International Hotel Investments is on course to register a record operating profit in its business for this year, driven by a solid underlying performance in all its hotel operations in Europe and beyond, according to the company’s interim director’ statement.
Revenues and operating profits were up on 2016, and ahead of budgets.
IHI has an ownership interest, mostly wholly-owned, in 11 hotels, and its operating company, Corinthia Hotels, manages a further nine hotels on behalf of third party investors, three of which are in Dubai. Others in Brussels and Doha are under various stages of development and construction.
The statement said that the robust operating performance is the result of buoyant market conditions in the countries where IHI has a presence, as well as Corinthia Hotels’ increasing focus on quality and marketing.
The company noted that these results may be impacted upon consolidation by exchange differences prevailing between the reporting currency of the country where the hotel is located and the euro, the group’s reporting currency.
QPM Limited, a wholly-owned subsidiary of IHI in the field of design, engineering and management services, whose majority shareholding was acquired in 2016, was also having a very solid performance for 2017, with profits expected to be surpassing both budget and last year’s results.
A number of owned properties were undergoing refurbishment programmes in the hotels’ bedrooms, at St Petersburg, Budapest and Lisbon, with the initial phases of these projects being completed within budget.
IHI is also a real estate owner, with offices, residences and retail estate under lease to tenants in London, St Petersburg and Tripoli.
Earlier this year, one of the last remaining vacant 1,222 square metres of office space in Tripoli was leased on a five-year contract worth over €1 million annually to a major European oil company.
On the corporate front, regulatory procedures were in the final stage of merging Island Hotels Group Holdings plc (IHGH) with IHI.
IHGH is the former holding company of the Island Hotels Group which was acquired in 2015.