The year 2004 was a watershed period for IHI plc, with the successful completion of a five-year investment programme announced on its formation in March 2000, the company said yesterday.

The refurbishment of the 517-room Corinthia Alfa Hotel, in Lisbon, was finished last year, completing the investment programme that included the acquisition and completion of hotel investment projects in Malta, Budapest and St Petersburg undertaken in previous years. Throughout these years, IHI raised €140 million in equity which, backed by an equivalent amount of bank borrowings and corporate bonds, enabled it to acquire and develop the four landmark hotels, having 1,466 rooms in the five-star category.

IHI chairman and CEO Alfred Pisani told shareholders at the annual general meeting yesterday the company is well on track in achieving its performance targets, with all of its hotels now in full operation.

"Malta, Budapest and St Petersburg in particular have all registered strong increases in demand and profitability while our newly-refurbished hotel in Lisbon is on its way to re-establishing itself as a leading five-star conference hotel in the Portuguese market," he said.

With 2005 being the first year of full operation for IHI, turnover is expected to reach €57 million this year.

IHI was launched by the Corinthia Group of Malta in March 2000 and floated on the Malta Stock Exchange soon after. Corinthia retains a 78 per cent shareholding in the company.

The hotels acquired and developed by IHI since then include the 250-room Corinthia San Gorg Hotel in Malta, the 288-room Corinthia Nevskij Palace Hotel in St Petersburg, the 414-room Corinthia Grand Hotel Royal in Budapest, and the high-rise, 517-room Corinthia Alfa Hotel in the financial district of Lisbon. IHI has also acquired a 20 per cent shareholding in Corinthia Hotels International, which is the Corinthia Group's hotel management arm, and a 20 per cent shareholding in Quality Project Management Limited, a construction project management company that has supported IHI in developing new projects, exercising discipline over consultants and contractors and providing expertise in evaluating architectural designs and tender bids.

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