**Exhibit 12**

 

ORIENT-EXPRESSHOTELS LTD. AND SUBSIDIARIES

 

Computationof 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 | ) |
|                                                                                                            |       |                                                          |       |     |       |     |       |     |       |     |       |
| Earnings  from unconsolidated companies excluding equity in undistributed earnings of  unconsolidated companies |       | 8,165                                                         |       | 9,752    |       | 10,700   |       | 11,807   |       | 12,608   |       |
| Add  back dividends received                                                                                    |       | —                                                        |       | 624      |       | —   |       | 1,763    |       | 3,840    |       |
| Impairments/gains  on disposals                                                                                 |       | —                                                        |       | —   |       | (6,619   | )          | (2,312   | )          | 32,715   |       |
|                                                                                                            |       |                                                          |       |     |       |     |       |     |       |     |       |
| Total  (loss)/earnings before income taxes                                                                      |       | $                                                             | 33,125     |     | $          | 44,703   |       | $        | 39,567     |     | $          | 60,723 |   | $ | 26,568 |   |
|                                                                                                            |       |                                                          |       |     |       |     |       |     |       |     |       |
| 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                                |       | $                                                             | 56,780     |     | $          | 79,377   |       | $        | 86,558     |     | $          | 110,001 |   | $ | 81,788 |   |
|                                                                                                            |       |                                                          |       |     |       |     |       |     |       |     |       |
| Ratio  of earnings to fixed charges                                                                             |       | 2.2                                                           |       | 2.3      |       | 1.8      |       | 2.0      |       | 1.3      |       |
|                                                                                                            |       |                                                          |       |     |       |     |       |     |       |     |       |
| Deficiency  in earnings to cover fixed charges                                                                  |       | $                                                             | —     |     | $          | —   |       | $        | —     |     | $          | — |   | $ | — |   |

 

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