IHI reports impact from world economic downturn

International Hotel Investments (IHI) said today that it expected to be affected by the downward trend in average room rates and occupancy levels which was affecting hotels all over the world.

“The international hospitality industry has been negatively affected by the worldwide financial crisis. Although as a result of the Group’s diversified portfolio not all IHI-owned hotel properties have been affected to the same degree, the overall expectation for the second half of 2008 is still expected to be affected by the downward trend in average room rates and occupancy levels,” the company said in a statement tot he Malta Stock Exchange.

It said the hotel management company CHI has been taking measures to limit the impact on the hotels’ profitability.

The company was also continued with its plans for new hotel development and the refurbishment of operating properties.

“The planning process for the redevelopment of the Metropole Building and 10 Whitehall Place in London, a joint venture between IHI, LFICO of Libya and Nakheel Hotels of Dubai, is progressing on schedule following the submission of a full planning application to Westminster City Council on 1st August 2008.

“Work has also proceeded on the finalisation of the Health Centre and Spa at Corinthia Hotel Lisbon, as well as on the refurbishment of the foyer at the Corinthia Nevskij Hotel where, in the latter case, these works were completed in July 2008.”

IHI said significant progress had also been made on the construction of the two adjoining sites in St Petersburg which are being developed into a 104 executive room extension with supporting amenities to the existing hotel and a 14,000 square metre office and commercial block. This project is expected to be completed by the first quarter of 2009.

IHI said it enjoyed a healthy liquidity cover and a conservative debt to equity ratio. On the strength of its liquidity position and the current economic scenario, it was actively pursuing a number of opportunities that were currently available on the international market.