Bermuda-domiciled Orient Express Hotels posted a net loss of almost $25 million for the second quarter, despite a decline in booking trends levelling off according to the company's boss.

The hotel group recorded a bet loss of $24.3 million or 36 cents per share for the quarter compared to net earnings of $19.5 million or 46 cents per share for the same period last year. Revenue was also down at $132 million versus $177.5 million over the respective time scale, while adjusted net loss from continuing operations for the period was $2.6 million or four cents per share compared to $19.7 million or 46 cents per share in the second quarter of 2008.

During that time, the company raised $141.3 million of cash in a common share offering in May 2009 mainly for debt reduction and completed the sale of Lapa Palace for $42 million, as well as completing a $16 million re-financing deal for its Australian properties.

"During the second quarter, we saw demand begin to stabilise," Orient Express chief executive Paul White said.

"The decline in booking trends and in revenue and profitability forecasts levelled off.

"Cost reductions are key to managing through recession and are particularly challenging in the luxury sector where guest service must not be compromised. Creative initiatives, such as the introduction of flexible opening dates for hotels and restaurants and a reduction in the number of train trips to maximise occupancy, have ensured these cuts are not visible to our clients.

"The company plans to make further disposals of non-core assets in the coming quarters."