Libya remained volatile but Corinthia’s luxury village, Palm City, registered higher occupancy this year on the back of returning calm in Tripoli, the company has reported.

In its half-yearly financial report released yesterday, Mediterranean Investments Holding plc, a Corinthia affiliate, said occupancy levels at the luxury resort jumped to 18 per cent from the 10 per cent recorded in the second half of 2016.

Business at Palm City took a battering in the aftermath of the Libyan revolution that ousted Muammar Gaddafi in 2011, as prolonged infighting between different factions pushed foreign companies and operators out of the country.

However, the company said it was cautiously optimistic for 2017, as it had concluded a number of lease agreements with embassies, non-governmental organisations, security companies, contractors and companies in the oil and gas business.

“A number of oil fields have started production and foreign emissaries have been visiting the capital with the intention to reopen the embassies,” the directors reported. They commented on the situation on the ground, which, according to them, is “much calmer” and instilled a sense of confidence that further leases would be concluded later this year.

“One is starting to experience a sense of normality returning to the city of Tripoli… interest in business setting up a presence started again towards the end of last year and, since then, a number of lease contracts have been concluded with these entities,” the directors said.

The company reported a loss of €830,000 after tax in the first half of 2017, which was a significant improvement over the loss of €2.3 million in the same period last year.

However, it registered an operating profit of €1 million on the back of improved occupancy.

The directors said management had taken a number of measures to continue to keep the property in pristine condition, so that Palm City would be able to accommodate clients as soon as leases were concluded.

MIH is half-owned by the Corinthia Group, with the rest held by Kuwait’s National Real Estate Company.