5.8% International Hotel Investments plc 21.12.2021


International Hotel Investments plc - Prospectus dated 16 November 2012

The Company

International Hotel Investments plc (IHI), which was incorporated in March 2000 by the Corinthia Group, is principally engaged in the ownership, development and operation of hotels and ancillary real estate.

IHI’s principal shareholders are Corinthia Palace Hotel Company Ltd (57.82%), Istithmar Hotels FZE of Dubai (21.69%) and LFICO (10.85%). The remaining balance of 9.64% is held by the general investing public. The shares of IHI were listed on the Official List of the Malta Stock Exchange in April 2000 and the Company currently has a market capitalisation of €387.9 million.

In December 2010, IHI purchased the Corinthia brand from its parent company Corinthia Palace Hotel Company Ltd (CPHCL) for €19.6 million. The agreement also provided that until 2020, any addition to the portfolio of Corinthia branded rooms will result in an additional payment of €6,400 per room to CPHCL.

In 2015, IHI acquired the entire issued share capital of Island Hotels Group Holdings plc, incorporating the ownership of the Radisson Blu Hotel in St. Julian’s; 50% of the Radisson Blu Resort & Spa, Golden Sands; Island Caterers Ltd; the development and operation of Costa Coffee in Malta and East Spain and a large parcel of land in close proximity to the Radisson Blu Resort & Spa, Golden Sands, which is earmarked for the development of a hotel and residential complex.

Hotel Properties:

The IHI Group has a stock of 3,509 rooms across the following 10 properties:

  • Corinthia Hotel Budapest & Residences, Hungary (100%);
  • Corinthia Hotel St Petersburg, Russia (100%);
  • Corinthia Hotel & Spa Lisbon, Portugal (100%);
  • Corinthia Hotel St. George’s Bay, St Julians, Malta (100%);
  • Corinthia Hotel Prague, Czech Republic (100%);
  • Corinthia Hotel Tripoli, Libya (100%);
  • Marina Hotel, St. George’s Bay, St Julians, Malta (100%);
  • Radisson Blu Resort St. Julian’s, Malta (100%);
  • Corinthia Hotel & Residences, London, UK (50%) – The remaining 50% is held by Libyan Foreign Investment Company (LFICO);
  • Radisson Blu Resort & Spa Golden Sands, Malta (50%) – The remaining 50% is held by Mayfair Overseas Holdings Limited (an experienced international timeshare operator).

Investment Properties:

  • Commercial Centre St. Petersburg (100%)
  • Commercial Centre Tripoli (100%)
  • Commercial Centre Lisbon (100%)
  • Site in Tripoli (100%)

Other Operating Assets:

  • CHI Ltd (100%) – This fully-owned subsidiary currently manages and operates a number of hotels predominantly owned by IHI and Corinthia Palace Hotel Company Limited (CPHCL).
  • CDI Ltd (100%) – A newly created development company with the aim of identifing real estate opportunities, structure acquisitions and funding strategies, and lead such projects from inception to completion on behalf of third party investors.
  • Quality Project Management Ltd (100%): This company offers a range of project, construction and cost management services both in Malta and overseas.

Future Developments:

  • George’s Bay Development, Malta (100%) – The Group is in the initial stages of formulating a development concept and design for the project and as such, a formal application is yet to be submitted to the Planning Authority. Once planning approval is granted and funding is secured, this mixed-use development is expected to be spread out over a number of phases to minimise interruption to hotel operations.
  • Costa Coffee (100%) – To date, the Group has opened 10 outlets in Malta and a further 15 outlets in Spain . The Prospectus explains that IHI has no immediate plans for further store openings in Malta. Moreover, IHI have reduced their expansion strategy in Spain given the worse than expected performance of the first 15 stores. In fact, IHI will now have 16 stores in Spain by the end of 2016 compared to the original target of 22 stores and will not be opening any of the planned 15 stores in 2017. Instead, it will be focusing on improving the operational performance of these existing stores
  • Hal-Ferh Project, Malta (100%) – The Group is currently in the process of assessing the project designs, concept and funding requirements prior to embarking on the execution of this project spread over 83,530 square metres of land situated adjacent to the Radisson Blu Resort & Spa, Golden Sands.
  • Grand Hotel Astoria, Brussels (50%) – This property will be converted into the Corinthia Grand Astoria Hotel comprising 121-beds. Although building permits are in hand, funding for the 65 million development is still being secured for this project which is expected to be completed in 2019.
  • Dubai – In May 2016, CHI entered into a technical and pre-opening services agreement as well as a subsequent 20-year management agreement with Meydan Group for the proposed Corinthia Hotel & Residences at Jumierah Beach, Dubai, UAE.
  • Other projects – IHI is also involved in a number of projects, namely Medina Tower (Libya), Corinthia Hotel St. Petersburg renovation programme (Russia) and Benghazi hotel project (Libya). However, these projects are currently on hold given the prevailing circumstances in each of the countries mentioned.

Use of Proceeds

The net proceeds from this bond issue, estimated at €19,625,000, will be used by the Issuer to part finance the redemption of the outstanding amounts of the 6.3% IHI 2013 and the 6.8% IHI 2018 bonds totalling just under €22.1 million.

The redemption of the remaining balance of €2.45 million will be financed through IHI’s internally generated cash.

Security & Status

The bonds constitute the general, direct, unconditional and unsecured obligations of International Hotel Investments plc and shall at all times rank pari passu without any priority or preference among themselves and with other unsecured debt, if any.

IHI has undertaken that as from the financial year ending 31 December 2015, it shall build a sinking fund which it estimates will be equivalent to 50% of the value of the total bonds in issue by the maturity date. The full list of periodic repayments may be found in the Prospectus on page 65.



Amount Issued




Interest Payment

Annually on 21 December

XD Date

6 December


The bonds will be redeemed at 100% (par) on 21 December 2021.


Official List


Alfred Pisani (Chairman & CEO), Joseph Fenech, Simon Naudi, Frank Xerri de Caro, Michael Beckett, Nagmeddin Hemali Mokhtar, Andrew John Watson, Joseph J. Vella and Alfred Fabri (Company Secretary).


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