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International Hotel Investments plc – Full-Year Results

Jonathan Falzon

May 2, 2025

2 May, 2025
7 min read
2 May, 2025
7 min read

Following last week's article detailing the performance of the S&P 500 index in 2025, it is worth devoting time to review the developments across the European equity markers in my last article of the year.

Financial Performance

On 29 April 2025, International Hotel Investments plc published its Annual Report and Financial Statements for the year ended 31 December 2024.

Revenue increased by 6.6% to a record of €307 million (2023: €288 million) reflecting the higher demand for the Group’s hotels, which led to higher revenues in all countries except for the Czech Republic since the hotel in Prague was leased to third parties. Higher income was also recorded from third-party hotel management, project management, and rental agreements as St Petersburg Business Centre reached full occupancy.

On the expenditure side, operating costs increased by 7.0% to €273 million (2023: €255 million) mainly driven by higher employee benefit expenses which increased by 11.1% to €98.1 million (2023: €88.3 million) as well as a 11.8% rise in marketing expenses to €56.6 million. Excluding depreciation and amortisation, EBITDA increased by 3.4% to €62.4 million resulting in an EBITDA margin of 20.3% (2022: 21.0%). IHI explained that the Group incurred around €6.1 million in hotel preopening costs during 2024 which supressed margins.

The financial performance of IHI was positively impacted by a positive fair value movement on investment property of €6.32 million and a net reversal of impairment of €6.22 million. Consequently, operating profit (EBIT) surged by 29.2% to €47.2 million compared to €36.5 million in the previous year.

Net finance costs increased by 13.9% to €42.7 million (2023: €37.5 million) largely reflecting the additional interest expenses on higher bank borrowings.

Profit before tax amounted to €2.34 million compared to the pre-tax loss of €4.13 million recorded in 2023. After accounting for a tax expense of €3.59 million and a loss of €5.61 million being allocated to minority interests, the net profit for the year attributable to shareholders of IHI amounted to €4.37 million compared to the loss of €10.3 million posted in 2023.

The Statement of Financial Position as at 31 December 2024 shows that total assets increased by 9.9% (or €174 million) to €1.94 billion, consisting of €1.26 billion in property plant and equipment, €253 million in investment property, €147 million in assets held for sale (Corinthia Hotel Lisbon) as well as a cash and equivalents of €71.6 million. Total liabilities increased by 10.8% (or €100 million) to €1.03 billion, of which €755 million are borrowings. Shareholders’ funds grew by 10% (or €61 million) to €674.3 million which translates into a net asset value per share of €1.095 (31 December 2023: €0.996).

Outlook

In his statement to shareholders, the Chairman stated that IHI intends to sell Corinthia Hotel Lisbon at a targeted price in excess of the latest external valuations. In this respect, international brokers have been appointed and advanced offers are now being refined and negotiated. Such negotiations are expected to reach a more advanced stage within the next three months. The book value of Corinthia Hotel Lisbon stood at €144 million as at the end of 2024.

The directors also noted that the sale of the hotel in Prague is anticipated to happen in 2026. Meanwhile in Malta, the board is exploring redevelopments or repositioning for the three adjacent hotel properties in the St George’s peninsula as well as the Golden Sands Hotel, where IHI successfully completed a buy-back process for all timeshare encumbrances.

In terms of new hotel openings, the Corinthia Hotel Rome is set to be inaugurated later this year, while the two hotel properties in Doha and Riyadh which are also to be managed by Corinthia are at an advanced stage of construction. A Corinthia managed hotel in Dubai is scheduled to open in 2033.

Going forward, the Chairman stated that IHI intends to secure funding to increase shareholding in new projects in Beverly Hills and also in a similar luxury hotel and residential development in Grace Bay on the Turks & Caicos Islands in the Caribbean. Other investments in the pipeline include the development of the Corinthia Oasis in Hal Ferh and an investment in the Maldives. The Chairman also noted that investors behind the Beverly Hills development will be tapping the Maltese capital market for funding.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

The article contains public information only and is published solely for informational purposes. It should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in this article. Rizzo, Farrugia & Co. (Stockbrokers) Ltd (“Rizzo Farrugia”) is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person’s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this article without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this article, other employees or clients may have or have had interests in the securities referred to herein and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this article. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this article. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM 1551. Telephone: +356 2258 3000; Email: info@rizzofarrugia.com; Website: www.rizzofarrugia.com © 2021 Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This article may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect.

This article was produced by Edward Rizzo, Director at Rizzo Farrugia, which is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange. The company’s registered address is at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.

On 29 April 2025, International Hotel Investments plc published its Annual Report and Financial Statements for the year ended 31 December 2024.

Revenue increased by 6.6% to a record of €307 million (2023: €288 million) reflecting the higher demand for the Group’s hotels, which led to higher revenues in all countries except for the Czech Republic since the hotel in Prague was leased to third parties. Higher income was also recorded from third-party hotel management, project management, and rental agreements as St Petersburg Business Centre reached full occupancy.

On the expenditure side, operating costs increased by 7.0% to €273 million (2023: €255 million) mainly driven by higher employee benefit expenses which increased by 11.1% to €98.1 million (2023: €88.3 million) as well as a 11.8% rise in marketing expenses to €56.6 million. Excluding depreciation and amortisation, EBITDA increased by 3.4% to €62.4 million resulting in an EBITDA margin of 20.3% (2022: 21.0%). IHI explained that the Group incurred around €6.1 million in hotel preopening costs during 2024 which supressed margins.

The financial performance of IHI was positively impacted by a positive fair value movement on investment property of €6.32 million and a net reversal of impairment of €6.22 million. Consequently, operating profit (EBIT) surged by 29.2% to €47.2 million compared to €36.5 million in the previous year.

Net finance costs increased by 13.9% to €42.7 million (2023: €37.5 million) largely reflecting the additional interest expenses on higher bank borrowings.

Profit before tax amounted to €2.34 million compared to the pre-tax loss of €4.13 million recorded in 2023. After accounting for a tax expense of €3.59 million and a loss of €5.61 million being allocated to minority interests, the net profit for the year attributable to shareholders of IHI amounted to €4.37 million compared to the loss of €10.3 million posted in 2023.

The Statement of Financial Position as at 31 December 2024 shows that total assets increased by 9.9% (or €174 million) to €1.94 billion, consisting of €1.26 billion in property plant and equipment, €253 million in investment property, €147 million in assets held for sale (Corinthia Hotel Lisbon) as well as a cash and equivalents of €71.6 million. Total liabilities increased by 10.8% (or €100 million) to €1.03 billion, of which €755 million are borrowings. Shareholders’ funds grew by 10% (or €61 million) to €674.3 million which translates into a net asset value per share of €1.095 (31 December 2023: €0.996).

Outlook

In his statement to shareholders, the Chairman stated that IHI intends to sell Corinthia Hotel Lisbon at a targeted price in excess of the latest external valuations. In this respect, international brokers have been appointed and advanced offers are now being refined and negotiated. Such negotiations are expected to reach a more advanced stage within the next three months. The book value of Corinthia Hotel Lisbon stood at €144 million as at the end of 2024.

The directors also noted that the sale of the hotel in Prague is anticipated to happen in 2026. Meanwhile in Malta, the board is exploring redevelopments or repositioning for the three adjacent hotel properties in the St George’s peninsula as well as the Golden Sands Hotel, where IHI successfully completed a buy-back process for all timeshare encumbrances.

In terms of new hotel openings, the Corinthia Hotel Rome is set to be inaugurated later this year, while the two hotel properties in Doha and Riyadh which are also to be managed by Corinthia are at an advanced stage of construction. A Corinthia managed hotel in Dubai is scheduled to open in 2033.

Going forward, the Chairman stated that IHI intends to secure funding to increase shareholding in new projects in Beverly Hills and also in a similar luxury hotel and residential development in Grace Bay on the Turks & Caicos Islands in the Caribbean. Other investments in the pipeline include the development of the Corinthia Oasis in Hal Ferh and an investment in the Maldives. The Chairman also noted that investors behind the Beverly Hills development will be tapping the Maltese capital market for funding.