Orient-Express Hotels is to buy the Grand Hotel Timeo and the Villa Sant'Andrea in Taormina, Sicily, Italy for a combined price of €81m (£71m, US$117m).

The agreement was scheduled for completion in late January and after closing for upgrading both hotels will reopen for the 2010 summer season. Built in 1873, the 83-room Grand Hotel Timeo is situated in the centre of the city with views of Mount Etna and the bay of Naxos. Facilities include the Il Dito e la Luna restaurant, a swimming pool and a wellness centre.

The 78-room Villa Sant'Andrea is located on the Bay of Mazzarò, the heart of Taormina's seaside district. The hotel has its own private beach and is home to a noted restaurant called Oliviero. The two properties are around 5km (3.1miles) apart and linked by a private shuttle.

Paul White, president and chief executive of Orient-Express Hotels said, "Iconic properties such as the Grand Hotel Timeo rarely become available. Both of these hotels typify Orient-Express Hotels' core business - established properties with history and personality." The purchases bring the number of Orient-Express properties in Italy to eight. These include Hotel Cipriani and Palazzo Vendramin in Venice, Villa San Michele in Florence, Hotel Splendido and Splendido Mare in Portofino and Hotel Caruso in Ravello.