Orient-Express Hotels Reopens Hotel De La Cite in Carcassone, France; Landmark Hotel Reopens Following Extensive Refurbishment.

NEW YORK--(BUSINESS WIRE)--May 4, 1998--Orient-Express Hotels, Inc. today announced the reopening of Hotel de la Cite, Carcassone, after a six-month, US$3 million refurbishment program.

Hotel de la Cite is the only five star hotel within the walls of the fortified city of Carcassone in the Languedoc region of Southwest France. The hotel is built on the site of a former Episcopal palace, adjacent to one of Carcassone's main architectural attractions, the Basilica Saint-Nazaire, which dominates the cite's main square.

Hotel de la Cite and the adjacent Hotel Dame Carcas were purchased in April 1997 by Orient-Express Hotels and have since completed an extensive enhancement program that has included incorporating the two properties and upgrading public areas. This work brings the hotel up to keeping within the highest standards of excellence set by Orient-Express Hotels properties worldwide, including Hotel Cipriani in Venice and The Mount Nelson Hotel in Cape Town.

Carcassone is the largest medieval fortified city in the world. It is perched on the crown of a hill where its ancient watch towers dominate the landscape against the stunning backdrop of the snow-capped Pyrenees. Hotel de la Cite first opened in 1909 and over the years, has become a favorite hideaway for Europe's crowned heads, film stars and writers from Grace Kelly and Rudyard Kipling to Michael Jackson. The French novelist Colette wrote in the hotel's golden book, "After so many hotels, I am finally home."

Today Hotel de la Cite offers 48 deluxe guestrooms, and 18 suites and junior suites, and has retained many original features such as beamed ceilings, wood paneling and floral tapestries. The hotel is renowned for its rich and unique wine cellar and restaurant La Barbacane (open daily for dinner), as well as its charming gardens and swimming pool, situated between the hotel and city ramparts, assuring total privacy for guests. Informal dining is offered in a new French-style brasserie, Chez Saski, and in the hotel's Library Piano Bar.

The hotel's restoration was conducted under the watchful eye of General Manager Jacques Hamburger, who worked closely with Parisian interior decorators Gerard Gallet and Jean Michel Ley, designers responsible for the interiors of other Orient-Express Hotels properties, including the Hotel Cipriani in Venice and the Hotel Splendido in Portofino.

The ancient cite of Carcassone is one hour by car from Taolouse and three hours from Barcelona. There has been traces of a village on the site of the cite since the 6th Century BC; its stone walls still echo with the clash of steel from the time of the Crusades. The ivy-clad hotel is well known throughout the world for its awe-inspiring views.

Whether in search of The Holy Grail, reputed to be hidden in a village close to Carcassone, or simply an oasis in which to relax and take in the magical atmosphere of this fabled city, guests at Hotel de la Cite enjoy luxury accommodation amid elegant and historical surroundings.

Based in London and founded in 1976, Orient-Express Hotels (OEH) owns and operates leading hotels, trains and cruises around the world. Each OEH entity, famous in its own right, offers a distinctive style and heritage, and is known for an unparalleled commitment to luxurious accommodation, personalized service and award-winning cuisine. Orient-Express Hotels include: Hotel Cipriani & Palazzo Vendramin - Venice, Italy; Hotel Splendido - Portofino, Italy; Reid's Palace - Madeira, Portugal; Hotel Quinta do Lago - The Algarve, Portugal; Villa San Michele - Florence, Italy; Charleston Place - Charleston, South Carolina; Windsor Court Hotel New Orleans, Louisiana; '21' - New York, New York; La Samanna - St. Martin, French West Indies; Copacabana Palace - Rio de Janeiro, Brazil; The Westcliff - Johannesburg, South Africa; Mount Nelson Hotel - Cape Town, South Africa; Gametrackers - Botswana, Southern Africa; The Observatory Hotel - Sydney, Australia; and Bora Bora Lagoon Resort - Tahiti, French Polynesia. The company's world-famous trains and cruises include the Venice Simplon-Orient Express, British Pullman, Eastern & Oriental Express, the Great South Pacific Express, and the Road to Mandalay. Additional information can be found at the company's Web site located at http://www.orient-expresshotels.com.

CONTACT: Patricia Harper, 212/302-5055

Orient-Express Hotels, Inc.