore be carried out by the State of Rio de Janeiro. OEH is currently in negotiation to recover its investment in the project based on the State’s decision to purchase the land.

Summarized financial data for OEH’s unconsolidated companies are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Current assets	64,288	75,339
Property, plant and equipment, net	351,497	354,640
Other assets	3,921	3,806
Non-current assets	355,418	358,446
Total assets	419,706	433,785
Current liabilities	150,346	165,413
Long-term debt	41,356	45,985
Other liabilities	120,826	115,763
Non-current liabilities	162,182	161,748
Total shareholders’ equity	107,178	106,624
Total liabilities and shareholders’ equity	419,706	433,785

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	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
	$’000	$’000	$’000	$’000
Revenue	44,447	41,518	79,607	73,863
Gross profit1	25,579	20,078	44,841	39,340
Net earnings2	6,490	4,266	5,496	4,679

¹Gross profit is defined as revenues less cost of services of the unconsolidated companies.

²There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies.

Included in unconsolidated companies are OEH’s hotel and rail joint ventures in Peru, under which OEH and the other 50% participant must contribute equally additional equity needed for the businesses.  If the other participant does not meet this obligation, OEH has the right to dilute the other participant and obtain a majority equity interest in the affected joint venture company.  OEH also has rights to purchase the other participant’s interests, which rights are exercisable in limited circumstances such as the other participant’s bankruptcy.

OEH’s investments in and loans and advances to unconsolidated companies amounted to $59,040,000 at June 30, 2013 (December 31, 2012 - $58,924,000). OEH’s earnings from unconsolidated companies, net of tax, for the three and six months endedJune 30, 2013 were $3,260,000 (June 30, 2012 - $2,335,000) and $2,633,000 (June 30, 2012 - $2,303,000), respectively.

There are guarantees and contingent guarantees to unconsolidated companies which are not recognized in the consolidated financial statements. The contingent guarantees for each Peruvian joint venture may only be enforced in the event there is a change in control of the relevant joint venture, which would occur only if OEH’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred. As at June 30, 2013, OEH does not expect that it will be required to fund these guarantees relating to these joint venture companies.

The Company has contingently guaranteed, through 2018, $18,100,000 of debt obligations of the joint venture in Peru that operates four hotels and, through 2014, a further $2,029,000 of its debt obligations. See Note 4 for information regarding guarantees and long-term debt of the rail joint venture in Peru.

At June 30, 2013, long-term debt obligations totaling $78,643,000 of the Hotel Ritz, Madrid, in which OEH has a 50% equity investment, have been classified within current liabilities in the joint venture’s stand-alone financial statements as it was out of compliance with the debt service coverage ratio covenant in its first mortgage loan facility. Discussions with the lender to bring the hotel into long-term compliance are continuing, although this non-compliance is not expected to have a material impact on OEH’s financial flexibility.  OEH and its joint venture partner have each guaranteed $9,749,000 of the debt obligations, and $594,000 of a working capital loan facility.

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6.    Property, plant and equipment

The major classes of property, plant and equipment are as follows:

	June 30, 2013		December 31, 2012
	$’000		$’000
Land and buildings	1,001,451		1,054,171
Machinery and equipment	199,143		193,941
Fixtures, fittings and office equipment	219,594		206,135
River cruise ship and canal boats	18,429		18,255
	1,438,617		1,472,502
Less: Accumulated depreciation	(313,153	)	(300,899	)
Total property, plant and equipment, net	1,125,464		1,171,603

The major classes of assets under capital leases included above are as follows:

	June 30, 2013		December 31, 2012
	$’000		$’000
Freehold and leased land and buildings	—		—
Machinery and equipment	875		918
Fixtures, fittings and office equipment	102		103
	977		1,021
Less: Accumulated depreciation	(845	)	(829	)
Total assets under capital leases	132		192

The depreciation charge on property, plant and equipment for the three and six months endedJune 30, 2013 was $12,152,000 (June 30, 2012 - $10,394,000) and $23,584,000 (June 30, 2012 - $20,791,000).

The property, plant and equipment of Charleston Center LLC, a consolidated VIE, of $185,078,000 at June 30, 2013 (December 31, 2012 - $183,793,000) is separately disclosed on the condensed consolidated balance sheets. See Note 4.

During the three months ended March 31, 2013, OEH performed a strategic review of its assets and identified a non-cash property, plant and equipment impairment charge of $35,680,000 in respect of La Samanna, St. Martin, French West Indies. The carrying value was written down to the hotel’s fair value. There were no impairments in the three months ended June 30, 2013 and the three and six months endedJune 30, 2012.

For the three and six months ended June 30, 2013, OEH capitalized interest in the amount of $Nil (June 30, 2012 - $997,000) and $1,088,000 (June 30, 2012 - $1,902,000), respectively. All amounts capitalized were recorded in property, plant and equipment.

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7.    Goodwill

The changes in the carrying amount of goodwill for the six months endedJune 30, 2013 are as follows:

	Hotels & Restaurants		Trains & Cruises		Total
	$'000		$'000		$'000
Balance at January 1, 2013	153,287		7,991		161,278
Impairment	—		—		—
Foreign currency translation adjustment	(2,791	)	(184	)	(2,975	)
Balance at June 30, 2013	150,496		7,807		158,303

The gross goodwill amount at January 1, 2013 was $192,418,000 and the accumulated impairment at that date was $31,140,000. All impairments to that date related to hotel and restaurant operations.

The assessment and, if required, the determination of goodwill impairment to be recognized uses a discounted cash flow analysis to compute the fair value of the reporting unit. When determining the fair value of a reporting unit, OEH is required to make significant judgments that OEH believes are reasonable and supportable considering all available internal and external evidence at the time.  However, these estimates and assumptions are, by their nature, highly judgmental.  Fair value determinations are sensitive to changes in the underlying assumptions and factors including those relating to estimating future operating cash flows to be generated from the reporting unit which are dependent upon internal forecasts and projections developed as part of OEH’s routine, long-term planning process, available industry/market data (to the extent available), OEH’s strategic plans, estimates of long-term growth rates taking into account OEH’s assessment of the current economic environment and the timing and degree of any economic recovery, estimation of the useful life over which the cash flows will occur, and market participant assumptions. The assumptions with the most significant impact to the fair value of the reporting unit are those related to future operating cash flows which are forecast for a five-year period from management’s budget and planning process, the terminal value which is included for the period beyond five years from the balance sheet date based on the estimated cash flow in the fifth year and a terminal growth rate, and pre-tax discount rates.

Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair values of OEH’s  reporting units may include such items as (i) a prolonged weakness in the general economic conditions in which the reporting units operate and therefore negatively impacting occupancy and room rates, (ii) an economic recovery that significantly differs from OEH’s assumptions in timing and/or degree, (iii) volatility in the equity and debt markets which could result in a higher discount rate, (iv) shifts or changes in future travel patterns from OEH’s significant demographic markets that have not been anticipated, (v) changes in competitive supply, (vi) political and security instability in countries where OEH operates and (vii) deterioration of local economies due to the uncertainty over currencies or currency unions and other factors which could lead to changes in projected cash flows of OEH’s properties as customers reduce their discretionary spending.  If the assumptions used in the impairment analysis are not met or materially change, OEH may be required to recognize additional goodwill impairment losses which may be material to the financial statements.

There were no triggering events in the six months endedJune 30, 2013 that would have required OEH to reassess the carrying value of goodwill.

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8.    Other intangible assets

Other intangible assets consist of the following as of June 30, 2013:

	Favorable Lease Assets		Internet Sites		Trade Names	Total
	$'000		$'000		$'000	$'000
Carrying amount:
Balance at January 1, 2013	12,971		1,692		7,100	21,763
Foreign currency translation adjustment	(173	)	(114	)	—	(287	)
Balance at June 30, 2013	12,798		1,578		7,100	21,476
Accumulated amortization:
Balance at January 1, 2013	2,248		907			3,155
Charge for the period	164		64			228
Foreign currency translation adjustment	(30	)	(61	)		(91	)
Balance at June 30, 2013	2,382		910			3,292
Net book value:
At June 30, 2013	10,416		668		7,100	18,184
At December 31, 2012	10,723		785		7,100	18,608

Favorable lease intangible assets are amortized over the terms of the leases, which are between 19 and 60 years. Internet sites are amortized over 10 years. Trade names have an indefinite life and therefore are not amortized, but are assessed for impairment annually or when events indicate that impairment may have occurred.

Total amortization expense for the three and six months endedJune 30, 2013 was $119,000 (June 30, 2012 - $120,000) and $228,000 (June 30, 2012 - $244,000), respectively.  Estimated total amortization expense for the remainder of the year ending December 31, 2013 is $228,000 and for each of the years ending December 31, 2014 to December 31, 2018 is $456,000.

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9.    Debt and obligations under capital lease

(a)    Long-term debt and obligations under capital lease

Long-term debt and obligations under capital lease consists of the following:

	June 30, 2013	December 31, 2012
	$’000	$’000
Loans from banks and other parties collateralized by property, plant and equipment payable over periods of one to 20 years, with a weighted average interest rate of 4.18% and 4.14%, respectively	531,453	521,494
Obligations under capital lease	40	66
Total long-term debt and obligations under capital lease	531,493	521,560
Less: Current portion	93,370	90,115
Non-current portion of long-term debt and obligations under capital lease	438,123	431,445

For the renovation of El Encanto hotel, OEH entered into a loan agreement in August 2011 for $45,000,000 to be drawn as construction progresses. At June 30, 2013, OEH had borrowed $37,919,000 (December 31, 2012 - $25,749,000) under this facility.  The loan has a maturity of three years, with twoone year extensions, at an annual interest rate based on monthly LIBOR plus 3.65%.

At June 30, 2013, one of OEH’s subsidiaries had not complied with certain financial covenants in a loan facility. The $1,111,000 outstanding on this loan has been classified as a current portion of debt and OEH expects to rectify this non-compliance in the second half of 2013.

Most of OEH’s loan facilities relate to specific hotel or other properties and are secured by a mortgage on the particular property.  In most cases, the Company is either the borrower or the subsidiary owning the property is the borrower, with the loan guaranteed by the Company.

The loan facilities generally place restrictions on the property-owning company’s ability to incur additional debt and limit liens, and restrict mergers and asset sales, and include financial covenants. Where the property-owning subsidiary is the borrower, the financial covenants relate to the financial performance of the property financed and generally include covenants relating to interest coverage, debt service, and loan-to-value and debt-to-EBITDA tests.  Most of the facilities under which the Company is the borrower or the guarantor also contain financial covenants which are based on the performance of OEH on a consolidated basis. The covenants include a quarterly interest coverage test, minimum cash requirement test and a quarterly net worth test.

Many of OEH’s bank loan facilities include cross-default provisions under which a failure to pay principal or interest by the borrower or guarantor under other indebtedness in excess of a specified threshold amount would cause a default under the facilities.  Under OEH’s largest loan facility, the specified cross-default threshold amount is $25,000,000. At June 30, 2013, no cross-default provision in a loan facility had been triggered.

23

The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at June 30, 2013:

	$’000
Remainder of 2013	58,214
2014	186,029
2015	223,741
2016	10,538
2017	23,552
2018	9,554
2019 and thereafter	19,865
Total long term debt and obligations under capital lease	531,493

The Company has guaranteed $358,583,000 of the long-term debt of its subsidiary companies as at June 30, 2013 (December 31, 2012 - $341,078,000).

The fair value of the debt excluding obligations under capital leases at June 30, 2013 has been estimated in the amount of $546,174,000 (December 31, 2012 - $533,783,000).

Deferred financing costs related to the above outstanding long-term debt were $10,881,000 at June 30, 2013 (December 31, 2012 - $13,694,000) and are amortized to interest expense over the term of the corresponding long-term debt.

The debt of Charleston Center LLC, a consolidated VIE, of $97,049,000 at June 30, 2013 (December 31, 2012 - $97,945,000) is non-recourse to OEH and separately disclosed on the condensed consolidated balance sheets.  The debt was entered into in October 2010 and has a maturity of three years, with twoone year extensions and the interest rate is at LIBOR plus a margin of 3.50% per annum. See Note 4.

(b)Working capital loans

OEH had approximately $4,255,000 of working capital loans at June 30, 2013 (December 31, 2012 - $4,473,000) repayable within one year issued by various financial institutions and having various expiration dates, of which $4,255,000 was undrawn (December 31, 2012 - $4,473,000).

10.    Other liabilities

The major balances in other liabilities are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Interest rate swaps (see Note 18)	2,563	5,021
Long-term accrued interest on subordinated debt at Charleston Place Hotel	15,040	14,740
Cash-settled stock appreciation rights plan	67	96
Deferred lease incentive	414	468
Contingent consideration on acquisition of Grand Hotel Timeo and Villa Sant’Andrea	1,169	1,186
Total other liabilities	19,253	21,511

24

11.    Pensions

Components of net periodic pension benefit cost are as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$’000		$’000		$’000		$’000
Service cost	—		—		—		—
Interest cost on projected benefit obligation	294		288		591		574
Expected return on assets	(227	)	(211	)	(456	)	(421	)
Net amortization and deferrals	228		224		458		447
Net periodic benefit cost	295		301		593		600

During the three and six months endedJune 30, 2013, $497,000 (June 30, 2012 - $492,000) and $999,000 (June 30, 2012 - $972,000), respectively, of contributions were made to OEH’s U.K. defined benefit pension plan. OEH anticipates contributing an additional $1,169,000to fund the plan in 2013 for a total of $2,168,000.

12.    Income taxes

For interim reporting purposes, OEH calculates its tax expense by estimating its global annual effective tax rate and applies that rate in providing for income taxes on a year-to-date basis. OEH has calculated an expected annual effective tax rate, excluding significant, unusual or extraordinary items, and the tax effect of jurisdictions with losses for which a tax benefit cannot be recognized. In the three and six months endedJune 30, 2013, the income tax provision was $3,742,000 (June 30, 2012 - tax provision of $6,478,000) and tax benefit was $2,132,000 (June 30, 2012 - tax provision of $6,726,000), respectively.

The provision for income taxes in the three and six months endedJune 30, 2013 was lower than the comparable periods ended June 30, 2012 due primarily to a release in uncertain tax provisions of $3,924,000 in the first quarter of 2013 following conclusion of inquiries by the tax authorities, favorable currency fluctuations in the second quarter of 2013 and favorable changes in profits mix.

13.    Supplemental cash flow information

	Six months ended
	June 30, 2013	June 30, 2012
	$’000	$’000
Cash paid during the period for:
Interest	12,755	13,199
Income taxes, net of refunds	8,824	12,530

To reflect the actual cash paid for capital expenditures, increases in accounts payable for capital expenditures are non-cash and excluded from capital expenditure, while decreases are cash payments and included. The changes in accounts payable were an increase of $630,000 and an increase of $1,004,000, for the six months endedJune 30, 2013 and 2012, respectively.

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14.    Restricted cash

The major balances in restricted cash are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Cash deposits required to be held with lending banks for the duration of the debt to support OEH’s payment of interest and principal	15,961	16,013
Escrow deposits from purchasers of units at Porto Cupecoy which will be released to OEH as sales close	603	4,079
Prepaid customer deposits which will be released to OEH under its revenue recognition policy	1,680	788
Security required under the European Union Package Travel Directive	197	200
Total restricted cash	18,441	21,080

Restricted cash classified as long-term and included in other assets on the condensed consolidated balance sheet at June 30, 2013 was $12,660,000.

15.    Share-based compensation plans

At June 30, 2013, OEH had four share-based compensation plans.  The compensation cost that has been charged to selling, general and administrative expense for these plans for the three and six months endedJune 30, 2013 was $2,336,000 (June 30, 2012 - $1,572,000) and $3,886,000 (June 30, 2012 - $3,582,000), respectively. The total compensation cost related to unexercised options and unvested share awards at June 30, 2013 to be recognized over the period July 1, 2013 to June 30, 2016, was $15,654,000 and the weighted average period over which it is expected to be recognized is 30 months. Measured from the grant date, substantially all awards of deferred shares, restricted shares and stock appreciation rights have a maximum term of three years, and substantially all awards of share options have a maximum term of 10 years. There were no grants under the 2000 stock option plan or 2004 stock option plan during the six months endedJune 30, 2013.

(a)2007 stock appreciation rights plan

Previously awarded cash-settled stock appreciation rights awarded under the Company’s 2007 stock appreciation rights plan have been recorded as other liabilities with a fair value of $67,000 at June 30, 2013 (December 31, 2012 - $96,000). See Note 10.

(b)2009 share award and incentive plan

During the six months endedJune 30, 2013, the following awards were made under the 2009 share award and incentive plan on the following dates.

Estimates of the fair value of share options and the fair value of deferred shares and restricted shares without performance criteria on the grant date were made using the Black-Scholes option pricing model, and estimates of the fair value of deferred shares with performance criteria and market conditions were made using the Monte Carlo valuation model, based on the assumptions shown.

Expected volatilities are based on historical volatility of the Company’s class A common share price and other factors.  The risk-free rate for periods within the expected life is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life represents the period that share-based awards are expected to be outstanding and was determined using historical experience, giving consideration to the contractual terms of the share-based awards and vesting schedules.

February 21, 2013:

• share options on 31,700 class A common shares vesting on March 9, 2015 at an exercise price of $9.95 per share,

• deferred shares without performance criteria covering 6,600 class A common shares vesting on March 9, 2015 at a purchase price of $0.01 per share, and

• deferred shares with performance criteria and market conditions on up to 24,600 class A common shares vesting on March 9, 2015 at a purchase price of $0.01 per share.

26

	Share options			Deferred shares without performance criteria			Deferred shares with performance criteria
Expected share price volatility	60		%	51		%	52		%
Risk-free interest rate	1.30		%	0.26		%	0.26		%
Expected dividends per share	$	—		$	—		$	—
Expected life of awards	8 years			2 years			2 years

March 15, 2013:

• deferred shares without performance criteria covering 114,000 class A common shares vesting on March 15, 2016 at a purchase price of $0.01 per share, and

• deferred shares with performance criteria and market conditions on up to 290,400 class A common shares vesting on March 15, 2016 at a purchase price of $0.01 per share.

	Deferred shares without performance criteria			Deferred shares with performance criteria
Expected share price volatility	51		%	52		%
Risk-free interest rate	0.38		%	0.39		%
Expected dividends per share	$	—		$	—
Expected life of awards	3 years			3 years

April 22, 2013:

• deferred shares without performance criteria covering 29,370 class A common shares vesting on July 22, 2013 at a purchase price of $0.01 per share.

	Deferred shares without performance criteria
Expected share price volatility	51		%
Risk-free interest rate	0.06		%
Expected dividends per share	$	—
Expected life of awards	3 months

June 10, 2013:

• share options on 289,000 class A common shares vesting on June 10, 2016 at an exercise price of $11.74 per share, and

• deferred shares without performance criteria covering 34,400 class A common shares vesting on June 10, 2016 at a purchase price of $0.01 per share.

	Share Options			Deferred shares without performance criteria
Expected share price volatility	60		%	50		%
Risk-free interest rate	1.74		%	0.57		%
Expected dividends per share	$	—		$	—
Expected life of awards	8 years			3 years

June 28, 2013:

• deferred shares without performance criteria covering 33,200 class A common shares vesting on June 28, 2016 at a purchase price of $0.01 per share,

• restricted shares without performance criteria covering 33,200 class A common shares vesting on June 28, 2016 at a purchase price of $0.01 per share, and

• restricted shares without performance criteria covering 12,400 class A common shares vesting on the earlier of June 28, 2014 or the day before the 2014 annual general meeting of the Company at a purchase price of $0.01 per share.

27

	Deferred shares without performance criteria			Restricted shares without performance criteria			Restricted shares without performance criteria
Expected share price volatility	50		%	50		%	43		%
Risk-free interest rate	0.57		%	0.57		%	0.13		%
Expected dividends per share	$	—		$	—		$	—
Expected life of awards	3 years			3 years			1 year

16.    Commitments and contingencies

Outstanding contracts to purchase property, plant and equipment were approximately $4,428,000 at June 30, 2013 (December 31, 2012 - $9,650,000).

As part of the consideration for the acquisition of Grand Hotel Timeo and Villa Sant’Andrea in January 2010, OEH agreed to pay the vendor a further €5,000,000 (equivalent to $7,064,000 at date of acquisition) if, by 2015, additional rooms are constructed at Grand Hotel Timeo and certain required permits are granted to expand and add a swimming pool to Villa Sant’Andrea. At June 30, 2013, €4,000,000 has been paid (equivalent to $5,250,000 at the dates paid). See Note 10.

In the three months ended March 31, 2013, Copacabana Palace hotel was inspected by the Rio State Consumer Protection Agency and found to be in violation of certain consumer protection regulations, thereby subjecting the hotel to a potential fine for these infractions up to a maximum amount of $3,600,000. At March 31, 2013, due to the uncertainty of acceptance of the hotel's defense advancing reasons for mitigation of any fine, the Company accrued no amount for this loss contingency. On July 8, 2013, a fine in the amount of $140,000 was imposed by the agency and this amount has been accrued at June 30, 2013.

On February 5, 2013, the State of Rio de Janeiro Court of Justice affirmed a 2011 decision of a Rio state trial court against Sea Containers Ltd (“SCL”) in lawsuits brought against SCL by minority shareholders in Companhia Hoteis Palace (“CHP”), the company that owns the Copacabana Palace, relating to the recapitalization of CHP in 1995, but reduced the total award against SCL to approximately $27,000,000.  SCL has further appealed the judgment during the second quarter of 2013 to the Superior Court of Justice in Brasilia.  SCL sold its shares in CHP to the Company in 2000. Years later, in 2006, SCL entered insolvency proceedings in the U.S. and Bermuda which are continuing in Bermuda.  Possible claims could be asserted against the Company or CHP in connection with this Brazilian litigation, although no claims have been asserted to date.  Management cannot estimate the range of possible loss and OEH has made no reserves in respect of this matter.  If any such claims were brought, OEH would vigorously defend its interests.

The Company and certain of its subsidiaries are parties to various legal proceedings arising in the normal course of business. These proceedings generally include matters relating to labor disputes, tax claims, personal injury cases, lease negotiations and ownership disputes. The outcome of each of these matters cannot be determined with certainty, and the liability that the relevant parties may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued for with respect to these matters. Where a reasonable estimate can be made, the additional losses or range of loss that may be incurred in excess of the amount recognized from the various legal proceedings arising in the normal course of business are disclosed separately for each claim, including a reference to where it is disclosed. However, for certain of the legal proceedings, management is unable to estimate the loss or range of loss that may result from these claims due to the highly complex nature or early stage of the legal proceedings.

In May 2010, OEH settled litigation for infringement of its “Cipriani” trademark in Europe.  An amount of $3,947,000 was paid by the defendants to OEH on March 2, 2010 with the balance of $9,833,000 being payable in installments over five years with interest.  The remaining payments, totaling $3,732,000 at June 30, 2013, have not been recognized by OEH because of the uncertainty of collectability.

28

Future rental payments as at June 30, 2013 under operating leases in respect of equipment rentals and leased premises are payable as follows:

	$’000
Remainder of 2013	4,976
2014	9,842
2015	9,766
2016	9,582
2017	9,568
2018	8,762
2019 and thereafter	68,671
Future rental payments under operating leases	121,167

Rental expense for the three and six months endedJune 30, 2013 amounted to $2,760,000 (June 30, 2012 - $2,566,000) and $5,313,000 (June 30, 2012 - $5,462,000), respectively.

OEH has granted to James Sherwood, a former director of the Company, a right of first refusal to purchase the Hotel Cipriani in Venice, Italy in the event OEH proposes to sell it. The purchase price would be the offered sale price in the case of a cash sale or the fair market value of the hotel, as determined by an independent valuer, in the case of a non-cash sale. Mr. Sherwood has also been granted an option to purchase the hotel at fair market value if a change in control of the Company occurs. Mr. Sherwood may elect to pay 80% of the purchase price if he exercises his right of first refusal, or 100% of the purchase price if he exercises his purchase option, by a non-recourse promissory note secured by the hotel payable in ten equal annual installments with interest at LIBOR. The option is not assignable and expires one year after Mr. Sherwood’s death. These agreements relating to the Hotel Cipriani between Mr. Sherwood and OEH and its predecessor companies have been in place since 1983 and were last amended and restated in 2005.

17.    Fair value measurements

(a)     Financial instruments recorded at fair value

Derivatives are recorded in the condensed consolidated balance sheets at fair value.  The valuation process for the derivatives uses observable market data provided by third-party sources. Interest rate swaps are valued by using yield curves derived from observable interest rates to project future swap cash flows and then discount these cash flows back to present values. Interest rate caps are valued using a model that projects the probability of various levels of interest rates occurring in the future using observable volatilities. OEH incorporates credit valuation adjustments to reflect both its own and its respective counterparty’s non-performance risk in the fair value measurements.

In the determination of fair value of derivative instruments, a credit valuation adjustment is applied to OEH’s derivative exposures to take into account the risk of the counterparty defaulting with the derivative in an asset position and, when the derivative is in a liability position, the risk that OEH may default. The credit valuation adjustment is calculated by determining the total expected exposure of the derivatives (incorporating both the current and potential future exposure) and then applying each counterparty’s credit spread to the applicable exposure.  For interest rate swaps, OEH’s own credit spread is applied to the counterparty’s exposure to OEH and the counterparties credit spread is applied to OEH’s exposure to the counterparty, and then the net credit valuation adjustment is reflected in the determination of the fair value of the derivative instrument.  The credit spreads used as inputs in the fair value calculations represent implied credit default swaps obtained from a third-party credit data provider.  Some of the inputs into the credit valuation adjustment are not observable and, therefore, they are considered to be Level 3 inputs.  Where credit valuation adjustment exceeds 20% of the fair value of the derivatives, Level 3 inputs are assumed to have a significant impact on the fair value of the derivatives in their entirety and the derivative is classified as Level 3.  OEH reviews its fair value hierarchy classifications quarterly.  OEH’s policy is to recognize transfers in and transfers out as of the end of each quarterly reporting period.

29

The following tables summarize the valuation of OEH’s financial instruments recorded at fair value by the fair value hierarchy at June 30, 2013 and December 31, 2012:

	Level 1	Level 2		Level 3	Total
June 30, 2013	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	10		—	10
Total assets	—	10		—	10
Liabilities at fair value:
Derivative financial instruments	—	(5,734	)	—	(5,734	)
Total net liabilities	—	(5,724	)	—	(5,724	)

	Level 1	Level 2		Level 3	Total
December 31, 2012	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	6		—	6
Total assets	—	6		—	6
Liabilities at fair value:
Derivative financial instruments	—	(8,879	)	—	(8,879	)
Total net liabilities	—	(8,873	)	—	(8,873	)

During the three and six months endedJune 30, 2013, there were no transfers between levels of the fair value hierarchy.

(b)    Other financial instruments

Certain methods and assumptions were used to estimate the fair value of each class of financial instruments. The carrying amount of current assets and current liabilities as disclosed on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of those instruments.

The fair value of OEH's long-term debt, excluding interest rate swaps and caps, is determined using the contractual cash flows and credit-adjusted discount curves. The fair value of the debt is the present value of those contractual cash flows which are discounted at the current market cost of debt and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral.

30

The estimated carrying values, fair values, and levels of the fair value hierarchy of OEH's long-term debt as of June 30, 2013 and December 31, 2012 were as follows:

		June 30, 2013		December 31, 2012
		Carrying amounts $’000	Fair value $’000	Carrying amounts $’000	Fair value $’000
Long-term debt, including current portion, excluding obligations under capital leases	Level 3	531,453	546,174	521,494	533,783
Long-term debt, including current portion, held by consolidated variable interest entities	Level 3	97,049	97,645	97,945	99,656

(c)    Non-financial assets measured at fair value on a non-recurring basis

The estimated fair value of OEH’s non-financial assets measured on a non-recurring basis at June 30, 2013 was as follows:

		Fair value measurements using
	Fair Value at June 30, 2013 $’000	Quoted prices in active markets for identical assets (Level 1) $’000	Significant other observable inputs (Level 2) $’000	Significant unobservable inputs (Level 3) $’000	Total losses in the six months ended June 30, 2013 $’000
Property, plant and equipment	45,000	—	—	45,000	(35,680	)

During the three months ended March 31, 2013, OEH performed a strategic review of its assets and as a consequence, property, plant and equipment at La Samanna with a carrying value of $80,680,000 was written down to the hotel’s fair value of $45,000,000, resulting in a non-cash impairment charge of $35,680,000.  There were no impairments in the three months ended June 30, 2013 or the three and six months ended June 30, 2012. This impairment is included in earnings from continuing operations in the period incurred. See Note 6.

18.    Derivatives and hedging activities

Risk management objective of using derivatives

OEH enters into derivative financial instruments with the objective to manage its exposures to future movements in interest rates on its borrowings.

Cash flow hedges of interest rate risk

OEH’s objective in using interest rate derivatives is to add certainty and stability to its interest expense and to manage its exposure to interest rate movements. To accomplish this objective, OEH primarily uses interest rate swaps as part of its interest rate risk management strategy. An interest rate swap is a transaction between two parties in which each agrees to exchange, or swap, interest payments where the interest payment amounts are tied to different interest rates or indices for a specified period of time and are based on a notional amount of principal.  During the three and six months endedJune 30, 2013, interest rate swaps were used to hedge the variable cash flows associated with existing variable interest rate debt.

Derivative instruments are recorded on the condensed consolidated balance sheets at fair value.  The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in other comprehensive income/(loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings.  The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.

As of June 30, 2013 and December 31, 2012, OEH had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: 

31

	June 30, 2013		December 31, 2012
	’000		’000
Interest Rate Swaps	€	139,781	€	142,094
Interest Rate Swaps	$	70,350	$	104,259

Non-designated hedges of interest rate risk

Derivatives not designated as hedges are used to manage OEH’s exposure to interest rate movements but do not meet the strict hedge accounting requirements prescribed in the authoritative accounting guidance.  As of June 30, 2013, OEH had interest rate options with a fair value of $10,000 (December 31, 2012 - $6,000) and a notional amount of €74,906,000 and $53,200,000 (December 31, 2012 - €76,469,000 and $53,760,000) that were non-designated hedges of OEH’s exposure to interest rate risk. As of June 30, 2013, OEH had interest rate swaps with a negative fair value of $33,000 (December 31, 2012 - $Nil) and a notional amount of $1,956,000 (December 31, 2012 - $Nil) that were non-designated hedges of OEH’s exposure to interest rate risk.

The table below presents the fair value of OEH’s derivative financial instruments and their classification as of June 30, 2013 and December 31, 2012: 

	Liability derivatives
		Fair value as of		Fair value as of
		June 30, 2013		December 31, 2012
	Balance sheet location	$’000		$’000
Derivatives designated in a cash flow hedging relationship:
Interest Rate Swaps	Accrued liabilities	(3,152	)	(3,858	)
Interest Rate Swaps	Other liabilities	(2,549	)	(5,021	)
Total		(5,701	)	(8,879	)
Derivatives not designated as hedging instruments:
Interest Rate Options	Other liabilities	10		6
Interest Rate Swaps	Accrued liabilities	(19	)	—
Interest Rate Swaps	Other liabilities	(14	)	—
Total		(23	)	6

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Offsetting

The following tables provide information for the effect of netting arrangements in the condensed consolidated balance sheets for required financial instruments at June 30, 2013 and December 31, 2012:

					Gross amounts not offset in the balance sheet
	Gross amounts of recognized liabilities	Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet	Financial instruments	Cash collateral posted	Net amount
June 30, 2013	$’000	$’000		$’000	$’000	$’000	$’000
Derivative liabilities	5,734	(10	)	5,724	—	—	5,724
					Gross amounts not offset in the balance sheet
	Gross amounts of recognized liabilities	Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet	Financial instruments	Cash collateral posted	Net amount
December 31, 2012	$’000	$’000		$’000	$’000	$’000	$’000
Derivatives liabilities	8,879	(6	)	8,873	—	—	8,873

Other comprehensive income

Information concerning the movements in other comprehensive income for cash flow hedges of interest rate risk is shown in Note 19. At June 30, 2013, the amount accounted for in other comprehensive income/(loss) which is expected to be reclassified to interest expense in the next 12 months is $3,086,000. Movements in other comprehensive income/(loss) for net investment hedges, recorded through foreign currency translation adjustments for the three and six months endedJune 30, 2013 were a $1,183,000 loss (June 30, 2012 - $5,140,000 gain) and a $72,000 loss (June 30, 2012 - $820,000 gain), respectively.

Derivative movements not included in other comprehensive income for the three and six months endedJune 30, 2013 and 2012 were as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$’000		$’000		$’000		$’000
Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives	—		(23	)	37		(152	)
Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments	(7	)	(12	)	(29	)	(33	)

Credit-risk-related contingent features

OEH has agreements with some of its derivative counterparties that contain provisions under which, if OEH defaults on the debt associated with the hedging instrument, OEH could also be declared in default in respect of its derivative obligations.

As of June 30, 2013, the fair value of derivatives in a net liability position, which includes accrued interest and an adjustment for non-performance risk, related to these agreements was $5,734,000 (December 31, 2012 - $8,879,000). If OEH breached any of the provisions, it would be required to settle its obligations under the agreements at their termination value of $5,756,000 (December 31, 2012 - $8,946,000).

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Non-derivative financial instruments — net investment hedges

OEH uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. OEH’s designates its euro-denominated indebtedness as a net investment hedge of long-term investments in its euro-functional subsidiaries.  These contracts are included in non-derivative hedging instruments. The notional values of non-derivative hedging instruments were $42,896,000 at June 30, 2013 (December 31, 2012 - $44,166,000), both being liabilities of OEH.

19.    Accumulated other comprehensive income/loss

Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) are as follows:

	Foreign currency translation adjustments		Derivative financial instruments		Pension liability		Total
Six months ended June 30, 2013	$’000		$’000		$’000		$’000
Balance at January 1, 2013	(67,135	)	(5,976	)	(13,270	)	(86,381	)
Other comprehensive income/(loss) before reclassifications	(25,668	)	258		(116	)	(25,526	)
Amounts reclassified from AOCI	—		1,783		—		1,783
Net current period other comprehensive income/(loss)	(25,668	)	2,041		(116	)	(23,743	)
Balance at June 30, 2013	(92,803	)	(3,935	)	(13,386	)	(110,124	)

Reclassifications out of AOCI (net of tax) are as follows:

	Amount reclassified from AOCI
	Three months ended
	June 30, 2013	June 30, 2012
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	882	788	Interest expense
Total reclassifications for the period	882	788

	Amount reclassified from AOCI
	Six months ended
	June 30, 2013	June 30, 2012
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	1,783	1,999	Interest Expense
Total reclassifications for the period	1,783	1,999

34

20.    Segment information

OEH’s operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker to assess performance and make decisions regarding the allocation of resources. The chief operating decision maker is the Chief Executive Officer. OEH’s operating segments are aggregated into three reporting segments, (i) hotels and restaurants - earnings derived from hotels and restaurants which it owns, jointly owns or manages, (ii) tourist trains and cruises - earnings derived from train and cruise businesses which it owns, jointly owns or manages, and (iii) real estate - earnings derived from the development and sale of real estate which it owns. OEH’s operating segments are grouped into various geographical regions. At June 30, 2013, hotels are located in the United States, Caribbean, Mexico, Europe, southern Africa, South America, and Southeast Asia, a restaurant is located in New York, tourist trains operate in Europe, Southeast Asia and Peru, two river cruise businesses operate in Myanmar (Burma) and one canal boat business operates in France, and real estate development is located in the Caribbean and Southeast Asia. Segment performance is evaluated by the chief operating decision maker based upon segment earnings before gains/(losses) on disposal, impairments, central overheads, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization (“adjusted earnings by segment”).

The following tables present revenues, depreciation and amortization, segment earnings, earnings from unconsolidated companies and capital expenditure for OEH’s reportable segments.

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Revenue:	$’000	$’000	$’000	$’000
Owned hotels - Europe	75,190	70,850	91,237	86,638
- North America	36,068	29,995	66,772	59,060
- Rest of World	31,768	29,838	74,237	72,416
Hotel management/part ownership interests	1,634	1,611	2,770	2,678
Restaurants	4,432	3,942	8,227	7,808
Hotels and restaurants	149,092	136,236	243,243	228,600
Tourist trains and cruises	22,758	24,253	32,677	32,436
Real estate	—	—	—	—
Total revenue	171,850	160,489	275,920	261,036

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Depreciation and amortization:	$’000	$’000	$’000	$’000
Owned hotels - Europe	4,606	4,426	9,262	8,907
- North America	3,468	2,393	6,189	4,729
- Rest of World	2,581	2,255	5,158	4,551
Restaurants	198	203	378	405
Hotels and restaurants	10,853	9,277	20,987	18,592
Tourist trains and cruises	1,180	1,044	2,357	2,052
Unallocated corporate	238	193	468	391
Total depreciation and amortization	12,271	10,514	23,812	21,035

35

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Adjusted earnings by segment:	$’000		$’000		$’000		$’000
Owned hotels - Europe	28,135		26,807		20,178		19,203
- North America	7,557		6,895		13,675		14,086
- Rest of World	5,206		5,150		18,212		18,868
Hotel management/part ownership interests	1,792		1,636		(209	)	892
Restaurants	620		484		859		823
Hotels and restaurants	43,310		40,972		52,715		53,872
Tourist trains and cruises	5,680		8,011		6,746		7,689
Real estate	—		—		—		—
Reconciliation to net earnings/(losses):
Total adjusted earnings by segment	48,990		48,983		59,461		61,561
Impairment of property, plant and equipment	—		—		(35,680	)	—
Central overheads	(9,398	)	(9,882	)	(19,923	)	(19,649	)
Depreciation and amortization	(12,271	)	(10,514	)	(23,812	)	(21,035	)
Interest income	284		309		522		641
Interest expense	(8,342	)	(6,711	)	(15,596	)	(14,259	)
Foreign currency, net	932		(1,525	)	3,008		(598	)
Benefit/(provision) for income taxes	(3,742	)	(6,478	)	2,132		(6,726	)
Share of benefit for/(provision from) income taxes of unconsolidated companies	794		(1,001	)	1,024		(987	)
Earnings/(losses) from continuing operations	17,247		13,181		(28,864	)	(1,052	)
Earnings/(losses) from discontinued operations	90		(1,503	)	(805	)	(1,057	)
Net earnings/(losses)	17,337		11,678		(29,669	)	(2,109	)

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013		June 30, 2012
Earnings from unconsolidated companies, net of tax:	$’000	$’000	$’000		$’000
Hotels and restaurants
Hotel management/part ownership interests	586	2,244	(1,000	)	1,284
Tourist trains and cruises	2,674	91	3,633		1,019
Total earnings from unconsolidated companies, net of tax	3,260	2,335	2,633		2,303

36

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Capital expenditure:	$’000	$’000	$’000	$’000
Owned hotels - Europe	2,813	7,469	6,441	12,014
- North America	9,064	12,508	21,302	22,517
- Rest of World	4,344	3,670	7,318	6,549
Restaurants	83	269	119	438
Hotels and restaurants	16,304	23,916	35,180	41,518
Tourist trains and cruises	1,264	1,426	3,073	2,453
Unallocated corporate	124	94	149	537
Total capital expenditure	17,692	25,436	38,402	44,508

Financial information regarding geographic areas based on the location of properties is as follows:

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Revenue:	$’000	$’000	$’000	$’000
Europe	97,105	94,336	117,670	115,673
North America	40,500	33,937	74,999	66,868
Rest of World	34,245	32,216	83,251	78,495
Total revenue	171,850	160,489	275,920	261,036

21.    Related party transactions

OEH manages under long-term contract the tourist train owned by Eastern and Oriental Express Ltd., in which OEH has a significant influence.  The amount due to OEH from Eastern and Oriental Express Ltd. at June 30, 2013 was $5,281,000 (December 31, 2012 - $5,005,000). In the three and six months endedJune 30, 2013, OEH earned management fees of $48,000 (June 30, 2012 - $55,000) and $233,000 (June 30, 2012 - $182,000), respectively, which are recorded in revenue.

OEH manages under long-term contracts the Hotel Monasterio, Palacio Nazarenas, Machu Picchu Sanctuary Lodge and Hotel Rio Sagrado owned by its 50/50 joint venture with local Peruvian interests, as well as the 50/50 owned Peru Rail and Ferrocarril Transandino rail operations, and provides loans, guarantees and other credit accommodation to these joint ventures.  See Notes 4 and 5.  In the three and six months endedJune 30, 2013, OEH earned management and guarantee fees of $2,224,000 (June 30, 2012 - $2,260,000) and $3,688,000 (June 30, 2012 - $3,734,000), respectively, which are recorded in revenue.  The amount due to OEH from its joint venture Peruvian operations at June 30, 2013 was $7,506,000 (December 31, 2012 - $6,398,000).

OEH manages under a long-term contract the Hotel Ritz in Madrid, Spain, in which OEH holds a 50% interest and which is accounted for under the equity method.  For the three and six months endedJune 30, 2013, OEH earned $299,000 (June 30, 2012 - $304,000) and $498,000 (June 30, 2012 - $518,000), respectively, in management fees, which are recorded in revenue, and $154,000 (June 30, 2012 - $184,000) and $285,000 (June 30, 2012 - $340,000), respectively, in interest income.  The amount due to OEH from the Hotel Ritz at June 30, 2013 was $28,351,000 (December 31, 2012 - $24,128,000).  See Note 5 regarding a partial guarantee of the hotel’s bank indebtedness.

37

22.    Subsequent events

On July 1, 2013, OEH signed banking agreements to refinance $17,125,000 of long-term debt maturing in 2013 (originally included in the current portion of long-term debt at June 30, 2013) and secured by the '21' Club restaurant and the Inn at Perry Cabin with a $24,000,000 loan that has a three year term with two one year extensions. As a result, at June 30, 2013, the original debt was reclassified as $2,000,000 within the current portion of long-term debt, and the remaining principal of $15,125,000 was classified within the non-current portion of long-term debt in the condensed consolidated balance sheet.

38

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-looking statements

Forward-looking statements concerning the operations, performance, financial condition, plans and prospects of the Company and its subsidiaries are based on the current expectations, assessments and assumptions of management, are not historical facts, and are subject to various risks and uncertainties.

Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts, and often use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “goal”, “believe” or other words of similar meaning.

Actual results could differ materially from those anticipated in the forward-looking statements due to a number of factors, including those described in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 and in Item 1—Business, Item 1A—Risk Factors, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations, Item 7A—Quantitative and Qualitative Disclosures about Market Risk, and Item 12—Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.

Investors are cautioned not to place undue reliance on these forward-looking statements which are not guarantees of future performance.  The Company undertakes no obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

Introduction

OEH has three business segments: (1) hotels and restaurants, (2) tourist trains and cruises and (3) real estate.

Hotels at June 30, 2013 consisted of 35 deluxe hotels, 30 of which were wholly or majority owned or, in the case of Charleston Place Hotel, owned by a consolidated variable interest entity. Of the 30 owned hotels, El Encanto, Santa Barbara, California opened in March 2013 after renovation. The 30 owned hotels are referred to in this discussion as “owned hotels” of which 11 were located in Europe, six in North America and 13 in the rest of the world.

The other five hotels, in which OEH has unconsolidated equity interests and which it operates under management contracts, are referred to in this discussion as “hotel management interests”. 

OEH currently owns and operates the stand-alone restaurant ‘21’ Club in New York, New York.

During 2012, OEH sold Keswick Hall in Charlottesville, Virginia, Bora Bora Lagoon Resort in French Polynesia, The Observatory Hotel in Sydney, Australia and The Westcliff in Johannesburg, South Africa. While The Westcliff was sold in December 2012, OEH continued to manage the property until June 30, 2013. None of these properties was considered a long-term fit with OEH’s portfolio and strategy. Accordingly, the results of Keswick Hall, Bora Bora Lagoon Resort, The Observatory Hotel and The Westcliff have been reflected as discontinued operations for all periods presented.

OEH’s tourist trains and cruises segment includes six tourist trains — four of which are owned and operated by OEH, one in which OEH has an equity interest and an exclusive management contract, and one in which OEH has an equity investment — and two river cruise ships and five canal boats.

OEH’s small real estate projects in 2013 are in St. Martin, French West Indies, and Koh Samui, Thailand. Another project, a residential development adjoining Keswick Hall, was sold with the hotel in January 2012. OEH’s real estate project at Porto Cupecoy on the Dutch side of St. Martin was classified as held for sale at December 31, 2012 and has been reflected as a discontinued operation for all periods presented. Porto Cupecoy was sold in January 2013.

39

Results of Operations

OEH’s operating results for the three and three and six months endedJune 30, 2013 compared to the three and three and six months endedJune 30, 2012, expressed as a percentage of revenue, are as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	%		%		%		%
Revenue:
Owned hotels - Europe	43.8		44.1		33.1		33.2
- North America	21.0		18.7		24.2		22.6
- Rest of World	18.5		18.6		26.9		27.7
Hotel management/part ownership interests	1.0		1.0		1.0		1.0
Restaurants	2.6		2.5		3.0		3.0
Hotels and restaurants	86.8		84.9		88.2		87.6
Tourist trains and cruises	13.2		15.1		11.8		12.4
	100.0		100.0		100.0		100.0
Expenses:
Cost of services	44.8		44.0		45.5		45.3
Selling, general and administrative	33.6		33.7		40.7		39.9
Depreciation and amortization	7.1		6.6		8.6		8.1
Impairment of property, plant and equipment	—		—		12.9		—
Net finance costs	4.1		4.9		4.4		5.4
Earnings/(losses) before income taxes	10.3		10.8		(12.2	)	1.3
Benefit/(provision) for income taxes	(2.2	)	(4.0	)	0.8		(2.6	)
Earnings from unconsolidated companies	1.9		1.5		1.0		0.9
Net earnings/(losses) from continuing operations	10.0		8.2		(10.5	)	(0.4	)
Net earnings/(losses) from discontinued operations	0.1		(0.9	)	(0.3	)	(0.4	)
Net earnings/(losses) as a percentage of revenue	10.1		7.3		(10.8	)	(0.8	)

40

Operating information for OEH’s owned hotels for the three and six months endedJune 30, 2013 and 2012 is as follows:

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Average Daily Rate (in U.S. dollars)
Europe	837	772	738	691
North America	393	373	428	404
Rest of the world	383	351	396	380
Worldwide	544	507	493	467
Rooms Available
Europe	84,285	85,827	132,324	135,206
North America	70,458	63,791	134,108	127,582
Rest of the world	95,732	96,915	190,412	193,830
Worldwide	250,475	246,533	456,844	456,618
Rooms Sold
Europe	52,008	52,139	68,518	67,793
North America	51,260	45,897	92,221	86,530
Rest of the world	47,089	48,852	112,273	114,195
Worldwide	150,357	146,888	273,012	268,518
Occupancy (percentage)
Europe	62	61	52	50
North America	73	72	69	68
Rest of the world	49	50	59	59
Worldwide	60	60	60	59
RevPAR (in U.S. dollars)
Europe	517	469	382	347
North America	286	268	294	274
Rest of the world	188	177	234	224
Worldwide	326	302	294	274

41

			Change %
Three months ended June 30,	2013	2012	Dollars		Local currency
Same Store RevPAR (in U.S. dollars)
Europe	517	469	10	%	10	%
North America	287	268	7	%	7	%
Rest of the world	188	177	6	%	9	%
Worldwide	328	302	9	%	9	%

			Change %
Six months ended June 30,	2013	2012	Dollars		Local currency
Same Store RevPAR (in U.S. dollars)
Europe	382	347	10	%	10	%
North America	296	274	8	%	8	%
Rest of the world	234	224	4	%	7	%
Worldwide	295	274	8	%	8	%

The same store RevPAR data for the three and six months endedJune 30, 2013 and June 30, 2012 exclude the operations of El Encanto.

Three months ended June 30, 2013 compared to three months ended June 30, 2012 and

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Overview

Three months ended June 30, 2013 compared to three months ended June 30, 2012

The net earnings attributable to Orient-Express Hotels Ltd. for the three months ended June 30, 2013 were $17.5 million ($0.17 per common share) on revenue of $171.9 million, compared with net earnings of $11.8 million ($0.11 per common share) on revenue of $160.5 million in the prior period. OEH’s increased revenue was principally driven by occupancy and ADR growth in Europe and North America and the impact of El Encanto, which opened in March 2013. The net earnings in the three months ended June 30, 2013 included earnings from discontinued operations of $0.1 million. Losses from discontinued operations were $1.5 million in the three months ended June 30, 2012.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

The net loss attributable to Orient-Express Hotels Ltd. for the six months endedJune 30, 2013 was $29.8 million ($0.29 per common share) on revenue of $275.9 million, compared with net loss of $2.3 million ($0.02 per common share) on revenue of $261.0 million in the prior period. OEH’s increased revenue was principally driven by occupancy and ADR growth in Europe and North America and the impact of El Encanto, which opened in March 2013. The net loss in the six months endedJune 30, 2013 included a non-cash impairment charge to property, plant and equipment of $35.7 million following a strategic review of assets and losses from discontinued operations of $0.8 million. Losses from discontinued operations were $1.1 million in the six months endedJune 30, 2012, and there were no impairments.

42

Revenue

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
	$ millions	$ millions	$ millions	$ millions
Owned hotels - Europe	75.2	70.9	91.2	86.6
- North America	36.1	30.0	66.8	59.1
- Rest of World	31.8	29.8	74.2	72.4
Hotel management/part ownership interests	1.6	1.6	2.8	2.7
Restaurants	4.4	3.9	8.2	7.8
Hotels and restaurants	149.1	136.2	243.2	228.6
Tourist trains and cruises	22.8	24.3	32.7	32.4
Real estate	—	—	—	—
	171.9	160.5	275.9	261.0

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Total revenue increased by $11.4 million, or 7%, from $160.5 million in the three months ended June 30, 2012 to $171.9 million in the three months ended June 30, 2013. Hotels and restaurants revenue increased by $12.9 million, or 9%, from $136.2 million in the three months ended June 30, 2012 to $149.1 million in the three months ended June 30, 2013. The increase in revenue was mainly due to occupancy and ADR growth in Europe and North America and the impact of El Encanto, which opened in March 2013. Revenue from tourist trains and cruises decreased by $1.5 million, or 6%, from $24.3 million in the three months ended June 30, 2012 to $22.8 million in the three months ended June 30, 2013, as the U.K. based trains continued to feel the effects of a sluggish U.K. economy.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Total revenue increased by $14.9 million, or 6%, from $261.0 million in the six months endedJune 30, 2012 to $275.9 million in the six months endedJune 30, 2013. Hotels and restaurants revenue increased by $14.6 million, or 6%, from $228.6 million in the six months endedJune 30, 2012 to $243.2 million in the six months endedJune 30, 2013. The increase in revenue was mainly due to occupancy and ADR growth in Europe and North America and the impact of El Encanto, which opened in March 2013. Revenue from tourist trains and cruises increased by $0.3 million, or 1%, from $32.4 million in the six months endedJune 30, 2012 to $32.7 million in the six months endedJune 30, 2013.

Owned Hotels:  The change in revenue at owned hotels is analyzed on a regional basis as follows:

Europe

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Average daily rate (in U.S. dollars)	837	772	738	691
Rooms available	84,285	85,827	132,324	135,206
Rooms sold	52,008	52,139	68,518	67,793
Occupancy (percentage)	62	61	52	50
Same store RevPAR (in U.S. dollars)	517	469	382	347

43

Europe - Three months ended June 30, 2013 compared to three months ended June 30, 2012

Revenue increased by $4.3 million, or 6%, from $70.9 million for the three months ended June 30, 2012 to $75.2 million for the three months ended June 30, 2013, largely driven by ADR increases across the Italian portfolio. ADR increased from $772 in the three months ended June 30, 2012 to $837 in the three months ended June 30, 2013. Occupancy increased from 61% in the three months ended June 30, 2012 to 62% in the three months ended June 30, 2013. RevPAR in U.S. dollars and in local currency increased by 10% for the three months ended June 30, 2013.

Europe - Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Revenue increased by $4.6 million, or 5%, from $86.6 million for the six months endedJune 30, 2012 to $91.2 million for the six months endedJune 30, 2013, largely driven by ADR increases across the Italian portfolio. ADR increased from $691 in the six months endedJune 30, 2012 to $738 in the six months endedJune 30, 2013. Occupancy increased from 50% in the six months endedJune 30, 2012 to 52% in the six months endedJune 30, 2013. RevPAR in U.S. dollars and in local currency increased by 10% for the six months endedJune 30, 2013.

North America

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Average daily rate (in U.S. dollars)	393	373	428	404
Rooms available	70,458	63,791	134,108	127,582
Rooms sold	51,260	45,897	92,221	86,530
Occupancy (percentage)	73	72	69	68
Same store RevPAR (in U.S. dollars)	287	268	296	274

North America - Three months ended June 30, 2013 compared to three months ended June 30, 2012

Revenue increased by $6.1 million, or 20%, from $30.0 million in the three months ended June 30, 2012 to $36.1 million in the three months ended June 30, 2013. The renovated El Encanto hotel, which opened in March 2013, contributed $4.1 million of revenue, with growth also coming from Charleston Place, where ADR and occupancy both increased from prior year. On a same store basis, RevPAR increased from $268 in the three months ended June 30, 2012 to $287 for the three months ended June 30, 2013. This translated to an increase of 7% in both local currency and U.S. dollars. North American ADR increased by 5% from $373 in the three months ended June 30, 2012 to $393 in the three months ended June 30, 2013. Occupancy increased from 72% for the three months ended June 30, 2012 to 73% for the three months ended June 30, 2013.

North America - Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Revenue increased by $7.7 million, or 13%, from $59.1 million in the six months endedJune 30, 2012 to $66.8 million in the six months endedJune 30, 2013. The refurbished El Encanto hotel, which opened in March 2013, contributed $4.4 million of revenue, with growth also coming from Charleston Place, where ADR and occupancy both increased from prior year. On a same store basis, RevPAR increased from $274 in the six months endedJune 30, 2012 to $296 for the six months endedJune 30, 2013. This translated to an increase of 8% in both local currency and U.S. dollars. North American ADR increased by 6% from $404 in the six months endedJune 30, 2012 to $428 in the six months endedJune 30, 2013. Occupancy increased from 68% for the six months endedJune 30, 2012 to 69% for the six months endedJune 30, 2013.

44

Rest of the World

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Average daily rate (in U.S. dollars)	383	351	396	380
Rooms available	95,732	96,915	190,412	193,830
Rooms sold	47,089	48,852	112,273	114,195
Occupancy (percentage)	49	50	59	59
Same store RevPAR (in U.S. dollars)	188	177	234	224

Total Rest of the World - Three months ended June 30, 2013 compared to three months ended June 30, 2012

Revenue increased by $2.0 million, from $29.8 million in the three months ended June 30, 2012 to $31.8 million in the three months ended June 30, 2013. Exchange rate movements caused a decrease in revenue of $0.6 million. The ADR for the Rest of the World region increased from $351 in the three months ended June 30, 2012 to $383 for the three months ended June 30, 2013. Occupancy decreased from 50% for the three months ended June 30, 2012 to 49% for the three months ended June 30, 2013. RevPAR increased by 6% in U.S. dollars from $177 in the three months ended June 30, 2012 to $188 for the three months ended June 30, 2013, and increased by 9% when measured in local currency.

Total Rest of the World - Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Revenue increased by $1.8 million, from $72.4 million in the six months endedJune 30, 2012 to $74.2 million in the six months endedJune 30, 2013. Exchange rate movements caused a decrease in revenue of $1.5 million. The ADR for the Rest of the World region increased from $380 in the six months endedJune 30, 2012 to $396 for the six months endedJune 30, 2013. Occupancy was flat at 59% for the three months ended June 30, 2013 and the three months ended June 30, 2012. RevPAR increased by 4% in U.S. dollars from $224 in the six months endedJune 30, 2012 to $234 for the six months endedJune 30, 2013, and increased by 7% when measured in local currency.

The change in revenue at owned hotels in the Rest of the World segment is further analyzed as follows:    

South America - Three months ended June 30, 2013 compared to three months ended June 30, 2012

Revenue for the South American region collectively increased by $0.7 million, or 3%, from $20.0 million in the three months ended June 30, 2012 to $20.7 million in the three months ended June 30, 2013. Of this increase, $0.5 million of this increase related to Copacabana Palace, which saw 10% growth in ADR as the hotel starts to realize the benefits of the renovation program completed in December 2012. RevPAR in U.S. dollars for the South American region increased by 6%, from $232 in the three months ended June 30, 2012 to $246 in the three months ended June 30, 2013.

South America - Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Revenue for the South American region collectively decreased by $0.9 million, or 2%, from $47.4 million in the six months endedJune 30, 2012 to $46.5 million in the six months endedJune 30, 2013. This decrease related to Copacabana Palace, due to large city-wide events which took place in Rio de Janeiro in early 2012 that did not recur in 2013. A 6% increase in ADR for the South American region, from $435 in the six months endedJune 30, 2012 to $459 in the six months endedJune 30, 2013, was offset by a three percentage point decrease in occupancy, resulting in a RevPAR increase of 1% when measured in U.S. dollars, from $291 in the six months endedJune 30, 2012 to $293 in the six months endedJune 30, 2013.

Asia - Three months ended June 30, 2013 compared to three months ended June 30, 2012

Revenue at OEH’s six Asian hotels collectively increased by $0.2 million, or 3%, from $6.3 million in the three months ended June 30, 2012 to $6.5 million in the three months ended June 30, 2013. ADR increased by 6% from $283 in the three months ended June 30, 2012 to $299 for the three months ended June 30, 2013, offset by a decrease in occupancy from 51% in the three months ended June 30, 2012 to 49% for the three months ended June 30, 2013. This translated into an increase in RevPAR in U.S. dollars from $143 in the three months ended June 30, 2012 to $147 for the three months ended June 30, 2013.

45

Asia - Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Revenue at OEH’s six Asian hotels collectively increased by $2.0 million, or 14%, from $14.8 million in the six months endedJune 30, 2012 to $16.8 million in the six months endedJune 30, 2013, led by The Governor’s Residence as Myanmar’s popularity as a tourist destination continues to grow. Occupancy in Asia increased by one percentage point, from 59% in the six months endedJune 30, 2012 to 60% for the six months endedJune 30, 2013. ADR increased by 12% from $288 in the six months endedJune 30, 2012 to $322 for the six months endedJune 30, 2013. This translated into an increase in RevPAR in U.S. dollars from $169 in the six months endedJune 30, 2012 to $194 for the six months endedJune 30, 2013.

Africa - Three months ended June 30, 2013 compared to three months ended June 30, 2012

Africa revenue increased by $1.0 million, or 28%, from $3.6 million in the three months ended June 30, 2012 to $4.6 million in the three months ended June 30, 2013. Revenue at the Company’s three safari camps in Botswana increased by $1.3 million due largely to higher RevPAR and revenue from third-party air services provided to guests previously reported net of related costs. The growth at the safari camps was partially offset by a $0.3 million decrease in revenue at Mount Nelson Hotel as a result of the year-over-year weakening of the South African rand versus the U.S. dollar. For the three months ended June 30, 2013, there was a 9% increase in ADR when compared to the same period in 2012, which combined with a one percentage point increase in occupancy to give a 13% increase in RevPAR when measured in in U.S. dollars, or a 28% increase when measured in local currency.

Africa - Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Africa revenue increased by $0.8 million, or 8%, from $10.2 million in the six months endedJune 30, 2012 to $11.0 million in the six months endedJune 30, 2013. Revenue at the Company’s three safari camps in Botswana increased by $1.3 million due largely to higher RevPAR and revenue from third-party air services provided to guests previously reported net of related costs. The growth at the safari camps was partially offset by a $0.6 million decrease in revenue at Mount Nelson Hotel as a result of the year-over-year weakening of the South African rand versus the U.S. dollar. For the six months endedJune 30, 2013, there was a 6% decrease in ADR when compared to the same period in 2012, which was offset by a four percentage point increase in occupancy to give a 4% increase in RevPAR when measured in in U.S. dollars, or a 19% increase when measured in local currency.

Hotel Management and Part-Ownership Interests: 

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Revenue remained flat at $1.6 million in the three months ended June 30, 2013 and the three months ended June 30, 2012.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Revenue increased by $0.1 million, from $2.7 million in the six months endedJune 30, 2012 to $2.8 million in the six months endedJune 30, 2013.

Restaurants: 

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Revenue increased by $0.5 million, or 13%, from $3.9 million in the three months ended June 30, 2012 to $4.4 million in the three months ended June 30, 2013 as a result of increased banqueting revenue following the August 2012 renovation of the first floor banqueting space.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Revenue increased by $0.4 million, or 5%, from $7.8 million in the six months endedJune 30, 2012 to $8.2 million in the six months endedJune 30, 2013 as a result of increased banqueting revenue following the August 2012 renovation of the first floor banqueting space.  

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Trains and Cruises: 

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Revenue decreased by $1.5 million, or 6%, from $24.3 million in the three months ended June 30, 2012 to $22.8 million in the three months ended June 30, 2013. This decline was primarily the result of a $0.9 million decrease in revenue from Venice Simplon-Orient-Express and a combined $1.0 million decrease in revenue from the U.K. day trains, which continued to feel the effects of a sluggish U.K. economy. Exchange rate movements caused a decrease in revenue of $0.5 million.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Revenue increased by $0.3 million, or 1%, from $32.4 million in the six months endedJune 30, 2012 to $32.7 million in the six months endedJune 30, 2013. Growth of $2.9 million from Road To Mandalay, due to the increasing popularity of Myanmar as a tourist destination, was offset by decreases from the Venice Simplon-Orient-Express and from day train operations based in the U.K. Exchange rate movements caused a decrease in revenue of $0.5 million.

Cost of services

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Cost of services increased by $6.2 million, or 9%, from $70.7 million in the three months ended June 30, 2012 to $76.9 million in the three months ended June 30, 2013. Cost of services were 45% of revenue in the three months ended June 30, 2013 compared to 44% of revenue in the three months ended June 30, 2012. Exchange rate movements caused a decrease of $0.4 million compared to the same period last year.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Cost of services increased by $7.4 million, or 6%, from $118.2 million in the six months endedJune 30, 2012 to $125.6 million in the six months endedJune 30, 2013. Cost of services were 46% of revenue in the six months endedJune 30, 2013 compared to 45% of revenue in the six months endedJune 30, 2012. Exchange rate movements caused a decrease of $0.9 million compared to the same period last year.

Selling, general and administrative expenses

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Selling, general and administrative expenses increased by $3.8 million, or 7%, from $54.0 million in the three months ended June 30, 2012 to $57.8 million in the three months ended June 30, 2013. Selling, general and administrative expenses were 34% of revenue in both the three months ended June 30, 2013 and the three months ended June 30, 2012. Exchange rate movements caused a decrease of $0.3 million compared to the same period last year.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Selling, general and administrative expenses increased by $8.2 million, or 8%, from $104.2 million in the six months endedJune 30, 2012 to $112.4 million in the six months endedJune 30, 2013. Selling, general and administrative expenses were 41% of revenue in the six months endedJune 30, 2013 and 40% in the six months endedJune 30, 2012. Exchange rate movements caused a decrease of $0.8 million compared to the same period last year.

Depreciation and amortization

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Depreciation and amortization increased by $1.8 million from $10.5 million in the three months ended June 30, 2012 to $12.3 million in the three months ended June 30, 2013. The increase was due to significant capital expenditures during 2012 and the opening of El Encanto in March 2013.

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Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Depreciation and amortization increased by $2.8 million from $21.0 million in the six months endedJune 30, 2012 to $23.8 million in the six months endedJune 30, 2013. The increase was due to significant capital expenditures during 2012 and the opening of El Encanto in March 2013.

Impairment of property, plant and equipment

Three months ended June 30, 2013 compared to three months ended June 30, 2012

There were no impairments of property, plant and equipment recorded in the three months ended June 30, 2013 or the three months ended June 30, 2012.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Following a strategic review of OEH’s assets, an impairment was recorded for property, plant and equipment of $35.7 million in the six months endedJune 30, 2013 compared to $Nil in the six months endedJune 30, 2012. The non-cash impairment in 2013 related to property, plant and equipment at La Samanna, where the carrying value was written down to the hotel’s fair value.

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Adjusted earnings by segment

Segment performance is evaluated based upon segment earnings before gains/(losses) on disposal, impairments, central overheads, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization (“adjusted earnings by segment”). Segment performance for the three and six months endedJune 30, 2013 and 2012 is analyzed as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$ millions		$ millions		$ millions		$ millions
Adjusted earnings by segment:
Owned hotels - Europe	28.1		26.8		20.2		19.2
- North America	7.6		6.9		13.7		14.1
- Rest of World	5.2		5.2		18.2		18.9
Hotel management/part ownership interests	1.8		1.6		(0.2	)	0.9
Restaurants	0.6		0.5		0.9		0.8
Hotels and restaurants	43.3		41.0		52.7		53.9
Tourist trains and cruises	5.7		8.0		6.7		7.7
Real estate	—		—		—		—
Reconciliation to net earnings/(losses):
Total adjusted earnings by segment	49.0		49.0		59.5		61.6
Impairment of property, plant and equipment	—		—		(35.7	)	—
Central overheads	(9.4	)	(9.9	)	(19.9	)	(19.6	)
Depreciation and amortization	(12.3	)	(10.5	)	(23.8	)	(21.0	)
Interest income	0.3		0.3		0.5		0.6
Interest expense	(8.3	)	(6.7	)	(15.6	)	(14.3	)
Foreign currency, net	0.9		(1.5	)	3.0		(0.6	)
Benefit/(provision) for income taxes	(3.7	)	(6.5	)	2.1		(6.7	)
Share of benefit for/(provision from) income taxes of unconsolidated companies	0.8		(1.0	)	1.0		(1.0	)
Earnings/(losses) from continuing operations	17.2		13.2		(28.9	)	(1.1	)
Earnings/(losses) from discontinued operations	0.1		(1.5	)	(0.8	)	(1.1	)
Net earnings/(losses)	17.3		11.7		(29.7	)	(2.1	)

Three months ended June 30, 2013 compared to three months ended June 30, 2012

The European hotels collectively reported adjusted earnings by segment of $28.1 million for the three months ended June 30, 2013, an increase of $1.3 million, or 5%, from adjusted earnings by segment of $26.8 million for the same period in 2012. This growth was driven by ADR increases across the Italian portfolio, partially offset by a decrease at Grand Hotel Europe due to an increase in payroll costs. As a percentage of European hotels revenue, the adjusted earnings by segment was 37% for the three months ended June 30, 2013 and 38% for the three months ended June 30, 2012.

Adjusted earnings by segment in the North American hotels region increased by $0.7 million, or 10%, from $6.9 million in the three months ended June 30, 2012 to $7.6 million in the three months ended June 30, 2013. This increase was due to operating performance improvements at Charleston Place, partially offset by a loss at El Encanto as the hotel was in its first full period of operation. As a percentage of North American hotels revenue, the adjusted earnings by segment margin decreased from 23% in the three months ended June 30, 2012 to 21% in the three months ended June 30, 2013.

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Adjusted earnings by segment in the Rest of the World hotels region remained flat at $5.2 million in the three months ended June 30, 2013 and the three months ended June 30, 2012. As a percentage of Rest of the World hotels revenue, the adjusted earnings by segment margin decreased from 17% for the three months ended June 30, 2012 to 16% for the three months ended June 30, 2013.

Adjusted earnings by segment in hotel management and part-ownership interests increased by $0.2 million, from $1.6 million in the three months ended June 30, 2012 to $1.8 million in the three months ended June 30, 2013, due primarily to cost savings from the closure of the Singapore development office, partially offset by a decrease from the Peru hotels as a result of increased room supply in Cuzco and a U.S. government warning that was issued and subsequently canceled in the first quarter of 2013.

Adjusted earnings by segment in restaurants increased by $0.1 million, from $0.5 million in the three months ended June 30, 2012 to $0.6 million in the three months ended June 30, 2013.

Adjusted earnings by segment in tourist trains and cruises decreased by $2.3 million, from $8.0 million in the three months ended June 30, 2012 to $5.7 million in the three months ended June 30, 2013. This decline was mainly due to the Venice Simplon-Orient-Express, where revenue is primarily in British pounds sterling but operating costs are mainly denominated in euros so that the weakening of sterling against the euro has had an adverse effect on earnings. There were also decreases from U.K. day trains, which continued to feel the effects of a sluggish UK economy, as well as $0.3 million of pre-opening expenses relating to Orcaella, the new river cruise operation in Myanmar, and decreases from Peru Rail and Eastern & Oriental Express.

Central overheads decreased by $0.5 million, or 5%, from $9.9 million in the three months ended June 30, 2012 to $9.4 million in the three months ended June 30, 2013. This decrease was largely due to decreased legal and professional fees and other central cost savings, partially offset by a $0.7 million increase in share-based compensation expense incurred in the three months ended June 30, 2013 compared to the three months ended June 30, 2012. As a percentage of revenue, central overheads were 5% in the three months ended June 30, 2013 and 6% in the three months ended June 30, 2012.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

The European hotels collectively reported adjusted earnings by segment of $20.2 million for the six months endedJune 30, 2013, an increase of $1.0 million, or 5%, from $19.2 million for the same period in 2012. As a percentage of European hotels revenue, the adjusted earnings by segment was 22% for the six months endedJune 30, 2013 and the six months endedJune 30, 2012.

Adjusted earnings by segment in the North American hotels region decreased by $0.4 million, or 3%, from $14.1 million in the six months endedJune 30, 2012 to $13.7 million in the six months endedJune 30, 2013. This decrease was due to pre-opening expenses at El Encanto of $2.2 million, which were partially offset by operating performance improvements in the region, in particular at Charleston Place. As a percentage of North American hotels revenue, the adjusted earnings by segment margin decreased from 24% in the six months endedJune 30, 2012 to 20% in the six months endedJune 30, 2013.

Adjusted earnings by segment in the Rest of the World hotels region decreased by $0.7 million, or 4%, from $18.9 million in the six months endedJune 30, 2012 to $18.2 million in the six months endedJune 30, 2013. This decrease in earnings mainly related to Copacabana Palace, as there were large city-wide events which took place in Rio de Janeiro in early 2012 that did not recur in 2013. As a percentage of Rest of the World hotels revenue, the adjusted earnings by segment margin decreased from 26% for the six months endedJune 30, 2012 to 25% for the six months endedJune 30, 2013.

Adjusted earnings by segment in hotel management and part-ownership interests decreased by $1.1 million, from earnings of $0.9 million in the six months endedJune 30, 2012 to a loss of $0.2 million in the six months endedJune 30, 2013, due primarily to increased losses from Hotel Ritz in Madrid.

Adjusted earnings by segment in restaurants increased by $0.1 million from $0.8 million in the six months endedJune 30, 2012 to $0.9 million in the six months endedJune 30, 2013.

Adjusted earnings by segment in tourist trains and cruises decreased by $1.0 million from $7.7 million in the six months endedJune 30, 2012 to $6.7 million in the six months endedJune 30, 2013. Growth of $2.2 million from Road To Mandalay, due to the increasing popularity of Myanmar as a tourist destination, was offset by decreases from the the Venice Simplon-Orient-Express and the day train operations based in the U.K.

Central overheads increased by $0.3 million, or 2%, from $19.6 million in the six months endedJune 30, 2012 to $19.9 million in the six months endedJune 30, 2013. This increase was largely due to management restructuring charges incurred in the six

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months endedJune 30, 2013. As a percentage of revenue, central overheads were 7% in the six months endedJune 30, 2013 and 8% in the six months endedJune 30, 2012.

Earnings/(losses) from operations

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Earnings from operations decreased by $0.4 million, from $25.3 million in the three months ended June 30, 2012 to $24.9 million in the three months ended June 30, 2013, due to the factors described above.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Losses from operations increased by $39.2 million, from earnings of $17.6 million in the six months endedJune 30, 2012 to losses of $21.6 million in the six months endedJune 30, 2013, due to the impairment charge and other factors described above.

Net finance costs

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Net finance costs decreased by $0.8 million, or 10%, from $7.9 million for the three months ended June 30, 2012 to $7.1 million for the three months ended June 30, 2013. The three months ended June 30, 2012 included a foreign exchange loss of $1.5 million, compared to a foreign exchange gain of $0.9 million in the three months ended June 30, 2013. The effect of this gain was partially offset by the fact that in the three months ended June 30, 2012, interest capitalized was $1.0 million, while $Nil was capitalized in the three months ended June 30, 2013.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Net finance costs decreased by $2.1 million, or 15%, from $14.2 million for the six months endedJune 30, 2012 to $12.1 million for the six months endedJune 30, 2013. The six months endedJune 30, 2012 included a foreign exchange loss of $0.6 million, compared to a foreign exchange gain of $3.0 million in the six months endedJune 30, 2013. The effect of this gain was partially offset by the fact that in the six months endedJune 30, 2012, interest capitalized was $1.9 million, while $1.1 million was capitalized in the six months endedJune 30, 2013.

(Provision for)/benefit from income taxes

Three months ended June 30, 2013 compared to three months ended June 30, 2012

The provision for income taxes decreased by $2.8 million, from a provision of $6.5 million in the three months ended June 30, 2012 to a provision of $3.7 million in the three months ended June 30, 2013, due primarily to favorable changes in profits mix, as well as favorable deferred tax impacts of currency fluctuations.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

The provision for income taxes decreased by $8.8 million from a provision of $6.7 million in the six months endedJune 30, 2012 to a benefit of $2.1 million in the six months endedJune 30, 2013, due primarily to favorable changes in profits mix, favorable deferred tax impacts of currency fluctuations and a release in uncertain tax provisions of $3.9 million following conclusions of inquiries by the tax authorities during the six months endedJune 30, 2013.

Earnings from unconsolidated companies

Three months ended June 30, 2013 compared to three months ended June 30, 2012

Earnings from unconsolidated companies net of tax increased by $1.0 million, from $2.3 million in the three months ended June 30, 2012 to $3.3 million in the three months ended June 30, 2013. The tax benefit associated with earnings from unconsolidated companies was $0.8 million in the three months ended June 30, 2013, compared to a provision of $1.0 million in the three months ended June 30, 2012.

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Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

Earnings from unconsolidated companies net of tax increased by $0.3 million from $2.3 million in the six months endedJune 30, 2012 to $2.6 million in the six months endedJune 30, 2013. The tax benefit associated with earnings from unconsolidated companies was $1.0 million in the six months endedJune 30, 2013, compared to a provision of $1.0 million in the six months endedJune 30, 2012.

Net earnings/(losses) from discontinued operations

Three months ended June 30, 2013 compared to three months ended June 30, 2012

The earnings from discontinued operations for the three months ended June 30, 2013 were $0.1 million, compared with losses from discontinued operations for the three months ended June 30, 2012 of $1.5 million.

Earnings from discontinued operations for the three months ended June 30, 2013 related to Porto Cupecoy. The Porto Cupecoy development was sold in January 2013, but OEH still owns three condominiums that were excluded from the disposal as they were under separate sales contracts at the time.

Losses from discontinued operations for the three months ended June 30, 2012 included a gain of $0.7 million on the disposal of Bora Bora Lagoon Resort, which was sold in June 2012. This was offset by operating losses at Porto Cupecoy, The Westcliff, The Observatory Hotel, Bora Bora Lagoon Resort and Keswick Hall.

Six months endedJune 30, 2013 compared to six months endedJune 30, 2012

The losses from discontinued operations for the six months endedJune 30, 2013 were $0.8 million, compared with losses for the six months endedJune 30, 2012 of $1.1 million.

Losses from discontinued operations for the six months endedJune 30, 2013 included a gain of $0.4 million on the disposal of Porto Cupecoy, which was sold in January 2013, and a tax gain of $0.4 million relating to The Westcliff, which was sold in December 2012. These gains were offset by operating losses from Porto Cupecoy of $1.6 million for the six months endedJune 30, 2013.

Losses from discontinued operations for the six months endedJune 30, 2012 included a gain of $4.6 million on the disposals of Keswick Hall and Bora Bora Lagoon Resort, which were sold in January 2012 and June 2012, respectively. This was offset by operating losses at Porto Cupecoy, The Westcliff, The Observatory Hotel, Bora Bora Lagoon Resort and Keswick Hall.

Liquidity and Capital Resources

Overview

OEH’s primary short-term cash needs include payment of compensation, general business expenses and capital commitments and contractual payment obligations, which includes principal and interest payment on its debt facilities. Long-term liquidity needs may include existing and ongoing property refurbishments, potential investment in strategic acquisitions, and the repayment of current and long-term debt. At June 30, 2013, total debt and obligations under capital leases, including debt of consolidated variable interest entities, amounted to $628.5 million (December 31, 2012 - $619.5 million), including a current portion of $95.2 million (December 31, 2012 - $91.9 million) repayable within 12 months. Additionally, OEH had capital commitments at June 30, 2013 amounting to $4.4 million (December 31, 2012 - $9.7 million).

OEH had cash and cash equivalents of $113.6 million at June 30, 2013, $20.2 million more than the $93.4 million at December 31, 2012. In addition, OEH had restricted cash balances of $18.4 million (December 31, 2012 - $21.1 million). At June 30, 2013, there were undrawn amounts available to OEH under committed short-term lines of credit of $4.3 million (December 31, 2012 - $4.5 million), bringing total cash availability at June 30, 2013 to $117.9 million (December 31, 2012 - $97.9 million), excluding the restricted cash of $18.4 million (December 31, 2012 - $21.1 million). When assessing cash and cash equivalents within OEH, management considers the availability of those cash resources held within local business units to meet the strategic needs of OEH.

OEH believes its cash position together with projected available cash flows from operations, the availability of cash through revolving lines of credit and debt facilities, and other options available to OEH to respond to challenging economic conditions provide sufficient financial resources to fund current cash requirements as well as OEH’s capital objectives in 2013 and the foreseeable future.

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OEH expects to fund working capital requirements, debt service and capital expenditure commitments for the foreseeable future from cash resources, operating cash flow, available committed borrowing facilities, issuing new debt or equity securities and disposing of non-core assets.

Currently, OEH’s long-term liquidity is constrained due to the uncertainty in the economic environment. In addition to operating cash flows generated from the core business, OEH has other sources of liquidity such as sale of non-core assets, potential debt and equity issuances and obtaining new debt facilities to meet its cash needs. If OEH’s long-term cash flow is still insufficient, then OEH may need to extend the term of maturing debt facilities. OEH has had a strong track record of being able to refinance existing facilities and complete planned sales of non-core assets to generate additional liquidity. However, these options are dependent on third parties and are not solely within OEH’s control.

In recent years, OEH has raised substantial cash resources from the sale of non-core assets. While the sale of other non-core assets is under consideration, this may not continue to be a source of cash at similar levels in the future. Therefore, the performance of OEH’s underlying business and OEH’s ability to raise new capital, including refinancing its existing debt facilities, are key sources of liquidity to fund cash flow requirements.

Recent Events Affecting OEH’s Liquidity and Capital Resources

In January 2013, OEH completed the sale of Porto Cupecoy, its real estate development on the Dutch side of St. Martin, for gross proceeds of $19.0 million. OEH is also currently considering the sales prospects of other non-core properties.

In the six months endedJune 30, 2013, OEH had repayments of debt principal, including scheduled amortization, of $20.9 million.

Covenant Compliance

OEH has several loan facilities with commercial banks, most of which relate to specific hotel operations or other properties and are secured by a mortgage on particular properties. In most cases, the borrower is either the Company or a subsidiary owning the property and the loan is guaranteed by the Company.

The loan facilities generally place restrictions on the property-owning subsidiary’s ability to incur additional debt and limit liens, and to effect mergers and asset sales, and include financial covenants. Where the property-owning subsidiary is the borrower, the financial covenants relate to the financial performance of the property financed and generally include covenants relating to interest coverage, debt service, and loan-to-value and debt-to-EBITDA ratio tests. Where the Company is the borrower or the guarantor, most facilities contain financial covenants which are based on OEH’s performance on a consolidated basis and typically include a quarterly interest coverage test and a quarterly net worth test.

OEH recognizes the risk that a property-specific or group-consolidated loan covenant could be breached. Given the current economic environment and recent performance of OEH’s business, compliance with loan covenants is closely monitored as certain facilities are experiencing low headroom. In order to minimize this risk, OEH regularly prepares cash flow and other projections which are used to forecast covenant compliance under all loan facilities. If there is any likelihood of potential non-compliance with a covenant, OEH takes proactive steps to meet with the lending bank to seek an amendment to, or a waiver of, the financial covenant at risk.  Obtaining an amendment or waiver may result in an increase in the borrowing costs.

Many of OEH’s bank loan facilities include cross-default provisions under which a failure to pay principal or interest by the borrower or guarantor under other indebtedness in excess of a specified threshold amount would cause a default under the facilities.  Under OEH’s largest loan facility, the specified cross-default threshold amount is $25.0 million. None of the facilities out of covenant compliance described below have triggered cross-default provisions of other OEH facilities.

At June 30, 2013, one of OEH’s subsidiaries had not complied with certain financial covenants in a loan facility. The $1.1 million outstanding on this loan has been classified as a current portion of debt and OEH expects to rectify this non-compliance in the second half of 2013. In addition, two unconsolidated joint venture companies for which OEH provides guarantees were out of compliance with debt covenants as follows:

• The unconsolidated rail joint venture in Peru in which OEH has a 50% interest was out of compliance with a debt service coverage ratio covenant for a loan of $6.8 million, which could require the Company to fund its guarantee should the banks call the loan facility. Discussions with the banks are ongoing to bring the joint venture back into compliance and OEH anticipates the joint venture will rectify the breach through refinancing or renegotiating covenant terms in the second

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half of 2013. Although the banks currently remain entitled to do so, OEH does not expect the banks to call the loan or that the Company will be required to fund the guarantee as the cash flows from the joint venture remain strong.

• The Hotel Ritz, Madrid, 50% owned by OEH, was out of compliance at June 30, 2013 with the debt service coverage ratio in its first mortgage loan facility amounting to $78.6 million.  Although the loan is non-recourse to and not credit-supported by OEH or the joint venture partner in the hotel, each has provided separate partial guarantees of $9.7 million and a working capital guarantee of $0.6 million as of June 30, 2013, which may be required to be funded should the bank call the loan. Although covenant waivers have been obtained in the past, there currently is no waiver in place for the breached covenant. However, discussions continue to progress with the lender as to how to bring the hotel into long-term compliance. OEH does not expect the bank to call the loan and, therefore, does not believe the Company will be required to fund the guarantees.

Based on its current financial forecasts, OEH believes it will continue to comply with substantially all financial covenants in its loan facilities, except for the instances of non-compliance noted above which are not expected to have a material impact on OEH’s financial flexibility. While there is forecast low covenant compliance headroom under certain other small facilities, OEH believes an event of default under those other facilities can be avoided through OEH’s mitigating actions. However, if OEH does not comply with the covenants and obligations in its loan agreements, its lenders may choose to declare a default and exercise their rights, including acceleration of the debt obligations, and as a consequence OEH may determine it necessary to pursue alternative means to meet business obligations.

In addition to operating cash flows, OEH has various options available to obtain additional cash resources should economic conditions deteriorate or loan covenants be breached and OEH was unable to obtain a waiver of or renegotiate a financial covenant breach. Among these options are refinancing loan facilities, reducing expenditures such as refurbishment and property maintenance projects, issuing new debt or equity securities, or selling remaining non-core assets. Although OEH does not anticipate this to be the case, if circumstances were to arise in which cash is needed immediately, OEH may sell properties below fair market value in order to timely generate additional cash to meet business needs.

In the unlikely event OEH’s future results of operations are significantly less than forecast and mitigating actions by OEH are unsuccessful, breaches of one or more financial covenants could occur that result in loan facility defaults and cross-defaults. In that circumstance, OEH could be required to repay a large amount of its bank debt at a time when its cash resources would be insufficient to fund the repayment.

Working Capital

Current assets less current liabilities, including the current portion of long-term debt, resulted in a working capital surplus of $11.4 million at June 30, 2013 (December 31, 2012 - $28.7 million). The main factors that contributed to the decrease in working capital were a decrease in assets of discontinued operations held for sale and the inclusion of a portion of restricted cash in other assets at June 30, 2013.

Cash Flow - Sources and Uses of Cash

At June 30, 2013 and December 31, 2012, OEH had cash and cash equivalents of $113.6 million and $93.4 million, respectively. In addition, OEH had restricted cash of $18.4 million and $21.1 million as of June 30, 2013 and December 31, 2012, respectively.

Operating Activities. Net cash provided by operating activities for the six months endedJune 30, 2013 was $30.7 million compared to $21.0 million for the six months endedJune 30, 2012.

The results of operations are the primary driver of operating cash flows. Losses from continuing operations of $28.9 million were recorded for the six months endedJune 30, 2013, compared to $1.1 million for the six months endedJune 30, 2012. The main reason for this was the benefit received from the release of $3.9 million for the resolution of an uncertain tax position and an impairment of $35.7 million recorded in the six months endedJune 30, 2013. Both of these non-cash items do not have an impact on the net cash provided by operating activities.

Investing Activities. Net cash used in investing activities was $24.0 million for the six months endedJune 30, 2013, compared to net cash used in investing activities of $24.9 million for the six months endedJune 30, 2012.

Capital expenditure of $38.4 million during the six months endedJune 30, 2013 included $18.3 million for the renovation of El Encanto, $3.6 million primarily for completion of the refurbishment at Copacabana Palace, $3.4 million at Charleston Place

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including the refurbishment of the Palmetto Café, $2.5 million primarily for façade works at Grand Hotel Europe and the balance for routine capital expenditures.

Capital expenditure of $44.5 million during the six months endedJune 30, 2012 included $18.6 million for the renovation of El Encanto, $3.2 million primarily for the refurbishment of at Hotel Splendido, $2.9 million primarily for completion of the refurbishment at Copacabana Palace, $2.3 million at the two Sicilian properties, $2.2 million at Hotel Cipriani largely for the renovation of six rooms, $2.0 million primarily for the refurbishment at Inn at Perry Cabin, $1.8 million on the Venice Simplon-Orient-Express and the balance for routine capital expenditures.

Financing Activities. Cash provided by financing activities for the six months endedJune 30, 2013 was $14.5 million, compared to cash used in financing activities of $13.9 million for the six months endedJune 30, 2012.

During the six months endedJune 30, 2013, $12.2 million was borrowed for El Encanto construction and $24.0 million for corporate purposes, and $4.0 million of the existing debt for Grand Hotel Europe was repaid. The remaining debt payments were scheduled amortization of existing debt.

During the six months endedJune 30, 2012, $10.6 million was borrowed for El Encanto construction, $3.0 million for the Copacabana refurbishment and $10.1 million secured on the Miraflores Park Hotel, and repayments of $10.0 million of the existing debt for Keswick Hall and $4.2 million of the Sicilian facility were made. The remaining debt payments were scheduled amortization of existing debt.

Cash Flows from Discontinued Operations. The results of Porto Cupecoy, The Westcliff, The Observatory Hotel, Bora Bora Lagoon Resort and Keswick Hall have been presented as discontinued operations for all periods presented.

The results of operations for the discontinued operations noted above and the movement in their assets and liabilities held for sale are included in net cash provided by operating activities.

During the six months endedJune 30, 2013, the disposal of non-core assets of Porto Cupecoy resulted in net cash proceeds of $19.0 million (gain on sale of $0.4 million) being realized within net cash provided by investing activities from discontinued operations.

During the six months endedJune 30, 2012, the disposal of non-core assets of Keswick Hall in Charlottesville, Virginia resulted in net cash proceeds of $21.1 million (gain on sale of $4.0 million) and the disposal of non-core assets of Bora Bora Lagoon Resort in French Polynesia resulted in net cash proceeds of $2.7 million (gain on sale of $0.7 million) being realized within net cash provided by investing activities from discontinued operations

Capital Commitments

OEH routinely makes capital expenditures to enhance its business. These capital expenditures relate to maintenance, improvements to existing properties and investment in new properties. These capital commitments are expected to be funded through current cash balances, cash flows from operations, existing debt facilities, issuance of new debt or equity securities, and disposal of non-core assets.

There were $4.4 million of capital commitments outstanding at June 30, 2013 (December 31, 2012 - $9.7 million) relating to project developments and refurbishment for existing properties.

Indebtedness

At June 30, 2013, OEH had $628.5 million (December 31, 2012 - $619.5 million) of consolidated debt, including the current portion and including debt held by consolidated variable interest entities. This debt is largely collateralized by OEH assets and is held by a number of commercial bank lenders. The debt is repayable over periods of one to 20 years, with a weighted average duration of 2.2 years, and weighted average interest rate of 4.05% which incorporates derivatives used to mitigate interest rate risk.  See Note 9 to the Financial Statements regarding the maturity of long-term debt.

Debt of consolidated variable interest entities at June 30, 2013 included above comprised $97.0 million (December 31, 2012 - $97.9 million), including the current portion, of debt obligations of Charleston Center LLC, owner of the Charleston Place Hotel in which OEH has a 19.9% equity investment. There is no recourse to OEH for debt obligations of Charleston Center LLC and the principal and interest payments on that debt are funded primarily from the operations of the Charleston Place Hotel.

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Including debt of consolidated variable entities, approximately 46% of the outstanding principal was drawn in European euros and the balance primarily in U.S. dollars. At June 30, 2013, 58% of borrowings of OEH were in floating interest rates.

OEH has guaranteed or contingently guaranteed debt obligations of certain of its joint ventures. The following table summarizes these commitments at June 30, 2013:

	Guarantee	Contingent guarantee	Duration
June 30, 2013	$ millions	$ millions
Hotel Ritz, Madrid:
Debt obligations	9.7	—	ongoing
Working capital loan	0.6	—	ongoing
Peru rail joint venture:
Debt obligations	6.8	9.2	through 2016
Concession performance	—	7.0	through May 2014
Peru hotel joint venture:
Debt obligations	—	18.1	through 2018
Debt obligations	—	2.0	through 2014
Total	17.1	36.3

OEH has guaranteed debt obligations and a working capital loan facility for the Hotel Ritz, Madrid, in which OEH has a 50% equity investment.

OEH has guaranteed and contingently guaranteed the debt obligations of the rail joint venture in Peru through 2016. OEH has also guaranteed the rail joint venture’s contingent obligations relating to the performance of its governmental rail concessions through May 2014. In addition, OEH has contingently guaranteed, through 2018 and through 2014, debt obligations of the Peru hotels joint venture that operates four hotels. The contingent guarantees for each Peruvian joint venture may only be enforced in the event there is a change in control of the relevant joint venture, which would occur only if OEH’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred and is not expected to occur.

Liquidity

For the twelve months ending June 30, 2014, OEH will have approximately $93.4 million of scheduled debt repayments including capital lease payments. Additionally, OEH has scheduled debt repayments of $1.8 million relating to debt held by consolidated variable interest entities.

OEH has experienced fluctuating revenues and adjusted earnings by segment in recent years in part reflecting the economic uncertainties in the Eurozone and the weakening of the euro and other currencies against the U.S. dollar. In order to ensure that OEH has sufficient liquidity in the future, OEH’s cash flow projections and available funds are discussed with the Company’s board of directors and OEH’s advisers to consider the most appropriate way to develop OEH’s capital structure and generate additional sources of liquidity. The availability of additional liquidity options to OEH will depend on the current economic and financial environment, OEH’s continued financial and operating performance and its continued compliance with financial covenants. However, due to the economic declines and current and potential non-compliance with debt covenants, OEH may have less flexibility in determining when and how to use the available cash flows to satisfy obligations and fund capital expenditures as debt may be called by the banks or OEH may be unable to refinance or obtain additional debt.

Some currently identified options are dependent on third parties, while others are within the control of OEH. Options currently available to OEH include increasing the leverage on certain under-leveraged assets, issuing equity or debt instruments and disposing of non-core assets. For example, OEH completed the sale of The Westcliff hotel in the fourth quarter of 2012 and the Porto Cupecoy property development in January 2013, and refinanced ‘21’ Club and Inn at Perry cabin in July 2013. These actions contribute significant unrestricted cash resources to OEH which can be utilized as required.

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Recent Accounting Pronouncements

Accounting pronouncements adopted during the period

The following standards, as reported in Note 1 to the Financial Statements, were adopted in the six months endedJune 30, 2013.

In April 2013, the FASB issued guidance on applying the liquidation basis of accounting and the related disclosure requirements. Under this guidance, an entity must use the liquidation basis of accounting to present its financial statements when it determines that liquidation is imminent, unless the liquidation is the same as that under the plan specified in an entity's governing documents created at its inception. This guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Early adoption is permitted. The Company has early adopted this guidance. This guidance does not have an effect on the Company's consolidated financial position, results of operations and cash flows as it expects to continue as a going concern.

In February 2013, the FASB issued guidance which requires entities to disclose certain additional information about items reclassified out of accumulated other comprehensive income. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein.

In July 2012, the FASB issued guidance related to annual impairment assessment of intangible assets, other than goodwill, that gives companies the option to perform a qualitative assessment before calculating the fair value of the asset. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The adoption of this guidance did not have a material effect on OEH’s interim consolidated financial position, results of operations and cash flows and is not expected to have a material effect on the consolidated financial position, results of operations and cash flows for the year ended December 31, 2013.

In December 2011, the FASB issued accounting guidance that requires companies to provide new disclosures about offsetting assets and liabilities and related arrangements for financial instruments and derivatives and, in January 2013, issued guidance clarifying the scope of the previously issued guidance. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein.

Accounting pronouncements to be adopted

In March 2013, the FASB issued guidance which indicates that the entire amount of a cumulative translation adjustment (“CTA”) related to an entity’s investment in a foreign entity should be released when there has been any of the following:

• Sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity.

• Loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated).

• Step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity).

The ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. This guidance is effective for fiscal years (and interim periods within those fiscal years) beginning on or after December 15, 2013. Early adoption is permitted and the guidance should be applied prospectively from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows.

In February 2013, the FASB issued guidance which requires entities to measure obligations resulting from joint-and-several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of the obligation for all joint parties. The guidance permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint-and-several obligation). These disclosure requirements are incremental to the existing related party disclosure requirements. The guidance is effective for all prior periods in fiscal years beginning on or after December 15, 2013 (and interim reporting periods within those years). The guidance should be applied retrospectively to obligations with joint-and-several liability existing at the beginning of an entity’s fiscal year of adoption. Entities that elect to use hindsight in measuring their obligations during the comparative periods must disclose that fact.

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Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows.

Critical Accounting Policies and Estimates

For a discussion of these, see under the heading “Critical Accounting Policies” in Item 7 — Management’s Discussion and Analysis in the Company’s 2012 Annual Report on Form 10-K.

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk

OEH is exposed to market risk from changes in interest rates and foreign currency exchange rates.  These exposures are monitored and managed as part of its overall risk management program, which recognizes the unpredictability of financial markets and seeks to mitigate material adverse effects on consolidated earnings and cash flow.  OEH does not hold market rate sensitive financial instruments for trading purposes.

The market risk relating to interest rates arises mainly from the financing activities of OEH.  Earnings are affected by changes in interest rates on floating rate borrowings, principally based on U.S. dollar LIBOR and EURIBOR, and on short-term cash investments.  OEH management assesses market risk based on changes in interest rates using a sensitivity analysis.  If interest rates increased by 10% with all other variables held constant, annual net finance costs of OEH would have increased by approximately $1.0 million based on borrowings outstanding at June 30, 2013.

The market risk relating to foreign currencies arises from holding assets, buying, selling and financing in currencies other than the U.S. dollar, principally the European euro, British pound, South African rand, Russian rouble and Brazilian real.  Some non-U.S. subsidiaries of the Company borrow in local currencies, and OEH may in the future enter into forward exchange contracts relating to purchases denominated in foreign currencies.

Nine of OEH’s owned hotels in 2013 operated in European euros, one operated in South African rand, one in British pounds sterling, three in Botswana pula, one in Mexican pesos, one in Peruvian nuevo soles, six in various Southeast Asian currencies and one in Russian rubles. Revenue of the Venice Simplon-Orient-Express, British Pullman, Northern Belle and Royal Scotsman tourist trains was primarily in British pounds sterling, but the operating costs of the Venice Simplon-Orient-Express were mainly denominated in euros. Revenue of the Copacabana Palace and Hotel das Cataratas in Brazil was recorded in U.S. dollars, but substantially all of the hotels’ expenses were denominated in Brazilian reals. Revenue derived by Maroma Resort and Spa and La Samanna was recorded in U.S. dollars, but the majority of the hotels’ expenses were denominated in Mexican pesos and the euro, respectively.

OEH’s properties generally match foreign currency earnings and costs to provide a natural hedge against currency movements.  In addition, a significant proportion of the guests at OEH hotels located outside of the United States originate from the United States.  When a foreign currency in which OEH operates devalues against the U.S. dollar, OEH has some flexibility to increase prices in local currency, or vice versa.  Management believes that when these factors are combined, OEH does not face a material exposure to its net earnings from currency movements, although the reporting of OEH’s revenue and costs translated into U.S. dollars can, from period to period, be materially affected.

OEH management uses a sensitivity analysis to assess the potential impact on net earnings of changes in foreign currency financial instruments from hypothetical changes in the foreign currency exchange rates.  The primary assumption used in this model is a hypothetical 10% weakening or strengthening of the foreign currencies against the U.S. dollar.  At June 30, 2013, as a result of this analysis, OEH management determined that the impact on foreign currency financial instruments of a 10% strengthening of foreign currency exchange rates in relation to the U.S. dollar would decrease OEH’s net earnings by approximately $1.2 million, consisting of Mexican peso $0.3 million and Thai baht $0.9 million.

ITEM 4. Controls and Procedures

Disclosure Controls and Procedures

The Company’s chief executive officer and chief financial officer have evaluated the effectiveness of OEH’s disclosure controls and procedures (as defined in SEC Exchange Act Rule 13a-15(e)) to ensure that the information included in periodic reports filed with the SEC is assembled and communicated to OEH management and is recorded, processed, summarized and reported within the appropriate time periods. Based on that evaluation, OEH management has concluded that these disclosure controls and procedures were effective as of June 30, 2013.

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Changes in Internal Control over Financial Reporting

There have been no changes in OEH’s internal control over financial reporting (as defined in SEC Exchange Act Rule 13a-15(f)) during the second quarter of 2013 that have materially affected, or are reasonably likely to materially affect, OEH’s internal control over financial reporting.

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PART II — OTHER INFORMATION

ITEM 6.    Exhibits

The index to the exhibits appears below, on the page immediately following the signature page to this report.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated:  August 1, 2013

ORIENT-EXPRESS HOTELS LTD.
By:	/s/ Martin O’Grady
	Martin O’Grady
	Vice President—Finance and Chief Financial Officer (Principal Accounting Officer)

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EXHIBIT INDEX

Exhibit No.	Incorporated by Reference to	Description
3.1	Exhibit 3.2 to June 15, 2011 Form 8-K/A Current Report (File No. 001-16017)	Memorandum of Association and Certificate of Incorporation of Orient-Express Hotels Ltd.
3.2	Exhibit 3.2 to June 15, 2007 Form 8-K Current Report (File No. 001-16017)	Bye-Laws of Orient-Express Hotels Ltd.
3.3	Exhibit 1 to April 23, 2007 Amendment No. 1 to Form 8-A Registration Statement (File No. 001-16017)	Rights Agreement dated June 1, 2000, and amended and restated April 12, 2007, between Orient-Express Hotels Ltd. and Computershare Trust Company N.A., as Rights Agent
3.4	Exhibit 4.2 to December 10, 2007 Form 8-K Current Report (File No. 001-16017)	Amendment No. 1 dated December 10, 2007 to Amended and Restated Rights Agreement (Exhibit 3.3)
3.5	Exhibit 4.3 to May 27, 2010 Form 8-K Current Report (File 001-16017)	Amendment No. 2 dated May 27, 2010 to Amended and Restated Rights Agreement (Exhibit 3.3)
10		Services Agreement between Orient-Express Hotels Ltd. and J. Robert Lovejoy dated June 18, 2013
31		Rule 13a-14(a)/15d-14(a) Certifications
32		Section 1350 Certification
101		Interactive data file

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EX-10

Exhibit 10

SERVICES AGREEMENT

SERVICES AGREEMENT, dated as of June 18, 2013 (the “Agreement”) is made by and between ORIENT-EXPRESS HOTELS LTD., a Bermuda company (the “Company”), and J. ROBERT LOVEJOY (the “Mr. Lovejoy”).

RECITALS

A.Mr. Lovejoy plans to devote substantial time and energy to other business interests and has, accordingly, communicated his intention not to stand for re-election to the Board of Directors of the Company (the “Board”) at the Company's 2013 annual general meeting of shareholders. Mr. Lovejoy's term as Chairman and member of the Board will, therefore, expire effective as of the date of the Company's next annual general meeting of shareholders (the “Effective Date”);

B.Given Mr. Lovejoy's prior service as Chairman of the Board and interim Chief Executive Officer of the Company, the Company desires to be able to call upon the knowledge and experience of Mr. Lovejoy following the expiration of his term as Chairman and member of the Board. Accordingly, the Company wishes to retain Mr. Lovejoy to be available to provide certain personal services in accordance with this Agreement; and

C.Mr. Lovejoy is willing to render such services to the Company on the terms and conditions set forth in this Agreement;

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the Company and Mr. Lovejoy hereby agree as follows:

Section 1.Defined Terms. Capitalized terms not otherwise defined in this Agreement are defined in Section 18.

Section 2.Term of Agreement. Mr. Lovejoy shall be retained by the Company for a period of twelve (12) months commencing on the Effective Date (the “Term”), unless earlier terminated pursuant to Section 6.

Section 3.Position and Responsibilities. Mr. Lovejoy agrees to render such advice, background and any other information to the Company relating to the ordinary course management of the Company at the level of the Board or the office of the Chief Executive Officer of the Company (the “CEO”) as and only to the extent as may be reasonably requested by the Board or, with the consent of the Board, by the CEO.

Section 4.Compensation. During the Term, the Company shall pay Mr. Lovejoy a fixed retainer (the “Retainer”) of $300,000, payable in arrears in equal monthly installments during the Term commencing on the date one month after the Effective Date, subject to proration for any partial month and subject to Section 6 below. For avoidance of doubt and to prevent undue enrichment, Mr. Lovejoy will only receive his quarterly fee for serving as the Chairman of the Board of Directors pro rata for the period up to, but excluding, the Effective Date.

Section 5.Business Expenses. Mr. Lovejoy shall be reimbursed in accordance with the policies of the Company for necessary and reasonable business expenses incurred by Mr. Lovejoy in connection with the performance of his duties hereunder in accordance with Section 3, subject to advance written approval by the CEO or the Board and the submission of an itemized and reasonably detailed expense report to the Company.

Section 6.Termination. This Agreement and Mr. Lovejoy's retention hereunder may be terminated at any time by either the Company or Mr. Lovejoy upon thirty (30) days prior written notice to the other party. In the event of a termination of this Agreement by the Company without Cause or, if during the Term Mr. Lovejoy dies or becomes physically or mentally unable to perform services requested by the Company and contemplated under this Agreement, Mr. Lovejoy (or his estate or legal representatives, as applicable) shall be entitled to receive the Retainer for the remainder of the Term. In the event of a termination of this Agreement for any other reason, Mr. Lovejoy shall not be entitled to receive any further payments of the Retainer following such termination. Notwithstanding any of the foregoing, Sections Section 9 through Section 11 of this Agreement shall survive the termination of this Agreement and the cessation of Mr. Lovejoy's engagement hereunder.

Section 7.Status of Mr. Lovejoy. On the Effective Date, Mr. Lovejoy shall be deemed to have “retired” for purposes of all equity and equity based compensation awards held by Mr. Lovejoy as of immediately prior to the Effective Date. Mr. Lovejoy is not and shall not be an employee of the Company or any affiliated entity of the Company, and after the Effective Date shall not be a director or other officer of the Company or any affiliated entity of the Company. Accordingly, Mr. Lovejoy

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shall not be entitled to participate in any employee benefit plans or other benefits or conditions of employment available to the employees of the Company or any affiliated entity of the Company. Mr. Lovejoy shall have no authority to act or represent himself or otherwise hold himself out as an advisor, consultant or agent of the Company or any affiliated entity of the Company, except on authority specifically so delegated to him in writing by the Company, and he shall not represent to the contrary to any person. Mr. Lovejoy shall only render services to the Company under this Agreement as Mr. Lovejoy determines are necessary to achieve the results specified by the Company. He shall not direct the work of any employee of the Company or any affiliated entity of the Company, or make any management decisions, or undertake to commit the Company or any affiliated entity of the Company to any course of action in relation to third persons.

Section 8.Performance. Mr. Lovejoy agrees to perform his duties, responsibilities and obligations hereunder in good faith, efficiently and to the best of his ability. Mr. Lovejoy agrees that all of his activities as a provider of services to the Company shall be in conformity with all present and future policies, rules and regulations and directions of the Company not inconsistent with this Agreement.

Section 9.Non-Competition, Non-Solicit and Non-Disparagement. For a period of twelve (12) months commencing as of the Effective Date, Mr. Lovejoy shall not (i) directly or indirectly be engaged in any capacity by, associated with or render any services for, any person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise (each a “Covered Person”) on any project or initiative (x) which is directly competitive with all or substantially all of the following businesses of Company's and its affiliated entities: (A) luxury lodging, (B) luxury cruise; (C) tourist and freight train; and (D) restaurant; provided that nothing in this clause (x) shall prohibit Mr. Lovejoy from providing financial advisory or consulting services to any Covered Person on any other project or initiative, or (y) that is related to or arises in connection with any intention or efforts that are known or should reasonably be known by Mr. Lovejoy by a Covered Person to acquire or obtain control of the Company or any affiliated entity of the Company (or all or substantially all of the Company's luxury lodging business), unless Mr. Lovejoy first obtains the prior written consent of the Board, (ii) directly or indirectly, interfere with or inhibit in any way, directly or indirectly, any business relationship between the Company or any affiliated entity of the Company and any third party or solicit or hire any employee of the Company or any affiliated entity of the Company to perform services for any entity other than the Company or an affiliated entity of the Company or (iii) otherwise interfere with the business of the Company, including by making any comments of a defamatory or disparaging nature to third parties regarding the Company, any affiliated entity of the Company or any officers, directors, personnel, services or products of the Company or any affiliated entity of the Company, except as required by applicable law or legal process. The Company shall make no comments of a defamatory or disparaging nature to third parties regarding Mr. Lovejoy, his work or reputation, except as required by applicable law or legal process.

Section 10.Confidentiality. During and after the Term, Mr. Lovejoy shall not disclose or use for Mr. Lovejoy's own benefit or purposes or the benefit or purposes of any other person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise other than the Company or any affiliated entity of the Company, any trade secrets, business relationships, business plans, business initiatives, strategic plans, development plans, operating plans and methods, financial data, management strategies, marketing plans and methods, marketing relationships and data bases, promotions programs, sales activities, employee and customer information or other confidential information relating to the business and affairs of the Company or any affiliated entity of the Company generally; provided that the foregoing shall not apply to information which is not unique to the Company, any affiliated entity of the Company or which is generally known to the industry or the public other than as a result of Mr. Lovejoy's breach of this covenant.

Section 11.Specific Performance. Mr. Lovejoy acknowledges and agrees that the Company's remedies at law for a breach or threatened breach of any of the provisions of Section 9 or Section 10 of this Agreement would be inadequate and, in recognition of this fact, Mr. Lovejoy agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available through arbitration under Section 17 as may be enforced, as necessary, by any court having jurisdiction. Mr. Lovejoy further agrees that the restrictions contained in Section 9 and Section 10 are reasonable and acknowledges that his agreement to be bound by these restrictions was and is critical inducement for the Company to enter into this Agreement. Mr. Lovejoy agrees that if any of the restrictions in Section 9 or Section 10 are construed to be invalid or unenforceable, the remainder of the restrictions shall not be affected. If any such restriction is held to be unenforceable because of the area covered, the duration or the scope, Mr. Lovejoy agrees that the arbitrator or arbitral panel, as the case may be, making such determination shall have the power, to the extent permitted under applicable law, to reduce the area and/or the duration, and/or limit the scope, and restriction shall then be enforceable in its reduced form.

Section 12.Return of Company Property. Mr. Lovejoy agrees that at any time upon request and following the termination of his engagement for any reason, he shall return all property of the Company supplied by the Company to Mr. Lovejoy.

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Section 13.Binding Agreement. This Agreement shall inure to the benefit of and be enforceable by Mr. Lovejoy's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

Section 14.Notices. For the purpose of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when (i) sent by telefax, (ii) hand delivered, (iii) sent by courier, or (iv) mailed by registered mail, return receipt requested, postage prepaid, addressed, if to Mr. Lovejoy, to the address inserted below Mr. Lovejoy's signature on the final page hereof and, if to the Company, to the address set forth below, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon actual receipt:

To the Company:

Orient-Express Hotels Ltd.

c/o Orient-Express Hotels Inc.

555 Madison Avenue, 24th Floor

New York, New York 10022

U.S.A.

Attention: Company Secretary

Fax: +1 646 514 2947

Section 15.Miscellaneous.

(a)No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by Mr. Lovejoy and such officer as may be specifically designated by the Company's Board of Directors.

(b)No waiver by either party hereto at any time of any breach by the other party hereto of, or of any lack of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

(c)This Agreement supersedes any other agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof which have been made by or between the parties hereto and contains the entire understanding of the parties with respect to the retention of Mr. Lovejoy by the Company.

(d)The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of Bermuda.

(e)Mr. Lovejoy shall be solely responsible for the withholding and/or payment of any federal, state or local income or payroll taxes. Mr. Lovejoy shall be responsible for determining the amounts of and making all such payments.

(f)The obligations of the Company and Mr. Lovejoy under this Agreement which by their nature may require either partial or total performance after the expiration of the term of this Agreement shall survive such expiration.

(g)The failure of the Company to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of the Company's rights or deprive the Company of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.

(h)In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.

(i)This Agreement shall not be assignable by Mr. Lovejoy and shall be assignable by the Company only with the consent of Mr. Lovejoy (such consent not to unreasonably withheld, delayed or conditioned); provided that no such assignment by the Company shall relieve the Company of any liability hereunder, whether accrued before or after such assignment.

Section 16.Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. No provision of this Agreement is intended

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to confer any rights, benefits, remedies, obligations, or liabilities hereunder upon any person or entity other than the parties hereto and their respective successors and assigns.

Section 17.Resolution of Disputes; Arbitration.

(a)All claims by Mr. Lovejoy for benefits under this Agreement shall be directed to and determined by the Company's Board of Directors and shall be in writing. Any denial by the Company's Board of Directors of a claim for payments under this Agreement shall be delivered to Mr. Lovejoy in writing and shall set forth the specific reasons for the denial and the specific provisions of this Agreement relied upon. The Company's Board of Directors shall afford a reasonable opportunity to Mr. Lovejoy for a review of the decision denying a claim and shall further allow Mr. Lovejoy to appeal to the Company's Board of Directors a decision of the Company's Board of Directors within sixty (60) days after notification by the Company's Board of Directors that Mr. Lovejoy's claim has been denied.

(b)Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration before the American Arbitration Association in New York, New York in accordance with its commercial arbitration rules as in effect at the time when the dispute or controversy arises. Judgment may be entered on the arbitrator's award in any court having jurisdiction.

Section 18.Definitions. For purposes of this Agreement, the following terms shall have the meanings indicated below:

(a)“Board” or “Board of Directors” means the Board of Directors of the Company.

(b)“Cause” shall mean (i) the continued failure by Mr. Lovejoy to substantially perform Mr. Lovejoy's duties under this Agreement, (ii) Mr. Lovejoy's wilful or intentional breach of any material term of this Agreement, (iii) the conviction of Mr. Lovejoy for any felony criminal offense or (iv) Mr. Lovejoy's engaging in any conduct which is materially detrimental to the Company or any of its affiliates, or any of the employees or customers of the Company.

(c)“Company” shall mean the entity named in the first paragraph of this Agreement.

(d)“Covered Person” shall have the meaning set forth in Section 9 hereof.

(e)“Mr. Lovejoy” shall mean the individual named in the first paragraph of this Agreement.

(f)“Term” shall have the meaning set forth in Section 2 hereof.

(g)“Effective Date” shall have the meaning set forth in Recital A hereof.

(h) “Retainer” shall have the meaning set forth in Section 4 hereof.

/s/ J. Robert Lovejoy

J. ROBERT LOVEJOY

Address: [omitted]

ORIENT-EXPRESS HOTELS LTD.
By:	/s/ John D. Campbell
	Title:	Director
	Name:	John D. Campbell

4

EX-31

Exhibit 31

ORIENT-EXPRESS HOTELS LTD.

Rule 13a-14(a)/15d-14(a) Certification

I, John M. Scott III, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Orient-Express Hotels Ltd. for the quarter ended June 30, 2013;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: August 1, 2013	/s/ John M. Scott III
	John M. Scott III
	President and Chief Executive Officer

ORIENT-EXPRESS HOTELS LTD.

Rule 13a-14(a)/15d-14(a) Certification

I, Martin O’Grady, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Orient-Express Hotels Ltd. for the quarter ended June 30, 2013;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Dated: August 1, 2013	/s/ Martin O’Grady
	Martin O’Grady
	Vice President – Finance and Chief Financial Officer

EX-32

Exhibit 32

ORIENT-EXPRESS HOTELS LTD.

Section 1350 Certification

The undersigned hereby certify that this report of Orient-Express Hotels Ltd. for the periods presented fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods presented in the report.

/s/ John M. Scott III	/s/ Martin O’Grady
John M. Scott III	Martin O’Grady
President and Chief Executive Officer	Vice President – Finance and Chief Financial Officer

Dated: August 1, 2013

[A signed original of this written certification has been provided to Orient-Express Hotels Ltd. and will be retained by Orient-Express Hotels Ltd. and furnished to the U.S. Securities and Exchange Commission or its staff upon request.]

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Fair value measurement - Financial instruments recorded at fair value (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Valuation of financial assets and liabilities by the fair value hierarchy
Credit value adjustment, percentage of fair value of derivatives for Level 3 classificatiom greater than	20.00%
Liabilities at fair value:
Derivative financial instruments	$ (5,734)	$ (8,879)
Recurring basis | Level 1
Assets at fair value:
Derivative financial instruments	0	0
Total assets	0	0
Liabilities at fair value:
Derivative financial instruments	0	0
Total net liabilities	0	0
Recurring basis | Level 2
Assets at fair value:
Derivative financial instruments	10	6
Total assets	10	6
Liabilities at fair value:
Derivative financial instruments	(5,734)	(8,879)
Total net liabilities	(5,724)	(8,873)
Recurring basis | Level 3
Assets at fair value:
Derivative financial instruments	0	0
Total assets	0	0
Liabilities at fair value:
Derivative financial instruments	0	0
Total net liabilities	0	0
Recurring basis | Fair Value
Assets at fair value:
Derivative financial instruments	10	6
Total assets	10	6
Liabilities at fair value:
Derivative financial instruments	(5,734)	(8,879)
Total net liabilities	$ (5,724)	$ (8,873)

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Other liabilities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Other Liabilities Disclosure [Abstract]
Interest rate swaps (see Note 18)	$ 2,563	$ 5,021
Long-term accrued interest on subordinated debt at Charleston Place Hotel	15,040	14,740
Cash-settled stock appreciation rights plan	67	96
Deferred lease incentive	414	468
Contingent consideration on acquisition of Grand Hotel Timeo and Villa Sant’Andrea	1,169	1,186
Total other liabilities	$ 19,253	$ 21,511

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Pensions - Textuals (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Compensation and Retirement Disclosure [Abstract]
Contribution by employer	$ 497	$ 492	$ 999	$ 972
Anticipated additional contribution by employer to plan			1,169
Total contributions expected by employer in current fiscal year			$ 2,168

XML

Derivatives and hedging activities - Other comprehensive income and credit-risk-related contingent features (Details) (Interest Rate Swaps, USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Interest Rate Swaps
Effect of derivative financial instruments on the statements of consolidated operations and statement of consolidated comprehensive income
Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives	$ 0	$ (23)	$ 37	$ (152)
Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments	$ (7)	$ (12)	$ (29)	$ (33)

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Segment information - Earnings from unconsolidated companies (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Earnings from unconsolidated companies, net of tax	$ 3,260	$ 2,335	$ 2,633	$ 2,303
Tourist Trains and Cruises [Member]
Segment Reporting Information [Line Items]
Earnings from unconsolidated companies, net of tax	2,674	91	3,633	1,019
Hotel Management or Part Ownership Interests [Member] | Hotels & Restaurants
Segment Reporting Information [Line Items]
Earnings from unconsolidated companies, net of tax	$ 586	$ 2,244	$ (1,000)	$ 1,284

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Other intangible assets

6 Months Ended

Jun. 30, 2013

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Other intangible assets

Other intangible assets

Other intangible assets consist of the following as of June 30, 2013:

	Favorable Lease Assets		Internet Sites		Trade Names	Total
	$'000		$'000		$'000	$'000
Carrying amount:
Balance at January 1, 2013	12,971		1,692		7,100	21,763
Foreign currency translation adjustment	(173	)	(114	)	—	(287	)
Balance at June 30, 2013	12,798		1,578		7,100	21,476
Accumulated amortization:
Balance at January 1, 2013	2,248		907			3,155
Charge for the period	164		64			228
Foreign currency translation adjustment	(30	)	(61	)		(91	)
Balance at June 30, 2013	2,382		910			3,292
Net book value:
At June 30, 2013	10,416		668		7,100	18,184
At December 31, 2012	10,723		785		7,100	18,608

Favorable lease intangible assets are amortized over the terms of the leases, which are between 19 and 60 years. Internet sites are amortized over 10 years. Trade names have an indefinite life and therefore are not amortized, but are assessed for impairment annually or when events indicate that impairment may have occurred.

Total amortization expense for the three and six months endedJune 30, 2013 was $119,000 (June 30, 2012 - $120,000) and $228,000 (June 30, 2012 - $244,000), respectively.  Estimated total amortization expense for the remainder of the year ending December 31, 2013 is $228,000 and for each of the years ending December 31, 2014 to December 31, 2018 is $456,000.

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Earnings per share - Schedule of the Calculation of Basic and Diluted Earnings Per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Numerator ($'000):
Net earnings/(losses) from continuing operations	$ 17,247	$ 13,181	$ (28,864)	$ (1,052)
Net earnings/(losses) from discontinued operations	90	(1,503)	(805)	(1,057)
Net losses/(earnings) attributable to non-controlling interests	(126)	(96)	83	175
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	$ 17,463	$ 11,774	$ (29,752)	$ (2,284)
Denominator (shares '000):
Basic weighted average shares outstanding (in shares)	103,063	102,890	103,037	102,803
Effect of dilution (in shares)	2,249	973	0	0
Diluted weighted average shares outstanding (in shares)	105,312	103,863	103,037	102,803
Basic earnings per share:
Net earnings/(losses) from continuing operations (in dollars per share)	$ 0.167	$ 0.128	$ (0.280)	$ (0.010)
Net earnings/(losses) from discontinued operations (in dollars per share)	$ 0.001	$ (0.015)	$ (0.008)	$ (0.010)
Net losses/(earnings) attributable to non-controlling interests (in dollars per share)	$ 0.001	$ 0.001	$ (0.001)	$ (0.002)
Basic net earnings/(losses) per share attributable to Orient-Express Hotels Ltd. (in dollars per share)	$ 0.169	$ 0.114	$ (0.289)	$ (0.022)
Diluted earnings per share:
Net earnings/(losses) from continuing operations (in dollars per share)	$ 0.164	$ 0.127	$ (0.280)	$ (0.010)
Net earnings/(losses) from discontinued operations (in dollars per share)	$ 0.001	$ (0.014)	$ (0.008)	$ (0.010)
Net losses/(earnings) attributable to non-controlling interests (in dollars per share)	$ 0.001	$ 0.001	$ (0.001)	$ (0.002)
Diluted net earnings/(losses) per share attributable to Orient-Express Hotels Ltd. (in dollars per share)	$ 0.166	$ 0.114	$ (0.289)	$ (0.022)

XML

Statements of Condensed Consolidated Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement [Abstract]
Revenue	$ 171,850	$ 160,489	$ 275,920	$ 261,036
Expenses:
Cost of services	76,948	70,678	125,592	118,214
Selling, general and administrative	57,776	54,046	112,399	104,200
Depreciation and amortization	12,271	10,514	23,812	21,035
Impairment of property, plant and equipment	0	0	35,680	0
Total operating costs and expenses	146,995	135,238	297,483	243,449
Earnings/(losses) from operations	24,855	25,251	(21,563)	17,587
Interest income	284	309	522	641
Interest expense	(8,342)	(6,711)	(15,596)	(14,259)
Foreign currency, net	932	(1,525)	3,008	(598)
Net finance costs	(7,126)	(7,927)	(12,066)	(14,216)
Earnings/(losses) before income taxes and earnings from unconsolidated companies, net of tax	17,729	17,324	(33,629)	3,371
(Provision)/benefit for income taxes	(3,742)	(6,478)	2,132	(6,726)
Earnings/(losses) before earnings from unconsolidated companies, net of tax	13,987	10,846	(31,497)	(3,355)
Earnings from unconsolidated companies, net of tax (benefit)/provision of $(794), $1,001, $(1,024) and $987	3,260	2,335	2,633	2,303
Earnings/(losses) from continuing operations	17,247	13,181	(28,864)	(1,052)
Net earnings/(losses) from discontinued operations, net of tax (benefit)/provision of $Nil, $Nil, $(422) and $683	90	(1,503)	(805)	(1,057)
Net earnings/(losses)	17,337	11,678	(29,669)	(2,109)
Net losses/(earnings) attributable to non-controlling interests	126	96	(83)	(175)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	$ 17,463	$ 11,774	$ (29,752)	$ (2,284)
Basic earnings per share:
Net earnings/(losses) from continuing operations (in dollars per share)	$ 0.167	$ 0.128	$ (0.280)	$ (0.010)
Net earnings/(losses) from discontinued operations (in dollars per share)	$ 0.001	$ (0.015)	$ (0.008)	$ (0.010)
Basic net earnings/(losses) per share attributable to Orient-Express Hotels Ltd. (in dollars per share)	$ 0.169	$ 0.114	$ (0.289)	$ (0.022)
Diluted earnings per share:
Net earnings/(losses) from continuing operations (in dollars per share)	$ 0.164	$ 0.127	$ (0.280)	$ (0.010)
Net earnings/(losses) from discontinued operations (in dollars per share)	$ 0.001	$ (0.014)	$ (0.008)	$ (0.010)
Diluted net earnings/(losses) per share attributable to Orient-Express Hotels Ltd. (in dollars per share)	$ 0.166	$ 0.114	$ (0.289)	$ (0.022)
Dividends per share (in dollars per share)	$ 0	$ 0	$ 0	$ 0

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Basis of financial statement presentation

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Basis of financial statement presentation

Basis of financial statement presentation

Business

In this report Orient-Express Hotels Ltd. is referred to as the “Company”, and the Company and its subsidiaries are referred to collectively as “OEH”.

At June 30, 2013, OEH owned, invested in or managed 35 deluxe hotels and resorts located in the United States, Mexico, Caribbean, Europe, Southern Africa, South America, and Southeast Asia, one stand-alone restaurant in New York, six tourist trains in Europe, Southeast Asia and Peru, two river cruise businesses in Myanmar (Burma) and one canal boat business in France.

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reporting on Form 10-Q.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements.  In the opinion of the management of the Company, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, operating results and cash flows for the interim period have been included in these condensed consolidated financial statements.

“FASB” means Financial Accounting Standards Board.  “ASC” means the Accounting Standards Codification of the FASB and “ASU” means an Accounting Standards Update of the FASB.

The interim results presented are not necessarily indicative of results that may be expected for any subsequent interim period or the fiscal year ending December 31, 2013.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  See Note 1 to the consolidated financial statements in the 2012 Annual Report on Form 10-K for additional information regarding significant accounting policies.

For interim income tax reporting purposes, OEH generally determines its best estimate of an annual effective tax rate and applies that rate on a year-to-date basis applicable to its ordinary income. OEH’s estimated annual effective tax rate excludes significant, unusual or infrequently occurring items, jurisdictions for which a reliable estimate cannot be made or where the estimated benefit of losses cannot be recognized, and certain other items excluded pursuant to the U.S. GAAP authoritative guidance.  The income tax expense (or benefit) related to all other items is individually computed and recognized when the items occur.

Certain prior period amounts have been reclassified or disaggregated to conform to the current period’s presentation. The reclassifications had no effect on net earnings, net assets, retained earnings or net cash flows.

OEH's reclassifications in the statements of condensed consolidated operations were:

• Discontinued operations were reclassified for all periods presented. See Note 3 for a summary of the results of discontinued operations, certain assets held for sale and the balances and results associated with discontinued operations.

• During the fourth quarter of 2012, an additional gain of $1,613,000 related to the sale of Keswick Hall was identified that should have been recorded in the first quarter of 2012. Discontinued operations for the six months ended June 30, 2012 have been restated to include this gain.

• Certain expenses that were previously recorded within costs of sales were reclassified into selling, general and administrative expenses to correct for an error in classification. The balances reclassified were $1,174,000 and $2,395,000 for the three and six months endedJune 30, 2012, respectively.

During 2012, management determined that certain amounts previously reported in the interim statements of condensed consolidated cash flows for the six months endedJune 30, 2012 should be reclassified, which had the following effects:

• Debt issuance costs, which were previously included in cash flows from operating activities, are separately stated as a cash flow from financing activities for all periods. The effect in the six months endedJune 30, 2012 was a decrease in cash flows from financing activities of $1,463,000, with a corresponding increase to cash flows from operating activities.

• Debt repaid by a third party when a business is sold was previously considered a non-cash transaction. This $10,000,000 has been included as net cash provided by investing activities from discontinued operations and net cash used in financing activities from continuing operations for the six months endedJune 30, 2012.

The accounting policies used in preparing these condensed consolidated financial statements are the same as those applied in the prior year, except for codified changes made to the ASC, as described below.

Accounting pronouncements adopted during the period

In April 2013, the FASB issued guidance on applying the liquidation basis of accounting and the related disclosure requirements. Under this guidance, an entity must use the liquidation basis of accounting to present its financial statements when it determines that liquidation is imminent, unless the liquidation is the same as that under the plan specified in an entity's governing documents created at its inception. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). This guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Early adoption is permitted. The Company has early adopted this guidance. This guidance does not have an effect on the Company's consolidated financial position, results of operations and cash flows as it expects to continue as a going concern.

In February 2013, the FASB issued guidance which requires entities to disclose the following additional information about items reclassified out of accumulated other comprehensive income (“AOCI”):

• Changes in AOCI balances by component (e.g., unrealized gains or losses on available-for-sale securities or foreign-currency items).

• Significant items reclassified out of AOCI by component either on the face of the income statement or as a separate footnote to the consolidated financial statements.

The guidance does not change the current U.S. GAAP requirements for interim financial statement reporting of comprehensive income. That is, a total for comprehensive income must be reported in condensed consolidated interim financial statements in either (1) a single continuous statement or (2) two separate but consecutive statements. However, public entities would also need to include information about (1) changes in AOCI balances by component and (2) significant items reclassified out of AOCI in their interim reporting periods. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The amendments in the guidance should be applied prospectively. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein.

In July 2012, the FASB issued guidance related to annual impairment assessment of intangible assets, other than goodwill, that gives companies the option to perform a qualitative assessment before calculating the fair value of the asset. Although the guidance revises the examples of events and circumstances that an entity should consider in interim periods, it does not revise the requirements to test indefinite-lived intangible assets (1) annually for impairment and (2) between annual tests if there is a change in events or circumstances that would indicate an impairment. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The adoption of this guidance did not have a material effect on OEH’s interim consolidated financial position, results of operations and cash flows and is not expected to have a material effect on the consolidated financial position, results of operations and cash flows for the year ended December 31, 2013.

In December 2011, the FASB issued accounting guidance that requires companies to provide new disclosures about offsetting assets and liabilities and related arrangements for financial instruments and derivatives. In January 2013, the FASB issued guidance clarifying the scope of the previously issued guidance. The guidance clarifies the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. The provisions of this guidance were effective for annual reporting periods beginning on or after January 1, 2013. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein.

Accounting pronouncements to be adopted

In March 2013, the FASB issued guidance which indicates that the entire amount of a cumulative translation adjustment (“CTA”) related to an entity’s investment in a foreign entity should be released when there has been any of the following:

• Sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity.

• Loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated).

• Step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity).

The ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. This guidance is effective for fiscal years (and interim periods within those fiscal years) beginning on or after December 15, 2013. Early adoption is permitted and the guidance should be applied prospectively from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows.

In February 2013, the FASB issued guidance which requires entities to measure obligations resulting from joint-and-several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of the obligation for all joint parties. The guidance permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint-and-several obligation). These disclosure requirements are incremental to the existing related party disclosure requirements. The guidance is effective for all prior periods in fiscal years beginning on or after December 15, 2013 (and interim reporting periods within those years). The guidance should be applied retrospectively to obligations with joint-and-several liability existing at the beginning of an entity’s fiscal year of adoption. Entities that elect to use hindsight in measuring their obligations during the comparative periods must disclose that fact. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows.

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Share-based compensation plans

6 Months Ended

Jun. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based compensation plans

Share-based compensation plans

At June 30, 2013, OEH had four share-based compensation plans.  The compensation cost that has been charged to selling, general and administrative expense for these plans for the three and six months endedJune 30, 2013 was $2,336,000 (June 30, 2012 - $1,572,000) and $3,886,000 (June 30, 2012 - $3,582,000), respectively. The total compensation cost related to unexercised options and unvested share awards at June 30, 2013 to be recognized over the period July 1, 2013 to June 30, 2016, was $15,654,000 and the weighted average period over which it is expected to be recognized is 30 months. Measured from the grant date, substantially all awards of deferred shares, restricted shares and stock appreciation rights have a maximum term of three years, and substantially all awards of share options have a maximum term of 10 years. There were no grants under the 2000 stock option plan or 2004 stock option plan during the six months endedJune 30, 2013.

(a)2007 stock appreciation rights plan

Previously awarded cash-settled stock appreciation rights awarded under the Company’s 2007 stock appreciation rights plan have been recorded as other liabilities with a fair value of $67,000 at June 30, 2013 (December 31, 2012 - $96,000). See Note 10.

(b)2009 share award and incentive plan

During the six months endedJune 30, 2013, the following awards were made under the 2009 share award and incentive plan on the following dates.

Estimates of the fair value of share options and the fair value of deferred shares and restricted shares without performance criteria on the grant date were made using the Black-Scholes option pricing model, and estimates of the fair value of deferred shares with performance criteria and market conditions were made using the Monte Carlo valuation model, based on the assumptions shown.

Expected volatilities are based on historical volatility of the Company’s class A common share price and other factors.  The risk-free rate for periods within the expected life is based on the U.S. Treasury yield curve in effect at the time of grant. The expected life represents the period that share-based awards are expected to be outstanding and was determined using historical experience, giving consideration to the contractual terms of the share-based awards and vesting schedules.

February 21, 2013:

• share options on 31,700 class A common shares vesting on March 9, 2015 at an exercise price of $9.95 per share,

• deferred shares without performance criteria covering 6,600 class A common shares vesting on March 9, 2015 at a purchase price of $0.01 per share, and

• deferred shares with performance criteria and market conditions on up to 24,600 class A common shares vesting on March 9, 2015 at a purchase price of $0.01 per share.

	Share options			Deferred shares without performance criteria			Deferred shares with performance criteria
Expected share price volatility	60		%	51		%	52		%
Risk-free interest rate	1.30		%	0.26		%	0.26		%
Expected dividends per share	$	—		$	—		$	—
Expected life of awards	8 years			2 years			2 years

March 15, 2013:

• deferred shares without performance criteria covering 114,000 class A common shares vesting on March 15, 2016 at a purchase price of $0.01 per share, and

• deferred shares with performance criteria and market conditions on up to 290,400 class A common shares vesting on March 15, 2016 at a purchase price of $0.01 per share.

	Deferred shares without performance criteria			Deferred shares with performance criteria
Expected share price volatility	51		%	52		%
Risk-free interest rate	0.38		%	0.39		%
Expected dividends per share	$	—		$	—
Expected life of awards	3 years			3 years

April 22, 2013:

• deferred shares without performance criteria covering 29,370 class A common shares vesting on July 22, 2013 at a purchase price of $0.01 per share.

	Deferred shares without performance criteria
Expected share price volatility	51		%
Risk-free interest rate	0.06		%
Expected dividends per share	$	—
Expected life of awards	3 months

June 10, 2013:

• share options on 289,000 class A common shares vesting on June 10, 2016 at an exercise price of $11.74 per share, and

• deferred shares without performance criteria covering 34,400 class A common shares vesting on June 10, 2016 at a purchase price of $0.01 per share.

	Share Options			Deferred shares without performance criteria
Expected share price volatility	60		%	50		%
Risk-free interest rate	1.74		%	0.57		%
Expected dividends per share	$	—		$	—
Expected life of awards	8 years			3 years

June 28, 2013:

• deferred shares without performance criteria covering 33,200 class A common shares vesting on June 28, 2016 at a purchase price of $0.01 per share,

• restricted shares without performance criteria covering 33,200 class A common shares vesting on June 28, 2016 at a purchase price of $0.01 per share, and

• restricted shares without performance criteria covering 12,400 class A common shares vesting on the earlier of June 28, 2014 or the day before the 2014 annual general meeting of the Company at a purchase price of $0.01 per share.

	Deferred shares without performance criteria			Restricted shares without performance criteria			Restricted shares without performance criteria
Expected share price volatility	50		%	50		%	43		%
Risk-free interest rate	0.57		%	0.57		%	0.13		%
Expected dividends per share	$	—		$	—		$	—
Expected life of awards	3 years			3 years			1 year

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Property, plan and equipment - Textuals (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Depreciation	$ 12,152,000	$ 10,394,000	$ 23,584,000	$ 20,791,000
Property, plant and equipment	1,125,464,000		1,125,464,000		1,171,603,000
Impairment of Long-Lived Assets Held-for-use	0			0
Interest costs capitalized	0	997,000	1,088,000	1,902,000
Charleston Center LLC
Property, Plant and Equipment [Line Items]
Property, plant and equipment	185,078,000		185,078,000		183,793,000
La Samanna [Member]
Property, Plant and Equipment [Line Items]
Impairment of Long-Lived Assets Held-for-use			$ 35,680,000

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Assets held for sale and discontinued operations - Operating Results (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended		3 Months Ended	6 Months Ended	0 Months Ended	3 Months Ended	6 Months Ended	0 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jan. 31, 2013 Porto Cupecoy	Jun. 30, 2013 Porto Cupecoy	Jun. 30, 2012 Porto Cupecoy	Jun. 30, 2013 Porto Cupecoy	Jun. 30, 2012 Porto Cupecoy	Jun. 30, 2012 The Westcliff	Jun. 30, 2013 The Westcliff	Jun. 30, 2012 The Westcliff	Jun. 30, 2012 The Observatory Hotel	Jun. 30, 2012 The Observatory Hotel	Jun. 01, 2012 Bora Bora Lagoon Resort	Jun. 30, 2012 Bora Bora Lagoon Resort	Jun. 30, 2012 Bora Bora Lagoon Resort	Jan. 23, 2012 Keswick Hall	Jun. 30, 2012 Keswick Hall	Jun. 30, 2012 Keswick Hall
Operating results
Revenue	$ 8	$ 7,237	$ 843	$ 15,969		$ 8	$ 1,219	$ 843	$ 3,033	$ 2,311	$ 0	$ 4,525	$ 3,707	$ 7,984		$ 0	$ 0		$ 0	$ 427
Earnings before tax, gain on sale and impairment	90	(2,203)	(1,589)	(5,039)		90	(1,509)	(1,589)	(3,038)	(102)	0	(219)	(417)	(628)		(76)	(138)		(99)	(1,016)
Impairment	0	0	(77)	0		0	0	(77)	0	0	0	0	0	0		0	0		0	0
Gain on sale	0	700	439	4,665	439	0	0	439	0	0	0	0	0	0	662	708	708	3,957	(8)	3,957
Earnings before tax	90	(1,503)	(1,227)	(374)		90	(1,509)	(1,227)	(3,038)	(102)	0	(219)	(417)	(628)		632	570		(107)	2,941
Tax (provision)/benefit	0	0	422	(683)		0	0	0	0	0	422	0	0	0		0	0		0	(683)
Net earnings from discontinued operations	$ 90	$ (1,503)	$ (805)	$ (1,057)		$ 90	$ (1,509)	$ (1,227)	$ (3,038)	$ (102)	$ 422	$ (219)	$ (417)	$ (628)		$ 632	$ 570		$ (107)	$ 2,258

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Debt and obligations under capital lease

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Debt and obligations under capital lease

Debt and obligations under capital lease

(a)    Long-term debt and obligations under capital lease

Long-term debt and obligations under capital lease consists of the following:

	June 30, 2013	December 31, 2012
	$’000	$’000
Loans from banks and other parties collateralized by property, plant and equipment payable over periods of one to 20 years, with a weighted average interest rate of 4.18% and 4.14%, respectively	531,453	521,494
Obligations under capital lease	40	66
Total long-term debt and obligations under capital lease	531,493	521,560
Less: Current portion	93,370	90,115
Non-current portion of long-term debt and obligations under capital lease	438,123	431,445

For the renovation of El Encanto hotel, OEH entered into a loan agreement in August 2011 for $45,000,000 to be drawn as construction progresses. At June 30, 2013, OEH had borrowed $37,919,000 (December 31, 2012 - $25,749,000) under this facility.  The loan has a maturity of three years, with twoone year extensions, at an annual interest rate based on monthly LIBOR plus 3.65%.

At June 30, 2013, one of OEH’s subsidiaries had not complied with certain financial covenants in a loan facility. The $1,111,000 outstanding on this loan has been classified as a current portion of debt and OEH expects to rectify this non-compliance in the second half of 2013.

Most of OEH’s loan facilities relate to specific hotel or other properties and are secured by a mortgage on the particular property.  In most cases, the Company is either the borrower or the subsidiary owning the property is the borrower, with the loan guaranteed by the Company.

The loan facilities generally place restrictions on the property-owning company’s ability to incur additional debt and limit liens, and restrict mergers and asset sales, and include financial covenants. Where the property-owning subsidiary is the borrower, the financial covenants relate to the financial performance of the property financed and generally include covenants relating to interest coverage, debt service, and loan-to-value and debt-to-EBITDA tests.  Most of the facilities under which the Company is the borrower or the guarantor also contain financial covenants which are based on the performance of OEH on a consolidated basis. The covenants include a quarterly interest coverage test, minimum cash requirement test and a quarterly net worth test.

Many of OEH’s bank loan facilities include cross-default provisions under which a failure to pay principal or interest by the borrower or guarantor under other indebtedness in excess of a specified threshold amount would cause a default under the facilities.  Under OEH’s largest loan facility, the specified cross-default threshold amount is $25,000,000. At June 30, 2013, no cross-default provision in a loan facility had been triggered.

The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at June 30, 2013:

	$’000
Remainder of 2013	58,214
2014	186,029
2015	223,741
2016	10,538
2017	23,552
2018	9,554
2019 and thereafter	19,865
Total long term debt and obligations under capital lease	531,493

The Company has guaranteed $358,583,000 of the long-term debt of its subsidiary companies as at June 30, 2013 (December 31, 2012 - $341,078,000).

The fair value of the debt excluding obligations under capital leases at June 30, 2013 has been estimated in the amount of $546,174,000 (December 31, 2012 - $533,783,000).

Deferred financing costs related to the above outstanding long-term debt were $10,881,000 at June 30, 2013 (December 31, 2012 - $13,694,000) and are amortized to interest expense over the term of the corresponding long-term debt.

The debt of Charleston Center LLC, a consolidated VIE, of $97,049,000 at June 30, 2013 (December 31, 2012 - $97,945,000) is non-recourse to OEH and separately disclosed on the condensed consolidated balance sheets.  The debt was entered into in October 2010 and has a maturity of three years, with twoone year extensions and the interest rate is at LIBOR plus a margin of 3.50% per annum. See Note 4.

(b)Working capital loans

OEH had approximately $4,255,000 of working capital loans at June 30, 2013 (December 31, 2012 - $4,473,000) repayable within one year issued by various financial institutions and having various expiration dates, of which $4,255,000 was undrawn (December 31, 2012 - $4,473,000).

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Fair value measurement - Other financial instruments (Details) (Level 3, USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Carrying amount
Estimated fair values of financial instruments (other than derivative financial instruments)
Long-term debt, including current portion, excluding obligations under capital leases	$ 531,453	$ 521,494
Fair Value
Estimated fair values of financial instruments (other than derivative financial instruments)
Fair value of long-term debt, including current portion, excluding obligations under capital leases	546,174	533,783
Charleston Center LLC | Carrying amount
Estimated fair values of financial instruments (other than derivative financial instruments)
Long-term debt, including current portion, excluding obligations under capital leases	97,049	97,945
Charleston Center LLC | Fair Value
Estimated fair values of financial instruments (other than derivative financial instruments)
Fair value of long-term debt, including current portion, excluding obligations under capital leases	$ 97,645	$ 99,656

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Derivatives and hedging activities (Tables)

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of notional amounts of outstanding interest rate derivatives that were designated as cash flow hedges

As of June 30, 2013 and December 31, 2012, OEH had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: 

	June 30, 2013		December 31, 2012
	’000		’000
Interest Rate Swaps	€	139,781	€	142,094
Interest Rate Swaps	$	70,350	$	104,259

Schedule of fair value of derivative financial instruments

The table below presents the fair value of OEH’s derivative financial instruments and their classification as of June 30, 2013 and December 31, 2012: 

	Liability derivatives
		Fair value as of		Fair value as of
		June 30, 2013		December 31, 2012
	Balance sheet location	$’000		$’000
Derivatives designated in a cash flow hedging relationship:
Interest Rate Swaps	Accrued liabilities	(3,152	)	(3,858	)
Interest Rate Swaps	Other liabilities	(2,549	)	(5,021	)
Total		(5,701	)	(8,879	)
Derivatives not designated as hedging instruments:
Interest Rate Options	Other liabilities	10		6
Interest Rate Swaps	Accrued liabilities	(19	)	—
Interest Rate Swaps	Other liabilities	(14	)	—
Total		(23	)	6

Schedule of effect of netting arrangements

The following tables provide information for the effect of netting arrangements in the condensed consolidated balance sheets for required financial instruments at June 30, 2013 and December 31, 2012:

					Gross amounts not offset in the balance sheet
	Gross amounts of recognized liabilities	Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet	Financial instruments	Cash collateral posted	Net amount
June 30, 2013	$’000	$’000		$’000	$’000	$’000	$’000
Derivative liabilities	5,734	(10	)	5,724	—	—	5,724
					Gross amounts not offset in the balance sheet
	Gross amounts of recognized liabilities	Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet	Financial instruments	Cash collateral posted	Net amount
December 31, 2012	$’000	$’000		$’000	$’000	$’000	$’000
Derivatives liabilities	8,879	(6	)	8,873	—	—	8,873

Schedule of effect of derivative financial instruments on the statements of consolidated operations and statements of consolidated comprehensive income

Derivative movements not included in other comprehensive income for the three and six months endedJune 30, 2013 and 2012 were as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$’000		$’000		$’000		$’000
Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives	—		(23	)	37		(152	)
Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments	(7	)	(12	)	(29	)	(33	)

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Supplemental cash flow information (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash paid during the period for:
Interest	$ 12,755	$ 13,199
Income taxes, net of refunds	8,824	12,530
Capital expenditures incurred but not yet paid	$ 630	$ 1,004

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Assets held for sale and discontinued operations - Assets and Liabilities Held for Sale (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Jan. 31, 2013	Dec. 31, 2012
Assets and liabilities
Total assets held for sale	$ 2,925		$ 22,078
Total liabilities held for sale	(1,413)		(2,174)
Porto Cupecoy
Assets and liabilities
Current assets	0		0
Real estate assets	2,925		22,040
Property, plant and equipment, net	0	38	38
Total assets held for sale	2,925		22,078
Current liabilities	(1,413)		(2,174)
Total liabilities held for sale	$ (1,413)		$ (2,174)

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Goodwill (Tables)

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in carrying amount of goodwill

The changes in the carrying amount of goodwill for the six months endedJune 30, 2013 are as follows:

	Hotels & Restaurants		Trains & Cruises		Total
	$'000		$'000		$'000
Balance at January 1, 2013	153,287		7,991		161,278
Impairment	—		—		—
Foreign currency translation adjustment	(2,791	)	(184	)	(2,975	)
Balance at June 30, 2013	150,496		7,807		158,303

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Derivatives and hedging activities

6 Months Ended

Jun. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and hedging activities

Derivatives and hedging activities

Risk management objective of using derivatives

OEH enters into derivative financial instruments with the objective to manage its exposures to future movements in interest rates on its borrowings.

Cash flow hedges of interest rate risk

OEH’s objective in using interest rate derivatives is to add certainty and stability to its interest expense and to manage its exposure to interest rate movements. To accomplish this objective, OEH primarily uses interest rate swaps as part of its interest rate risk management strategy. An interest rate swap is a transaction between two parties in which each agrees to exchange, or swap, interest payments where the interest payment amounts are tied to different interest rates or indices for a specified period of time and are based on a notional amount of principal.  During the three and six months endedJune 30, 2013, interest rate swaps were used to hedge the variable cash flows associated with existing variable interest rate debt.

Derivative instruments are recorded on the condensed consolidated balance sheets at fair value.  The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in other comprehensive income/(loss) and is subsequently reclassified into earnings in the period that the hedged forecast transaction affects earnings.  The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.

As of June 30, 2013 and December 31, 2012, OEH had the following outstanding interest rate derivatives stated at their notional amounts in local currency that were designated as cash flow hedges of interest rate risk: 

	June 30, 2013		December 31, 2012
	’000		’000
Interest Rate Swaps	€	139,781	€	142,094
Interest Rate Swaps	$	70,350	$	104,259

Non-designated hedges of interest rate risk

Derivatives not designated as hedges are used to manage OEH’s exposure to interest rate movements but do not meet the strict hedge accounting requirements prescribed in the authoritative accounting guidance.  As of June 30, 2013, OEH had interest rate options with a fair value of $10,000 (December 31, 2012 - $6,000) and a notional amount of €74,906,000 and $53,200,000 (December 31, 2012 - €76,469,000 and $53,760,000) that were non-designated hedges of OEH’s exposure to interest rate risk. As of June 30, 2013, OEH had interest rate swaps with a negative fair value of $33,000 (December 31, 2012 - $Nil) and a notional amount of $1,956,000 (December 31, 2012 - $Nil) that were non-designated hedges of OEH’s exposure to interest rate risk.

The table below presents the fair value of OEH’s derivative financial instruments and their classification as of June 30, 2013 and December 31, 2012: 

	Liability derivatives
		Fair value as of		Fair value as of
		June 30, 2013		December 31, 2012
	Balance sheet location	$’000		$’000
Derivatives designated in a cash flow hedging relationship:
Interest Rate Swaps	Accrued liabilities	(3,152	)	(3,858	)
Interest Rate Swaps	Other liabilities	(2,549	)	(5,021	)
Total		(5,701	)	(8,879	)
Derivatives not designated as hedging instruments:
Interest Rate Options	Other liabilities	10		6
Interest Rate Swaps	Accrued liabilities	(19	)	—
Interest Rate Swaps	Other liabilities	(14	)	—
Total		(23	)	6

Offsetting

The following tables provide information for the effect of netting arrangements in the condensed consolidated balance sheets for required financial instruments at June 30, 2013 and December 31, 2012:

					Gross amounts not offset in the balance sheet
	Gross amounts of recognized liabilities	Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet	Financial instruments	Cash collateral posted	Net amount
June 30, 2013	$’000	$’000		$’000	$’000	$’000	$’000
Derivative liabilities	5,734	(10	)	5,724	—	—	5,724
					Gross amounts not offset in the balance sheet
	Gross amounts of recognized liabilities	Gross amounts offset in the balance sheet		Net amounts of liabilities presented in the balance sheet	Financial instruments	Cash collateral posted	Net amount
December 31, 2012	$’000	$’000		$’000	$’000	$’000	$’000
Derivatives liabilities	8,879	(6	)	8,873	—	—	8,873

Other comprehensive income

Information concerning the movements in other comprehensive income for cash flow hedges of interest rate risk is shown in Note 19. At June 30, 2013, the amount accounted for in other comprehensive income/(loss) which is expected to be reclassified to interest expense in the next 12 months is $3,086,000. Movements in other comprehensive income/(loss) for net investment hedges, recorded through foreign currency translation adjustments for the three and six months endedJune 30, 2013 were a $1,183,000 loss (June 30, 2012 - $5,140,000 gain) and a $72,000 loss (June 30, 2012 - $820,000 gain), respectively.

Derivative movements not included in other comprehensive income for the three and six months endedJune 30, 2013 and 2012 were as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$’000		$’000		$’000		$’000
Amount of gain/(loss) recognized in interest expense for the ineffective portion of derivatives	—		(23	)	37		(152	)
Amount of gain/(loss) recognized in interest expense for derivatives not designated as hedging instruments	(7	)	(12	)	(29	)	(33	)

Credit-risk-related contingent features

OEH has agreements with some of its derivative counterparties that contain provisions under which, if OEH defaults on the debt associated with the hedging instrument, OEH could also be declared in default in respect of its derivative obligations.

As of June 30, 2013, the fair value of derivatives in a net liability position, which includes accrued interest and an adjustment for non-performance risk, related to these agreements was $5,734,000 (December 31, 2012 - $8,879,000). If OEH breached any of the provisions, it would be required to settle its obligations under the agreements at their termination value of $5,756,000 (December 31, 2012 - $8,946,000).

Non-derivative financial instruments — net investment hedges

OEH uses certain of its debt denominated in foreign currency to hedge portions of its net investments in foreign operations against adverse movements in exchange rates. OEH’s designates its euro-denominated indebtedness as a net investment hedge of long-term investments in its euro-functional subsidiaries.  These contracts are included in non-derivative hedging instruments. The notional values of non-derivative hedging instruments were $42,896,000 at June 30, 2013 (December 31, 2012 - $44,166,000), both being liabilities of OEH.

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Fair value measurements

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair value measurements

Fair value measurements

(a)     Financial instruments recorded at fair value

Derivatives are recorded in the condensed consolidated balance sheets at fair value.  The valuation process for the derivatives uses observable market data provided by third-party sources. Interest rate swaps are valued by using yield curves derived from observable interest rates to project future swap cash flows and then discount these cash flows back to present values. Interest rate caps are valued using a model that projects the probability of various levels of interest rates occurring in the future using observable volatilities. OEH incorporates credit valuation adjustments to reflect both its own and its respective counterparty’s non-performance risk in the fair value measurements.

In the determination of fair value of derivative instruments, a credit valuation adjustment is applied to OEH’s derivative exposures to take into account the risk of the counterparty defaulting with the derivative in an asset position and, when the derivative is in a liability position, the risk that OEH may default. The credit valuation adjustment is calculated by determining the total expected exposure of the derivatives (incorporating both the current and potential future exposure) and then applying each counterparty’s credit spread to the applicable exposure.  For interest rate swaps, OEH’s own credit spread is applied to the counterparty’s exposure to OEH and the counterparties credit spread is applied to OEH’s exposure to the counterparty, and then the net credit valuation adjustment is reflected in the determination of the fair value of the derivative instrument.  The credit spreads used as inputs in the fair value calculations represent implied credit default swaps obtained from a third-party credit data provider.  Some of the inputs into the credit valuation adjustment are not observable and, therefore, they are considered to be Level 3 inputs.  Where credit valuation adjustment exceeds 20% of the fair value of the derivatives, Level 3 inputs are assumed to have a significant impact on the fair value of the derivatives in their entirety and the derivative is classified as Level 3.  OEH reviews its fair value hierarchy classifications quarterly.  OEH’s policy is to recognize transfers in and transfers out as of the end of each quarterly reporting period.

The following tables summarize the valuation of OEH’s financial instruments recorded at fair value by the fair value hierarchy at June 30, 2013 and December 31, 2012:

	Level 1	Level 2		Level 3	Total
June 30, 2013	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	10		—	10
Total assets	—	10		—	10
Liabilities at fair value:
Derivative financial instruments	—	(5,734	)	—	(5,734	)
Total net liabilities	—	(5,724	)	—	(5,724	)

	Level 1	Level 2		Level 3	Total
December 31, 2012	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	6		—	6
Total assets	—	6		—	6
Liabilities at fair value:
Derivative financial instruments	—	(8,879	)	—	(8,879	)
Total net liabilities	—	(8,873	)	—	(8,873	)

During the three and six months endedJune 30, 2013, there were no transfers between levels of the fair value hierarchy.

(b)    Other financial instruments

Certain methods and assumptions were used to estimate the fair value of each class of financial instruments. The carrying amount of current assets and current liabilities as disclosed on the condensed consolidated balance sheets approximate their fair value due to the short-term nature of those instruments.

The fair value of OEH's long-term debt, excluding interest rate swaps and caps, is determined using the contractual cash flows and credit-adjusted discount curves. The fair value of the debt is the present value of those contractual cash flows which are discounted at the current market cost of debt and adjusted for the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral.

The estimated carrying values, fair values, and levels of the fair value hierarchy of OEH's long-term debt as of June 30, 2013 and December 31, 2012 were as follows:

		June 30, 2013		December 31, 2012
		Carrying amounts $’000	Fair value $’000	Carrying amounts $’000	Fair value $’000
Long-term debt, including current portion, excluding obligations under capital leases	Level 3	531,453	546,174	521,494	533,783
Long-term debt, including current portion, held by consolidated variable interest entities	Level 3	97,049	97,645	97,945	99,656

(c)    Non-financial assets measured at fair value on a non-recurring basis

The estimated fair value of OEH’s non-financial assets measured on a non-recurring basis at June 30, 2013 was as follows:

		Fair value measurements using
	Fair Value at June 30, 2013 $’000	Quoted prices in active markets for identical assets (Level 1) $’000	Significant other observable inputs (Level 2) $’000	Significant unobservable inputs (Level 3) $’000	Total losses in the six months ended June 30, 2013 $’000
Property, plant and equipment	45,000	—	—	45,000	(35,680	)

During the three months ended March 31, 2013, OEH performed a strategic review of its assets and as a consequence, property, plant and equipment at La Samanna with a carrying value of $80,680,000 was written down to the hotel’s fair value of $45,000,000, resulting in a non-cash impairment charge of $35,680,000.  There were no impairments in the three months ended June 30, 2013 or the three and six months ended June 30, 2012. This impairment is included in earnings from continuing operations in the period incurred. See Note 6.

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Segment information - Adjusted earnings by segment (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	$ 48,990	$ 48,983	$ 59,461	$ 61,561
Impairment of property, plant and equipment	0	0	(35,680)	0
Central overheads	(9,398)	(9,882)	(19,923)	(19,649)
Depreciation and amortization	(12,271)	(10,514)	(23,812)	(21,035)
Interest income	284	309	522	641
Interest expense	(8,342)	(6,711)	(15,596)	(14,259)
Foreign currency, net	932	(1,525)	3,008	(598)
(Provision)/benefit for income taxes	(3,742)	(6,478)	2,132	(6,726)
Share of benefit for/(provision from) income taxes of unconsolidated companies	794	(1,001)	1,024	(987)
Earnings/(losses) from continuing operations	17,247	13,181	(28,864)	(1,052)
Net earnings/(losses) from discontinued operations	90	(1,503)	(805)	(1,057)
Net earnings/(losses)	17,337	11,678	(29,669)	(2,109)
Hotels and Restaurants [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	43,310	40,972	52,715	53,872
Depreciation and amortization	(10,853)	(9,277)	(20,987)	(18,592)
Tourist Trains and Cruises [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	5,680	8,011	6,746	7,689
Depreciation and amortization	(1,180)	(1,044)	(2,357)	(2,052)
Real Estate [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	0	0	0	0
Owned Hotels [Member] | Europe [Member] | Hotels and Restaurants [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	28,135	26,807	20,178	19,203
Depreciation and amortization	(4,606)	(4,426)	(9,262)	(8,907)
Owned Hotels [Member] | North America [Member] | Hotels and Restaurants [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	7,557	6,895	13,675	14,086
Depreciation and amortization	(3,468)	(2,393)	(6,189)	(4,729)
Owned Hotels [Member] | Rest of World [Member] | Hotels and Restaurants [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	5,206	5,150	18,212	18,868
Depreciation and amortization	(2,581)	(2,255)	(5,158)	(4,551)
Hotel Management or Part Ownership Interests [Member] | Hotels and Restaurants [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	1,792	1,636	(209)	892
Restaurants [Member] | Hotels and Restaurants [Member]
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Adjusted earnings by segment	620	484	859	823
Depreciation and amortization	$ (198)	$ (203)	$ (378)	$ (405)

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Commitments and contingencies (Tables)

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of future rental payments under operating leases

Future rental payments as at June 30, 2013 under operating leases in respect of equipment rentals and leased premises are payable as follows:

	$’000
Remainder of 2013	4,976
2014	9,842
2015	9,766
2016	9,582
2017	9,568
2018	8,762
2019 and thereafter	68,671
Future rental payments under operating leases	121,167

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Assets held for sale and discontinued operations (Tables)

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Summary of the net assets sold and gain (loss) on sale

The following is a summary of net assets sold and the gain recorded on sale for Porto Cupecoy, Bora Bora Lagoon Resort and Keswick Hall:

	Porto Cupecoy		Bora Bora Lagoon Resort		Keswick Hall
	January 31, 2013		June 1, 2012		January 23, 2012
	$'000		$'000		$'000
Property, plant & equipment, net	38		15,827		18,590
Real estate assets	18,512		—		—
Net working capital (deficit)/surplus	—		(720	)	401
Other assets/(liabilities)	—		—		(1,891	)
Deferred income taxes	—		—		—
Net assets	18,550		15,107		17,100
Transfer of foreign currency translation loss/(gain)	—		(13,074	)	—
	18,550		2,033		17,100
Consideration:
Cash	19,000		3,000		12,000
Reduction in debt facility on sale of hotel	—		—		10,000
Less: Working capital adjustment	(11	)	—		(430	)
Less: Costs to sell	—		(305	)	(513	)
	18,989		2,695		21,057
Gain/(loss) on sale	439		662		3,957

Summary of results of discontinued operations

Summarized operating results of the properties classified as discontinued operations for the three and six months endedJune 30, 2013 and 2012 are as follows:

	Three months ended June 30, 2013
	Porto Cupecoy	Total
	$'000	$'000
Revenue	8	8
Earnings before tax, gain on sale and impairment	90	90
Impairment	—	—
Gain on sale	—	—
Earnings before tax	90	90
Tax (provision)/benefit	—	—
Net earnings from discontinued operations	90	90

	Three months ended June 30, 2012
	Porto Cupecoy		The Westcliff		The Observatory Hotel		Bora Bora Lagoon Resort		Keswick Hall		Total
	$'000		$'000		$'000		$'000		$'000		$'000
Revenue	1,219		2,311		3,707		—		—		7,237
Losses before tax, gain on sale and impairment	(1,509	)	(102	)	(417	)	(76	)	(99	)	(2,203	)
Impairment	—		—		—		—		—		—
Gain on sale	—		—		—		708		(8	)	700
(Losses)/earnings before tax	(1,509	)	(102	)	(417	)	632		(107	)	(1,503	)
Tax (provision)/benefit	—		—		—		—		—		—
Net (losses)/earnings from discontinued operations	(1,509	)	(102	)	(417	)	632		(107	)	(1,503	)

	Six months ended June 30, 2013
	Porto Cupecoy		The Westcliff	Total
	$'000		$'000	$'000
Revenue	843		—	843
Earnings/(losses) before tax, gain on sale and impairment	(1,589	)	—	(1,589	)
Impairment	(77	)	—	(77	)
Gain on sale	439		—	439
Losses before tax	(1,227	)	—	(1,227	)
Tax (provision)/benefit	—		422	422
Net (losses)/earnings from discontinued operations	(1,227	)	422	(805	)

	Six months ended June 30, 2012
	Porto Cupecoy		The Westcliff		The Observatory Hotel		Bora Bora Lagoon Resort		Keswick Hall		Total
	$'000		$'000		$'000		$'000		$'000		$'000
Revenue	3,033		4,525		7,984		—		427		15,969
Losses before tax, gain on sale and impairment	(3,038	)	(219	)	(628	)	(138	)	(1,016	)	(5,039	)
Impairment	—		—		—		—		—		—
Gain on sale	—		—		—		708		3,957		4,665
(Losses)/earnings before tax	(3,038	)	(219	)	(628	)	570		2,941		(374	)
Tax (provision)/benefit	—		—		—		—		(683	)	(683	)
Net (losses)/earnings from discontinued operations	(3,038	)	(219	)	(628	)	570		2,258		(1,057	)

Summary of assets and liabilities of properties classified as held-for-sale

Assets and liabilities of the properties classified as held for sale consist of the following:

	June 30, 2013		December 31, 2012
	Porto Cupecoy		Porto Cupecoy
	$’000		$’000
Current assets	—		—
Real estate assets	2,925		22,040
Property, plant and equipment, net	—		38
Total assets held for sale	2,925		22,078
Current liabilities	(1,413	)	(2,174	)
Total liabilities held for sale	(1,413	)	(2,174	)

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Debt and obligations under capital lease (Tables)

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Schedule of long-term debt and obligations under capital lease

Long-term debt and obligations under capital lease consists of the following:

	June 30, 2013	December 31, 2012
	$’000	$’000
Loans from banks and other parties collateralized by property, plant and equipment payable over periods of one to 20 years, with a weighted average interest rate of 4.18% and 4.14%, respectively	531,453	521,494
Obligations under capital lease	40	66
Total long-term debt and obligations under capital lease	531,493	521,560
Less: Current portion	93,370	90,115
Non-current portion of long-term debt and obligations under capital lease	438,123	431,445

Summary of the aggregate maturities of long-term debt including obligations under capital lease

The following is a summary of the aggregate maturities of consolidated long-term debt, including obligations under capital lease, at June 30, 2013:

	$’000
Remainder of 2013	58,214
2014	186,029
2015	223,741
2016	10,538
2017	23,552
2018	9,554
2019 and thereafter	19,865
Total long term debt and obligations under capital lease	531,493

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Accumulated other comprehensive income/loss (Tables)

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Schedule of changes in accumulated other comprehensive income/(loss) by component (net of tax)

Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) are as follows:

	Foreign currency translation adjustments		Derivative financial instruments		Pension liability		Total
Six months ended June 30, 2013	$’000		$’000		$’000		$’000
Balance at January 1, 2013	(67,135	)	(5,976	)	(13,270	)	(86,381	)
Other comprehensive income/(loss) before reclassifications	(25,668	)	258		(116	)	(25,526	)
Amounts reclassified from AOCI	—		1,783		—		1,783
Net current period other comprehensive income/(loss)	(25,668	)	2,041		(116	)	(23,743	)
Balance at June 30, 2013	(92,803	)	(3,935	)	(13,386	)	(110,124	)

Schedule of reclassification out of accumulated other comprehensive income/(loss)

Reclassifications out of AOCI (net of tax) are as follows:

	Amount reclassified from AOCI
	Three months ended
	June 30, 2013	June 30, 2012
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	882	788	Interest expense
Total reclassifications for the period	882	788

	Amount reclassified from AOCI
	Six months ended
	June 30, 2013	June 30, 2012
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	1,783	1,999	Interest Expense
Total reclassifications for the period	1,783	1,999

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Subsequent events

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events

Subsequent events

On July 1, 2013, OEH signed banking agreements to refinance $17,125,000 of long-term debt maturing in 2013 (originally included in the current portion of long-term debt at June 30, 2013) and secured by the '21' Club restaurant and the Inn at Perry Cabin with a $24,000,000 loan that has a three year term with two one year extensions. As a result, at June 30, 2013, the original debt was reclassified as $2,000,000 within the current portion of long-term debt, and the remaining principal of $15,125,000 was classified within the non-current portion of long-term debt in the condensed consolidated balance sheet.

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Investments in unconsolidated companies - Textuals (Details) (USD $)	3 Months Ended		6 Months Ended									6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2013 Hotel and rail joint ventures in Peru	Jun. 30, 2013 Peruvian Hotel Joint Venture [Member]	Jun. 30, 2013 Eastern and Oriental Express Ltd.	Jun. 30, 2013 Buzios land joint venture	Jun. 30, 2007 Buzios land joint venture	Jun. 30, 2013 Hotel Ritz Madrid	Jun. 30, 2013 Contingent Financial Guarantee Additional Debt 2018 Peruvian Hotel Joint Venture [Member] hotel	Jun. 30, 2013 Contingent Financial Guarantee Additional Debt 2014 Peruvian Hotel Joint Venture [Member]	Jun. 30, 2013 First Mortgage Loan Facility Hotel Ritz Madrid	Jun. 30, 2013 Minimum Guarantees Hotel and rail joint ventures in Peru	Jun. 30, 2013 Debt [Member] Guarantees Hotel Ritz Madrid	Jun. 30, 2013 Working Capital Loan Facility [Member] Guarantees Hotel Ritz Madrid
Schedule of Equity Method Investments
Ownership percentage in equity method investment						50.00%	50.00%	25.00%			50.00%				50.00%
Ownership percentage in cost method investment									50.00%	50.00%
Cash consideration paid										$ 5,000,000
Investments in and loans and advances to unconsolidated companies	59,040,000		59,040,000		58,924,000
Earnings from unconsolidated companies, net of tax	3,260,000	2,335,000	2,633,000	2,303,000
Debt obligations guaranteed												18,100,000	2,029,000			9,749,000
Number of hotels operated by joint venture												4
Long-term debt default amount classified in current liabilities														$ 78,643,000			$ 594,000
Cost Method Investment Percentage Not Owned										50.00%

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Debt and obligations under capital leases - Long term debt and obligations under capital leases (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
Loans from banks and other parties collateralized by property, plant and equipment payable over periods of one to 20 years, with a weighted average interest rate of 4.18% and 4.14%, respectively	$ 531,453	$ 521,494
Obligations under capital lease	40	66
Total long term debt and obligations under capital lease	531,493	521,560
Less: Current portion	93,370	90,115
Non-current portion of long-term debt and obligations under capital lease	$ 438,123	$ 431,445

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Investments in unconsolidated companies - Summarized Financial Data (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2013		Jun. 30, 2012		Jun. 30, 2013		Jun. 30, 2012		Dec. 31, 2012
Summarized financial data for OEH's unconsolidated companies
Current assets	$ 64,288				$ 64,288				$ 75,339
Property, plant and equipment, net	351,497				351,497				354,640
Other assets	3,921				3,921				3,806
Non-current assets	355,418				355,418				358,446
Total assets	419,706				419,706				433,785
Current liabilities	150,346				150,346				165,413
Long-term debt	41,356				41,356				45,985
Other liabilities	120,826				120,826				115,763
Non-current liabilities	162,182				162,182				161,748
Total shareholders’ equity	107,178				107,178				106,624
Total liabilities and shareholders’ equity	419,706				419,706				433,785
Revenue	44,447		41,518		79,607		73,863
Gross profit	25,579	[1]	20,078	[1]	44,841	[1]	39,340	[1]
Net earnings	$ 6,490	[2]	$ 4,266	[2]	$ 5,496	[2]	$ 4,679	[2]

[1] Gross profit is defined as revenues less cost of services of the unconsolidated companies.

[2] There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies.

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Supplemental cash flow information (Tables)

6 Months Ended

Jun. 30, 2013

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental cash flow information

	Six months ended
	June 30, 2013	June 30, 2012
	$’000	$’000
Cash paid during the period for:
Interest	12,755	13,199
Income taxes, net of refunds	8,824	12,530

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Goodwill - Textuals (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Goodwill and impairment of goodwill
Gross amount of goodwill		$ 192,418
Accumulated impairment of goodwill		$ 31,140
Determination of goodwill impairment
Operating cash flows forecast period assumed in goodwill impairment analysis (in years)	5 years
Minimum period for which terminal value is included from the balance sheet date for goodwill impairment analysis (in years)	5 years

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Derivatives and hedging activities - Textual (Details) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended													6 Months Ended	12 Months Ended
	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Dec. 31, 2012 USD ($)	Jun. 30, 2013 Interest Rate Option [Member] Derivatives not designated as hedges USD ($)	Jun. 30, 2013 Interest Rate Option [Member] Derivatives not designated as hedges EUR (€)	Dec. 31, 2012 Interest Rate Option [Member] Derivatives not designated as hedges USD ($)	Dec. 31, 2012 Interest Rate Option [Member] Derivatives not designated as hedges EUR (€)	Jun. 30, 2013 Interest Rate Swap [Member] USD ($)	Jun. 30, 2013 Interest Rate Swap [Member] EUR (€)	Dec. 31, 2012 Interest Rate Swap [Member] USD ($)	Dec. 31, 2012 Interest Rate Swap [Member] EUR (€)	Jun. 30, 2013 Interest Rate Swap [Member] Derivatives not designated as hedges USD ($)	Dec. 31, 2012 Interest Rate Swap [Member] Derivatives not designated as hedges USD ($)	Jun. 30, 2013 Net Investment Hedging [Member] USD ($)	Dec. 31, 2012 Net Investment Hedging [Member] USD ($)
Derivatives, Fair Value [Line Items]
Fair value of derivative assets not designated as hedges						$ 10		$ 6
Fair value of derivative liabilities not designated as hedges														(33)	0
Interest Rate Swaps						53,200	74,906	53,760	76,469	70,350	139,781	104,259	142,094	1,956	0
Amount recorded in other comprehensive income which is expected to be reclassified to interest expense in the next 12 months										3,086
Fair value of derivatives in a net liability position	(5,734)		(5,734)		(8,879)
Assets required to settle obligations under derivatives with credit-risk-related contingent features upon breach of provisions, termination value	5,756		5,756		8,946
Fair value of non-derivative hedging instruments																42,896	44,166
Amounts recorded in other comprehensive income/(loss)	$ (1,183)	$ 5,140	$ (72)	$ 820

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Accumulated other comprehensive income/loss - Changes in accumulated other comprehensive income/(loss) by component (net of tax) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Increase (Decrease) in Stockholders' Equity
Balance at January 1, 2013			$ (86,381)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Total other comprehensive losses, net of tax	(8,376)	(42,828)	(23,737)	(23,883)
Balance at June 30, 2013	(110,124)		(110,124)
Foreign currency translation adjustments
Increase (Decrease) in Stockholders' Equity
Balance at January 1, 2013			(67,135)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Other comprehensive income/(loss) before reclassifications			(25,668)
Amounts reclassified from AOCI			0
Total other comprehensive losses, net of tax			(25,668)
Balance at June 30, 2013	(92,803)		(92,803)
Derivative financial instruments
Increase (Decrease) in Stockholders' Equity
Balance at January 1, 2013			(5,976)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Other comprehensive income/(loss) before reclassifications			258
Amounts reclassified from AOCI			1,783
Total other comprehensive losses, net of tax			2,041
Balance at June 30, 2013	(3,935)		(3,935)
Pension liability
Increase (Decrease) in Stockholders' Equity
Balance at January 1, 2013			(13,270)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Other comprehensive income/(loss) before reclassifications			(116)
Amounts reclassified from AOCI			0
Total other comprehensive losses, net of tax			(116)
Balance at June 30, 2013	(13,386)		(13,386)
Accumulated other comprehensive income/(loss)
Increase (Decrease) in Stockholders' Equity
Balance at January 1, 2013			(86,381)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract]
Other comprehensive income/(loss) before reclassifications			(25,526)
Amounts reclassified from AOCI			1,783
Total other comprehensive losses, net of tax			(23,743)	(23,885)
Balance at June 30, 2013	$ (110,124)		$ (110,124)

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Segment information - Revenue (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Revenue	$ 171,850	$ 160,489	$ 275,920	$ 261,036
Europe [Member]
Segment Reporting Information [Line Items]
Revenue	97,105	94,336	117,670	115,673
North America [Member]
Segment Reporting Information [Line Items]
Revenue	40,500	33,937	74,999	66,868
Rest of World [Member]
Segment Reporting Information [Line Items]
Revenue	34,245	32,216	83,251	78,495
Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Revenue	149,092	136,236	243,243	228,600
Hotels and Restaurants [Member] | Hotel Management or Part Ownership Interests [Member]
Segment Reporting Information [Line Items]
Revenue	1,634	1,611	2,770	2,678
Hotels and Restaurants [Member] | Restaurants [Member]
Segment Reporting Information [Line Items]
Revenue	4,432	3,942	8,227	7,808
Hotels and Restaurants [Member] | Owned Hotels [Member] | Europe [Member]
Segment Reporting Information [Line Items]
Revenue	75,190	70,850	91,237	86,638
Hotels and Restaurants [Member] | Owned Hotels [Member] | North America [Member]
Segment Reporting Information [Line Items]
Revenue	36,068	29,995	66,772	59,060
Hotels and Restaurants [Member] | Owned Hotels [Member] | Rest of World [Member]
Segment Reporting Information [Line Items]
Revenue	31,768	29,838	74,237	72,416
Tourist Trains and Cruises [Member]
Segment Reporting Information [Line Items]
Revenue	22,758	24,253	32,677	32,436
Real Estate [Member]
Segment Reporting Information [Line Items]
Revenue	$ 0	$ 0	$ 0	$ 0

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Commitments and contingencies

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments and contingencies

Outstanding contracts to purchase property, plant and equipment were approximately $4,428,000 at June 30, 2013 (December 31, 2012 - $9,650,000).

As part of the consideration for the acquisition of Grand Hotel Timeo and Villa Sant’Andrea in January 2010, OEH agreed to pay the vendor a further €5,000,000 (equivalent to $7,064,000 at date of acquisition) if, by 2015, additional rooms are constructed at Grand Hotel Timeo and certain required permits are granted to expand and add a swimming pool to Villa Sant’Andrea. At June 30, 2013, €4,000,000 has been paid (equivalent to $5,250,000 at the dates paid). See Note 10.

In the three months ended March 31, 2013, Copacabana Palace hotel was inspected by the Rio State Consumer Protection Agency and found to be in violation of certain consumer protection regulations, thereby subjecting the hotel to a potential fine for these infractions up to a maximum amount of $3,600,000. At March 31, 2013, due to the uncertainty of acceptance of the hotel's defense advancing reasons for mitigation of any fine, the Company accrued no amount for this loss contingency. On July 8, 2013, a fine in the amount of $140,000 was imposed by the agency and this amount has been accrued at June 30, 2013.

On February 5, 2013, the State of Rio de Janeiro Court of Justice affirmed a 2011 decision of a Rio state trial court against Sea Containers Ltd (“SCL”) in lawsuits brought against SCL by minority shareholders in Companhia Hoteis Palace (“CHP”), the company that owns the Copacabana Palace, relating to the recapitalization of CHP in 1995, but reduced the total award against SCL to approximately $27,000,000.  SCL has further appealed the judgment during the second quarter of 2013 to the Superior Court of Justice in Brasilia.  SCL sold its shares in CHP to the Company in 2000. Years later, in 2006, SCL entered insolvency proceedings in the U.S. and Bermuda which are continuing in Bermuda.  Possible claims could be asserted against the Company or CHP in connection with this Brazilian litigation, although no claims have been asserted to date.  Management cannot estimate the range of possible loss and OEH has made no reserves in respect of this matter.  If any such claims were brought, OEH would vigorously defend its interests.

The Company and certain of its subsidiaries are parties to various legal proceedings arising in the normal course of business. These proceedings generally include matters relating to labor disputes, tax claims, personal injury cases, lease negotiations and ownership disputes. The outcome of each of these matters cannot be determined with certainty, and the liability that the relevant parties may ultimately incur with respect to any one of these matters in the event of a negative outcome may be in excess of amounts currently accrued for with respect to these matters. Where a reasonable estimate can be made, the additional losses or range of loss that may be incurred in excess of the amount recognized from the various legal proceedings arising in the normal course of business are disclosed separately for each claim, including a reference to where it is disclosed. However, for certain of the legal proceedings, management is unable to estimate the loss or range of loss that may result from these claims due to the highly complex nature or early stage of the legal proceedings.

In May 2010, OEH settled litigation for infringement of its “Cipriani” trademark in Europe.  An amount of $3,947,000 was paid by the defendants to OEH on March 2, 2010 with the balance of $9,833,000 being payable in installments over five years with interest.  The remaining payments, totaling $3,732,000 at June 30, 2013, have not been recognized by OEH because of the uncertainty of collectability.

Future rental payments as at June 30, 2013 under operating leases in respect of equipment rentals and leased premises are payable as follows:

	$’000
Remainder of 2013	4,976
2014	9,842
2015	9,766
2016	9,582
2017	9,568
2018	8,762
2019 and thereafter	68,671
Future rental payments under operating leases	121,167

Rental expense for the three and six months endedJune 30, 2013 amounted to $2,760,000 (June 30, 2012 - $2,566,000) and $5,313,000 (June 30, 2012 - $5,462,000), respectively.

OEH has granted to James Sherwood, a former director of the Company, a right of first refusal to purchase the Hotel Cipriani in Venice, Italy in the event OEH proposes to sell it. The purchase price would be the offered sale price in the case of a cash sale or the fair market value of the hotel, as determined by an independent valuer, in the case of a non-cash sale. Mr. Sherwood has also been granted an option to purchase the hotel at fair market value if a change in control of the Company occurs. Mr. Sherwood may elect to pay 80% of the purchase price if he exercises his right of first refusal, or 100% of the purchase price if he exercises his purchase option, by a non-recourse promissory note secured by the hotel payable in ten equal annual installments with interest at LIBOR. The option is not assignable and expires one year after Mr. Sherwood’s death. These agreements relating to the Hotel Cipriani between Mr. Sherwood and OEH and its predecessor companies have been in place since 1983 and were last amended and restated in 2005.

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Statements of Condensed Consolidated Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statement of Comprehensive Income [Abstract]
Net earnings/(losses)	$ 17,337	$ 11,678	$ (29,669)	$ (2,109)
Other comprehensive income/(losses), net of tax:
Foreign currency translation adjustments, net of tax provision/(benefit) of $(371), $Nil, $(257) and $Nil	(9,224)	(42,060)	(25,662)	(22,417)
Change in fair value of derivatives, net of tax provision/(benefit) of $319, $(326), $633 and $(413)	830	(576)	2,041	(1,096)
Change in pension liability, net of tax provision/(benefit) of $1, $Nil, $(52) and $Nil	18	(192)	(116)	(370)
Total other comprehensive losses, net of tax	(8,376)	(42,828)	(23,737)	(23,883)
Total comprehensive income/(loss)	8,961	(31,150)	(53,406)	(25,992)
Comprehensive (income)/loss attributable to non-controlling interests	126	92	(89)	(177)
Comprehensive income/(loss) attributable to Orient-Express Hotels Ltd.	$ 9,087	$ (31,058)	$ (53,495)	$ (26,169)

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Statements of Condensed Consolidated Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities:
Net earnings/(losses)	$ (29,669)	$ (2,109)
Less: Net losses from discontinued operations, net of tax	(805)	(1,057)
Net losses from continuing operations	(28,864)	(1,052)
Adjustments to reconcile net (losses)/earnings to net cash (used in)/provided by operating activities:
Depreciation and amortization	23,812	21,035
Amortization of finance costs	3,517	2,571
Impairment of property, plant and equipment	35,680	0
Undistributed earnings of unconsolidated companies	(1,609)	(3,290)
Tax on earnings of unconsolidated companies	(1,024)	987
Share-based compensation	3,886	3,509
Change in deferred income tax	(8,238)	(2,567)
Change in provisions for uncertain tax positions	(3,140)	(16)
Dividends from equity method investees	1,302	1,822
Proceeds from insurance settlements	0	320
Effect of exchange rates on net losses	(6,356)	(5,467)
Change in assets and liabilities, net of effects from acquisitions:
Accounts receivable	(7,191)	(6,625)
Due from unconsolidated companies	(260)	(4,801)
Prepaid expense and other	(2,674)	(1,437)
Inventories	(1,793)	(567)
Escrow, prepaid customer deposits and security for package travel	2,518	(1,439)
Accounts payable	1,541	(859)
Accrued liabilities	9,652	8,549
Deferred revenue	11,099	8,824
Other, net	208	534
Net cash provided by operating activities from continuing operations	32,066	20,031
Net cash (used in)/provided by operating activities from discontinued operations	(1,403)	932
Net cash provided by operating activities	30,663	20,963
Cash flows from investing activities:
Capital expenditures	(38,402)	(44,508)
Investments in unconsolidated companies	(4,804)	(3,729)
Increase in restricted cash	(148)	0
Release of restricted cash	117	39
Proceeds from insurance settlements	234	0
Net cash used in investing activities from continuing operations	(43,003)	(48,198)
Net cash provided by investing activities from discontinued operations	18,989	23,302
Net cash used in investing activities	(24,014)	(24,896)
Cash flows from financing activities:
Proceeds from working capital loans	0	501
Share options exercised	3	2
Issuance of long-term debt	36,169	23,703
Debt issuance costs	(832)	(1,463)
Principal payments under long-term debt	(20,870)	(36,601)
Net cash provided by/(used in) financing activities from continuing operations	14,470	(13,858)
Net cash used in financing activities from discontinued operations	0	0
Net cash provided by/(used in) financing activities	14,470	(13,858)
Effect of exchange rate changes on cash and cash equivalents	(881)	(751)
Net increase/(decrease) in cash and cash equivalents	20,238	(18,542)
Cash and cash equivalents at beginning of year	93,382	90,104
Cash and cash equivalents at end of year	$ 113,620	$ 71,562

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Earnings per share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Earnings per share

Earnings per share

Basic earnings per share are based upon net earnings/(losses) attributable to OEH divided by the weighted average number of class A and B common shares outstanding for the period. Diluted earnings/(losses) per share reflect the increase in shares using the treasury stock method to reflect the impact of an equivalent number of shares as if share options were exercised and share-based awards were converted into common shares. Potentially dilutive shares are excluded when the effect would be to increase diluted earnings per share or reduce the diluted loss per share. 

A reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share is as follows:

	Three months ended			Six months ended
	June 30, 2013	June 30, 2012		June 30, 2013		June 30, 2012
Numerator ($'000):
Net earnings/(losses) from continuing operations	17,247	13,181		(28,864	)	(1,052	)
Net earnings/(losses) from discontinued operations	90	(1,503	)	(805	)	(1,057	)
Net losses/(earnings) attributable to non-controlling interests	126	96		(83	)	(175	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	17,463	11,774		(29,752	)	(2,284	)
Denominator (shares '000):
Basic weighted average shares outstanding	103,063	102,890		103,037		102,803
Effect of dilution	2,249	973		—		—
Diluted weighted average shares outstanding	105,312	103,863		103,037		102,803
	$	$		$		$
Basic earnings per share:
Net earnings/(losses) from continuing operations	0.167	0.128		(0.280	)	(0.010	)
Net earnings/(losses) from discontinued operations	0.001	(0.015	)	(0.008	)	(0.010	)
Net losses/(earnings) attributable to non-controlling interests	0.001	0.001		(0.001	)	(0.002	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	0.169	0.114		(0.289	)	(0.022	)
Diluted earnings per share:
Net earnings/(losses) from continuing operations	0.164	0.127		(0.280	)	(0.010	)
Net earnings/(losses) from discontinued operations	0.001	(0.014	)	(0.008	)	(0.010	)
Net losses/(earnings) attributable to non-controlling interests	0.001	0.001		(0.001	)	(0.002	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	0.166	0.114		(0.289	)	(0.022	)

For the six months ended June 30, 2013 and 2012, all share options and share-based awards were excluded from the calculation of the diluted weighted average number of shares because OEH incurred a net loss in those periods and the effect of their inclusion would be anti-dilutive.

The total number of share options and share-based awards excluded from computing diluted earnings per share were as follows: 

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Share options	231,150	1,593,622	3,276,600	2,956,559
Share-based awards	—	2,116	1,601,463	755,374
Total	231,150	1,595,738	4,878,063	3,711,933

The number of share options and share-based awards unexercised at June 30, 2013 was 4,878,063 (June 30, 2012 - 4,039,349).

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Debt and obligations under capital leases - Long-term debt and obligations under capital leases - parenthetical (Details)			6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Minimum	Jun. 30, 2013 Maximum
Debt Instrument [Line Items]
Weighted-average interest rate	4.18%	4.14%
Period of debt repayment			1 year	20 years

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Statements of Condensed Consolidated Total Equity (USD $) In Thousands, unless otherwise specified	Total	Preferred shares at par value	Common shares at par value Class A common shares at par value	Common shares at par value Class B common shares at par value	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income/(loss)	Common shares held by a subsidiary	Non-controlling interests
Balance at Dec. 31, 2011	$ 952,525	$ 0	$ 1,026	$ 181	$ 975,330	$ 46,263	$ (72,289)	$ (181)	$ 2,195
Increase (Decrease) in Stockholders' Equity
Share based compensation	3,537				3,537
Share options exercised	2		2
Comprehensive loss:
Net losses on common shares	(2,109)					(2,284)			175
Net current period other comprehensive income/(loss)	(23,883)						(23,885)		2
Balance at Jun. 30, 2012	930,072	0	1,028	181	978,867	43,979	(96,174)	(181)	2,372
Balance at Dec. 31, 2012	938,323	0	1,029	181	982,106	39,202	(86,381)	(181)	2,367
Increase (Decrease) in Stockholders' Equity
Share based compensation	3,915				3,915
Share options exercised	3		3
Comprehensive loss:
Net losses on common shares	(29,669)					(29,752)			83
Net current period other comprehensive income/(loss)	(23,737)						(23,743)		6
Balance at Jun. 30, 2013	$ 888,835	$ 0	$ 1,032	$ 181	$ 986,021	$ 9,450	$ (110,124)	$ (181)	$ 2,456

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Other liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Other Liabilities Disclosure [Abstract]

Schedule of major balances in other liabilities

The major balances in other liabilities are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Interest rate swaps (see Note 18)	2,563	5,021
Long-term accrued interest on subordinated debt at Charleston Place Hotel	15,040	14,740
Cash-settled stock appreciation rights plan	67	96
Deferred lease incentive	414	468
Contingent consideration on acquisition of Grand Hotel Timeo and Villa Sant’Andrea	1,169	1,186
Total other liabilities	19,253	21,511

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Accumulated other comprehensive income/loss

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Accumulated other comprehensive loss

Accumulated other comprehensive income/loss

Changes in accumulated other comprehensive income/(loss) (“AOCI”) by component (net of tax) are as follows:

	Foreign currency translation adjustments		Derivative financial instruments		Pension liability		Total
Six months ended June 30, 2013	$’000		$’000		$’000		$’000
Balance at January 1, 2013	(67,135	)	(5,976	)	(13,270	)	(86,381	)
Other comprehensive income/(loss) before reclassifications	(25,668	)	258		(116	)	(25,526	)
Amounts reclassified from AOCI	—		1,783		—		1,783
Net current period other comprehensive income/(loss)	(25,668	)	2,041		(116	)	(23,743	)
Balance at June 30, 2013	(92,803	)	(3,935	)	(13,386	)	(110,124	)

Reclassifications out of AOCI (net of tax) are as follows:

	Amount reclassified from AOCI
	Three months ended
	June 30, 2013	June 30, 2012
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	882	788	Interest expense
Total reclassifications for the period	882	788

	Amount reclassified from AOCI
	Six months ended
	June 30, 2013	June 30, 2012
Details about AOCI components	$’000	$’000	Affected line item in the statement of operations
Derivative financial instruments:
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	1,783	1,999	Interest Expense
Total reclassifications for the period	1,783	1,999

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Basis of financial statement presentation (Policies)

6 Months Ended

Jun. 30, 2013

Accounting Policies [Abstract]

Basis of accounting

Business

In this report Orient-Express Hotels Ltd. is referred to as the “Company”, and the Company and its subsidiaries are referred to collectively as “OEH”.

At June 30, 2013, OEH owned, invested in or managed 35 deluxe hotels and resorts located in the United States, Mexico, Caribbean, Europe, Southern Africa, South America, and Southeast Asia, one stand-alone restaurant in New York, six tourist trains in Europe, Southeast Asia and Peru, two river cruise businesses in Myanmar (Burma) and one canal boat business in France.

Basis of presentation

The accompanying condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reporting on Form 10-Q.  Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements.  In the opinion of the management of the Company, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, operating results and cash flows for the interim period have been included in these condensed consolidated financial statements.

“FASB” means Financial Accounting Standards Board.  “ASC” means the Accounting Standards Codification of the FASB and “ASU” means an Accounting Standards Update of the FASB.

The interim results presented are not necessarily indicative of results that may be expected for any subsequent interim period or the fiscal year ending December 31, 2013.

These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  See Note 1 to the consolidated financial statements in the 2012 Annual Report on Form 10-K for additional information regarding significant accounting policies.

For interim income tax reporting purposes, OEH generally determines its best estimate of an annual effective tax rate and applies that rate on a year-to-date basis applicable to its ordinary income. OEH’s estimated annual effective tax rate excludes significant, unusual or infrequently occurring items, jurisdictions for which a reliable estimate cannot be made or where the estimated benefit of losses cannot be recognized, and certain other items excluded pursuant to the U.S. GAAP authoritative guidance.  The income tax expense (or benefit) related to all other items is individually computed and recognized when the items occur.

Reclassifications

Certain prior period amounts have been reclassified or disaggregated to conform to the current period’s presentation. The reclassifications had no effect on net earnings, net assets, retained earnings or net cash flows.

OEH's reclassifications in the statements of condensed consolidated operations were:

• Discontinued operations were reclassified for all periods presented. See Note 3 for a summary of the results of discontinued operations, certain assets held for sale and the balances and results associated with discontinued operations.

• During the fourth quarter of 2012, an additional gain of $1,613,000 related to the sale of Keswick Hall was identified that should have been recorded in the first quarter of 2012. Discontinued operations for the six months ended June 30, 2012 have been restated to include this gain.

• Certain expenses that were previously recorded within costs of sales were reclassified into selling, general and administrative expenses to correct for an error in classification. The balances reclassified were $1,174,000 and $2,395,000 for the three and six months endedJune 30, 2012, respectively.

During 2012, management determined that certain amounts previously reported in the interim statements of condensed consolidated cash flows for the six months endedJune 30, 2012 should be reclassified, which had the following effects:

• Debt issuance costs, which were previously included in cash flows from operating activities, are separately stated as a cash flow from financing activities for all periods. The effect in the six months endedJune 30, 2012 was a decrease in cash flows from financing activities of $1,463,000, with a corresponding increase to cash flows from operating activities.

• Debt repaid by a third party when a business is sold was previously considered a non-cash transaction. This $10,000,000 has been included as net cash provided by investing activities from discontinued operations and net cash used in financing activities from continuing operations for the six months endedJune 30, 2012.

Accounting pronouncements adopted during the period and to be adopted

Accounting pronouncements adopted during the period

In April 2013, the FASB issued guidance on applying the liquidation basis of accounting and the related disclosure requirements. Under this guidance, an entity must use the liquidation basis of accounting to present its financial statements when it determines that liquidation is imminent, unless the liquidation is the same as that under the plan specified in an entity's governing documents created at its inception. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). This guidance is effective for annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Early adoption is permitted. The Company has early adopted this guidance. This guidance does not have an effect on the Company's consolidated financial position, results of operations and cash flows as it expects to continue as a going concern.

In February 2013, the FASB issued guidance which requires entities to disclose the following additional information about items reclassified out of accumulated other comprehensive income (“AOCI”):

• Changes in AOCI balances by component (e.g., unrealized gains or losses on available-for-sale securities or foreign-currency items).

• Significant items reclassified out of AOCI by component either on the face of the income statement or as a separate footnote to the consolidated financial statements.

The guidance does not change the current U.S. GAAP requirements for interim financial statement reporting of comprehensive income. That is, a total for comprehensive income must be reported in condensed consolidated interim financial statements in either (1) a single continuous statement or (2) two separate but consecutive statements. However, public entities would also need to include information about (1) changes in AOCI balances by component and (2) significant items reclassified out of AOCI in their interim reporting periods. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. The amendments in the guidance should be applied prospectively. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein.

In July 2012, the FASB issued guidance related to annual impairment assessment of intangible assets, other than goodwill, that gives companies the option to perform a qualitative assessment before calculating the fair value of the asset. Although the guidance revises the examples of events and circumstances that an entity should consider in interim periods, it does not revise the requirements to test indefinite-lived intangible assets (1) annually for impairment and (2) between annual tests if there is a change in events or circumstances that would indicate an impairment. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The adoption of this guidance did not have a material effect on OEH’s interim consolidated financial position, results of operations and cash flows and is not expected to have a material effect on the consolidated financial position, results of operations and cash flows for the year ended December 31, 2013.

In December 2011, the FASB issued accounting guidance that requires companies to provide new disclosures about offsetting assets and liabilities and related arrangements for financial instruments and derivatives. In January 2013, the FASB issued guidance clarifying the scope of the previously issued guidance. The guidance clarifies the disclosure requirements would apply to derivative instruments accounted for in accordance with ASC 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending arrangements that are either offset on the balance sheet or subject to an enforceable master netting arrangement or similar agreement. The provisions of this guidance were effective for annual reporting periods beginning on or after January 1, 2013. The Company adopted this guidance on January 1, 2013 for interim and annual periods in the fiscal year ending December 31, 2013. The disclosure required by this guidance is included in the condensed consolidated interim financial statements included herein.

Accounting pronouncements to be adopted

In March 2013, the FASB issued guidance which indicates that the entire amount of a cumulative translation adjustment (“CTA”) related to an entity’s investment in a foreign entity should be released when there has been any of the following:

• Sale of a subsidiary or group of net assets within a foreign entity and the sale represents the substantially complete liquidation of the investment in the foreign entity.

• Loss of a controlling financial interest in an investment in a foreign entity (i.e., the foreign entity is deconsolidated).

• Step acquisition for a foreign entity (i.e., when an entity has changed from applying the equity method for an investment in a foreign entity to consolidating the foreign entity).

The ASU does not change the requirement to release a pro rata portion of the CTA of the foreign entity into earnings for a partial sale of an equity method investment in a foreign entity. This guidance is effective for fiscal years (and interim periods within those fiscal years) beginning on or after December 15, 2013. Early adoption is permitted and the guidance should be applied prospectively from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows.

In February 2013, the FASB issued guidance which requires entities to measure obligations resulting from joint-and-several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors, and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of the obligation for all joint parties. The guidance permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint-and-several obligation). These disclosure requirements are incremental to the existing related party disclosure requirements. The guidance is effective for all prior periods in fiscal years beginning on or after December 15, 2013 (and interim reporting periods within those years). The guidance should be applied retrospectively to obligations with joint-and-several liability existing at the beginning of an entity’s fiscal year of adoption. Entities that elect to use hindsight in measuring their obligations during the comparative periods must disclose that fact. Early adoption is permitted. The Company does not expect the adoption of this guidance will have a material effect on its consolidated financial position, results of operations and cash flows.

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Other intangible assets - Textuals (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Finite Lived Intangible Assets
Amortization expense	$ 119	$ 120	$ 228	$ 244
Remainder of 2013	228		228
2014	456		456
2015	456		456
2016	456		456
2017	456		456
2018	456		456
Favorable Lease Assets
Finite Lived Intangible Assets
Amortization expense			164
Favorable Lease Assets | Minimum
Finite Lived Intangible Assets
Amortization period (in years)			19 years
Favorable Lease Assets | Maximum
Finite Lived Intangible Assets
Amortization period (in years)			60 years
Internet Sites
Finite Lived Intangible Assets
Amortization period (in years)			10 years
Amortization expense			$ 64

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Segment information - Revenue by geography (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 171,850	$ 160,489	$ 275,920	$ 261,036
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	97,105	94,336	117,670	115,673
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	40,500	33,937	74,999	66,868
Rest of World [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 34,245	$ 32,216	$ 83,251	$ 78,495

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Property, plant and equipment (Tables)

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

Schedule of major classes of property plant and equipment

The major classes of property, plant and equipment are as follows:

	June 30, 2013		December 31, 2012
	$’000		$’000
Land and buildings	1,001,451		1,054,171
Machinery and equipment	199,143		193,941
Fixtures, fittings and office equipment	219,594		206,135
River cruise ship and canal boats	18,429		18,255
	1,438,617		1,472,502
Less: Accumulated depreciation	(313,153	)	(300,899	)
Total property, plant and equipment, net	1,125,464		1,171,603

Schedule of major classes of assets under capital leases

The major classes of assets under capital leases included above are as follows:

	June 30, 2013		December 31, 2012
	$’000		$’000
Freehold and leased land and buildings	—		—
Machinery and equipment	875		918
Fixtures, fittings and office equipment	102		103
	977		1,021
Less: Accumulated depreciation	(845	)	(829	)
Total assets under capital leases	132		192

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Other intangible assets - Rollforward (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Carrying amount:
Balance at beginning of period			$ 21,763
Foreign currency translation adjustment			(287)
Balance at end of period	21,476		21,476
Accumulated amortization:
Balance at beginning of period			3,155
Charge for the period	119	120	228	244
Foreign currency translation adjustment			(91)
Balance at end of period	3,292		3,292
Net book value:
Net book value	18,184		18,184		18,608
Trade Names
Carrying amount:
Balance at beginning of period			7,100
Indefinite-lived Intangible Assets, Translation Adjustments			0
Balance at end of period	7,100		7,100
Net book value:
Net book value	7,100		7,100		7,100
Favorable Lease Assets
Carrying amount:
Balance at beginning of period			12,971
Foreign currency translation adjustment			(173)
Balance at end of period	12,798		12,798
Accumulated amortization:
Balance at beginning of period			2,248
Charge for the period			164
Foreign currency translation adjustment			(30)
Balance at end of period	2,382		2,382
Net book value:
Net book value	10,416		10,416		10,723
Internet Sites
Carrying amount:
Balance at beginning of period			1,692
Foreign currency translation adjustment			(114)
Balance at end of period	1,578		1,578
Accumulated amortization:
Balance at beginning of period			907
Charge for the period			64
Foreign currency translation adjustment			(61)
Balance at end of period	910		910
Net book value:
Net book value	$ 668		$ 668		$ 785

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Accumulated other comprehensive income/loss - Reclassifications out of accumulated other comprehensive income/(loss) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	$ 8,342	$ 6,711	$ 15,596	$ 14,259
Total reclassifications for the period	17,337	11,678	(29,669)	(2,109)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total reclassifications for the period	882	788	1,783	1,999
Derivative financial instruments | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Cash flows from derivative financial instruments related to interest payments made for the hedged debt instrument	$ 882	$ 788	$ 1,783	$ 1,999

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Assets held for sale and discontinued operations - Net Assets Sold and Gain on Sale (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended		6 Months Ended			0 Months Ended	3 Months Ended			6 Months Ended	0 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Jan. 31, 2013 Porto Cupecoy	Jun. 30, 2013 Porto Cupecoy	Jun. 30, 2012 Porto Cupecoy	Jun. 30, 2013 Porto Cupecoy	Jun. 30, 2012 Porto Cupecoy	Dec. 31, 2012 Porto Cupecoy	Jun. 01, 2012 Bora Bora Lagoon Resort	Dec. 31, 2012 Bora Bora Lagoon Resort	Sep. 30, 2012 Bora Bora Lagoon Resort	Jun. 30, 2012 Bora Bora Lagoon Resort	Jun. 30, 2012 Bora Bora Lagoon Resort	Jan. 23, 2012 Keswick Hall	Jun. 30, 2012 Keswick Hall	Jun. 30, 2012 Keswick Hall
Net assets sold and gain on sale
Property, plant & equipment, net					$ 38	$ 0		$ 0		$ 38	$ 15,827					$ 18,590
Real estate assets					18,512						0					0
Net working capital (deficit)/surplus					0						(720)					401
Other assets/(liabilities)					0						0					(1,891)
Deferred income taxes					0						0					0
Net assets					18,550						15,107					17,100
Transfer of foreign currency translation loss/(gain)					0						(13,074)					0
Net assets after adjustments					18,550						2,033					17,100
Cash proceeds from divestiture of businesses, including reduction in debt facility on sale of asset																22,000
Consideration:
Cash					19,000						3,000					12,000
Reduction in debt facility on sale of hotel					0						0					10,000
Less: Working capital adjustment					(11)						0					(430)
Less: Costs to sell					0						(305)	(28)	(18)			(513)
Net proceeds					18,989						2,695					21,057
Gain/(loss) on sale	$ 0	$ 700	$ 439	$ 4,665	$ 439	$ 0	$ 0	$ 439	$ 0		$ 662			$ 708	$ 708	$ 3,957	$ (8)	$ 3,957

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Segment information (Tables)

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Schedule of financial information regarding business segments

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013		June 30, 2012
Earnings from unconsolidated companies, net of tax:	$’000	$’000	$’000		$’000
Hotels and restaurants
Hotel management/part ownership interests	586	2,244	(1,000	)	1,284
Tourist trains and cruises	2,674	91	3,633		1,019
Total earnings from unconsolidated companies, net of tax	3,260	2,335	2,633		2,303

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Capital expenditure:	$’000	$’000	$’000	$’000
Owned hotels - Europe	2,813	7,469	6,441	12,014
- North America	9,064	12,508	21,302	22,517
- Rest of World	4,344	3,670	7,318	6,549
Restaurants	83	269	119	438
Hotels and restaurants	16,304	23,916	35,180	41,518
Tourist trains and cruises	1,264	1,426	3,073	2,453
Unallocated corporate	124	94	149	537
Total capital expenditure	17,692	25,436	38,402	44,508

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Depreciation and amortization:	$’000	$’000	$’000	$’000
Owned hotels - Europe	4,606	4,426	9,262	8,907
- North America	3,468	2,393	6,189	4,729
- Rest of World	2,581	2,255	5,158	4,551
Restaurants	198	203	378	405
Hotels and restaurants	10,853	9,277	20,987	18,592
Tourist trains and cruises	1,180	1,044	2,357	2,052
Unallocated corporate	238	193	468	391
Total depreciation and amortization	12,271	10,514	23,812	21,035

The following tables present revenues, depreciation and amortization, segment earnings, earnings from unconsolidated companies and capital expenditure for OEH’s reportable segments.

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Revenue:	$’000	$’000	$’000	$’000
Owned hotels - Europe	75,190	70,850	91,237	86,638
- North America	36,068	29,995	66,772	59,060
- Rest of World	31,768	29,838	74,237	72,416
Hotel management/part ownership interests	1,634	1,611	2,770	2,678
Restaurants	4,432	3,942	8,227	7,808
Hotels and restaurants	149,092	136,236	243,243	228,600
Tourist trains and cruises	22,758	24,253	32,677	32,436
Real estate	—	—	—	—
Total revenue	171,850	160,489	275,920	261,036

Reconciliation of adjusted earnings by segment to net losses

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Adjusted earnings by segment:	$’000		$’000		$’000		$’000
Owned hotels - Europe	28,135		26,807		20,178		19,203
- North America	7,557		6,895		13,675		14,086
- Rest of World	5,206		5,150		18,212		18,868
Hotel management/part ownership interests	1,792		1,636		(209	)	892
Restaurants	620		484		859		823
Hotels and restaurants	43,310		40,972		52,715		53,872
Tourist trains and cruises	5,680		8,011		6,746		7,689
Real estate	—		—		—		—
Reconciliation to net earnings/(losses):
Total adjusted earnings by segment	48,990		48,983		59,461		61,561
Impairment of property, plant and equipment	—		—		(35,680	)	—
Central overheads	(9,398	)	(9,882	)	(19,923	)	(19,649	)
Depreciation and amortization	(12,271	)	(10,514	)	(23,812	)	(21,035	)
Interest income	284		309		522		641
Interest expense	(8,342	)	(6,711	)	(15,596	)	(14,259	)
Foreign currency, net	932		(1,525	)	3,008		(598	)
Benefit/(provision) for income taxes	(3,742	)	(6,478	)	2,132		(6,726	)
Share of benefit for/(provision from) income taxes of unconsolidated companies	794		(1,001	)	1,024		(987	)
Earnings/(losses) from continuing operations	17,247		13,181		(28,864	)	(1,052	)
Earnings/(losses) from discontinued operations	90		(1,503	)	(805	)	(1,057	)
Net earnings/(losses)	17,337		11,678		(29,669	)	(2,109	)

Schedule of financial information regarding geographic areas based on the location of properties

Financial information regarding geographic areas based on the location of properties is as follows:

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Revenue:	$’000	$’000	$’000	$’000
Europe	97,105	94,336	117,670	115,673
North America	40,500	33,937	74,999	66,868
Rest of World	34,245	32,216	83,251	78,495
Total revenue	171,850	160,489	275,920	261,036

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Share-based compensation plans (Tables)

6 Months Ended

Jun. 30, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of assumptions used to estimate fair value

	Deferred shares without performance criteria			Deferred shares with performance criteria
Expected share price volatility	51		%	52		%
Risk-free interest rate	0.38		%	0.39		%
Expected dividends per share	$	—		$	—
Expected life of awards	3 years			3 years

	Share Options			Deferred shares without performance criteria
Expected share price volatility	60		%	50		%
Risk-free interest rate	1.74		%	0.57		%
Expected dividends per share	$	—		$	—
Expected life of awards	8 years			3 years

	Deferred shares without performance criteria
Expected share price volatility	51		%
Risk-free interest rate	0.06		%
Expected dividends per share	$	—
Expected life of awards	3 months

	Share options			Deferred shares without performance criteria			Deferred shares with performance criteria
Expected share price volatility	60		%	51		%	52		%
Risk-free interest rate	1.30		%	0.26		%	0.26		%
Expected dividends per share	$	—		$	—		$	—
Expected life of awards	8 years			2 years			2 years

	Deferred shares without performance criteria			Restricted shares without performance criteria			Restricted shares without performance criteria
Expected share price volatility	50		%	50		%	43		%
Risk-free interest rate	0.57		%	0.57		%	0.13		%
Expected dividends per share	$	—		$	—		$	—
Expected life of awards	3 years			3 years			1 year

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Accounts receivable, allowances	$ 493	$ 472
Property, plant and equipment, accumulated depreciation	$ 313,153	$ 300,899
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, shares authorized	30,000,000	30,000,000
Preferred shares, shares issued	0	0
Class A common shares at par value
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized	240,000,000	240,000,000
Common shares, shares Issued	103,174,362	102,897,311
Class B common shares at par value
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized	120,000,000	120,000,000
Common shares, shares Issued	18,044,478	18,044,478
Reduction due to Class B shares owned by a subsidiary (shares)	18,044,478	18,044,478

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Investments in unconsolidated companies

6 Months Ended

Jun. 30, 2013

Equity Method Investments and Joint Ventures [Abstract]

Investments in unconsolidated companies

Investments in unconsolidated companies

Investments in unconsolidated companies represent equity interests of 50% or less and in which OEH exerts significant influence, but does not have effective control of these unconsolidated companies and, therefore, accounts for these investments using the equity method. These investments include the 50% ownership in rail and hotel joint venture operations in Peru and in Hotel Ritz, Madrid, and the 25% ownership in Eastern and Oriental Express Ltd.

Also included in investments in unconsolidated companies is the Buzios land joint venture which is 50% owned and accounted for using the cost method. In June 2007, OEH acquired 50% of a company holding real estate in Buzios, Brazil for a cash consideration of $5,000,000.  OEH planned to build a hotel and villas on the acquired land and to purchase the remaining 50% of the company when the building permits were obtained from the local authorities. In February 2009, the Municipality of Buzios commenced a process for the compulsory purchase of the land by the municipality in exchange for a payment of fair compensation to the owners. In April 2011, the State of Rio de Janeiro declared the land an area of public interest, with the intention that it will become part of a State Environmental Park which is being created in the area. The compulsory purchase of the land will therefore be carried out by the State of Rio de Janeiro. OEH is currently in negotiation to recover its investment in the project based on the State’s decision to purchase the land.

Summarized financial data for OEH’s unconsolidated companies are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Current assets	64,288	75,339
Property, plant and equipment, net	351,497	354,640
Other assets	3,921	3,806
Non-current assets	355,418	358,446
Total assets	419,706	433,785
Current liabilities	150,346	165,413
Long-term debt	41,356	45,985
Other liabilities	120,826	115,763
Non-current liabilities	162,182	161,748
Total shareholders’ equity	107,178	106,624
Total liabilities and shareholders’ equity	419,706	433,785

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
	$’000	$’000	$’000	$’000
Revenue	44,447	41,518	79,607	73,863
Gross profit1	25,579	20,078	44,841	39,340
Net earnings2	6,490	4,266	5,496	4,679

¹Gross profit is defined as revenues less cost of services of the unconsolidated companies.

²There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies.

Included in unconsolidated companies are OEH’s hotel and rail joint ventures in Peru, under which OEH and the other 50% participant must contribute equally additional equity needed for the businesses.  If the other participant does not meet this obligation, OEH has the right to dilute the other participant and obtain a majority equity interest in the affected joint venture company.  OEH also has rights to purchase the other participant’s interests, which rights are exercisable in limited circumstances such as the other participant’s bankruptcy.

OEH’s investments in and loans and advances to unconsolidated companies amounted to $59,040,000 at June 30, 2013 (December 31, 2012 - $58,924,000). OEH’s earnings from unconsolidated companies, net of tax, for the three and six months endedJune 30, 2013 were $3,260,000 (June 30, 2012 - $2,335,000) and $2,633,000 (June 30, 2012 - $2,303,000), respectively.

There are guarantees and contingent guarantees to unconsolidated companies which are not recognized in the consolidated financial statements. The contingent guarantees for each Peruvian joint venture may only be enforced in the event there is a change in control of the relevant joint venture, which would occur only if OEH’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred. As at June 30, 2013, OEH does not expect that it will be required to fund these guarantees relating to these joint venture companies.

The Company has contingently guaranteed, through 2018, $18,100,000 of debt obligations of the joint venture in Peru that operates four hotels and, through 2014, a further $2,029,000 of its debt obligations. See Note 4 for information regarding guarantees and long-term debt of the rail joint venture in Peru.

At June 30, 2013, long-term debt obligations totaling $78,643,000 of the Hotel Ritz, Madrid, in which OEH has a 50% equity investment, have been classified within current liabilities in the joint venture’s stand-alone financial statements as it was out of compliance with the debt service coverage ratio covenant in its first mortgage loan facility. Discussions with the lender to bring the hotel into long-term compliance are continuing, although this non-compliance is not expected to have a material impact on OEH’s financial flexibility.  OEH and its joint venture partner have each guaranteed $9,749,000 of the debt obligations, and $594,000 of a working capital loan facility.

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Statements of Condensed Consolidated Operations (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement [Abstract]
Income Tax Expense/(Benefit), Earnings from Unconsolidated Companies	$ (794)	$ 1,001	$ (1,024)	$ 987
Income Tax Expense/(Benefit), Discontinued Operations	$ 0	$ 0	$ (422)	$ 683

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Assets held for sale and discontinued operations - Textuals (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended		3 Months Ended	6 Months Ended	0 Months Ended	3 Months Ended			6 Months Ended	0 Months Ended	3 Months Ended	6 Months Ended	0 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2013 property	Jun. 30, 2012	Jun. 30, 2013 property	Jun. 30, 2012	Jun. 30, 2012 The Westcliff	Jun. 30, 2013 The Westcliff	Jun. 30, 2012 The Westcliff	Jun. 30, 2012 The Observatory Hotel	Jun. 30, 2012 The Observatory Hotel	Jun. 01, 2012 Bora Bora Lagoon Resort	Dec. 31, 2012 Bora Bora Lagoon Resort	Sep. 30, 2012 Bora Bora Lagoon Resort	Jun. 30, 2012 Bora Bora Lagoon Resort	Jun. 30, 2012 Bora Bora Lagoon Resort	Jan. 23, 2012 Keswick Hall	Jun. 30, 2012 Keswick Hall	Jun. 30, 2012 Keswick Hall	Jan. 31, 2013 Porto Cupecoy	Jun. 30, 2013 Porto Cupecoy Condominium	Jun. 30, 2012 Porto Cupecoy	Jun. 30, 2013 Porto Cupecoy Condominium	Jun. 30, 2012 Porto Cupecoy
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of Properties Classified as Held for Sale	0		0
Number of Condominiums Held for Sale																			3		3
Cash proceeds from divestiture of businesses, including reduction in debt facility on sale of asset															$ 22,000
Cash proceeds from divestiture of businesses										3,000					12,000			19,000
Reduction in debt facility on sale of hotel										0					10,000			0
Gain (loss) on sale	0	700	439	4,665	0	0	0	0	0	662			708	708	3,957	(8)	3,957	439	0	0	439	0
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax										13,074					0			0
Costs to sell										$ 305	$ 28	$ 18			$ 513			$ 0

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 113,620	$ 93,382
Restricted cash	5,781	21,080
Accounts receivable, net of allowances of $493 and $472	42,972	36,533
Due from unconsolidated companies	16,333	15,200
Prepaid expenses and other	28,793	21,244
Inventories	45,225	44,555
Assets of discontinued operations held for sale	2,925	22,078
Real estate assets	1,898	1,924
Total current assets	257,547	255,996
Property, plant and equipment, net of accumulated depreciation of $313,153 and $300,899	1,125,464	1,171,603
Property, plant and equipment of consolidated variable interest entities	185,078	183,793
Investments in unconsolidated companies	59,040	58,924
Goodwill	158,303	161,278
Other intangible assets	18,184	18,608
Other assets	56,248	41,825
Total assets	1,859,864	1,892,027
Liabilities and Equity
Working capital loans	0	0
Accounts payable	26,662	25,182
Accrued liabilities	82,357	77,519
Deferred revenue	40,557	30,519
Liabilities of discontinued operations held for sale	1,413	2,174
Current portion of long-term debt and obligations under capital leases	93,370	90,115
Current portion of long-term debt of consolidated variable interest entities	1,795	1,795
Total current liabilities	246,154	227,304
Long-term debt and obligations under capital leases	438,123	431,445
Long-term debt of consolidated variable interest entities	95,254	96,150
Liability for pension benefit	7,717	8,275
Other liabilities	19,253	21,511
Deferred income taxes	102,787	104,112
Deferred income taxes of consolidated variable interest entities	59,952	60,326
Liability for uncertain tax positions	1,789	4,581
Total liabilities	971,029	953,704
Commitments and contingencies (Note 16)
Shareholders’ equity:
Preferred shares $0.01 par value (30,000,000 shares authorized, issued Nil)	0	0
Additional paid-in capital	986,021	982,106
Retained earnings	9,450	39,202
Accumulated other comprehensive loss	(110,124)	(86,381)
Less: Reduction due to class B common shares owned by a subsidiary — 18,044,478	(181)	(181)
Total shareholders’ equity	886,379	935,956
Non-controlling interests	2,456	2,367
Total equity	888,835	938,323
Total liabilities and equity	1,859,864	1,892,027
Class A common shares $0.01 par value (240,000,000 shares authorized):
Shareholders’ equity:
Common shares	1,032	1,029
Class B common shares $0.01 par value (120,000,000 shares authorized):
Shareholders’ equity:
Common shares	$ 181	$ 181

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Basis of financial statement presentation - Textuals (Details)	6 Months Ended
	Jun. 30, 2013 Business ship canalboat hotel train
Accounting Policies [Abstract]
Number of hotels and resorts owned, invested in or managed	35
Number of restaurants owned	1
Number of tourist trains	6
Number of river cruise ship businesses	2
Number of canal boat businesses	1

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Income taxes - Textuals (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Tax Disclosure [Abstract]
Tax benefit/(expense)	$ (3,742)	$ (6,478)	$ 2,132	$ (6,726)
Release in uncertain tax provisions	$ 3,924

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Debt and obligations under capital leases - Textuals (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended	12 Months Ended		6 Months Ended			6 Months Ended			6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 One Subsidiary [Member] subsidiary	Jun. 30, 2013 Construction Loan Payable [Member] El Encanto [Member] option	Jun. 30, 2012 Construction Loan Payable [Member] El Encanto [Member]	Aug. 31, 2011 Construction Loan Payable [Member] El Encanto [Member]	Jun. 30, 2013 London Interbank Offered Rate (LIBOR) [Member] Construction Loan Payable [Member] El Encanto [Member]	Jun. 30, 2013 Variable Interest Entity, Primary Beneficiary [Member] Charleston Place LLC [Member] option	Dec. 31, 2012 Variable Interest Entity, Primary Beneficiary [Member] Charleston Place LLC [Member]	Jun. 30, 2013 Variable Interest Entity, Primary Beneficiary [Member] London Interbank Offered Rate (LIBOR) [Member] Charleston Place LLC [Member]	Jun. 30, 2013 Level 3 Fair Value	Dec. 31, 2012 Level 3 Fair Value	Jun. 30, 2013 Level 3 Fair Value Variable Interest Entity, Primary Beneficiary [Member]	Dec. 31, 2012 Level 3 Fair Value Variable Interest Entity, Primary Beneficiary [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 4,255	$ 4,473				$ 45,000
Amount outstanding				37,919	25,749
Maturity period				3 years				3 years
Number of options to extend maturity				2				2
Extended period of maturity				1 year				1 year
Description of variable interest rate basis							LIBOR			LIBOR
Basis spread on variable interest rate							3.65%			3.50%
Number of subsidiaries covenant noncompliance			1
Long-term debt default amount classified in current liabilities			1,111
Cross-default threshold amount	25,000
Guaranteed debt of subsidiary	358,583	341,078
Fair value of long-term debt, including current portion, excluding obligations under capital leases											546,174	533,783	97,645	99,656
Deferred financing costs	10,881	13,694
Debt of consolidated VIE								97,049	97,945
Remaining borrowing capacity	$ 4,255	$ 4,473

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Segment information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment information

Segment information

OEH’s operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by the chief operating decision maker to assess performance and make decisions regarding the allocation of resources. The chief operating decision maker is the Chief Executive Officer. OEH’s operating segments are aggregated into three reporting segments, (i) hotels and restaurants - earnings derived from hotels and restaurants which it owns, jointly owns or manages, (ii) tourist trains and cruises - earnings derived from train and cruise businesses which it owns, jointly owns or manages, and (iii) real estate - earnings derived from the development and sale of real estate which it owns. OEH’s operating segments are grouped into various geographical regions. At June 30, 2013, hotels are located in the United States, Caribbean, Mexico, Europe, southern Africa, South America, and Southeast Asia, a restaurant is located in New York, tourist trains operate in Europe, Southeast Asia and Peru, two river cruise businesses operate in Myanmar (Burma) and one canal boat business operates in France, and real estate development is located in the Caribbean and Southeast Asia. Segment performance is evaluated by the chief operating decision maker based upon segment earnings before gains/(losses) on disposal, impairments, central overheads, interest income, interest expense, foreign currency, tax (including tax on earnings from unconsolidated companies), depreciation and amortization (“adjusted earnings by segment”).

The following tables present revenues, depreciation and amortization, segment earnings, earnings from unconsolidated companies and capital expenditure for OEH’s reportable segments.

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Revenue:	$’000	$’000	$’000	$’000
Owned hotels - Europe	75,190	70,850	91,237	86,638
- North America	36,068	29,995	66,772	59,060
- Rest of World	31,768	29,838	74,237	72,416
Hotel management/part ownership interests	1,634	1,611	2,770	2,678
Restaurants	4,432	3,942	8,227	7,808
Hotels and restaurants	149,092	136,236	243,243	228,600
Tourist trains and cruises	22,758	24,253	32,677	32,436
Real estate	—	—	—	—
Total revenue	171,850	160,489	275,920	261,036

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Depreciation and amortization:	$’000	$’000	$’000	$’000
Owned hotels - Europe	4,606	4,426	9,262	8,907
- North America	3,468	2,393	6,189	4,729
- Rest of World	2,581	2,255	5,158	4,551
Restaurants	198	203	378	405
Hotels and restaurants	10,853	9,277	20,987	18,592
Tourist trains and cruises	1,180	1,044	2,357	2,052
Unallocated corporate	238	193	468	391
Total depreciation and amortization	12,271	10,514	23,812	21,035

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Adjusted earnings by segment:	$’000		$’000		$’000		$’000
Owned hotels - Europe	28,135		26,807		20,178		19,203
- North America	7,557		6,895		13,675		14,086
- Rest of World	5,206		5,150		18,212		18,868
Hotel management/part ownership interests	1,792		1,636		(209	)	892
Restaurants	620		484		859		823
Hotels and restaurants	43,310		40,972		52,715		53,872
Tourist trains and cruises	5,680		8,011		6,746		7,689
Real estate	—		—		—		—
Reconciliation to net earnings/(losses):
Total adjusted earnings by segment	48,990		48,983		59,461		61,561
Impairment of property, plant and equipment	—		—		(35,680	)	—
Central overheads	(9,398	)	(9,882	)	(19,923	)	(19,649	)
Depreciation and amortization	(12,271	)	(10,514	)	(23,812	)	(21,035	)
Interest income	284		309		522		641
Interest expense	(8,342	)	(6,711	)	(15,596	)	(14,259	)
Foreign currency, net	932		(1,525	)	3,008		(598	)
Benefit/(provision) for income taxes	(3,742	)	(6,478	)	2,132		(6,726	)
Share of benefit for/(provision from) income taxes of unconsolidated companies	794		(1,001	)	1,024		(987	)
Earnings/(losses) from continuing operations	17,247		13,181		(28,864	)	(1,052	)
Earnings/(losses) from discontinued operations	90		(1,503	)	(805	)	(1,057	)
Net earnings/(losses)	17,337		11,678		(29,669	)	(2,109	)

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013		June 30, 2012
Earnings from unconsolidated companies, net of tax:	$’000	$’000	$’000		$’000
Hotels and restaurants
Hotel management/part ownership interests	586	2,244	(1,000	)	1,284
Tourist trains and cruises	2,674	91	3,633		1,019
Total earnings from unconsolidated companies, net of tax	3,260	2,335	2,633		2,303

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Capital expenditure:	$’000	$’000	$’000	$’000
Owned hotels - Europe	2,813	7,469	6,441	12,014
- North America	9,064	12,508	21,302	22,517
- Rest of World	4,344	3,670	7,318	6,549
Restaurants	83	269	119	438
Hotels and restaurants	16,304	23,916	35,180	41,518
Tourist trains and cruises	1,264	1,426	3,073	2,453
Unallocated corporate	124	94	149	537
Total capital expenditure	17,692	25,436	38,402	44,508

Financial information regarding geographic areas based on the location of properties is as follows:

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Revenue:	$’000	$’000	$’000	$’000
Europe	97,105	94,336	117,670	115,673
North America	40,500	33,937	74,999	66,868
Rest of World	34,245	32,216	83,251	78,495
Total revenue	171,850	160,489	275,920	261,036

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Restricted cash

6 Months Ended

Jun. 30, 2013

Cash and Cash Equivalents [Abstract]

Restricted cash

Restricted cash

The major balances in restricted cash are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Cash deposits required to be held with lending banks for the duration of the debt to support OEH’s payment of interest and principal	15,961	16,013
Escrow deposits from purchasers of units at Porto Cupecoy which will be released to OEH as sales close	603	4,079
Prepaid customer deposits which will be released to OEH under its revenue recognition policy	1,680	788
Security required under the European Union Package Travel Directive	197	200
Total restricted cash	18,441	21,080

Restricted cash classified as long-term and included in other assets on the condensed consolidated balance sheet at June 30, 2013 was $12,660,000.

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Related party transactions (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Eastern and Oriental Express Ltd.
Related party transactions
Due from related party	$ 5,281		$ 5,281		$ 5,005
Management and guarantee fees earned	48	55	233	182
Ownership percentage in equity method investment	25.00%		25.00%
Hotel and rail joint ventures in Peru
Related party transactions
Due from related party	7,506		7,506		6,398
Management and guarantee fees earned	2,224	2,260	3,688	3,734
Ownership percentage in equity method investment	50.00%		50.00%
Hotel joint venture in Peru
Related party transactions
Ownership percentage in equity method investment	50.00%		50.00%
Rail joint venture in Peru
Related party transactions
Ownership percentage in equity method investment	50.00%		50.00%
Hotel Ritz Madrid
Related party transactions
Due from related party	28,351		28,351		24,128
Management and guarantee fees earned	299	304	498	518
Ownership percentage in equity method investment	50.00%		50.00%
Loan interest and net finance costs	$ 154	$ 184	$ 285	$ 340

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Restricted cash (Tables)

6 Months Ended

Jun. 30, 2013

Cash and Cash Equivalents [Abstract]

Major balances in restricted cash

The major balances in restricted cash are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Cash deposits required to be held with lending banks for the duration of the debt to support OEH’s payment of interest and principal	15,961	16,013
Escrow deposits from purchasers of units at Porto Cupecoy which will be released to OEH as sales close	603	4,079
Prepaid customer deposits which will be released to OEH under its revenue recognition policy	1,680	788
Security required under the European Union Package Travel Directive	197	200
Total restricted cash	18,441	21,080

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Pensions - Components of Net Periodic Benefit Cost (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Components of net periodic pension benefit cost
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost on projected benefit obligation	294	288	591	574
Expected return on assets	(227)	(211)	(456)	(421)
Net amortization and deferrals	228	224	458	447
Net periodic benefit cost	$ 295	$ 301	$ 593	$ 600

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Earnings per share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	231,150	1,595,738	4,878,063	3,711,933
Number of share options and share-based awards unexercised (in shares)	4,878,063	4,039,349	4,878,063	4,039,349
Share options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	231,150	1,593,622	3,276,600	2,956,559
Share-based awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	2,116	1,601,463	755,374

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Property, plant and equipment (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Property, plant and equipment
Property, plant and equipment, gross	$ 1,438,617	$ 1,472,502
Less: Accumulated depreciation	(313,153)	(300,899)
Total property, plant and equipment, net	1,125,464	1,171,603
Land and buildings
Property, plant and equipment
Property, plant and equipment, gross	1,001,451	1,054,171
Machinery and equipment
Property, plant and equipment
Property, plant and equipment, gross	199,143	193,941
Fixtures, fittings and office equipment
Property, plant and equipment
Property, plant and equipment, gross	219,594	206,135
River cruise ship and canal boats
Property, plant and equipment
Property, plant and equipment, gross	$ 18,429	$ 18,255

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Other intangible assets (Tables)

6 Months Ended

Jun. 30, 2013

Intangible Assets, Net (Excluding Goodwill) [Abstract]

Schedule of other intangible assets

Other intangible assets consist of the following as of June 30, 2013:

	Favorable Lease Assets		Internet Sites		Trade Names	Total
	$'000		$'000		$'000	$'000
Carrying amount:
Balance at January 1, 2013	12,971		1,692		7,100	21,763
Foreign currency translation adjustment	(173	)	(114	)	—	(287	)
Balance at June 30, 2013	12,798		1,578		7,100	21,476
Accumulated amortization:
Balance at January 1, 2013	2,248		907			3,155
Charge for the period	164		64			228
Foreign currency translation adjustment	(30	)	(61	)		(91	)
Balance at June 30, 2013	2,382		910			3,292
Net book value:
At June 30, 2013	10,416		668		7,100	18,184
At December 31, 2012	10,723		785		7,100	18,608

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Variable interest entities (Tables)

6 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of carrying amounts of consolidated assets and liabilities of variable interest entity

The carrying amount of consolidated assets and liabilities of Charleston Center LLC included within OEH’s condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012 are summarized as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Current assets	15,611	18,511
Property, plant and equipment	185,078	183,793
Goodwill	40,395	40,395
Other assets	1,814	2,114
Total assets	242,898	244,813
Current liabilities	6,920	6,382
Third-party debt, including $1,795 and $1,795 current portion	97,049	97,945
Long-term accrued interest on subordinated debt	15,040	14,740
Deferred income taxes	59,952	60,326
Total liabilities	178,961	179,393
Net assets (before amounts payable to OEH of $86,662 and $90,807)	63,937	65,420

Schedule of carrying amounts and maximum exposures to loss of variable interest entity

The carrying amounts and maximum exposures to loss as a result of OEH’s involvement with its Peru rail joint venture are as follows:

	Carrying Amounts		Maximum Exposure
	June 30, 2013	December 31, 2012	June 30, 2013	December 31, 2012
	$’000	$’000	$’000	$’000
Investment	33,939	32,973	33,939	32,973
Due from unconsolidated company	6,272	4,803	6,272	4,803
Guarantees	—	—	6,757	7,558
Contingent guarantees	—	—	16,204	17,149
Total	40,211	37,776	63,172	62,483

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Investments in unconsolidated companies (Tables)

6 Months Ended

Jun. 30, 2013

Equity Method Investments and Joint Ventures [Abstract]

Summarized financial data for unconsolidated companies

Summarized financial data for OEH’s unconsolidated companies are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Current assets	64,288	75,339
Property, plant and equipment, net	351,497	354,640
Other assets	3,921	3,806
Non-current assets	355,418	358,446
Total assets	419,706	433,785
Current liabilities	150,346	165,413
Long-term debt	41,356	45,985
Other liabilities	120,826	115,763
Non-current liabilities	162,182	161,748
Total shareholders’ equity	107,178	106,624
Total liabilities and shareholders’ equity	419,706	433,785

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
	$’000	$’000	$’000	$’000
Revenue	44,447	41,518	79,607	73,863
Gross profit1	25,579	20,078	44,841	39,340
Net earnings2	6,490	4,266	5,496	4,679

¹Gross profit is defined as revenues less cost of services of the unconsolidated companies.

²There were no discontinued operations, extraordinary items or cumulative effects of a change in an accounting principle in the unconsolidated companies.

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Variable interest entities

6 Months Ended

Jun. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable interest entities

Variable interest entities

OEH analyzes its variable interests, including loans, guarantees and equity investments, to determine if an entity is a variable interest entity (“VIE”).  In that assessment, OEH’s analysis includes both quantitative and qualitative considerations. OEH bases its quantitative analysis on the forecast cash flows of the entity, and its qualitative analysis on a review of the design of the entity, organizational structure including decision-making ability, and relevant financial agreements.  OEH also uses its quantitative and qualitative analysis to determine if OEH is the primary beneficiary and required to consolidate the VIE.

(a)    VIEs of which OEH is the primary beneficiary

OEH holds a 19.9% equity investment in Charleston Center LLC, owner of Charleston Place Hotel.  OEH has also made a number of loans to the hotel.  OEH concluded that Charleston Center LLC is a variable interest entity because the total equity at risk is insufficient for the entity to fund its operations without additional subordinated financial support, the majority of which has been provided by OEH. OEH is the primary beneficiary of this VIE because it is expected to absorb a majority of the VIE’s expected losses and residual gains through the subordinated financial support it has provided, and has the power to direct the activities that impact the VIE’s performance, based on the current organizational structure.

The carrying amount of consolidated assets and liabilities of Charleston Center LLC included within OEH’s condensed consolidated balance sheets as of June 30, 2013 and December 31, 2012 are summarized as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Current assets	15,611	18,511
Property, plant and equipment	185,078	183,793
Goodwill	40,395	40,395
Other assets	1,814	2,114
Total assets	242,898	244,813
Current liabilities	6,920	6,382
Third-party debt, including $1,795 and $1,795 current portion	97,049	97,945
Long-term accrued interest on subordinated debt	15,040	14,740
Deferred income taxes	59,952	60,326
Total liabilities	178,961	179,393
Net assets (before amounts payable to OEH of $86,662 and $90,807)	63,937	65,420

The third-party debt of Charleston Center LLC is secured by its net assets and is non-recourse to its members, including OEH. The hotel’s separate assets are not available to pay the debts of OEH and the hotel’s separate liabilities do not constitute obligations of OEH.  This non-recourse obligation is presented separately on the condensed consolidated balance sheets of OEH.

(b)    VIEs of which OEH is not the primary beneficiary

OEH holds a 50% equity investment in its rail joint venture in Peru which operates the infrastructure, rolling stock, stations and services on a portion of the state-owned railways in Peru. OEH concluded that the Peru rail joint venture is a variable interest entity because the total equity at risk is insufficient for it to fund its operations without additional subordinated financial support. The joint venture is under joint control as all the budgetary and capital decisions require a majority of approval of the joint venture’s board of directors, which has equal representation from both joint venture partners. The joint venture is accounted for under the equity method of accounting and included in earnings/(losses) from unconsolidated companies in the statements of condensed consolidated operations.

The carrying amounts and maximum exposures to loss as a result of OEH’s involvement with its Peru rail joint venture are as follows:

	Carrying Amounts		Maximum Exposure
	June 30, 2013	December 31, 2012	June 30, 2013	December 31, 2012
	$’000	$’000	$’000	$’000
Investment	33,939	32,973	33,939	32,973
Due from unconsolidated company	6,272	4,803	6,272	4,803
Guarantees	—	—	6,757	7,558
Contingent guarantees	—	—	16,204	17,149
Total	40,211	37,776	63,172	62,483

The maximum exposure to loss for the Peru rail joint venture exceeds the carrying amount due to guarantees, discussed below, which are not recognized in the condensed consolidated financial statements. The contingent guarantees may only be enforced in the event there is a change in control in the joint venture, which would occur only if OEH’s ownership of the economic and voting interests in the joint venture falls below 50%, an event which has not occurred. As at June 30, 2013, OEH does not expect that it will be required to fund these guarantees relating to this joint venture as the entity has the ability to repay the loans.

The Company has guaranteed $6,757,000 and contingently guaranteed $9,228,000 of the debt obligations of the rail joint venture in Peru through 2016. The Company has also contingently guaranteed the rail joint venture’s obligations relating to the performance of its governmental rail concessions, currently in the amount of $6,976,000, through May 2014.

Long-term debt obligations of the rail joint venture in Peru at June 30, 2013 totaling $6,757,000 have been classified within current liabilities of the joint venture in its stand-alone financial statements, as it was out of compliance with a debt service coverage ratio covenant in its loan facilities. Discussions with the lenders to bring the joint venture into compliance are continuing, although this non-compliance is not expected to have a material impact on OEH’s financial flexibility.

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Variable interest entities - Parentheticals (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Variable Interest Entity [Line Items]
Current portion of long-term debt of consolidated variable interest entities	$ 1,795	$ 1,795
Charleston Place LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Current portion of long-term debt of consolidated variable interest entities	1,795	1,795
Due from related party	$ 86,662	$ 90,807

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Derivatives and hedging activities - Notional amounts of outstanding interest rate derivatives (Details) (Interest Rate Swaps) In Thousands, unless otherwise specified	Jun. 30, 2013 USD ($)	Jun. 30, 2013 EUR (€)	Dec. 31, 2012 USD ($)	Dec. 31, 2012 EUR (€)
Derivatives and hedging activities
Interest Rate Swaps	$ 70,350	€ 139,781	$ 104,259	€ 142,094

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Related party transactions

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related party transactions

Related party transactions

OEH manages under long-term contract the tourist train owned by Eastern and Oriental Express Ltd., in which OEH has a significant influence.  The amount due to OEH from Eastern and Oriental Express Ltd. at June 30, 2013 was $5,281,000 (December 31, 2012 - $5,005,000). In the three and six months endedJune 30, 2013, OEH earned management fees of $48,000 (June 30, 2012 - $55,000) and $233,000 (June 30, 2012 - $182,000), respectively, which are recorded in revenue.

OEH manages under long-term contracts the Hotel Monasterio, Palacio Nazarenas, Machu Picchu Sanctuary Lodge and Hotel Rio Sagrado owned by its 50/50 joint venture with local Peruvian interests, as well as the 50/50 owned Peru Rail and Ferrocarril Transandino rail operations, and provides loans, guarantees and other credit accommodation to these joint ventures.  See Notes 4 and 5.  In the three and six months endedJune 30, 2013, OEH earned management and guarantee fees of $2,224,000 (June 30, 2012 - $2,260,000) and $3,688,000 (June 30, 2012 - $3,734,000), respectively, which are recorded in revenue.  The amount due to OEH from its joint venture Peruvian operations at June 30, 2013 was $7,506,000 (December 31, 2012 - $6,398,000).

OEH manages under a long-term contract the Hotel Ritz in Madrid, Spain, in which OEH holds a 50% interest and which is accounted for under the equity method.  For the three and six months endedJune 30, 2013, OEH earned $299,000 (June 30, 2012 - $304,000) and $498,000 (June 30, 2012 - $518,000), respectively, in management fees, which are recorded in revenue, and $154,000 (June 30, 2012 - $184,000) and $285,000 (June 30, 2012 - $340,000), respectively, in interest income.  The amount due to OEH from the Hotel Ritz at June 30, 2013 was $28,351,000 (December 31, 2012 - $24,128,000).  See Note 5 regarding a partial guarantee of the hotel’s bank indebtedness.

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Pensions (Tables)

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Schedule of components of net periodic pension benefit cost

Components of net periodic pension benefit cost are as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$’000		$’000		$’000		$’000
Service cost	—		—		—		—
Interest cost on projected benefit obligation	294		288		591		574
Expected return on assets	(227	)	(211	)	(456	)	(421	)
Net amortization and deferrals	228		224		458		447
Net periodic benefit cost	295		301		593		600

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Segment information - Textuals (Details)	6 Months Ended
	Jun. 30, 2013 segment canalboat ship Business
Segment Reporting [Abstract]
Number of reportable segments	3
Number of river cruise ship businesses	2
Number of canal boat businesses	1

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Goodwill

6 Months Ended

Jun. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The changes in the carrying amount of goodwill for the six months endedJune 30, 2013 are as follows:

	Hotels & Restaurants		Trains & Cruises		Total
	$'000		$'000		$'000
Balance at January 1, 2013	153,287		7,991		161,278
Impairment	—		—		—
Foreign currency translation adjustment	(2,791	)	(184	)	(2,975	)
Balance at June 30, 2013	150,496		7,807		158,303

The gross goodwill amount at January 1, 2013 was $192,418,000 and the accumulated impairment at that date was $31,140,000. All impairments to that date related to hotel and restaurant operations.

The assessment and, if required, the determination of goodwill impairment to be recognized uses a discounted cash flow analysis to compute the fair value of the reporting unit. When determining the fair value of a reporting unit, OEH is required to make significant judgments that OEH believes are reasonable and supportable considering all available internal and external evidence at the time.  However, these estimates and assumptions are, by their nature, highly judgmental.  Fair value determinations are sensitive to changes in the underlying assumptions and factors including those relating to estimating future operating cash flows to be generated from the reporting unit which are dependent upon internal forecasts and projections developed as part of OEH’s routine, long-term planning process, available industry/market data (to the extent available), OEH’s strategic plans, estimates of long-term growth rates taking into account OEH’s assessment of the current economic environment and the timing and degree of any economic recovery, estimation of the useful life over which the cash flows will occur, and market participant assumptions. The assumptions with the most significant impact to the fair value of the reporting unit are those related to future operating cash flows which are forecast for a five-year period from management’s budget and planning process, the terminal value which is included for the period beyond five years from the balance sheet date based on the estimated cash flow in the fifth year and a terminal growth rate, and pre-tax discount rates.

Examples of events or circumstances that could reasonably be expected to negatively affect the underlying key assumptions and ultimately impact the estimated fair values of OEH’s  reporting units may include such items as (i) a prolonged weakness in the general economic conditions in which the reporting units operate and therefore negatively impacting occupancy and room rates, (ii) an economic recovery that significantly differs from OEH’s assumptions in timing and/or degree, (iii) volatility in the equity and debt markets which could result in a higher discount rate, (iv) shifts or changes in future travel patterns from OEH’s significant demographic markets that have not been anticipated, (v) changes in competitive supply, (vi) political and security instability in countries where OEH operates and (vii) deterioration of local economies due to the uncertainty over currencies or currency unions and other factors which could lead to changes in projected cash flows of OEH’s properties as customers reduce their discretionary spending.  If the assumptions used in the impairment analysis are not met or materially change, OEH may be required to recognize additional goodwill impairment losses which may be material to the financial statements.

There were no triggering events in the six months endedJune 30, 2013 that would have required OEH to reassess the carrying value of goodwill.

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Derivatives and heddging activities - Ofsetting (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Derivative, Fair Value, Gross Amount Not Offset Against Collateral, Net [Abstract]
Gross amounts of recognized liabilities	$ 5,734	$ 8,879
Gross amounts offset in the balance sheet	(10)	(6)
Net amounts of liabilities presented in the balance sheet	5,724	8,873
Gross amounts not offset in the balance sheet, financial instruments	0	0
Gross amounts not offset in the balance sheet, cash collateral posted	0	0
Net amount	$ 5,724	$ 8,873

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Debt and obligations under capital leases - Long term debt maturities (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Debt Disclosure [Abstract]
Remainder of 2013	$ 58,214
2014	186,029
2015	223,741
2016	10,538
2017	23,552
2018	9,554
2019 and thereafter	19,865
Total long term debt and obligations under capital lease	$ 531,493	$ 521,560

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Assets held for sale and discontinued operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Assets held for sale and discontinued operations

Assets held for sale and discontinued operations

At June 30, 2013, no properties were classified as held for sale, although there are three condominiums relating to Porto Cupecoy which were excluded from the disposal of the Porto Cupecoy development as they were already under separate sales contracts at the time. During the six months endedJune 30, 2013, Porto Cupecoy, Sint Maarten was sold. For the three and six months endedJune 30, 2013, the results of operations of Porto Cupecoy have been presented as discontinued operations.

During the six months endedJune 30, 2012, Bora Bora Lagoon Resort, French Polynesia and Keswick Hall, Charlottesville, Virginia were sold. For the three and six months endedJune 30, 2012 the results of operations of Porto Cupecoy, The Westcliff, The Observatory Hotel, Bora Bora Lagoon Resort, and Keswick Hall have been presented as discontinued operations.

(a)    Properties sold: Porto Cupecoy, Bora Bora Lagoon Resort and Keswick Hall

On January 31, 2013, OEH completed the sale of the property and operations of Porto Cupecoy for cash consideration of $19,000,000. The property was a part of OEH’s real estate segment. The disposal resulted in a gain of $439,000, which is reported within earnings/(losses) from discontinued operations, net of tax.

On June 1, 2012, OEH completed the sale of the shares of Bora Bora Lagoon Resort in French Polynesia for cash consideration of $3,000,000. The hotel was a part of OEH’s hotels and restaurants segment. The disposal resulted in a gain on sale of $662,000 (including a $13,074,000 transfer of foreign currency translation amounts from accumulated other comprehensive loss), which is reported within earnings/(losses) from discontinued operations, net of tax.

On January 23, 2012, OEH completed the sale of the property and operations of Keswick Hall in Charlottesville, Virginia for consideration of $22,000,000, of which $12,000,000 was paid in cash and $10,000,000 was settled directly with the lender as a reduction in the debt facility secured by the property. The hotel was a part of OEH’s hotels and restaurants segment. The disposal resulted in a gain of $3,957,000, which is reported within earnings/(losses) from discontinued operations, net of tax.

The following is a summary of net assets sold and the gain recorded on sale for Porto Cupecoy, Bora Bora Lagoon Resort and Keswick Hall:

	Porto Cupecoy		Bora Bora Lagoon Resort		Keswick Hall
	January 31, 2013		June 1, 2012		January 23, 2012
	$'000		$'000		$'000
Property, plant & equipment, net	38		15,827		18,590
Real estate assets	18,512		—		—
Net working capital (deficit)/surplus	—		(720	)	401
Other assets/(liabilities)	—		—		(1,891	)
Deferred income taxes	—		—		—
Net assets	18,550		15,107		17,100
Transfer of foreign currency translation loss/(gain)	—		(13,074	)	—
	18,550		2,033		17,100
Consideration:
Cash	19,000		3,000		12,000
Reduction in debt facility on sale of hotel	—		—		10,000
Less: Working capital adjustment	(11	)	—		(430	)
Less: Costs to sell	—		(305	)	(513	)
	18,989		2,695		21,057
Gain/(loss) on sale	439		662		3,957

The gain on sale of Bora Bora Lagoon Resort includes selling costs of $18,000 recorded in the three months ended September 30, 2012 and selling costs of $28,000 recorded in the three months ended December 31, 2012.

(b)    Results of discontinued operations

In December 2012, OEH decided to sell Porto Cupecoy, its real estate development on the Dutch side of St. Martin, as an asset non-core to its future business, with the sale releasing funds for debt reduction, cash reserves and reinvestment in other OEH properties. The property development was included in the real estate segment. The property development has been reclassified as held for sale and its results have been presented as discontinued operations for all periods shown. The sale was completed in January 2013.

Summarized operating results of the properties classified as discontinued operations for the three and six months endedJune 30, 2013 and 2012 are as follows:

	Three months ended June 30, 2013
	Porto Cupecoy	Total
	$'000	$'000
Revenue	8	8
Earnings before tax, gain on sale and impairment	90	90
Impairment	—	—
Gain on sale	—	—
Earnings before tax	90	90
Tax (provision)/benefit	—	—
Net earnings from discontinued operations	90	90

	Three months ended June 30, 2012
	Porto Cupecoy		The Westcliff		The Observatory Hotel		Bora Bora Lagoon Resort		Keswick Hall		Total
	$'000		$'000		$'000		$'000		$'000		$'000
Revenue	1,219		2,311		3,707		—		—		7,237
Losses before tax, gain on sale and impairment	(1,509	)	(102	)	(417	)	(76	)	(99	)	(2,203	)
Impairment	—		—		—		—		—		—
Gain on sale	—		—		—		708		(8	)	700
(Losses)/earnings before tax	(1,509	)	(102	)	(417	)	632		(107	)	(1,503	)
Tax (provision)/benefit	—		—		—		—		—		—
Net (losses)/earnings from discontinued operations	(1,509	)	(102	)	(417	)	632		(107	)	(1,503	)

	Six months ended June 30, 2013
	Porto Cupecoy		The Westcliff	Total
	$'000		$'000	$'000
Revenue	843		—	843
Earnings/(losses) before tax, gain on sale and impairment	(1,589	)	—	(1,589	)
Impairment	(77	)	—	(77	)
Gain on sale	439		—	439
Losses before tax	(1,227	)	—	(1,227	)
Tax (provision)/benefit	—		422	422
Net (losses)/earnings from discontinued operations	(1,227	)	422	(805	)

	Six months ended June 30, 2012
	Porto Cupecoy		The Westcliff		The Observatory Hotel		Bora Bora Lagoon Resort		Keswick Hall		Total
	$'000		$'000		$'000		$'000		$'000		$'000
Revenue	3,033		4,525		7,984		—		427		15,969
Losses before tax, gain on sale and impairment	(3,038	)	(219	)	(628	)	(138	)	(1,016	)	(5,039	)
Impairment	—		—		—		—		—		—
Gain on sale	—		—		—		708		3,957		4,665
(Losses)/earnings before tax	(3,038	)	(219	)	(628	)	570		2,941		(374	)
Tax (provision)/benefit	—		—		—		—		(683	)	(683	)
Net (losses)/earnings from discontinued operations	(3,038	)	(219	)	(628	)	570		2,258		(1,057	)

(c)    Assets and liabilities held for sale

Assets and liabilities of the properties classified as held for sale consist of the following:

	June 30, 2013		December 31, 2012
	Porto Cupecoy		Porto Cupecoy
	$’000		$’000
Current assets	—		—
Real estate assets	2,925		22,040
Property, plant and equipment, net	—		38
Total assets held for sale	2,925		22,078
Current liabilities	(1,413	)	(2,174	)
Total liabilities held for sale	(1,413	)	(2,174	)

Assets of Porto Cupecoy at June 30, 2013 comprise condominiums which were excluded from the disposal of the Porto Cupecoy development as they were already under separate sales contracts at the time.

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Statements of Condensed Consolidated Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustments, net of tax provision/(benefit) of	$ (371)	$ 0	$ (257)	$ 0
Change in fair value of derivatives, net of tax provision/(benefit) of	319	(326)	633	(413)
Change in pension liability, net of tax provision/(benefit) of	$ 1	$ 0	$ (52)	$ 0

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Derivatives and hedging activities - Fair value of derivative financial instruments (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Fair value of derivative financial instruments
Fair value of liabilities	$ (5,734)	$ (8,879)
Derivatives designated in a cash flow hedging relationship
Fair value of derivative financial instruments
Total net liabilities	(5,701)	(8,879)
Derivatives designated in a cash flow hedging relationship | Interest Rate Swaps | Accrued liabilities
Fair value of derivative financial instruments
Fair value of liabilities	(3,152)	(3,858)
Derivatives designated in a cash flow hedging relationship | Interest Rate Swaps | Other liabilities
Fair value of derivative financial instruments
Fair value of liabilities	(2,549)	(5,021)
Derivatives not designated as hedges
Fair value of derivative financial instruments
Total net liabilities	(23)	6
Derivatives not designated as hedges | Interest Rate Swaps | Accrued liabilities
Fair value of derivative financial instruments
Fair value of liabilities	(19)	0
Derivatives not designated as hedges | Interest Rate Swaps | Other liabilities
Fair value of derivative financial instruments
Fair value of liabilities	(14)	0
Derivatives not designated as hedges | Interest Rate Options | Other liabilities
Fair value of derivative financial instruments
Fair value of assets	$ 10	$ 6

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Basis of financial statement presentation Basis of financial statement presentation - Textuals2 (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Net earnings/(losses) from discontinued operations	$ 90	$ (1,503)	$ (805)	$ (1,057)
Amounts reclassified from cost of sales to selling, general and administrative expenses	57,776	54,046	112,399	104,200
Debt Issuance Costs			832	1,463
Cash Provided by (Used in) Investing Activities, Discontinued Operations			18,989	23,302
Income Statement Reclassification [Member] | Restatement Adjustment [Member]
Net earnings/(losses) from discontinued operations				1,613
Amounts reclassified from cost of sales to selling, general and administrative expenses		1,174		2,395
Cash Flow Reclassification [Member] | Restatement Adjustment [Member]
Debt Issuance Costs				1,463
Cash Provided by (Used in) Investing Activities, Discontinued Operations				$ 10,000

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Fair value measurements (Tables)

6 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured on a recurring basis

The following tables summarize the valuation of OEH’s financial instruments recorded at fair value by the fair value hierarchy at June 30, 2013 and December 31, 2012:

	Level 1	Level 2		Level 3	Total
June 30, 2013	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	10		—	10
Total assets	—	10		—	10
Liabilities at fair value:
Derivative financial instruments	—	(5,734	)	—	(5,734	)
Total net liabilities	—	(5,724	)	—	(5,724	)

	Level 1	Level 2		Level 3	Total
December 31, 2012	$’000	$’000		$’000	$’000
Assets at fair value:
Derivative financial instruments	—	6		—	6
Total assets	—	6		—	6
Liabilities at fair value:
Derivative financial instruments	—	(8,879	)	—	(8,879	)
Total net liabilities	—	(8,873	)	—	(8,873	)

Schedule of estimated fair values of financial instruments (other than derivative financial instruments)

The estimated carrying values, fair values, and levels of the fair value hierarchy of OEH's long-term debt as of June 30, 2013 and December 31, 2012 were as follows:

		June 30, 2013		December 31, 2012
		Carrying amounts $’000	Fair value $’000	Carrying amounts $’000	Fair value $’000
Long-term debt, including current portion, excluding obligations under capital leases	Level 3	531,453	546,174	521,494	533,783
Long-term debt, including current portion, held by consolidated variable interest entities	Level 3	97,049	97,645	97,945	99,656

Schedule of estimated fair values of non-financial assets measured on non-recurring basis

The estimated fair value of OEH’s non-financial assets measured on a non-recurring basis at June 30, 2013 was as follows:

		Fair value measurements using
	Fair Value at June 30, 2013 $’000	Quoted prices in active markets for identical assets (Level 1) $’000	Significant other observable inputs (Level 2) $’000	Significant unobservable inputs (Level 3) $’000	Total losses in the six months ended June 30, 2013 $’000
Property, plant and equipment	45,000	—	—	45,000	(35,680	)

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Subsequent events (Details) (USD $) In Thousands, unless otherwise specified			3 Months Ended
	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2013 Subsequent Event [Member]	Jul. 01, 2013 Subsequent Event [Member]
Subsequent Event [Line Items]
Short-term Debt, Refinanced, Amount			$ 17,125
Long-term debt, including current portion, excluding obligations under capital leases				24,000
Current portion of long-term debt and obligations under capital leases	93,370	90,115	2,000
Long-term debt and obligations under capital leases	$ 438,123	$ 431,445	$ 15,125

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Share-based compensation plans - Fair value assumptions (Details) (USD $)	6 Months Ended
	Jun. 30, 2013
Share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of awards	10 years
Class A common shares vesting in March 2016 | 2009 share award and incentive plan | Deferred shares without performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	51.00%
Risk-free interest rate	0.38%
Expected dividends per share	$ 0
Expected life of awards	3 years
Class A common shares vesting in March 2016 | 2009 share award and incentive plan | Deferred shares with performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	52.00%
Risk-free interest rate	0.39%
Expected dividends per share	0
Expected life of awards	3 years
Class A common shares vesting in March 2015 | 2009 share award and incentive plan | Share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	60.00%
Risk-free interest rate	1.30%
Expected dividends per share	0
Expected life of awards	8 years
Class A common shares vesting in March 2015 | 2009 share award and incentive plan | Deferred shares without performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	51.00%
Risk-free interest rate	0.26%
Expected dividends per share	0
Expected life of awards	2 years
Class A common shares vesting in March 2015 | 2009 share award and incentive plan | Deferred shares with performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	52.00%
Risk-free interest rate	0.26%
Expected dividends per share	0
Expected life of awards	2 years
Class A common shares vesting in July 2013 | 2009 share award and incentive plan | Deferred shares without performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	51.00%
Risk-free interest rate	0.06%
Expected dividends per share	0
Expected life of awards	3 months
Class A common shares vesting on 10 June 2016 | 2009 share award and incentive plan | Share options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	60.00%
Risk-free interest rate	1.74%
Expected dividends per share	0
Expected life of awards	8 years
Class A common shares vesting on 10 June 2016 | 2009 share award and incentive plan | Deferred shares without performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	50.00%
Risk-free interest rate	0.57%
Expected dividends per share	0
Expected life of awards	3 years
Class A common shares vesting on 28 June 2016 | 2009 share award and incentive plan | Deferred shares without performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	50.00%
Risk-free interest rate	0.57%
Expected dividends per share	0
Expected life of awards	3 years
Class A common shares vesting on 28 June 2016 | 2009 share award and incentive plan | Restricted shares without performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	50.00%
Risk-free interest rate	0.57%
Expected dividends per share	0
Expected life of awards	3 years
Class A common shares vesting on the earlier of 28 June 2014 or the day before the 2014 annual general meeting of the Company | 2009 share award and incentive plan | Restricted shares without performance criteria
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected share price volatility	43.00%
Risk-free interest rate	0.13%
Expected dividends per share	$ 0
Expected life of awards	1 year

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Schedule of calculation of numerator and denominator in earnings per share

A reconciliation of the numerator and denominator used to calculate basic and diluted earnings per share is as follows:

	Three months ended			Six months ended
	June 30, 2013	June 30, 2012		June 30, 2013		June 30, 2012
Numerator ($'000):
Net earnings/(losses) from continuing operations	17,247	13,181		(28,864	)	(1,052	)
Net earnings/(losses) from discontinued operations	90	(1,503	)	(805	)	(1,057	)
Net losses/(earnings) attributable to non-controlling interests	126	96		(83	)	(175	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	17,463	11,774		(29,752	)	(2,284	)
Denominator (shares '000):
Basic weighted average shares outstanding	103,063	102,890		103,037		102,803
Effect of dilution	2,249	973		—		—
Diluted weighted average shares outstanding	105,312	103,863		103,037		102,803
	$	$		$		$
Basic earnings per share:
Net earnings/(losses) from continuing operations	0.167	0.128		(0.280	)	(0.010	)
Net earnings/(losses) from discontinued operations	0.001	(0.015	)	(0.008	)	(0.010	)
Net losses/(earnings) attributable to non-controlling interests	0.001	0.001		(0.001	)	(0.002	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	0.169	0.114		(0.289	)	(0.022	)
Diluted earnings per share:
Net earnings/(losses) from continuing operations	0.164	0.127		(0.280	)	(0.010	)
Net earnings/(losses) from discontinued operations	0.001	(0.014	)	(0.008	)	(0.010	)
Net losses/(earnings) attributable to non-controlling interests	0.001	0.001		(0.001	)	(0.002	)
Net earnings/(losses) attributable to Orient-Express Hotels Ltd.	0.166	0.114		(0.289	)	(0.022	)

Schedule of number of share options and share-based awards excluded from the weighted average shares outstanding

The total number of share options and share-based awards excluded from computing diluted earnings per share were as follows: 

	Three months ended		Six months ended
	June 30, 2013	June 30, 2012	June 30, 2013	June 30, 2012
Share options	231,150	1,593,622	3,276,600	2,956,559
Share-based awards	—	2,116	1,601,463	755,374
Total	231,150	1,595,738	4,878,063	3,711,933

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Segment information - Capital expenditure (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Capital expenditure	$ 17,692	$ 25,436	$ 38,402	$ 44,508
Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Capital expenditure	16,304	23,916	35,180	41,518
Tourist Trains and Cruises [Member]
Segment Reporting Information [Line Items]
Capital expenditure	1,264	1,426	3,073	2,453
Owned Hotels [Member] | Europe [Member] | Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Capital expenditure	2,813	7,469	6,441	12,014
Owned Hotels [Member] | North America [Member] | Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Capital expenditure	9,064	12,508	21,302	22,517
Owned Hotels [Member] | Rest of World [Member] | Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Capital expenditure	4,344	3,670	7,318	6,549
Restaurants [Member] | Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Capital expenditure	83	269	119	438
Unallocated corporate
Segment Reporting Information [Line Items]
Capital expenditure	$ 124	$ 94	$ 149	$ 537

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Segment information - Depreciation and amortization (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Segment Reporting Information [Line Items]
Total depreciation and amortization	$ 12,271	$ 10,514	$ 23,812	$ 21,035
Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	10,853	9,277	20,987	18,592
Tourist Trains and Cruises [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	1,180	1,044	2,357	2,052
Owned Hotels [Member] | Europe [Member] | Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	4,606	4,426	9,262	8,907
Owned Hotels [Member] | North America [Member] | Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	3,468	2,393	6,189	4,729
Owned Hotels [Member] | Rest of World [Member] | Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	2,581	2,255	5,158	4,551
Restaurants [Member] | Hotels and Restaurants [Member]
Segment Reporting Information [Line Items]
Total depreciation and amortization	198	203	378	405
Unallocated corporate
Segment Reporting Information [Line Items]
Total depreciation and amortization	$ 238	$ 193	$ 468	$ 391

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Restricted cash - Schedule of restricted cash and cash equivalents (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted Cash and Cash Equivalents, Noncurrent	$ 12,660
Restricted cash	18,441	21,080
Cash deposits required to be held with lending banks for the duration of the debt to support OEH’s payment of interest and principal
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	15,961	16,013
Escrow deposits from purchasers of units at Porto Cupecoy which will be released to OEH as sales close
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	603	4,079
Prepaid customer deposits which will be released to OEH under its revenue recognition policy
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	1,680	788
Security required under the European Union Package Travel Directive
Restricted Cash and Cash Equivalents Items [Line Items]
Restricted cash	$ 197	$ 200

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Fair value measurement - Non-financial assets measured at fair value on a non-recurring basis (Details) (USD $)	3 Months Ended	6 Months Ended						6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013 Fair Value, Measurements, Nonrecurring [Member]	Jun. 30, 2013 Fair Value, Measurements, Nonrecurring [Member] Level 1	Jun. 30, 2013 Fair Value, Measurements, Nonrecurring [Member] Level 2	Jun. 30, 2013 Fair Value, Measurements, Nonrecurring [Member] Level 3	Jun. 30, 2013 Fair Value, Measurements, Nonrecurring [Member] Fair Value	Jun. 30, 2013 La Samanna [Member]	Jun. 30, 2013 La Samanna [Member] Fair Value, Measurements, Nonrecurring [Member]	Jun. 30, 2013 La Samanna [Member] Fair Value, Measurements, Nonrecurring [Member] Fair Value	Jun. 30, 2013 La Samanna [Member] Carrying (Reported) Amount, Fair Value Disclosure [Member]
Valuation of financial assets and liabilities by the fair value hierarchy
Property, Plant, and Equipment, Fair Value Disclosure				$ 0	$ 0	$ 45,000,000	$ 45,000,000			$ 45,000,000	$ 80,680,000
Impairment of Long-Lived Assets Held-for-use	$ 0	$ 0	$ (35,680,000)					$ (35,680,000)	$ (35,680,000)

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Property, plant and equipment - Capital Leases (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Assets under capital leases
Assets under capital leases, gross	$ 977	$ 1,021
Less: Accumulated depreciation	(845)	(829)
Total assets under capital leases	132	192
Freehold and leased land and buildings
Assets under capital leases
Assets under capital leases, gross	0	0
Machinery and equipment
Assets under capital leases
Assets under capital leases, gross	875	918
Fixtures, fittings and office equipment
Assets under capital leases
Assets under capital leases, gross	$ 102	$ 103

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Variable interest entities - Carrying amounts of consolidated assets and liabilities of Charleston Center LLC (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Variable Interest Entity [Line Items]
Current assets	$ 257,547	$ 255,996
Property, plant and equipment	185,078	183,793
Goodwill	158,303	161,278
Other assets	56,248	41,825
Total assets	1,859,864	1,892,027
Current liabilities	246,154	227,304
Long-term accrued interest on subordinated debt	15,040	14,740
Deferred income taxes of consolidated variable interest entities	59,952	60,326
Total liabilities	971,029	953,704
Charleston Place LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Current assets	15,611	18,511
Property, plant and equipment	185,078	183,793
Goodwill	40,395	40,395
Other assets	1,814	2,114
Total assets	242,898	244,813
Current liabilities	6,920	6,382
Third-party debt, including $1,795 and $1,795 current portion	97,049	97,945
Long-term accrued interest on subordinated debt	15,040	14,740
Deferred income taxes of consolidated variable interest entities	59,952	60,326
Total liabilities	178,961	179,393
Net assets (before amounts payable to OEH of $86,662 and $90,807)	$ 63,937	$ 65,420

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Share-based compensation plans - Textuals (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended				0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended	0 Months Ended	6 Months Ended
	Jun. 30, 2013 share_based_plan	Jun. 30, 2012	Jun. 30, 2013 share_based_plan	Jun. 30, 2012	Jun. 30, 2013 Stock appreciation rights plan	Jun. 30, 2013 Share options	Feb. 21, 2013 2009 share award and incentive plan Share options Class A common shares vesting in March 2015	Jun. 30, 2013 2009 share award and incentive plan Share options Class A common shares vesting in March 2015	Jun. 10, 2013 2009 share award and incentive plan Share options Class A common shares vesting on 10 June 2016	Jun. 30, 2013 2009 share award and incentive plan Share options Class A common shares vesting on 10 June 2016	Mar. 15, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting in March 2016	Jun. 30, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting in March 2016	Feb. 21, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting in March 2015	Jun. 30, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting in March 2015	Apr. 22, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting in July 2013	Jun. 30, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting in July 2013	Jun. 10, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting on 10 June 2016	Jun. 30, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting on 10 June 2016	Jun. 28, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting on 28 June 2016	Jun. 30, 2013 2009 share award and incentive plan Deferred shares without performance criteria Class A common shares vesting on 28 June 2016	Mar. 15, 2013 2009 share award and incentive plan Deferred shares with performance criteria Class A common shares vesting in March 2016	Jun. 30, 2013 2009 share award and incentive plan Deferred shares with performance criteria Class A common shares vesting in March 2016	Feb. 21, 2013 2009 share award and incentive plan Deferred shares with performance criteria Class A common shares vesting in March 2015	Jun. 30, 2013 2009 share award and incentive plan Deferred shares with performance criteria Class A common shares vesting in March 2015	Jun. 28, 2013 2009 share award and incentive plan Restricted shares without performance criteria Class A common shares vesting on 28 June 2016	Jun. 30, 2013 2009 share award and incentive plan Restricted shares without performance criteria Class A common shares vesting on 28 June 2016	Jun. 28, 2013 2009 share award and incentive plan Restricted shares without performance criteria Class A common shares vesting on the earlier of 28 June 2014 or the day before the 2014 annual general meeting of the Company	Jun. 30, 2013 2009 share award and incentive plan Restricted shares without performance criteria Class A common shares vesting on the earlier of 28 June 2014 or the day before the 2014 annual general meeting of the Company	Jun. 30, 2013 Stock appreciation rights plan	Dec. 31, 2012 Stock appreciation rights plan
Share-based compensation plans
Number of share-based compensation plans	4		4
Compensation cost	$ 2,336	$ 1,572	$ 3,886	$ 3,582
Total compensation cost related to unexercised stock options and unvested share awards	15,654		15,654
Total compensation cost related to unexercised stock options and unvested share awards, recognition period (in months)			30 months
Expected life of awards					3 years	10 years		8 years		8 years		3 years		2 years		3 months		3 years		3 years		3 years		2 years		3 years		1 year
Fair value of liability																													$ 67	$ 96
Granted options (in shares)							31,700		289,000
Grant price (in dollars per share)							$ 9.95		$ 11.74
Granted deferred shares (in shares)											114,000		6,600		29,370		34,400		33,200		290,400		24,600		33,200		12,400
Deferred Compensation Arrangement with Individual, Exercise Price											$ 0.01		$ 0.01		$ 0.01		$ 0.01		$ 0.01		$ 0.01		$ 0.01		$ 0.01		$ 0.01

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Other liabilities

6 Months Ended

Jun. 30, 2013

Other Liabilities Disclosure [Abstract]

Other liabilities

Other liabilities

The major balances in other liabilities are as follows:

	June 30, 2013	December 31, 2012
	$’000	$’000
Interest rate swaps (see Note 18)	2,563	5,021
Long-term accrued interest on subordinated debt at Charleston Place Hotel	15,040	14,740
Cash-settled stock appreciation rights plan	67	96
Deferred lease incentive	414	468
Contingent consideration on acquisition of Grand Hotel Timeo and Villa Sant’Andrea	1,169	1,186
Total other liabilities	19,253	21,511

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Property, plant and equipment

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

Property, plant and equipment

Property, plant and equipment

The major classes of property, plant and equipment are as follows:

	June 30, 2013		December 31, 2012
	$’000		$’000
Land and buildings	1,001,451		1,054,171
Machinery and equipment	199,143		193,941
Fixtures, fittings and office equipment	219,594		206,135
River cruise ship and canal boats	18,429		18,255
	1,438,617		1,472,502
Less: Accumulated depreciation	(313,153	)	(300,899	)
Total property, plant and equipment, net	1,125,464		1,171,603

The major classes of assets under capital leases included above are as follows:

	June 30, 2013		December 31, 2012
	$’000		$’000
Freehold and leased land and buildings	—		—
Machinery and equipment	875		918
Fixtures, fittings and office equipment	102		103
	977		1,021
Less: Accumulated depreciation	(845	)	(829	)
Total assets under capital leases	132		192

The depreciation charge on property, plant and equipment for the three and six months endedJune 30, 2013 was $12,152,000 (June 30, 2012 - $10,394,000) and $23,584,000 (June 30, 2012 - $20,791,000).

The property, plant and equipment of Charleston Center LLC, a consolidated VIE, of $185,078,000 at June 30, 2013 (December 31, 2012 - $183,793,000) is separately disclosed on the condensed consolidated balance sheets. See Note 4.

During the three months ended March 31, 2013, OEH performed a strategic review of its assets and identified a non-cash property, plant and equipment impairment charge of $35,680,000 in respect of La Samanna, St. Martin, French West Indies. The carrying value was written down to the hotel’s fair value. There were no impairments in the three months ended June 30, 2013 and the three and six months endedJune 30, 2012.

For the three and six months ended June 30, 2013, OEH capitalized interest in the amount of $Nil (June 30, 2012 - $997,000) and $1,088,000 (June 30, 2012 - $1,902,000), respectively. All amounts capitalized were recorded in property, plant and equipment.

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Goodwill - Schedule of changes in carrying amount (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Changes in the carrying amount of goodwill
Balance at January 1, 2013	$ 161,278
Impairment	0
Foreign currency translation adjustment	(2,975)
Balance at June 30, 2013	158,303
Hotels & Restaurants
Changes in the carrying amount of goodwill
Balance at January 1, 2013	153,287
Impairment	0
Foreign currency translation adjustment	(2,791)
Balance at June 30, 2013	150,496
Trains & Cruises
Changes in the carrying amount of goodwill
Balance at January 1, 2013	7,991
Impairment	0
Foreign currency translation adjustment	(184)
Balance at June 30, 2013	$ 7,807

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Supplemental cash flow information

6 Months Ended

Jun. 30, 2013

Supplemental Cash Flow Elements [Abstract]

Supplemental cash flow information

Supplemental cash flow information

	Six months ended
	June 30, 2013	June 30, 2012
	$’000	$’000
Cash paid during the period for:
Interest	12,755	13,199
Income taxes, net of refunds	8,824	12,530

To reflect the actual cash paid for capital expenditures, increases in accounts payable for capital expenditures are non-cash and excluded from capital expenditure, while decreases are cash payments and included. The changes in accounts payable were an increase of $630,000 and an increase of $1,004,000, for the six months endedJune 30, 2013 and 2012, respectively.

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Pensions

6 Months Ended

Jun. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pensions

Pensions

Components of net periodic pension benefit cost are as follows:

	Three months ended				Six months ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
	$’000		$’000		$’000		$’000
Service cost	—		—		—		—
Interest cost on projected benefit obligation	294		288		591		574
Expected return on assets	(227	)	(211	)	(456	)	(421	)
Net amortization and deferrals	228		224		458		447
Net periodic benefit cost	295		301		593		600

During the three and six months endedJune 30, 2013, $497,000 (June 30, 2012 - $492,000) and $999,000 (June 30, 2012 - $972,000), respectively, of contributions were made to OEH’s U.K. defined benefit pension plan. OEH anticipates contributing an additional $1,169,000to fund the plan in 2013 for a total of $2,168,000.

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Document and Entity Information	6 Months Ended
	Jun. 30, 2013	Jul. 29, 2013 Class A common shares at par value	Jul. 29, 2013 Class B common shares at par value
Entity Registrant Name	ORIENT EXPRESS HOTELS LTD
Entity Central Index Key	0001115836
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding:		103,297,922	18,044,478
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2

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Commitments and contingencies - Future rental payments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Future rental payments under operating leases in respect of equipment rentals and leased premises
Remainder of 2013	$ 4,976		$ 4,976
2014	9,842		9,842
2015	9,766		9,766
2016	9,582		9,582
2017	9,568		9,568
2018	8,762		8,762
2019 and thereafter	68,671		68,671
Future rental payments under operating leases	121,167		121,167
Rental expenses	$ 2,760	$ 2,566	$ 5,313	$ 5,462

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Income taxes

6 Months Ended

Jun. 30, 2013

Income Tax Disclosure [Abstract]

Income taxes

Income taxes

For interim reporting purposes, OEH calculates its tax expense by estimating its global annual effective tax rate and applies that rate in providing for income taxes on a year-to-date basis. OEH has calculated an expected annual effective tax rate, excluding significant, unusual or extraordinary items, and the tax effect of jurisdictions with losses for which a tax benefit cannot be recognized. In the three and six months endedJune 30, 2013, the income tax provision was $3,742,000 (June 30, 2012 - tax provision of $6,478,000) and tax benefit was $2,132,000 (June 30, 2012 - tax provision of $6,726,000), respectively.

The provision for income taxes in the three and six months endedJune 30, 2013 was lower than the comparable periods ended June 30, 2012 due primarily to a release in uncertain tax provisions of $3,924,000 in the first quarter of 2013 following conclusion of inquiries by the tax authorities, favorable currency fluctuations in the second quarter of 2013 and favorable changes in profits mix.

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Variable interest entities - Textuals (Details) (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2013
Peruvian Hotel and Rail Joint Ventures [Member]
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Ownership percentage in equity method investment	50.00%
Guarantor obligations, triggering event, ownership percentage falls below 50%	50.00%
Rail joint venture in Peru
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Ownership percentage in equity method investment	50.00%
Long-term debt default amount classified in current liabilities	$ 6,757
Financial Guarantee Additional Debt 2016 [Member] | Rail joint venture in Peru
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Debt obligations guaranteed	6,757
Contingent Financial Guarantee Debt 2016 [Member] | Rail joint venture in Peru
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Debt obligations guaranteed	9,228
Guarantee of Governmental Concession [Member] | Rail joint venture in Peru
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Debt obligations guaranteed	$ 6,976
Charleston Place LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member]
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Ownership percentage in variable interest entity	19.90%

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Variable interest entities - Carrying values and maximum exposure to loss for Peru rail joint venture (Details) (Variable Interest Entity, Not Primary Beneficiary [Member], Rail joint venture in Peru, USD $) In Thousands, unless otherwise specified	Jun. 30, 2013	Dec. 31, 2012
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets and Liabilities, Net	$ 40,211	$ 37,776
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	63,172	62,483
Investment
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	33,939	32,973
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	33,939	32,973
Due from unconsolidated company
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Assets	6,272	4,803
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	6,272	4,803
Guarantees
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities	0	0
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	6,757	7,558
Contingent guarantees
Schedule Of Unconsolidated Variable Interest Entity Asset Carrying Value and Maximum Exposure to Loss [Line Items]
Variable Interest Entity, Nonconsolidated, Carrying Amount, Liabilities	0	0
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount	$ 16,204	$ 17,149

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Commitments and contingencies - Textuals (Details) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		0 Months Ended		1 Months Ended		39 Months Ended		6 Months Ended
	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Jun. 30, 2013 USD ($) installment	Jun. 30, 2012 USD ($)	Mar. 02, 2010 Infringement litigation of Cipriani USD ($)	Jun. 30, 2013 Infringement litigation of Cipriani USD ($)	Jan. 31, 2010 Grand Hotel Timeo and Villa Sant' Andrea USD ($)	Jan. 31, 2010 Grand Hotel Timeo and Villa Sant' Andrea EUR (€)	Mar. 31, 2013 Grand Hotel Timeo and Villa Sant' Andrea USD ($)	Mar. 31, 2013 Grand Hotel Timeo and Villa Sant' Andrea EUR (€)	Jun. 30, 2013 Purchase of property, plant and equipment USD ($)	Jun. 30, 2012 Purchase of property, plant and equipment USD ($)	Jun. 30, 2013 Copacabana Palace [Member] USD ($)
Commitments
Rental expenses	$ 2,760	$ 2,566	$ 5,313	$ 5,462
Amount of outstanding contracts											4,428	9,650
Vendor financing							7,064	5,000
Contingent consideration paid									5,250	4,000
Maximum potential fine, not accrued	27,000		27,000										3,600
Loss Contingency, Accrual, Current	140		140
Amount received from defendants					3,947
Amount receivable from defendants in installments					9,833
Period for receivable amount from defendants in installments (in years)					5 years
Amount receivable from defendants not yet recognized						$ 3,732
Percentage of purchase price to be paid for purchase of Hotel Cipriani in Venice, Italy by James Sherwood on exercise of first refusal right			80.00%
Percentage of purchase price to be paid for purchase of Hotel Cipriani in Venice, Italy by James Sherwood on exercise of purchase option by non-recourse promissory note			100.00%
Number of installments for payment of purchase price for Hotel Cipriani in Venice Italy by James Sherwood on exercise of purchase option by non-recourse promissory note			10