Luxury hotel chain operator Orient Express, in which Indian conglomerate Tata Group holds a significant stake, has reported a net loss of $24.3 million for the second quarter ended June 30, 2009.
The net loss for the period was attributed to declining revenue per available room and an overall drop in demand.
"While the ongoing decline in demand that has characterised the last two quarters has slowed, I believe it is still too early to predict and return to growth," Orient Express President and Chief Executive Officer Paul White said.
The company's revenue for the period under review is $132 million down from $177.5 million in the corresponding period a year ago.
Faced with losses and drop in revenue the company is planning to maintain its ongoing cost cutting initiatives.
"We will therefore continue with our prudent approach to cash management, including the tight control of costs and capital expenditure," White added.
The company plans to sale its non-core assets in the coming quarters after the disposal the Lapa Palace, the extension of the New York Public Library agreement, improved the balance sheet and significantly enhanced its liquidity position.