Orient-Express Hotels said Thursday that its board of directors rejected Indian Hotels Co.'s unsolicited proposal to buy the shares of Orient-Express that it doesn't already own.

Also on Thursday, Orient-Express named a new CEO, John Scott III.

Orient-Express said the $1.86 billion offer "significantly undervalues Orient-Express and its unique assets, and is not in the best interests of Orient-Express and its shareholders."

Indian Hotels already owns about 7% of Orient-Express.

Scott was president and CEO of Rosewood Hotels & Resorts for eight years; he stepped down from that position in August 2011.

Philip Mengel had been serving as Orient Express' interim CEO since Paul White's resignation last June.

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