International Hotel Investments plc - Interim Directors’ Statement

On 27 October, International Hotel Investments plc (IHI) published its Interim Directors’ Statement covering the nine-month period up to the end of September 2015.

IHI explained that during the period under review, the positive trends highlighted in the 2015 interim financial statements have persisted during the third quarter of the year and expectations for the rest of the financial year remain buoyant. IHI expects to register €47 million in earnings before interest, tax, depreciation and amorisation (EBITDA) during the current financial year to 31 December 2015. This figure includes IHI’s 50% share in the London hotel and the consolidation, as from July of this year, of the 100% ownership of the Island Hotels Group (IHG). Excluding the six months’ results of IHG, the EBITDA results for IHI properties on a like-for-like basis show a 16% increase over the corresponding period last year. Moreover, CHI Ltd, which is the hotel management company, is expected to register record profits in 2015.

Except for the hotel in Tripoli, Libya, current forecasts indicate record profit performances being achieved in all of IHI’s hotels, including St Petersburg’s hotel when measured in Roubles. The Tripoli hotel underwent a major upgrade and is now partially open.

The Directors also reported that the integration of IHG into IHI’s structures has been smooth, with substantial savings being made as a result of a stronger combined purchasing position. IHI also confirmed that IHG already acquired the remaining 50% ownership in Buttigieg Holdings Limited and is in the process of acquiring the other 50% in the Heavenly Collection Limited. Consequently, IHI has already become the ultimate 100% owner of the Costa franchise in Malta and the Eastern coast of Spain and, following the successful completion of the acquisition in the Heavenly Collection Limited, it will become the 100% ultimate owner of the 85,000 square metre tract of land for development known as Hal Ferh.

Going forward, the Directors explained that it is the intention of IHI to amalgamate the industrial catering units of IHI and of Island Caterers into one activity. However, both units will keep their respective distinct brands. Moreover, IHI is anticipating a year of overall growth with new development and hotel management agreements expected to be entered into with third party investors in cities and resorts across Europe and the Gulf. Further announcements in this regard will be made at the opportune time.

As for the luxury mixed-use development in St George’s Bay, the Directors explained that discussions with the competent Maltese authorities are ongoing.