Exhibit 12
ORIENT-EXPRESS HOTELS LTD. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
Year ended December 31, |
| 2003 |
| 2004 |
| 2005 |
| 2006 |
| 2007 |
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| (Dollars in thousands, except ratios) |
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Earnings before income taxes |
| $ | 22,364 |
| $ | 24,980 |
| $ | 34,327 |
| $ | 35,486 |
| $ | 49,465 |
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Earnings from unconsolidated companies excluding equity in undistributed earnings of unconsolidated companies |
| 7,080 |
| 8,165 |
| 9,752 |
| 10,700 |
| 11,807 |
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Add back dividends received |
| — |
| — |
| — |
| — |
| — |
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Total earnings before income taxes |
| $ | 29,444 |
| $ | 33,125 |
| $ | 44,079 |
| $ | 46,186 |
| $ | 61,272 |
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Fixed charges: |
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Interest |
| $ | 22,610 |
| $ | 22,515 |
| $ | 31,640 |
| $ | 48,034 |
| $ | 53,475 |
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Amortization of finance costs |
| 3,280 |
| 2,276 |
| 2,845 |
| 5,580 |
| 3,243 |
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Interest on guaranteed indebtedness |
| — |
| — |
| — |
| — |
| — |
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Total interest |
| 25,890 |
| 24,791 |
| 34,485 |
| 53,614 |
| 56,718 |
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Interest factor of rent expense |
| 455 |
| 572 |
| 637 |
| 692 |
| 1,422 |
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Total fixed charges |
| 26,345 |
| 25,363 |
| 35,122 |
| 54,306 |
| 58,140 |
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Capitalized interest |
| 1,795 |
| 1,708 |
| 448 |
| 1,735 |
| 5,619 |
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Fixed charges (excluding capitalized interest) |
| $ | 24,550 |
| $ | 23,655 |
| $ | 34,674 |
| $ | 52,571 |
| $ | 52,521 |
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Earnings before fixed charges (excluding capitalized interest) and income taxes |
| $ | 53,994 |
| $ | 56,780 |
| $ | 78,753 |
| $ | 98,757 |
| $ | 113,793 |
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Ratio of earnings to fixed charges |
| 2.0 |
| 2.2 |
| 2.2 |
| 1.8 |
| 2.0 |
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Deficiency in earnings to cover fixed charges |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
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