IHI makes net profit of Lm1.2 million

The last financial year for International Hotel Investments plc (IHI) was characterised by a steady, determined pursuit of the company's objective to acquire, develop and operate upscale hotels in Europe and the Mediterranean, the company's annual general meeting held on Friday was told.

Chairman and chief executive officer Alfred Pisani told shareholders that important developments in 2002 had represented significant progress in the company's strategy to realise underlying value of hotel property through competitive acquisitions and the re-launching of hotels following redevelopment projects.

IHI is Malta's largest public hotel company, having been founded in March, 2000, and subsequently floated on the Malta stock exchange in April of the same year.

The company has 3,400 shareholders. It is the sole owner of the 250-room Corinthia San Gorg Hotel, where the annual general meeting was held.

In January last year, the company acquired the 285-room Nevskij Palace Hotel and four adjoining high-street properties in St Petersburg, Russia, which it aims to further develop over the coming years to extend the hotel and include a retail mall, offices, conference facilities and a spa.

During last year, the company also completed the reconstruction of the deluxe 414-room Grand Hotel Royal in Budapest, Hungary, which was officially re-opened last April.

The company also owns the high-rise 517-room Alfa Hotel in Lisbon, which was closed in February and is now undergoing a full refurbishment to reopen as a five-star hotel in the first half of next year.

Mr Pisani said that notwithstanding adverse market conditions affecting the international travel and tourism sectors, IHI improved its performance in 2002 over 2001, largely owing to the addition of the Nevskij Palace Hotel in January, 2002, as well as a minor contribution made by the Alfa Hotel, which was acquired in August, 2001, and kept open up to the start of the refurbishment project.

Total turnover in 2002 was Lm13,756,516, and net profit before taxation was Lm1,218,072. Turnover in 2003 is expected to further increase now that the deluxe Grand Hotel Royal has been completed and officially re-opened.

Shareholders approved an extraordinary resolution amending the company's memorandum and articles of association with the objective to better align voting rights of all shareholders directly to the full extent of their shareholding in the company.

This measure is one of a series of steps being taken by the company to facilitate the entry of large, international investors into the company with a view to raising new capital to fund further growth.