percent for the first quarter of 2001.

The luxury hotel, restaurant, tourist train and cruise ship operator was floated last year by its parent Sea Containers.

Net earnings on common shares were $4.9 million, up 26 percent from $3.9 million in the first quarter of 2000.

James Sherwood, the company chairman, said: "We remain cautiously optimistic that the company will perform well, despite weakness in North America. Our focus on the super-luxury market, our balance towards leisure guests and our wide geographical base should all serve to buffer the impact of any recession.'' He added that the company had achieved satisfactory results during the first quarter.

Earnings per common share were $0.16. Revenue was up 7 percent to $57.9 million.

Mr. Sherwood said on owned European hotels that earnings before interest, tax, depreciation and amortisation (EBITDA) was a loss of $0.1 million, an improvement of $0.2 million over the prior year period. He said the first quarter is traditionally a slow period in Europe but 2001 looks like being a strong year based on forward bookings.

For North American hotels the group owns, EBITDA was $7.3 million, down $0.3 million from the prior year period as the US market is being influenced by recession worries.