----

----

| x      | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE |   |
|--------|---------------------------------------------------------------|--------|
|   | SECURITIES      EXCHANGE ACT OF 1934                          |   |
|   | For      the Quarterly period ended March 31, 2008            |   |
|   |                                                          |   |
|   | OR                                                            |   |

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

| For      the transition period from |   | to |   |
|-------------------------------------|--------|----|--------|

| NEW YORK                                                            |   | 13-5648107                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction or incorporation or organization) |   | (I.R.S.      Employer Identification No.) |

|  617-421-5400                                              |
|-----------------------------------------------------------------|
| (Registrant’s      telephone number, including area code) |
|                                                            |
| (Former      name, former address and former fiscal year,       |
| if      changed since last report)                              |

|     Yes      x | No      o |
|------------------------------------|-----------|

|     Yes      o | No      x |
|------------------------------------|-----------|

----

| Part      I.  Financial Information | Page                                                                                                                                                                                                        |
|-----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                          |                                                                                                                                                                                                        |   |
| Item 1.                                       | Financial Statements (unaudited)                                                                                                                                                                            |   |
|                                          |                                                                                                                                                                                                        |   |
|                                          | Condensed consolidated balance sheets — March 31, 2008      (unaudited) and December 31, 2007                                                                                                         | 1 |
|                                          |                                                                                                                                                                                                        |   |
|                                          | Condensed consolidated statements of operations —      Three-month periods ended March 31, 2008 and 2007      (unaudited)                                                                             | 3 |
|                                          |                                                                                                                                                                                                        |   |
|                                          | Condensed consolidated statements of cash flows — Three-month      periods ended March 31, 2008 and 2007 (unaudited)                                                                                  | 4 |
|                                          |                                                                                                                                                                                                        |   |
|                                          | Notes to condensed consolidated financial statements — March      31, 2008 and 2007                                                                                                                   | 5 |
|                                          |                                                                                                                                                                                                        |   |
| Item 2.                                       | Management’s Discussion and Analysis of Results of      Operations and Financial Condition — March 31, 2008                                                                                     | 12 |
|                                          |                                                                                                                                                                                                        |   |
| Item  3.                            | Quantitative and Qualitative Disclosure of Market      Risk                                                                                                                                                 | 15 |
|                                          |                                                                                                                                                                                                        |   |
| Item  4.                            | Internal Controls and Procedures                                                                                                                                                                            | 16 |
|                                          |                                                                                                                                                                                                        |   |
| Part      II.  Other Information    |                                                                                                                                                                                                        |
|                                          |                                                                                                                                                                                                        |   |
|                                          | Signature page                                                                                                                                                                                              | 18 |
|                                          |                                                                                                                                                                                                        |   |
| Exhibits      31.(a), 31.(b), 31.(c)          | Certifications      by the Company’s Chief Executive Officers and Vice President and      Treasurer, as required by Rule 13a-14(a)/15d-14(a) of the Securities      Exchange Act of 1934, as amended. |    |
|                                          |                                                                                                                                                                                                        |   |
| Exhibit 32                                    | Certification by Company Officers required by 18      U.S.C. Section 1350 (Section 906 of the Sarbanes-Oxley Act of      2002)                                                                              |   |

----

PartI 

|                                                                               |   | (in thousands) |    |
|------------------------------------------------------------------------------------|--------|----------------|---------|
|                                                                               |   | March 31, 2008 |    |   | December 31, 2007 |   |
|                                                                               |   |           |    |   |   |   |
| ASSETS                                                                             |   |           |    |   |   |   |
| Current      assets:                                                               |   |           |    |   |   |   |
| Cash and cash      equivalents                                                     |   | $              | 24,896  |   |   | $ | 32,620 |   |
| Restricted cash                                                                    |   |           | 1,500   |   |   |   | 1,700 |   |
| Accounts and notes      receivable:                                                |   |           |    |   |   |   |   |   |
| Trade, less allowance of $69 ($66      at December 31, 2007) for doubtful accounts |   |           | 7,084   |   |   |   | 7,676 |   |
| Other, including current      portion of long-term receivables and advances        |   |           | 1,247   |   |   |   | 1,151 |   |
| Total accounts and notes      receivable                                           |   |           | 8,331   |   |   |   | 8,827 |   |
| Inventories                                                                        |   |           | 570     |   |   |   | 607 |   |
| Current deferred tax      assets                                                   |   |           | 521     |   |   |   | 578 |   |
| Prepaid expenses and other      current assets                                     |   |           | 2,398   |   |   |   | 1,915 |   |
| Total current      assets                                                          |   |           | 38,216  |   |   |   | 46,247 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Long-term      receivables and advances                                            |   |           | 4,615   |   |   |   | 3,776 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Deferred      tax assets                                                           |   |           | 7,221   |   |   |   | 7,242 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Investment      in development partnership                                         |   |           | 33,666  |   |   |   | 33,791 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Property      and equipment, at cost:                                              |   |           |    |   |   |   |   |   |
| Land and land      improvements                                                    |   |           | 2,102   |   |   |   | 2,102 |   |
| Buildings                                                                          |   |           | 25,850  |   |   |   | 26,190 |   |
| Furniture and      equipment                                                       |   |           | 31,855  |   |   |   | 31,413 |   |
| Leasehold      improvements                                                        |   |           | 8,489   |   |   |   | 8,450 |   |
| Projects in    progress                                                            |   |           | 295     |   |   |   | 246 |   |
|                                                                               |   |           | 68,591  |   |   |   | 68,401 |   |
| Less accumulated depreciation and      amortization                                |   |           | 32,272  |   |   |   | 31,098 |   |
| Net property and      equipment                                                    |   |           | 36,319  |   |   |   | 37,303 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Other      long-term assets                                                        |   |           | 1,127   |   |   |   | 1,232 |   |
|                                                                               |   | $              | 121,164 |   |   | $ | 129,591 |   |

----

BALANCE 

|                                             |   | (in thousands) |    |
|--------------------------------------------------|--------|----------------|---------|
|                                             |   | March 31, 2008 |    |   | December 31, 2007 |   |
|                                             |   |           |    |   |   |   |
|                                             |   |           |    |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY  |   |           |    |   |   |   |
| Current      liabilities:                        |   |           |    |   |   |   |
| Current portion of long-term      debt           |   | $              | 1,090   |   |   | $ | 1,059 |   |
| Accounts payable                                 |   |           | 2,726   |   |   |   | 4,494 |   |
| Advance deposits                                 |   |           | 2,743   |   |   |   | 2,936 |   |
| Accrued income    taxes                          |   |           | 433     |   |   |   | 306 |   |
| Accrued    liabilities:                          |   |           |    |   |   |   |   |   |
| Salaries and    wages                            |   |           | 1,100   |   |   |   | 2,000 |   |
| Rentals                                          |   |           | 1,897   |   |   |   | 3,575 |   |
| Interest                                         |   |           | 250     |   |   |   | 252 |   |
| Pension and other employee      benefits         |   |           | 2,152   |   |   |   | 2,341 |   |
| Other                                            |   |           | 959     |   |   |   | 839 |   |
|                                             |   |           | 6,358   |   |   |   | 9,007 |   |
| Total current      liabilities                   |   |           | 13,350  |   |   |   | 17,802 |   |
|                                             |   |           |    |   |   |   |   |   |
| Long-term      debt                              |   |           | 32,712  |   |   |   | 33,002 |   |
|                                             |   |           |    |   |   |   |   |   |
| Deferred      gain                               |   |           | 64,481  |   |   |   | 64,481 |   |
|                                             |   |           |    |   |   |   |   |   |
| Pension      liability, non-current              |   |           | 4,510   |   |   |   | 4,553 |   |
|                                             |   |           |    |   |   |   |   |   |
| Other      non-current liabilities               |   |           | 1,172   |   |   |   | 1,206 |   |
|                                             |   |           |    |   |   |   |   |   |
| Commitments      and contingencies               |   |           |    |   |   |   |   |   |
|                                             |   |           |    |   |   |   |   |   |
|                                             |   |           |    |   |   |   |   |   |
|                                             |   |           |    |   |   |   |   |   |
| Stockholders’      equity:                 |   |           |    |   |   |   |   |   |
| Common stock:                                    |   |           |    |   |   |   |   |   |
| Class A,  $.80 par      value          |   |           |    |   |   |   |   |   |
| Authorized--10,000      shares                   |   |           |    |   |   |   |   |   |
| Issued – 6,102 shares at stated      value |   |           | 4,882   |   |   |   | 4,882 |   |
| Retainedearnings                                 |   |           | 11,460  |   |   |   | 15,068 |   |
| Treasury shares – 2,404, at      cost      |   |           | (12,053 | ) |   |   | (12,053 | ) |
| Accumulated other comprehensive      income      |   |           | 650     |   |   |   | 650 |   |
| Total      stockholders’ equity            |   |           | 4,939   |   |   |   | 8,547 |   |
|                                             |   | $              | 121,164 |   |   | $ | 129,591 |   |

----

OPERATIONS

|                                                       |   | Three Months EndedMarch 31 |   |
|------------------------------------------------------------|--------|----------------------------|--------|
|                                                       |   |                       |   |   |   |   |
|                                                       |   | 2008                       |   |   | 2007 |   |
| Revenues:                                                  |   |                       |   |   |   |   |
| Rooms                                                      |   | $                          | 9,203  |   |   | $ | 8,485 |   |
| Food      and beverage                                     |   |                       | 4,368  |   |   |   | 3,922 |   |
| Management,      license and service fees                  |   |                       | 3,060  |   |   |   | 1,768 |   |
| Parking,      telephone and other                          |   |                       | 1,167  |   |   |   | 1,208 |   |
|                                                       |   |                       | 17,798 |   |   |   | 15,383 |   |
| Other revenues from managed and      affiliated properties |   |                       | 5,117  |   |   |   | 4,900 |   |
| Total      revenues                                        |   |                       | 22,915 |   |   |   | 20,283 |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Costs      and expenses:                                   |   |                       |   |   |   |   |   |   |
| Costs      and operating expenses                          |   |                       | 7,557  |   |   |   | 6,960 |   |
| Advertising      and promotion                             |   |                       | 1,336  |   |   |   | 1,259 |   |
| Administrative      and general                            |   |                       | 3,299  |   |   |   | 3,206 |   |
| Human      resources                                       |   |                       | 272    |   |   |   | 285 |   |
| Maintenance                                                |   |                       | 927    |   |   |   | 856 |   |
| Rentals                                                    |   |                       | 2,019  |   |   |   | 1,775 |   |
| Property      taxes                                        |   |                       | 370    |   |   |   | 408 |   |
| Depreciation      and amortization                         |   |                       | 1,938  |   |   |   | 1,371 |   |
|                                                       |   |                       | 17,718 |   |   |   | 16,120 |   |
| Other expenses from managed and      affiliated properties |   |                       | 5,117  |   |   |   | 4,900 |   |
| Total      costs and expenses                              |   |                       | 22,835 |   |   |   | 21,020 |   |
|                                                       |   |                       |   |   |   |   |   |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Operating      income (loss)                               |   |                       | 80     |   |   |   | (737 | ) |
|                                                       |   |                       |   |   |   |   |   |   |
| Other      income (deductions):                            |   |                       |   |   |   |   |   |   |
| Interest      expense                                      |   |                       | (747   | ) |   |   | (743 | ) |
| Interest      income                                       |   |                       | 371    |   |   |   | 397 |   |
| Foreign      exchange gain                                 |   |                       | 7      |   |   |   | 2 |   |
| Gain      on sales of assets                               |   |                       | 422    |   |   |   | -- |   |
|                                                       |   |                       | 53     |   |   |   | (344 | ) |
|                                                       |   |                       |   |   |   |   |   |   |
| Income      (loss) before income tax provision (benefit)   |   |                       | 133    |   |   |   | (1,081 | ) |
| Income      tax provision (benefit)                        |   |                       | 43     |   |   |   | (260 | ) |
| Net      income (loss)                                     |   |                       | 90     |   |   |   | (821 | ) |
|                                                       |   |                       |   |   |   |   |   |   |
| Cash      dividends                                        |   |                       | (3,698 | ) |   |   | -- |   |
| Retained      earnings at beginning of period              |   |                       | 15,068 |   |   |   | 14,471 |   |
| Retained      earnings at end of period                    |   | $                          | 11,460 |   |   | $ | 13,650 |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Net      income (loss) per share of common stock           |   | $                          | 0.02   |   |   | $ | (0.22 | ) |
|                                                       |   |                       |   |   |   |   |   |   |
| Weighted      average number of shares outstanding         |   |                       | 3,698  |   |   |   | 3,698 |   |

----

CASH 

|                                                                                          |   | (in      thousands)              |   |
|-----------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                          |   | Three      Months Ended March 31 |   |
|                                                                                          |   | 2008                             |   |   | 2007 |   |
| Cash      provided (used) by operating activities                                             |   |                             |   |   |   |   |
| Net      income (loss)                                                                        |   | $                                | 90     |   |   | $ | (821 | ) |
| Adjustments      to reconcile net income (loss) to net cash used by operating      activities |   |                             |   |   |   |   |   |   |
| Depreciation      and amortization of property and equipment                                  |   |                             | 1,938  |   |   |   | 1,371 |   |
| Other      amortization                                                                       |   |                             | 10     |   |   |   | 10 |   |
| Deferred      federal and state tax provision (benefit)                                       |   |                             | 78     |   |   |   | (26 | ) |
| Gain      on sales of assets                                                                  |   |                             | (422   | ) |   |   | -- |   |
|                                                                                          |   |                             |   |   |   |   |   |   |
| Changes      in assets and liabilities                                                        |   |                             |   |   |   |   |   |   |
| Restricted      cash                                                                          |   |                             | 200    |   |   |   | (442 | ) |
| Accounts      and notes receivable                                                            |   |                             | (1,229 | ) |   |   | (428 | ) |
| Inventories                                                                                   |   |                             | 37     |   |   |   | (61 | ) |
| Prepaid      expenses and other                                                               |   |                             | (300   | ) |   |   | (544 | ) |
| Accounts      payable                                                                         |   |                             | (1,398 | ) |   |   | (277 | ) |
| Advance      deposits                                                                         |   |                             | (193   | ) |   |   | 50 |   |
| Federal,      foreign and state income taxes                                                  |   |                             | (54    | ) |   |   | (251 | ) |
| Accrued      liabilities                                                                      |   |                             | (2,726 | ) |   |   | (1,487 | ) |
| Cash      used for operating activities                                                       |   |                             | (3,969 | ) |   |   | (2,906 | ) |
|                                                                                          |   |                             |   |   |   |   |   |   |
| Cash      provided (used) by investing activities                                             |   |                             |   |   |   |   |   |   |
| Expenditures      for property and equipment                                                  |   |                             | (556   | ) |   |   | (1,295 | ) |
| Payments      received on long-term receivables and advances                                  |   |                             | 410    |   |   |   | 322 |   |
| Payments      received from development partnership                                           |   |                             | 125    |   |   |   | 250 |   |
| Proceeds      from sales of assets                                                            |   |                             | 656    |   |   |   | -- |   |
| New      loans and advances                                                                   |   |                             | (62    | ) |   |   | -- |   |
| Cash      provided by (used for) investing activities                                         |   |                             | 573    |   |   |   | (723 | ) |
|                                                                                          |   |                             |   |   |   |   |   |   |
| Cash      used by financing activities                                                        |   |                             |   |   |   |   |   |   |
| Repayments      of long term debt                                                             |   |                             | (260   | ) |   |   | -- |   |
| Cash      dividends paid                                                                      |   |                             | (4,068 | ) |   |   | (370 | ) |
| Cash used for financing      activities                                                       |   |                             | (4,328 | ) |   |   | (370 | ) |
|                                                                                          |   |                             |   |   |   |   |   |   |
| Net      decrease in cash                                                                     |   |                             | (7,724 | ) |   |   | (3,999 | ) |
| Cash      and cash equivalents at beginning of period                                         |   |                             | 32,620 |   |   |   | 24,888 |   |
| Cash      and cash equivalents at end of period                                               |   | $                                | 24,896 |   |   | $ | 20,889 |   |

----

NOTES

| 1. | Basis of      Presentation |
|----|----------------------------|

| 2. | Long-Term Receivables      and Advances |
|----|-----------------------------------------|

|                                                             |   | (in      thousands) |   |
|------------------------------------------------------------------|--------|---------------------|--------|
|                                                             |   | March 31,2008       |   |   | December 31,2007 |   |
| Sharm      El Sheikh, Egypt (a)                                  |   | $                   | 1,410  |   |   | $ | -- |   |
| Sonesta      Bayfront Hotel Coconut Grove (b)                    |   |                | 3,049  |   |   |   | 3,397 |   |
| Trump International Sonesta Beach      Resort (c) |   |                | 1,135  |   |   |   | 1,135 |   |
| Other                                                            |   |                | 112    |   |   |   | 37 |   |
| Total long-term      receivables                                 |   |                | 5,706  |   |   |   | 4,569 |   |
|  Less:  current      portion                      |   |                | 1,091  |   |   |   | 793 |   |
| Net long-term      receivables                                   |   | $                   | 4,615  |   |   | $ | 3,776 |   |

| (a) | This      loan was made in January 2008 to the owner of Sonesta Beach Hotel Sharm El      Sheikh and Sonesta Club Sharm El Sheikh by converting receivables for fees      and expenses into a five year loan, payable in monthly installments,      starting in January 2008.  The interest rate is      6.5%.  Monthly payments of $28,820 on this loan are paid      directly from the hotels and deducted from distributions of profits to the      owner of these managed hotels.  See also Note 10.  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | This      loan was made to the owner of the Sonesta Bayfront Hotel Coconut Grove,      Miami, which opened in April 2002, to fund construction and furniture,      fixtures and equipment costs.  The interest rate is equal to the      prime rate (5.25% at March 31, 2008), plus 0.75%.  The loan is      secured by a mortgage on the hotel property, and is being repaid out of      hotel profits that are available for distribution to the owner, and, to      the extent the hotel’s earnings are insufficient to pay the owner certain      minimum annual returns and minimum annual target returns due under the      management agreement, out of shortfalls funded by the      Company.  Principal payments totaling $348,000 during the first      quarter of 2008 were entirely paid from hotel earnings, in addition to the      fees recognized by the Company. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (c) | This      amount represents cash advances made to the owner of Trump International      Sonesta Beach Resort Sunny Isles for the Company’s share of losses of the      resort, which opened on April 1, 2003.  This amount was advanced      pursuant to the terms of the management agreement under which the Company      operates the hotel.  No interest is charged on this      advance.  The repayment of this advance is included in a      termination payment which is due to the Company following the termination      of its management agreement effective April 1, 2008.  The      termination payment is disputed by the resort’s owner (see Note      9). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3. | Investment in      Development Partnership |
|----|--------------------------------------------|

|                              |   |                         |    |
|-----------------------------------|--------|------------------------------|---------|
|                              |   |  at      March 31, 2008 |    |
|                              |   |                         |    |
| Total      assets, primarily land |   | $                            | 152,106 |   |
| Less      debt                    |   |                         | (58,021 | ) |
| Partnership      equity           |   | $                            | 94,085  |   |

| 4. | Borrowing      Arrangements |
|----|-----------------------------|

----

| 5. | Hotel Costs and      Operating Expenses |
|----|-----------------------------------------|

|                           |   | (in thousands)                   |   |
|--------------------------------|--------|----------------------------------|--------|
|                           |   | Three      Months Ended March 31 |   |
|                           |   | 2008                             |   |   | 2007 |   |
| Direct      departmental costs |   |                             |   |   |   |   |
| Rooms                          |   | $                                | 2,463  |   |   | $ | 2,325 |   |
| Food      and beverage         |   |                             | 3,604  |   |   |   | 3,253 |   |
| Heat,      light and power     |   |                             | 729    |   |   |   | 714 |   |
| Other                          |   |                             | 761    |   |   |   | 668 |   |
|                           |   | $                                | 7,557  |   |   | $ | 6,960 |   |

| 6. | Segment      Information |
|----|--------------------------|

|                                                               |   | (in      thousands)           |   |
|--------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                               |   | Owned      &Leased Hotels |   |   | ManagementActivities |   |   | Consolidated |   |
|                                                               |   |                          |   |   |   |   |   |   |   |
| Revenues                                                           |   | $                             | 14,725 |   |   | $ | 3,073 |   |   | $ | 17,798 |   |
| Other      revenues from managed and                               |   |                          |   |   |   |   |   |   |   |   |   |   |
| affiliated    properties                                           |   |                          | --     |   |   |   | 5,117 |   |   |   | 5,117 |   |
| Total      revenues                                                |   |                          | 14,725 |   |   |   | 8,190 |   |   |   | 22,915 |   |
| Operating      income before depreciation and amortization expense |   |                          | 1,087  |   |   |   | 931 |   |   |   | 2,018 |   |
| Depreciation      and amortization                                 |   |                          | (1,242 | ) |   |   | (696 | ) |   |   | (1,938 | ) |
| Interest      income (expense), net                                |   |                          | (746   | ) |   |   | 370 |   |   |   | (376 | ) |
| Other      income                                                  |   |                          | --     |   |   |   | 429 |   |   |   | 429 |   |
| Segment      pre-tax income (loss)                                 |   |                          | (901   | ) |   |   | 1,034 |   |   |   | 133 |   |
|                                                               |   |                          |   |   |   |   |   |   |   |   |   |   |
| Segment      assets                                                |   |                          | 75,284 |   |   |   | 45,880 |   |   |   | 121,164 |   |
| Segment      capital additions                                     |   |                          | 542    |   |   |   | 14 |   |   |   | 556 |   |

----

|                                                                                      |   | (in      thousands)           |     |
|-------------------------------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                                                      |   | Owned      &Leased Hotels |     |   | ManagementActivities |   |   | Consolidated |   |
|                                                                                      |   |                          |     |   |   |   |   |   |   |
| Revenues                                                                                  |   | $                             | 13,598   |   |   | $ | 1,785 |   |   | $ | 15,383 |   |
| Other      revenues from managed and affiliated properties                                |   |                          | --  |   |   |   | 4,900  |   |   |   | 4,900  |   |
| Total      revenues                                                                       |   |                          | 13,598   |   |   |   | 6,685 |   |   |   | 20,283 |   |
| Operating      income (loss) before depreciation  and amortization      expense |   |                          | 898      |   |   |   | (264 | ) |   |   | 634 |   |
| Depreciation      and amortization                                                        |   |                          | (1,248   | ) |   |   | (123 | ) |   |   | (1,371 | ) |
| Interest      income (expense), net                                                       |   |                          | (741     | ) |   |   | 395 |   |   |   | (346 | ) |
| Other      income                                                                         |   |                          | --       |   |   |   | 2 |   |   |   | 2 |   |
| Segment      pre-tax income (loss)                                                        |   |                          | (1,091   | ) |   |   | 10 |   |   |   | (1,081 | ) |
|                                                                                      |   |                          |     |   |   |   |   |   |   |   |   |   |
| Segment      assets                                                                       |   |                          | 78,022   |   |   |   | 45,717 |   |   |   | 123,739 |   |
| Segment      capital additions                                                            |   |                          | 1,288    |   |   |   | 7 |   |   |   | 1,295 |   |

| 7. | Earnings per      Share |
|----|-------------------------|

|                                               |   | Three      months endedMarch      31 |   |
|----------------------------------------------------|--------|--------------------------------------|--------|
|                                               |   | 2008                                 |   |   | 2007 |   |
| Numerator:                                         |   |                                 |   |   |   |   |
| Income      (loss) from operations                 |   | $                                    | 90     |   |   | $ | (821 | ) |
|                                               |   |                                 |   |   |   |   |   |   |
| Denominator:                                       |   |                                 |   |   |   |   |   |   |
| Weighted      average number of shares outstanding |   |                                 | 3,698  |   |   |   | 3,698 |   |
|                                               |   |                                 |   |   |   |   |   |   |
| Net      income (loss) per share of common stock   |   | $                                    | 0.02   |   |   | $ | (0.22 | ) |

| 8. | Pension      Plan |
|----|-------------------|

|                                                                      |   | (in      thousands)              |   |
|---------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                      |   | Three      Months ended March 31 |   |
|                                                                      |   | 2008                             |   |   | 2007 |   |
|                                                                      |   |                             |   |   |   |   |
| Interest      cost                                                        |   | $                                | 420    |   |   | $ | 434 |   |
| Expected      return on assets                                            |   |                             | (459   | ) |   |   | (443 | ) |
| Recognized      actuarial (gain) loss                                     |   |                             | (4     | ) |   |   | 9 |   |
| Net      benefit included in the consolidated statements of    operations |   | $                                | (43    | ) |   | $ | -- |   |

----

| 9. | Trump International      Sonesta Beach Resort SunnyIsles |
|----|----------------------------------------------------------|

| 10. | Sonesta Hotels Sharm      El Sheikh |
|-----|-------------------------------------|

| Increase      in Long term Receivables |         1,473                 |
|----------------------------------------|-----------------------------------------|
| Increase      in Long term Assets      |            545 |
| Decrease      in Accounts Receivable   |  (2,018)                           |

----

| 11. | Impact of Recently      Issued Accounting Standards |
|-----|-----------------------------------------------------|

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MANAGEMENT’S

|                                                                                      |   | TOTAL      REVENUES(in      thousands) |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                                      |   | NO.      OFROOMS                       |   |   | 2008 |   |   | 2007 |   |
| Royal      Sonesta Hotel Boston                                                           |   |                                   | 400    |   |   | $ | 4,838 |   |   | $ | 4,396 |   |
| Royal      Sonesta Hotel New Orleans                                                      |   |                                   | 500    |   |   |   | 9,887 |   |   |   | 9,202 |   |
| Management      and service fees and other revenues                                       |   |                                   |   |   |   |   | 3,073 |   |   |   | 1,785 |   |
| Total      revenues, excluding other revenues from managed and affiliated      properties |   |                                   |   |   |   | $ | 17,798 |   |   | $ | 15,383 |   |

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|                                                                      |   | OPERATING      INCOME (LOSS)(in      thousands) |   |
|---------------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                                      |   | 2008                                            |   |   | 2007 |   |
| Royal      Sonesta Hotel Boston                                           |   | $                                               | (726   | ) |   | $ | (902 | ) |
| Royal      Sonesta Hotel New Orleans                                      |   |                                            | 571    |   |   |   | 552 |   |
| Operating      income (loss) from hotels after management and servicefees |   |                                            | (155   | ) |   |   | (350 | ) |
| Management      activities and other                                      |   |                                            | 235    |   |   |   | (387 | ) |
| Operating      income (loss)                                              |   | $                                               | 80     |   |   | $ | (737 | ) |

----

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QUANTITATIVE 

|                       |   | YEAR   |   |   |   |   |   |   |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                       |   | 2008   |   |   | 2009   |   |   | 2010   |   |   | Thereafter |   |   | Total |   |   | Fair Value |   |
| Fixed      rate            |   | $      | 799    |   |   | $      | 1,163  |   |   | $ | 31,840 |   |   | $ | -0- |   |   | $ | 33,802 |   |   | $ | 35,008 |   |
| Average      interest rate |   |   | 8.6    | %      |   |   | 8.6    | %      |   |   | 8.6 | % |   |   |   |   |   |   |   |   |   |   |   |   |

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INTERNAL

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SIGNATURE

|   | SONESTA      INTERNATIONAL HOTELS CORPORATION |
|--------|-----------------------------------------------|
|   |                                          |   |
|   |                                          |   |
|   | By:                                           |   |
|   |                                          | Boy      van Riel |
|   |                                          | Vice      President and Treasurer |
|   |                                          |   |
|   |                                          | (Authorized      to sign on behalf of the Registrant as Principal Financial      Officer) |
|   |                                          |   |
|   | Date:      May 9, 2008                        |

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