Orient-Express Hotels has announced a net loss of $4.6m for the first quarter ending 31 March, but claims it was in line with expectations as several of its properties are closed for the winter – including the Venice Simplon Orient Express train.

Revenue for the period was up to $66.1m compared with $61.6m last year, but losses were also up, from $2.6m.

The company says this was largely due to two properties – La Residencia in Mallorca and Bora Bora Lagoon Resort in French Polynesia – being closed for renovations and European losses becoming even greater when converted into dollars due to the weakness of the US currency.

Orient-Express expects the trend to reverse as the year progresses.

James B. Sherwood, chair, said the company’s results were on plan for the quarter, and with the Iraq war hitting bookings in 2003, revenue from reservations for 2004 is already $9m ahead of last year.

In the second quarter, the company will also announce details of two further properties to be opened.