The Corinthia Group registered increased earnings in the first half of the year despite a challenging international market, the company said yesterday.

Notwithstanding the civil war in Libya and the instability there, Corinthia Bab Africa Hotel in Tripoli posted improved trading results, the company said, as did the hotel that the group has in St Petersburg, Russia.

Overall, International Hotel Investments plc (IHI), part of the Corinthia Group of Companies, announced a 21 per cent increase in earnings before tax, making €16.3 million between January and June 2013.

The company said the result marked a significant improvement over figures in the preceding year. The better results come from increased trading all round but, in particular, St Petersburg and Tripoli.

The group’s result for the first half of the year covered its wholly owned hotels and commercial real estate in Malta, Russia, Hungary, the Czech Republic, Libya and Portugal but excluded the results of its 50 per cent share in the Corinthia Hotel and Residences in London, which was accounted separately, the company said.

The London flagship hotel, which is rapidly making its mark as one of the leading luxury hotels in the United Kingdom, delivered earnings before tax of £3.6 million in the first six months of 2013 compared to a loss of £800,000 in the corresponding period last year.

This improvement in performance is in line with the expected hotel’s growth to maturity over this year, 2014 and beyond, following the inaugural year 2012.

The directors of IHI noted that the improved results were achieved in spite of challenging economic circumstances in several of the countries hosting its hotel and commercial real estate investments.

The results reflected the significant strides being made by Corinthia Hotels, the company’s operating arm, in repositioning the Corinthia brand as a five-star operation, backed by a global sales and marketing reach across the main source markets in Europe, the company said.

The group said it was also focusing on its online presence, via its own websites and social media strategies, with direct, online bookings now accounting for more than 20 per cent of annual revenues.

Other major developments in the first six months of the year include the increase in rental income from the commercial centre adjoining the hotel in St Petersburg, now topping an annualised €4.4 million in rent, up from €2.5 million last year.

In London, the management is actively pursuing the sale of 12 luxury apartments on Whitehall Place.

IHI also continues to progress on the initial work required for the eventual sale of the commercial centre in St Petersburg.

The positive trends recorded in the first half of 2013 were expected to continue through the second half of the year, the company said.