International Hotel Investments
At a meeting held on April 20, 2007, the board of directors of International Hotel Investments plc approved for publication the financial statements for year ended December 31, 2006.Total revenue generated by the IHI Group during 2006 amounted to €60.4...
At a meeting held on April 20, 2007, the board of directors of International Hotel Investments plc approved for publication the financial statements for year ended December 31, 2006.
Total revenue generated by the IHI Group during 2006 amounted to €60.4 million, representing a 10.8 per cent increase over the previous year. This increase resulted from improved performances of the Corinthia Lisboa Hotel in Lisbon and the Corinthia Grand Hotel Royal in Budapest.
On the other hand, the Corinthia San Gorg Hotel in Malta generated lower revenues due to a reduction in the hotel's room stock during the refurbishment works. The group's gross profit increased by 18.6 per cent to €21.3 million with a margin of 35.3 per cent (2005: 32.9 per cent) whilst operating costs increased to €18.2 million.
Earnings before interest, tax depreciation and amortisation (EBITDA) rose by 14.5 per cent to €13.1 million with the EBITDA margin increasing to 21.6 per cent (2005: 20.9 per cent). The group generated an operating profit before impairments in 2006 of €3.1 million compared to €1.4 million in 2005.
During the year the group recognised a €7.15 million impairment loss on the Corinthia Lisboa Hotel following a lower value attributed to this hotel property by an independent expert who took into account the hotel's expected future income streams and comparing the resultant present value to its current book value.
However the directors of IHI expressed their confidence that following the completion of the hotel's spa and the full refurbishment during 2007 of 248 rooms from the total room stock of 518 rooms, coupled with the advantages from access to the Global Distribution Systems of Wyndham Hotel Group International, the Corinthia Lisboa Hotel will be in a better position to achieve its projected income streams.
On the other hand, during 2006, the group recognised another €2.21 million increase in the value of the properties adjacent to the Corinthia Nevskij Palace Hotel in St Petersburg, which are currently being developed into an extension to the hotel and a commercial area for lease as retail and office space.
Net financing costs amounted to e9.35 million resulting in a loss before tax of €10.7 million. After accounting for taxation and the loss attributable to the minority interest, the IHI Group's loss in 2006 totalled €10.5 million.
Total assets of the IHI Group as at December 31, 2006 amounted to €432 million, representing a 15.5 per cent increase from the level of assets in December 2005. Shareholders' funds of €183.6 million translate into a net asset value per share of €1.13. The increase in shareholders' funds follows the allotment of a total of 8.05 million new shares in the second half of 2006 to a number of institutional investors at a price of €1.00 per share.
Following the cash injection of €178 million by Istithmar Hotels FZE of Dubai, IHI intends increasing its debt further in order to purchase up to an additional five hotels, thus bringing the group's total portfolio to 11 properties. The company is reportedly currently reviewing a number of properties around the world including central Asia, the Middle East, Russia and Europe.
p Rizzo, Farrugia & Co. (Stockbrokers) Ltd. are members of the Malta Stock Exchange and licensed to conduct Investment Services business by the Malta Financial Services Authority. This article contains public information only and is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the report. Rizzo, Farrugia & Co. may have or have had a relationship with companies herein mentioned. Past performance is not necessarily indicative of future results.
Total revenue generated by the IHI Group during 2006 amounted to €60.4 million, representing a 10.8 per cent increase over the previous year. This increase resulted from improved performances of the Corinthia Lisboa Hotel in Lisbon and the Corinthia Grand Hotel Royal in Budapest.
On the other hand, the Corinthia San Gorg Hotel in Malta generated lower revenues due to a reduction in the hotel's room stock during the refurbishment works. The group's gross profit increased by 18.6 per cent to €21.3 million with a margin of 35.3 per cent (2005: 32.9 per cent) whilst operating costs increased to €18.2 million.
Earnings before interest, tax depreciation and amortisation (EBITDA) rose by 14.5 per cent to €13.1 million with the EBITDA margin increasing to 21.6 per cent (2005: 20.9 per cent). The group generated an operating profit before impairments in 2006 of €3.1 million compared to €1.4 million in 2005.
During the year the group recognised a €7.15 million impairment loss on the Corinthia Lisboa Hotel following a lower value attributed to this hotel property by an independent expert who took into account the hotel's expected future income streams and comparing the resultant present value to its current book value.
However the directors of IHI expressed their confidence that following the completion of the hotel's spa and the full refurbishment during 2007 of 248 rooms from the total room stock of 518 rooms, coupled with the advantages from access to the Global Distribution Systems of Wyndham Hotel Group International, the Corinthia Lisboa Hotel will be in a better position to achieve its projected income streams.
On the other hand, during 2006, the group recognised another €2.21 million increase in the value of the properties adjacent to the Corinthia Nevskij Palace Hotel in St Petersburg, which are currently being developed into an extension to the hotel and a commercial area for lease as retail and office space.
Net financing costs amounted to e9.35 million resulting in a loss before tax of €10.7 million. After accounting for taxation and the loss attributable to the minority interest, the IHI Group's loss in 2006 totalled €10.5 million.
Total assets of the IHI Group as at December 31, 2006 amounted to €432 million, representing a 15.5 per cent increase from the level of assets in December 2005. Shareholders' funds of €183.6 million translate into a net asset value per share of €1.13. The increase in shareholders' funds follows the allotment of a total of 8.05 million new shares in the second half of 2006 to a number of institutional investors at a price of €1.00 per share.
Following the cash injection of €178 million by Istithmar Hotels FZE of Dubai, IHI intends increasing its debt further in order to purchase up to an additional five hotels, thus bringing the group's total portfolio to 11 properties. The company is reportedly currently reviewing a number of properties around the world including central Asia, the Middle East, Russia and Europe.
p Rizzo, Farrugia & Co. (Stockbrokers) Ltd. are members of the Malta Stock Exchange and licensed to conduct Investment Services business by the Malta Financial Services Authority. This article contains public information only and is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the report. Rizzo, Farrugia & Co. may have or have had a relationship with companies herein mentioned. Past performance is not necessarily indicative of future results.