6.25% Int. Hotel Investments plc 2015-2019

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International Hotel Investments plc - Prospectus 12 June 2009

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.

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 the general investing public. The shares of IHI were listed on the Official List of the Malta Stock Exchange in April 2000.

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 2,928 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 294-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. 11 residences were sold in 2014 and the penthouse was retained but will be sold in the future.

Other Operating Assets:

  • CHI Ltd (100%) – This fully-owned subsidiary currently manages the eight hotel properties listed above as well as another four hotels owned by the Corinthia Group and other third party hotel owners.
  • 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:

  • On 16 January 2015, IHI revealed that it has executed a preliminary conditional agreement with the majority shareholders of Island Hotels Group Holdings plc (IHG) with a view to consider making a voluntary offer to acquire the entire issued share capital of IHG. IHI indicated a tentative net equity value of €50 million for IHG which consideration will be made through a cash payment of €1 per share (split into two tranches with the first tranche of €0.55 to be paid on execution of the transaction and the second tranche of the remaining €0.45 will be paid within twelve months) as well as 0.246 IHI shares per 1 IHG share held.
  • IHI also has a 25% shareholding in Medina Tower Joint Stock Company which was set up for the purpose of developing the Medina Tower, a 200,000 square metre development over a land measuring 13,000 square metres in the centre of Tripoli. Furthermore, IHI holds a 55% interest in Libya Hotels & Developments JSC, a company set up for the purpose of acquiring a site in Benghazi earmarked for the development of a five star hotel and other mixed-use property. However, in the light of the prevailing situation in Libya, works on these two projects have been put on hold. 

Use of Proceeds

The net proceeds of the Bond Issue will be used for the general funding purposes and to refinance the Group’s balance sheet thus placing it in a better position to take advantage of any investment opportunities that may arise.

Security & Status

Unsecured & Unsubordinated

Coupon

6.25%

Amount Issued

€30,000,000

ISIN Code

MT0000111253

Interest Payment

Annually on 10 July

XD Date

27 June

Maturity

The bonds will be redeemed at 100% (par) on 10 July 2019 but may be redeemed on any day between 10 July 2015 to 9 July 2019.

Listing

Official List

No. of Bondholders

3,621

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).

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