Improved performance for IHI in 2013

23rd April 2014 - IHI announces results for 2013 that highlight a year of growth and profitability despite sluggish economic conditions in many of the countries in which the company owns and operates its five star hotels.

Financial results for 2013 published today show an EBITDA profit of €35 million, a 26% increase on 2012. This significant improvement in the company’s operational performance is the result of higher revenues and profits in almost all of the company’s owned and managed hotels. This EBITDA of €35 million does not include the significant performance of IHI’s London hotel since IHI’s 50% ownership of this hotel renders it an associated company, with its results being reported separate to EBITDA. This hotel has established itself among the foremost luxury properties in London, with operating profits in 2013 rising to €17 million from €9.7 million in 2012.

Projections for 2014 suggest a further improvement across the company’s operations, which coupled with the sale of 11 of the company’s 12 residential apartments in London, have prompted the Directors to declare an interim dividend of 3c per share in April 2014.

IHI owns 100% shareholdings in five-star hotels in St Petersburg, Prague, Budapest, Lisbon, Tripoli and two in Malta, as well as a 50% share in the Corinthia Hotel and residences in London. IHI also owns commercial offices and retail units for rent in Tripoli and St Petersburg, besides owning the Corinthia Brand and managing its own hotels and others owned by third parties, via its operating company Corinthia Hotels International. <p>IHI Chairman, Alfred Pisani, said that the consolidated results of IHI are a direct result of improved brand recognition, effective marketing, better distribution and reservation systems, a higher focus on service standards and tighter operating efficiencies.

IHI’s financial statements report further comprehensive revaluation income of €26 million (€8 million in 2012) mainly reflecting the effect of the annual end-of-year revaluation of its hotels. This brings the total asset value of the group’s assets to over €1 billion, with a resultant net asset value per share of €1.13.