**EXHIBIT 12**

 

ORIENT-EXPRESS HOTELS LTD. AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges

 
| ** **                                                                       | ** ** | **Year ended December 31,**                    | ** ** |
|----------------------------------------------------------------------------------|------------|---------------------------------------------------------------|------------|
| ** **                                                                       | ** ** | **2004**                                                      | ** ** | **2005** | ** ** | **2006** | ** ** | **2007** | ** ** | **2008** | ** ** |
| ** **                                                                       | ** ** | **(Dollars in thousands, except ratios)** | ** ** |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| (Loss)/earnings before income taxes                                              |       | $                                                             | 24,960     |   | $ | 34,327 |   | $ | 35,486 |   | $ | 49,465 |   | $ | (22,595 | ) |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Distributed interest income from unconsolidated companies                        |       | 1,986                                                         |       | 4,021 |   | 7,169 |   | 7,476 |   | 6,240 |   |
| Add back dividends received                                                      |       | —                                                        |       | 624 |   | — |   | 1,763 |   | 3,840 |   |
| Impairments on equity method investment                                          |       | —                                                        |       | — |   | — |   | — |   | 22,992 |   |
| Total earnings before income taxes                                               |       | $                                                             | 26,946     |   | $ | 38,972 |   | $ | 42,655 |   | $ | 58,704 |   | $ | 10,477 |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Fixed charges: Interest                                                          |       | $                                                             | 22,515     |   | $ | 31,640 |   | $ | 42,454 |   | $ | 50,232 |   | $ | 56,734 |   |
| Amortization of finance costs                                                    |       | 2,276                                                         |       | 2,845 |   | 5,580 |   | 3,243 |   | 3,103 |   |
| Interest on guaranteed indebtedness                                              |       | —                                                        |       | — |   | — |   | — |   | — |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Total interest                                                                   |       | 24,791                                                        |       | 34,485 |   | 48,034 |   | 53,475 |   | 59,837 |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Interest factor of rent expense                                                  |       | 572                                                           |       | 637 |   | 692 |   | 1,422 |   | 3,011 |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Total fixed charges                                                              |       | 25,363                                                        |       | 35,122 |   | 48,726 |   | 54,897 |   | 62,848 |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Capitalized interest                                                             |       | 1,708                                                         |       | 448 |   | 1,735 |   | 5,619 |   | 7,628 |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Fixed charges (excluding capitalized interest)                                   |       | $                                                             | 23,655     |   | $ | 34,674 |   | $ | 46,991 |   | $ | 49,278 |   | $ | 55,220 |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Earnings before fixed charges (excluding capitalized interest) and  income taxes |       | $                                                             | 50,601     |   | $ | 73,646 |   | $ | 89,646 |   | $ | 107,982 |   | $ | 65,697 |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Ratio of earnings to fixed charges                                               |       | 2.0                                                           |       | 2.1 |   | 1.8 |   | 2.0 |   | 1.0 |   |
|                                                                             |       |                                                          |       |   |   |   |   |   |   |   |   |
| Deficiency in earnings to cover fixed charges                                    |       | $                                                             | —     |   | $ | — |   | $ | — |   | $ | — |   | $ | — |   |

 

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