International Hotel Investments plc - Interim Directors’ Statement

On 3 November 2014, International Hotel Investments plc published its Interim Directors’ Statement covering the nine-month period up to the end of September 2014.

IHI explained that during the period under review, all hotels others than those in Tripoli and St Petersburg performed better than in the first nine months of 2013. The performance of the Tripoli and St Petersburg hotels has been dampened by the geopolitical unrest in the respective regions.

IHI noted that the Corinthia Hotel Tripoli has remained operational throughout the period under review and is currently the only international five-star hotel open in the city. Despite the end of hostilities at the city outskirts which started in June, management has continued to adapt to a period of low occupancies and has implemented extensive cost savings with the objective to break-even over the 12-month period. The commercial centre of offices adjoining the hotel remains in full operation and occupancy.

Similarly, the Corinthia Hotel St Petersburg has also been affected by a reduction in corporate travel to the Russian Federation as a result of international political issues. As a result, management has acted to source alternative markets, in particular the domestic Russian market. A sales office has been opened in Moscow and Russian-language online marketing has been given prominence.

On the other hand, in Malta, the Corinthia St George’s Bay and the Marina Hotel have had their best performance since opening many years ago. IHI also reported positive performances by the hotels in Lisbon, Budapest and Prague.

Meanwhile, the Corinthia Hotel London (50% owned by IHI Group), improved its performance in 2014 as it continued to attract the high-end US-based clientele, especially after having been accepted into the exclusive American Express Fine Hotel and Resorts program.