Exhibit 12
ORIENT-EXPRESS HOTELS LTD. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
Year ended December 31, |
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| 2010 |
|
|
| (Dollars in thousands, except ratios) |
| ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)/earnings before income taxes |
| 36,260 |
| 51,289 |
| (12,203 | ) | (11,231 | ) | (40,553 | ) |
Distributed interest from unconsolidated companies |
| 7,169 |
| 7,476 |
| 6,240 |
| — |
| — |
|
Add back dividends received |
| — |
| 1,763 |
| 3,840 |
| 3,790 |
| 1,759 |
|
Impairments on equity method investment |
| — |
| — |
| 22,992 |
| — |
| — |
|
Total earnings before income taxes |
| 43,429 |
| 60,528 |
| 20,869 |
| (7,441 | ) | (38,794 | ) |
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
Interest |
| 36,916 |
| 46,077 |
| 53,192 |
| 34,088 |
| 33,500 |
|
Amortization of finance costs |
| 5,308 |
| 2,905 |
| 2,837 |
| 3,427 |
| 4,784 |
|
Interest on guaranteed indebtedness |
| — |
| — |
| — |
| — |
| — |
|
Total interest |
| 42,224 |
| 48,982 |
| 56,029 |
| 37,515 |
| 38,284 |
|
Interest factor of rent expense |
| 640 |
| 1,366 |
| 2,935 |
| 2,942 |
| 3,153 |
|
Total fixed charges |
| 42,864 |
| 50,348 |
| 58,964 |
| 40,457 |
| 41,437 |
|
Capitalized interest |
| 1,652 |
| 5,619 |
| 7,628 |
| 5,275 |
| 3,130 |
|
Fixed charges (excluding capitalized interest) |
| 41,212 |
| 44,729 |
| 51,336 |
| 35,182 |
| 38,307 |
|
Earnings before fixed charges (excluding capitalized interest) and income taxes |
| 84,641 |
| 105,257 |
| 72,205 |
| 27,741 |
| (487 | ) |
Ratio of earnings to fixed charges |
| 2.0 |
| 2.1 |
| 1.2 |
| 0.7 |
| 0.0 |
|
Deficiency in earnings to cover fixed charges |
| — |
| — |
| — |
| 7,441 |
| 38,794 |
|