6.50% INT. HOTEL INVESTMENTS PLC 2012/2014

Download

International Hotel Investments plc - Prospectus 17th March 2006

The Company

IHI was incorporated in March 2000 by the Corinthia Group to invest in a balanced portfolio of mixed-use developments with hotel properties being their main component. 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.

Hotel Properties:

The IHI Group has a stock of 2,935 rooms across the following 8 properties:

  • Corinthia Hotel Budapest & Residences, Hungary (100%);
  • Corinthia Hotel St Petersburg & Commercial Centre, 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 & Commercial Centre, Libya (100%);
  • Marina Hotel, St. George’s Bay, St Julians, Malta (100%);
  • Corinthia Hotel & Residences, London, UK (50%) – The remaining 50% is held by Libyan Foreign Investment Company (LFICO). The Metropole Building was converted into a 296-room five-star Corinthia Hotel which commenced operations in April 2011. Meanwhile, the adjacent building (known as 10 Whitehall Place) had been converted into 12 luxury apartments which the Group is now seeking to sell.

Other Operating Assets:

  • CHI Ltd (100%) – This fully-owned subsidiary currently manages the eight hotel properties listed above as well as another five hotels owned by the Corinthia Group and other third party hotel owners. One of CHI’s objectives is to improve the average room rates of the properties it manages. In this respect, the management arm of the Group has invested heavily in its own global distribution system to enable it to replace the lower yielding indirect bookings (mainly through tour operators).
  • Quality Project Management Ltd (20%): In April 2000, IHI acquired a 20% shareholding in the construction project management company of the Corinthia Group. This company offers a range of project, construction and cost management services both in Malta and overseas. In August 2012, David Xuereb and Associates integrated with QPM to provide more comprehensive professional services within the construction industry.

Future Developments:

  • Medina Tower, Libya: (25%) – IHI owns 25% of Medina Tower Joint Stock Company which is entrusted with the development of the 40-storey high rise Medina Tower on 13,000 square metres of land in Tripoli, Libya. The development, which should be completed within four years of obtaining the necessary bank financing, will comprise a mix of residential apartments as well as office and retail space. Mediterranean Investments Holding plc (MIH), 50% owned by the Corinthia Group, owns another 25% of this project while the remaining 50% shareholding is held by the Economic Development and Real Estate Investment Company (EDREICO) of Libya.
  • Benghazi, Libya: (75%) – In October 2008, IHI and LFICO set up a joint-venture with the purpose of acquiring the derelict building formerly known as the El-Jazeera Hotel and an adjoining site in Benghazi. Eventually, the two sites will be redeveloped into a 228 room 5-star hotel and 10,700 square metres of office and retail space. IHI plans to reduce its current shareholding of 75% to 55% prior to the commencement of the project.

IHI’s principal shareholders are Corinthia Palace Hotel Company Ltd (58.78%), Istithmar Hotels FZE of Dubai (22.05%) and LFICO (11.03%). The remaining balance of 8.14% is held by approximately 2,974 shareholders. 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 €460 million.

Use of Proceeds

The net proceeds of the bond issue were used for the extension of the existing Corinthia Nevskji Palace Hotel in St. Petersburg, Russia and the development of the two sites adjoining the Hotel. The extension of the Corinthia Nevskji Palace Hotel in St. Petersburg, Russia consists of the construction of an additional 104 executive rooms, together with the construction of the largest hotel conference centre in St Petersburg accommodating over 1000 conference delegates in its main hall. In addition the extension project also comprises the upgrading of the hotel’s public areas including the main lobby and restaurants. This extension and upgrading project is intended to compliment the extensive upgrading programme of the hotel’s existing 285 rooms carried out in 2004-2005. Additionally the Company intends to develop, adjacent to the hotel, a site to provide approximately 14,000 square metres of retail and office space to be leased out to third parties. The extension and development project is estimated to cost around €75 million. The Company has also made arrangements for bank funding from three Austrian Banks Rzb, BACA and Volksbank) for part funding of the project.

Security & Status

Unsecured & Unsubordinated

Coupon

6.5%

Amount Issued

€12,500,000

ISIN Code

MT0000111246

Maturity

The Bonds will be redeemed at 100% (par) on 27 March 2014. The Issuer reserves the right to redeem the Bonds or any part of the issue prior to the stated maturity on either 27 March 2012 and/or 27 March 2013.

Interest Payment

Annually on 27 March

XD Date

13 March

Listing

Official List

No. of Bondholders

316

Directors

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).

Print This Page Print This Page