International Hotel Investment this morning announced a 21 per cent year-on-year increase in Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) for the first six months of this year.
The group generated €16.3 million in EBIDTA, a significant improvement over last year’s results. The better performance is due to improved trading results all-round, in particular in St Petersburg and Tripoli.
The group’s EBITDA covers the results of its wholly-owned hotels and commercial real estate in Malta, Russia, Hungary, Czech Republic, Libya and Portugal but excludes the results of its 50 per cent share in the Corinthia Hotel and Residences in London, which are accounted separately.
The London flagship hotel, delivered an EBITDA of £3.6 million in the first six months compared to a loss of £0.8 million in the corresponding six months last year.
This was in line with the expected hotel’s growth to maturity this year, next year and beyond.
The directors said the improved results all round were achieved in spite of challenging economic circumstances in several of the countries hosting its hotel and commercial real estate investments.
They reflected 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 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 included the increase in rental income from the commercial centre adjoining the hotel in St Petersburg, now topping an annualised €4.4 million in rents, up from €2.5 million last year.
In London, management was actively pursuing the sale of the 12 luxury apartments on Whitehall Place and further announcements would be made as progress was registered.
IHI also continued 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 are expected to continue through the second half of the year.