International Hotel Investments has reported a profit after tax of €14 million for 2008 compared to €10 million in the previous year.
The group, which owns a range of hotels in Europe and Libya, said its turnover grew by 23 per cent to €127.97 million.
It announced that renovation work on its Central London hotel in London is being taken in hand next month, and applications for a development permit for a new five-star property in Benghazi are in hand.
The group said part of the reason for its improved performance was the fact that the results of both the Corinthia Bab Africa Hotel and Commercial Centre in Tripoli and the Corinthia Hotel Prague have now been included for the full year, whereas in 2007 they were only included as from the month following acquisition, in June 2007.
While the hotels in Tripoli and Lisbon registered significant increases in their turnover levels over the previous year, the Russian and Czech hotel properties registered a decrease, with the properties in Malta and Hungary retaining a stable position.
At the Corinthia Nevskij Palace Hotel in St Petersburg, revenues were negatively affected by the current project works, while in the case of the Corinthia Hotel Prague the reduction in turnover reflects the general slowdown in business experienced by the city in 2008.
"This net improvement on turnover levels underpins the group's gross profit of €49.18 million, an increase of €10.71 million or 28 per cent on the equivalent profit registered in 2007," IHI said.
During 2008, works on the Nevskij Palace Project in St Petersburg proceeded according to plan. A major component of the project featured the total refurbishment and reorganisation of the existing hotel's foyer, restaurants, bar and public areas. These areas were completed and became fully operational in June 2008.
On completion of the whole project, targeted for the second quarter of this year, the hotel will increase its room stock by 105 executive rooms and will benefit from new conference facilities. The development will also have 15,000 square metres of retail and office space for rental to third parties.
The construction of the new spa and health centre at the Corinthia Lisbon Hotel is now almost complete and it is expected to have a soft opening this month.
IHI said the planning application for the redevelopment of the Metropole Building and 10 Whitehall Place in London has been approved. The project will include a 296-room luxury Corinthia Hotel, a spa and 12 up-market apartments. Construction works are expected to start next month and project completion is planned for the end of 2010. IHI has a one-third ownership in this project and has been entrusted by its partners, Nakheel Hotels of Dubai and LFICO of Libya, to lead the development project.
Last year, IHI invested £35 million (€43.16 million) in NLI Ltd. which is the company set up for this purpose.
In 2008, the group, in partnership with LFICO, also committed itself to a mixed-use development of a five-star deluxe hotel, office and residential complex in Benghazi, Libya. The application for the building permit and other groundwork necessary for this project are currently in progress.
The group is in the process of putting in place the administrative set-up for the 50:50 strategic investment with Intourist (Russia). The purpose of this venture is to develop and operate jointly four- and five-star hotels across the Russian Federation.
"However, in view of the impact of the current global economic crisis the two parties have now agreed to put this project on hold," IHI said.
The group said that after an encouraging first half of 2008, the hospitality industry in general started to face the challenges brought about by the international economic recession. This dampened the original outlook of the group's activities for the whole of 2008 and may have an even bigger impact on the group's operational results for 2009. To counteract this difficult period it is taking all the necessary measures to tap new markets, streamline its operations and reduce costs without impinging on the quality of the service provided by its properties.
The directors have not recommended a dividend.