WORLD PROPERTY CHANNEL ®

(HAMILTON, BERMUDA) -- Lisbon, Portugal may be a famed world capital city but its former owner doesn't think the locale is a prime tourism destination.

That's why Paul White, president and CEO, Orient-Express Hotels Ltd. in Hamilton, Bermuda, says he sold the Lapa Palace hotel in Lisbon for $41.8 million to an undisclosed Portuguese investor.

"We have previously stated our intention to dispose of non-core assets," says White.

Lapa Palace has become "one of Europe's most distinctive hotels but we felt we had developed it and grown our business there as far as we could.

"While Lisbon is a key European capital city, it is not a prime leisure destination, and as such does not have sufficient appeal for our elite leisure audience."

White says city RevPAR is "constantly under pressure from the downward trend in corporate and conference business which is not our primary market."

He says his company is "very satisfied with this deal which represents 18 times 2007 EBITDA, 22 times 2008 EBITDA and is evidence that values of luxury hotel assets in Europe remain robust."

Orient-Express Hotels Ltd. owns or partly-owns and manages  51 operating luxury hotels, restaurants, tourist trains and river cruise properties  in 25 countries.

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