Corinthia plans IPO as it eyes Paris and Rome

Flaunting its latest asset – the upmarket “trophy” hotel in London – the Corinthia Group could well launch an IPO by year’s end or the beginning of 2012 to raise capital for the purchase of property in top cities like Rome, Paris and, possibly, even New York.

“Our plan is to raise more capital to be in a position to build hotels in these capitals and fly the Corinthia flag,” group chairman Alfred Pisani tells The Times Business.

Though prudent and cautious, he is optimistic things would work out fine, in contrast with three years ago when plans to launch a second listing on the London Stock Exchange had to be dropped as the world went through one of its worst economic downturns.

“The best timing would have been last year, June 2010. But the world never stops, no matter what,” Mr Pisani says.

As talks continue over the purchase of property in both Rome and Paris – specific sites seem to have been earmarked but Mr Pisani is careful not to give anything away at this stage – the group, through its investment arm IHI, is working closely with its bankers and brokers to raise the necessary capital.

“Now that (the world economy) is picking up our brokers, our bankers are telling us: Wait for the end of this year, by which time you would have established the operation of your (London) hotel and this will give you added value when you come to launch the IPO,” Mr Pisani says.

“So it all depends on the IPO but not only. The property in London includes 12 upmarket apartments, which, Mr Pisani is quick to point out, “have tremendous value”.

The group can either choose to rent the apartments, which should be completed within the next six weeks or so, or sell them. Mr Pisani indicates they are likely to be sold in order to raise money, build and run more hotels in other top capitals and so, as he puts it, keep the Corinthia flag flying.