International Hotel Investments has reported a pre-tax profit of €14 million for 2007 compared to a loss of €10.7 million the year before.
It said its hotels had seen higher turnover and profitability and the results were positively affected by the contribution made by the newly-acquired Corinthia Bab Africa Hotel and adjoining Commercial Centre in Tripoli and the Corinthia Hotel Prague, even though the 2007 results include only the performance of the last seven months of the year since acquisition.
Revenues increased to €104.1 million from €60.4 million in 2006 while the Operating Profit before a Revaluation to fair value of investment properties net of impairment losses was €16.1 million compared to a profit of €3.1 million in 2006.
IHI recently announced that its bid for the acquisition of the Metropole Hotel and adjoining 10 Whitehall Place in London, was chosen amongst a number of other very competitive offers. IHI along with its principal shareholders – Istithmar and LFICO – is committed to develop this building into a 283-room five-star deluxe hotel and 12 luxury apartments. This hotel is scheduled to open in 2011 and CHI – the Group’s hotel management arm – will be responsible for its operation under the Corinthia brand.
The Group in partnership with LFICO, is also committed to the development of a 360-room 5-star deluxe hotel in Benghazi, Libya. This is a mixed-use development containing office and retail space earmarked for rental to third parties.
The group said that during 2007, the Nevskij Palace Hotel redevelopment project in St. Petersburg progressed well and upon completion, expected towards the end of 2008, the hotel will increase its room stock by another 105 executive rooms from the present 285 to 390 and will enlarge the meetings and conference facilities. The project also entails the addition of 15,000 square metres of retail and office space for rental to third parties.
The Corinthia Hotel Lisbon in Portugal has completed the refurbishment of the remaining 248 rooms, out of its total 517 room stock, which had only undergone a soft refurbishment in 2004. Moreover, a Spa is currently being constructed and planned to be finished by mid-2008.
In its outlook, IHI said the addition of the Corinthia Bab Africa Hotel & Commercial Centre and Corinthia Hotel Prague are expected to have a significant positive impact on its consolidated results which, in future, will reflect the full twelve-month effect.
It was also expected that the other four hotel properties and CHI would continue to register improved trading performances until they all reach full maturity by the year 2010/1.
The directors have recommended tot he annual general meeting the issue of bonus shares out of reserves, amounting to three percent of members’ holdings. The agm will be held on May 15.
Picture: Jewel in the IHI crown, the Corinthia Bab Africa hotel in Tripoli.