----

----

| S      | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE |   |
|--------|---------------------------------------------------------------|--------|
|   | SECURITIES      EXCHANGE ACT OF 1934                          |   |
|   | For      the Quarterly period ended March 31, 2009            |   |
|   |                                                          |   |
|   | OR                                                            |   |

|  | 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      S | No       |
|------------|------------------|

| Yes       | No      S |
|-------------------|-----------|

----

 

| Part I.  Financial Information | Page                                                                                                                                                                                                            |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |                                                                                                                                                                                                            |   |
| Item 1.                                  | Financial Statements (unaudited)                                                                                                                                                                                |   |
|                                     |                                                                                                                                                                                                            |   |
|                                     | Condensed consolidated balance sheets — March 31,      2009 (unaudited) and December 31, 2008                                                                                                             | 1 |
|                                     |                                                                                                                                                                                                            |   |
|                                     | Condensed consolidated statements of      operations — Three-month periods ended March 31, 2009 and 2008      (unaudited)                                                                                 | 3 |
|                                     |                                                                                                                                                                                                            |   |
|                                     | Condensed consolidated statements of cash flows —      Three-month periods ended March 31, 2009 and 2008      (unaudited)                                                                                 | 4 |
|                                     |                                                                                                                                                                                                            |   |
|                                     | Notes to condensed consolidated financial statements — March      31, 2009 and 2008                                                                                                                       | 5 |
|                                     |                                                                                                                                                                                                            |   |
| Item 2.                                  | Management’s Discussion and Analysis of Results of      Operations and Financial Condition — March 31, 2009                                                                                         | 9 |
|                                     |                                                                                                                                                                                                            |   |
| Item  3.                       | Quantitative and Qualitative Disclosure of Market      Risk                                                                                                                                                     | 13 |
|                                     |                                                                                                                                                                                                            |   |
| Item  4.                       | Internal Controls and Procedures                                                                                                                                                                                | 14 |
|                                     |                                                                                                                                                                                                            |   |
| Part II.  Other Information    | 15                                                                                                                                                                                                              |
|                                     |                                                                                                                                                                                                            |   |
|                                     | Signature page                                                                                                                                                                                                  | 16 |
|                                     |                                                                                                                                                                                                            |   |
|  Exhibits 3.2, 3.3             | By-Laws      of Sonesta International Hotels Corporation and Redlined By-Laws of      Sonesta International Hotels Corporation, amending the by-laws to increase      the number of Directors from 9 to 10 |   |
|                                     |                                                                                                                                                                                                            |   |
| 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)                                                                                  |   |

----

Table ofContens

PartI  -  Item 1.  FinancialInformation

CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                               |   | (in thousands) |    |
|------------------------------------------------------------------------------------|--------|----------------|---------|
|                                                                               |   | March 31, 2009 |    |   | December 31, 2008 |   |
|                                                                               |   |           |    |   |   |   |
| ASSETS                                                                             |   |           |    |   |   |   |
| Current      assets:                                                               |   |           |    |   |   |   |
| Cash and cash      equivalents                                                     |   | $              | 28,469  |   |   | $ | 37,463 |   |
| Restricted cash                                                                    |   |           | 17      |   |   |   | 175 |   |
| Accounts and notes      receivable:                                                |   |           |    |   |   |   |   |   |
| Trade, less allowance of $63 ($59      at December 31, 2008) for doubtful accounts |   |           | 5,151   |   |   |   | 5,407 |   |
| Other, including current      portion of long-term receivables and advances        |   |           | 679     |   |   |   | 1,001 |   |
| Total accounts and notes      receivable                                           |   |           | 5,830   |   |   |   | 6,408 |   |
| Inventories                                                                        |   |           | 550     |   |   |   | 628 |   |
| Current deferred tax      assets                                                   |   |           | 461     |   |   |   | 462 |   |
| Prepaid expenses and other      current assets                                     |   |           | 2,314   |   |   |   | 2,163 |   |
| Total current      assets                                                          |   |           | 37,641  |   |   |   | 47,299 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Long-term      receivables and advances                                            |   |           | 942     |   |   |   | 992 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Deferred      tax assets                                                           |   |           | 9,983   |   |   |   | 9,049 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Investment      in development partnership                                         |   |           | 34,508  |   |   |   | 33,666 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Property      and equipment, at cost:                                              |   |           |    |   |   |   |   |   |
| Land and land      improvements                                                    |   |           | 2,102   |   |   |   | 2,102 |   |
| Buildings                                                                          |   |           | 25,880  |   |   |   | 25,610 |   |
| Furniture and      equipment                                                       |   |           | 32,074  |   |   |   | 30,150 |   |
| Leasehold      improvements                                                        |   |           | 8,794   |   |   |   | 8,785 |   |
| Projects in    progress                                                            |   |           | --      |   |   |   | 472 |   |
|                                                                               |   |           | 68,850  |   |   |   | 67,119 |   |
| Less accumulated depreciation and      amortization                                |   |           | 33,350  |   |   |   | 32,088 |   |
| Net property and      equipment                                                    |   |           | 35,500  |   |   |   | 35,031 |   |
|                                                                               |   |           |    |   |   |   |   |   |
| Other      long-term assets                                                        |   |           | 955     |   |   |   | 1,003 |   |
|                                                                               |   | $              | 119,529 |   |   | $ | 127,040 |   |

----

Table ofContens

|                                             |   | (in thousands) |    |
|--------------------------------------------------|--------|----------------|---------|
|                                             |   | March 31, 2009 |    |   | December 31, 2008 |   |
|                                             |   |           |    |   |   |   |
|                                             |   |           |    |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY  |   |           |    |   |   |   |
| Current      liabilities:                        |   |           |    |   |   |   |
| Current portion of long-term      debt           |   | $              | 1,188   |   |   | $ | 1,163 |   |
| Accounts payable                                 |   |           | 2,637   |   |   |   | 3,747 |   |
| Advance deposits                                 |   |           | 1,567   |   |   |   | 1,281 |   |
| Accrued income    taxes                          |   |           | 511     |   |   |   | 402 |   |
| Accrued    liabilities:                          |   |           |    |   |   |   |   |   |
| Salaries and    wages                            |   |           | 947     |   |   |   | 1,772 |   |
| Rentals                                          |   |           | 1,330   |   |   |   | 4,787 |   |
| Interest                                         |   |           | 242     |   |   |   | 244 |   |
| Pension and other employee      benefits         |   |           | 1,809   |   |   |   | 1,612 |   |
| Other                                            |   |           | 932     |   |   |   | 862 |   |
|                                             |   |           | 5,260   |   |   |   | 9,277 |   |
| Total current      liabilities                   |   |           | 11,163  |   |   |   | 15,870 |   |
|                                             |   |           |    |   |   |   |   |   |
| Long-term      debt                              |   |           | 31,523  |   |   |   | 31,839 |   |
|                                             |   |           |    |   |   |   |   |   |
| Deferred      gain                               |   |           | 64,481  |   |   |   | 64,481 |   |
|                                             |   |           |    |   |   |   |   |   |
| Pension      liability, non-current              |   |           | 9,128   |   |   |   | 9,338 |   |
|                                             |   |           |    |   |   |   |   |   |
| Other      non-current liabilities               |   |           | 1,320   |   |   |   | 1,386 |   |
|                                             |   |           |    |   |   |   |   |   |
| 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                                 |   |           | 11,943  |   |   |   | 14,155 |   |
| Treasury shares – 2,404, at      cost      |   |           | (12,053 | ) |   |   | (12,053 | ) |
| Accumulated other comprehensive      loss        |   |           | (2,858  | ) |   |   | (2,858 | ) |
| Total      stockholders’ equity            |   |           | 1,914   |   |   |   | 4,126 |   |
|                                             |   | $              | 119,529 |   |   | $ | 127,040 |   |

----

Table ofContens

CONDENSED CONSOLIDATED STATEMENTS OFOPERATIONS

|                                                       |   | Three Months EndedMarch 31 |   |
|------------------------------------------------------------|--------|----------------------------|--------|
|                                                       |   |                       |   |   |   |   |
|                                                       |   | 2009                       |   |   | 2008 |   |
| Revenues:                                                  |   |                       |   |   |   |   |
| Rooms                                                      |   | $                          | 7,419  |   |   | $ | 9,203 |   |
| Food      and beverage                                     |   |                       | 3,477  |   |   |   | 4,368 |   |
| Management,      license and service fees                  |   |                       | 1,126  |   |   |   | 3,060 |   |
| Parking,      telephone and other                          |   |                       | 1,081  |   |   |   | 1,167 |   |
|                                                       |   |                       | 13,103 |   |   |   | 17,798 |   |
| Other revenues from managed and      affiliated properties |   |                       | 1,221  |   |   |   | 5,117 |   |
| Total      revenues                                        |   |                       | 14,324 |   |   |   | 22,915 |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Costs      and expenses:                                   |   |                       |   |   |   |   |   |   |
| Costs      and operating expenses                          |   |                       | 6,585  |   |   |   | 7,557 |   |
| Advertising      and promotion                             |   |                       | 1,376  |   |   |   | 1,336 |   |
| Administrative      and general                            |   |                       | 3,211  |   |   |   | 3,299 |   |
| Human      resources                                       |   |                       | 251    |   |   |   | 272 |   |
| Maintenance                                                |   |                       | 846    |   |   |   | 927 |   |
| Rentals                                                    |   |                       | 1,525  |   |   |   | 2,019 |   |
| Property      taxes                                        |   |                       | 354    |   |   |   | 370 |   |
| Depreciation      and amortization                         |   |                       | 1,355  |   |   |   | 1,938 |   |
|                                                       |   |                       | 15,503 |   |   |   | 17,718 |   |
| Other expenses from managed and      affiliated properties |   |                       | 1,221  |   |   |   | 5,117 |   |
| Total      costs and expenses                              |   |                       | 16,724 |   |   |   | 22,835 |   |
|                                                       |   |                       |   |   |   |   |   |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Operating      income (loss)                               |   |                       | (2,400 | ) |   |   | 80 |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Other      income (deductions):                            |   |                       |   |   |   |   |   |   |
| Interest      expense                                      |   |                       | (716   | ) |   |   | (747 | ) |
| Interest      income                                       |   |                       | 123    |   |   |   | 371 |   |
| Foreign      exchange gain (loss)                          |   |                       | (11    | ) |   |   | 7 |   |
| Gain      on sales of assets                               |   |                       | 2      |   |   |   | 422 |   |
|                                                       |   |                       | (602   | ) |   |   | 53 |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Income      (loss) before income tax provision (benefit)   |   |                       | (3,002 | ) |   |   | 133 |   |
| Income      tax provision (benefit)                        |   |                       | (790   | ) |   |   | 43 |   |
| Net      income (loss)                                     |   |                       | (2,212 | ) |   |   | 90 |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Cash      dividends                                        |   |                       | --     |   |   |   | (3,698 | ) |
| Retained      earnings at beginning of period              |   |                       | 14,155 |   |   |   | 15,068 |   |
| Retained      earnings at end of period                    |   | $                          | 11,943 |   |   | $ | 11,460 |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Net      income (loss) per share of common stock           |   | $                          | (0.60  | ) |   | $ | 0.02 |   |
|                                                       |   |                       |   |   |   |   |   |   |
| Weighted      average number of shares outstanding         |   |                       | 3,698  |   |   |   | 3,698 |   |

----

Table ofContens

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                           |   | (in      thousands)              |   |
|------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                           |   | Three      Months Ended March 31 |   |
|                                                                                           |   | 2009                             |   |   | 2008 |   |
| Cash      used for operating activities                                                        |   |                             |   |   |   |   |
| Net      income (loss)                                                                         |   | $                                | (2,212 | ) |   | $ | 90 |   |
| Adjustments      to reconcile net income (loss) to net cash used for operating      activities |   |                             |   |   |   |   |   |   |
| Depreciation      and amortization of property and equipment                                   |   |                             | 1,355  |   |   |   | 1,938 |   |
| Other      amortization                                                                        |   |                             | 23     |   |   |   | 10 |   |
| Deferred      federal and state tax provision (benefit)                                        |   |                             | (934   | ) |   |   | 78 |   |
| Gain      on sales of assets                                                                   |   |                             | (2     | ) |   |   | (422 | ) |
|                                                                                           |   |                             |   |   |   |   |   |   |
| Changes      in assets and liabilities                                                         |   |                             |   |   |   |   |   |   |
| Restricted      cash                                                                           |   |                             | 158    |   |   |   | 200 |   |
| Accounts      and notes receivable                                                             |   |                             | 613    |   |   |   | (1,229 | ) |
| Inventories                                                                                    |   |                             | 78     |   |   |   | 37 |   |
| Prepaid      expenses and other                                                                |   |                             | (160   | ) |   |   | (300 | ) |
| Accounts      payable                                                                          |   |                             | (186   | ) |   |   | (1,398 | ) |
| Advance      deposits                                                                          |   |                             | 286    |   |   |   | (193 | ) |
| Federal,      foreign and state income taxes                                                   |   |                             | 118    |   |   |   | (54 | ) |
| Accrued      liabilities                                                                       |   |                             | (4,292 | ) |   |   | (2,726 | ) |
| Cash      used for operating activities                                                        |   |                             | (5,155 | ) |   |   | (3,969 | ) |
|                                                                                           |   |                             |   |   |   |   |   |   |
| Cash      provided by (used for) investing activities                                          |   |                             |   |   |   |   |   |   |
| Expenditures      for property and equipment                                                   |   |                             | (1,847 | ) |   |   | (556 | ) |
| Payments      received on long-term receivables and advances                                   |   |                             | 69     |   |   |   | 410 |   |
| Payments      received from development partnership                                            |   |                             | --     |   |   |   | 125 |   |
| Investment      in development partnership                                                     |   |                             | (842   | ) |   |   | -- |   |
| Proceeds      from sales of assets                                                             |   |                             | 33     |   |   |   | 656 |   |
| New      loans and advances                                                                    |   |                             | (36    | ) |   |   | (62 | ) |
| Cash      provided by (used for) investing activities                                          |   |                             | (2,623 | ) |   |   | 573 |   |
|                                                                                           |   |                             |   |   |   |   |   |   |
| Cash      used for financing activities                                                        |   |                             |   |   |   |   |   |   |
| Repayments      of long term debt                                                              |   |                             | (291   | ) |   |   | (260 | ) |
| Cash      dividends paid                                                                       |   |                             | (925   | ) |   |   | (4,068 | ) |
| Cash used for financing      activities                                                        |   |                             | (1,216 | ) |   |   | (4,328 | ) |
|                                                                                           |   |                             |   |   |   |   |   |   |
| Net      decrease in cash                                                                      |   |                             | (8,994 | ) |   |   | (7,724 | ) |
| Cash      and cash equivalents at beginning of period                                          |   |                             | 37,463 |   |   |   | 32,620 |   |
| Cash      and cash equivalents at end of period                                                |   | $                                | 28,469 |   |   | $ | 24,896 |   |

|   | Supplemental Schedule      of Interest and Income TaxesPaid |
|--------|-------------------------------------------------------------|

----

Table ofContens

NOTES 

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

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

|                                  |   | (in      thousands) |   |
|---------------------------------------|--------|---------------------|--------|
|                                  |   | March 31,2009       |   |   | December 31,2008 |   |
| Sharm      El Sheikh, Egypt (a)       |   | $                   | 1,148  |   |   | $ | 1,215 |   |
| Other                                 |   |                | 209    |   |   |   | 187 |   |
| Total long-term      receivables      |   |                | 1,357  |   |   |   | 1,402 |   |
| Less:  current      portion |   |                | 415    |   |   |   | 410 |   |
| Net long-term      receivables        |   | $                   | 942    |   |   | $ | 992 |   |

| (a) | This      loan was made in January 2008 to the owners 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 Company is accounting for this      loan using an effective interest rate of 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.  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                                 |   |                   |    |
|--------------------------------------|--------|------------------------|---------|
|                                 |   | at      March 31, 2009 |    |
|                                 |   |                   |    |
| Total      assets, primarily land    |   | $                      | 110,014 |   |
| Less      debt and other liabilities |   |                   | (63,874 | ) |
| Partnership      equity              |   | $                      | 46,140  |   |

----

Table ofContens

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

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

|                           |   | (in thousands)                   |   |
|--------------------------------|--------|----------------------------------|--------|
|                           |   | Three      Months Ended March 31 |   |
|                           |   | 2009         |   |   | 2008 |   |
| Direct      departmental costs |   |                             |   |   |   |   |
| Rooms                          |   | $                                | 2,156  |   |   | $ | 2,463 |   |
| Food      and beverage         |   |                             | 3,152  |   |   |   | 3,604 |   |
| Heat,      light and power     |   |                             | 662    |   |   |   | 729 |   |
| Other                          |   |                             | 615    |   |   |   | 761 |   |
|                           |   | $                                | 6,585  |   |   | $ | 7,557 |   |

----

Table ofContens

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

|                                                             |   | (in      thousands)           |   |
|------------------------------------------------------------------|--------|-------------------------------|--------|
|                                                             |   | Owned      &Leased Hotels |   |   | ManagementActivities |   |   | Consolidated |   |
|                                                             |   |                          |   |   |   |   |   |   |   |
| Revenues                                                         |   | $                             | 11,970 |   |   | $ | 1,133 |   |   | $ | 13,103 |   |
| Other      revenues from managed and                             |   |                          |   |   |   |   |   |   |   |   |   |   |
| affiliated    properties                                         |   |                          | --     |   |   |   | 1,221 |   |   |   | 1,221 |   |
| Total      revenues                                              |   |                          | 11,970 |   |   |   | 2,354 |   |   |   | 14,324 |   |
|                                                             |   |                          |   |   |   |   |   |   |   |   |   |   |
| Operating      loss before depreciation and amortization expense |   |                          | (24    | ) |   |   | (1,021 | ) |   |   | (1,045 | ) |
| Depreciation      and amortization                               |   |                          | (1,290 | ) |   |   | (65 | ) |   |   | (1,355 | ) |
| Interest      income (expense), net                              |   |                          | (713   | ) |   |   | 120 |   |   |   | (593 | ) |
| Other      deductions                                            |   |                          | --     |   |   |   | (9 | ) |   |   | (9 | ) |
| Segment      pre-tax loss                                        |   |                          | (2,027 | ) |   |   | (975 | ) |   |   | (3,002 | ) |
|                                                             |   |                          |   |   |   |   |   |   |   |   |   |   |
| Segment      assets                                              |   |                          | 74,111 |   |   |   | 45,418 |   |   |   | 119,529 |   |
| Segment      capital additions                                   |   |                          | 1,799  |   |   |   | 48 |   |   |   | 1,847 |   |

|                                                                    |   | (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 |   |

----

Table ofContens

| 7. | Earnings (loss) per      Share |
|----|--------------------------------|

|                                               |   | Three      months endedMarch      31 |   |
|----------------------------------------------------|--------|--------------------------------------|--------|
|                                               |   | 2009                                 |   |   | 2008 |   |
| Numerator:                                         |   |                                 |   |   |   |   |
| Income      (loss) from operations                 |   | $                                    | (2,212 | ) |   | $ | 90 |   |
|                                               |   |                                 |   |   |   |   |   |   |
| Denominator:                                       |   |                                 |   |   |   |   |   |   |
| Weighted      average number of shares outstanding |   |                                 | 3,698  |   |   |   | 3,698 |   |
|                                               |   |                                 |   |   |   |   |   |   |
| Net      income (loss) per share of common stock   |   | $                                    | (0.60  | ) |   | $ | 0.02 |   |

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

|                                                                                 |   | (in      thousands)              |   |
|--------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                 |   | Three      Months ended March 31 |   |
|                                                                                 |   | 2009                             |   |   | 2008 |   |
|                                                                                 |   |                             |   |   |   |   |
| Service      cost                                                                    |   | $                                | 21     |   |   | $ | -- |   |
| Interest      cost                                                                   |   |                             | 408    |   |   |   | 420 |   |
| Expected      return on assets                                                       |   |                             | (429   | ) |   |   | (459 | ) |
| Recognized      actuarial (gain) loss                                                |   |                             | 23     |   |   |   | (4 | ) |
| Net      expense (benefit) included in the consolidatedstatements of      operations |   | $                                | 23     |   |   | $ | (43 | ) |

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Table ofContens

MANAGEMENT’S DISCUSSION AND ANALYSIS

|                                                                                      |   | TOTAL      REVENUES(in      thousands) |   |
|-------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                                      |   | NO.      OFROOMS                       |   |   | 2009 |   |   | 2008 |   |
| Royal      Sonesta Hotel Boston                                                           |   |                                   | 400    |   |   | $ | 3,350 |   |   | $ | 4,838 |   |
| Royal      Sonesta Hotel New Orleans                                                      |   |                                   | 500    |   |   |   | 8,620 |   |   |   | 9,887 |   |
| Management      and service fees and other revenues                                       |   |                                   |   |   |   |   | 1,133 |   |   |   | 3,073 |   |
| Total      revenues, excluding other revenues from managed and affiliated      properties |   |                                   |   |   |   | $ | 13,103 |   |   | $ | 17,798 |   |

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Table ofContens

|                                                              |   | OPERATING      INCOME (LOSS)(in      thousands) |   |
|-------------------------------------------------------------------|--------|-------------------------------------------------|--------|
|                                                              |   | 2009                                            |   |   | 2008 |   |
| Royal      Sonesta Hotel Boston                                   |   | $                                               | (1,513 | ) |   | $ | (726 | ) |
| Royal      Sonesta Hotel New Orleans                              |   |                                            | 199    |   |   |   | 571 |   |
| Operating      loss from hotels after management and service fees |   |                                            | (1,314 | ) |   |   | (155 | ) |
| Management      activities and other                              |   |                                            | (1,086 | ) |   |   | 235 |   |
| Operating      income (loss)                                      |   | $                                               | (2,400 | ) |   | $ | 80 |   |

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Table ofContens

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Table ofContens

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Table ofContens

QUANTITATIVE AND QUALITATIVE DISCLOSURE OF MARKETRISK

|                       |   | YEAR   |   |   |   |   |   |   |   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                       |   | 2009   |   |   | 2010   |   |   | Total  |   |   | Fair Value |   |
| Fixed      rate            |   | $      | 871    |   |   | $      | 31,840 |   |   | $ | 32,711 |   |   | $ | 33,372 |   |
| Average      interest rate |   |   | 8.6    | %      |   |   | 8.6    | %      |   |   |   |   |   |   |   |   |

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Table ofContens

INTERNALCONTROLS AND PROCEDURES

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Table ofContens

PART II –Other Information

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Table ofContens

SIGNATURE

|   | SONESTA      INTERNATIONAL HOTELS CORPORATION |
|--------|-----------------------------------------------|
|   |                                          |   |
|   |                                          |   |
|   | By:                                           | /s/      Boy van Riel  |
|   |                                          | Boy      van Riel |
|   |                                          | Vice      President and Treasurer |
|   |                                          |   |
|   |                                          | (Authorized      to sign on behalf of the Registrant as Principal Financial      Officer) |
|   |                                          |   |
|   | Date:      May 12, 2009                       |

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