IHI increases capital to over €0.5 billion

International Hotel Investments (IHI) plc has increased its issued capital to over €500 million, welcoming Istithmar Hotels of Dubai as a new strategic investor and partner.

At the signing ceremony, held at the Corinthia San Gorg Hotel, St Julian's, which was attended by Prime Minister Dr Lawrence Gonzi, and Tonio Fenech, Parliamentary Secretary for Finance, Alfred Pisani, chairman and CEO of IHI recalled the growth of Corinthia from its early beginnings, and how Corinthia grew rapidly after welcoming LAFICO as a partner in 1974.

Mr Pisani stated: "This is a momentous occasion for a Maltese company, greeting Istithmar Hotels as the 'new member of the family' with a substantial shareholding interest in IHI. Together, we will grow this company into a major hotel company."

The Prime Minister warmly welcomed the agreement, stating that this was an exciting event for the Pisani family, Corinthia and Malta. He said that Corinthia had accompanied Malta's development since independence and the entrepreneurial spirit of the Pisanis, coupled with the confidence in Maltese employees, has enabled the company to grow beyond the shores of the Maltese Islands.

Khaled Al Kamda, vice-chairman of Istithmar Hotels, said: "The investment by Istithmar Hotels in IHI is in line with the Istithmar's strategy of taking major strategic stakes in high quality companies with strong management teams and good growth potential.

Joe Sita, CEO of Istithmar Hotels, said: "We welcome this opportunity to partner and support a company which has a proven track record in acquiring and developing hotels in various countries, including some of the more exciting and fast-growing cities in Europe."

The meeting was also addressed by Milad Jaleddi from LAFICO, who stressed LAFICO's support to Corinthia, and Steven Rudnitsky, president and CEO of Wyndham Hotels Group.

Istithmar Hotels has subscribed to €178,000,000 in new shares issued by IHI. These funds will be allocated entirely to the company's further growth by way of new acquisitions and developments of landmark five-star hotels in Europe and beyond.

Simultaneous to the issue of new shares to Istithmar Hotels, IHI is also acquiring the Corinthia Bab Africa Hotel and Commercial Centre in Tripoli and the Corinthia Towers Hotel in Prague, from the Corinthia Group of Malta, principally in return for new shares issued to Corinthia in IHI.

Istithmar Hotels is part of Istithmar, a leading private equity and alternative investment company based in Dubai with global investment interests across various sectors, including hospitality, where Istithmar Hotels is fast establishing itself as a major investor in high-profile properties across the world.

Istithmar is 100 per cent owned by Dubai World, which in turn is wholly-owned by the Government of Dubai.

The directors of IHI have also announced that they will endeavour to obtain a second listing of the company on an international stock exchange within 12 months from closing.

IHI was founded in March 2000 by the Corinthia Group and has since acquired and developed five-star hotels in Malta (the Corinthia San Gorg Hotel), St Petersburg (the Corinthia Nevskij Palace Hotel and an adjoining development site), Budapest (the Corinthia Grand Hotel Royal) and Lisbon (the Corinthia Lisboa Hotel), to which are being added the hotels in Tripoli and Prague, besides an anticipated five new acquisitions over the coming months.

IHI also recently increased its shareholding in CHI Limited, a hotel management company, up to 70 per cent, with the remaining 30 per cent acquired by Wyndham Hotels Group of the United States.