IHI reports improved performance

International Hotel Investments has reported a significant improvement in its performance, with a 14% increase in consolidated revenue.

With the exception of the Corinthia Hotel Lisbon, all the group’s hotels registered increases in revenue over 2011 with the best performer being the Corinthia Hotel and Commercial Centre in St Petersburg.

The Corinthia Hotel Tripoli was affected by the continued state of flux in Libya following the end of the revolution in 2011.

The Corinthia Hotel London registered a very encouraging performance.

During 2012 the group - which is part of the wider Corinthia Group - registered a loss after tax of €10.4 million compared to a loss of €10.7 million in 2011.

The group explained how, during 2012, it acquired the 100% shareholding in Marina Hotel in Malta. It is expected that in the long term there will be increased economies of scale and synergies with the neighbouring Corinthia Hotel St George’s Bay.

The group also acquired from Wyndham the 30% share in CHI Ltd which has now become a wholly-owned subsidiary of the Group. CHI Ltd, which is entrusted to
manage IHI’s Corinthia branded properties, is being re-organised to enable
it to spearhead further expansion in the group’s hotel operations through the
management of new group-owned properties and management contracts with
third parties.

IHIO  injected a further €8.4 million in its associate company Medina Tower JSC
(Libya) by way of additional equity contribution thereby bringing up the total
investment to €13 million. Construction works on this project are expected to
commence within the next few months with an anticipated 42-month construction period. IHI has a 25% shareholding in this project.

It also contributed €13.5 million to the Corinthia Hotel London and Residences which enabled the whole project to reach a state of practical completion. This project is owned through a 50/50 joint venture with Lafico (Libya).
 
The Group’s working capital as at the end of December 2012 shows a deficiency
of €18.6 million. This deficiency will be addressed through the projected
improvements in operating performance and through the anticipated disposal of
the London Residences.
 
"Additionally, IHI also remains in active discussions with sovereign wealth funds
and large institutions with the ultimate purpose of raising fresh capital to enable the
Group to move ahead in its overall vision to acquire new properties in Europe, North
America and Asia, and thereby expand the Corinthia brand.

The group said that it was confident that the results for 2013 will show an improvement over those for 2012 in view of the improving world tourism situation.