International Hotel Investments plc – Interim Results
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 31 August 2026, International Hotel Investments plc published its interim financial statements covering the six-month period ended 30 June 2026.
Revenue remained broadly in line with the previous comparable period at €150.3 million (H1 2025: €149.7 million), as lower hotel revenue in Europe following the disposal of a majority stake in the Lisbon hotel on 1 April 2026 was offset by higher revenue from project management services as well as the contribution of Corinthia Rome, which partially commenced trading in March 2026 and launched its full room inventory by the end of the second quarter. IHI explained that when excluding the contributions of the Lisbon and Rome hotels, underlying revenue increased by 6% to €137.9 million.
On the expenditure side, operating costs (net of exchange gains/losses) increased by 4.3% to €149.9 million, largely reflecting higher depreciation and amortisation charges as well as increased administrative expenses.
As a result, operating profit dropped to €0.36 million compared to €5.97 million in the corresponding period last year. Excluding depreciation, amortisation, and other gains and losses, EBITDA fell by 13.5% to €17.9 million (H1 2025: €20.7 million) which translates into an EBITDA margin of 12% (H1 2025: 14%). IHI noted that on a like-for-like basis, when adjusting for the disposal of the Lisbon hotel and the ramp-up period of Corinthia Rome, EBITDA increased by 18% to €19.0 million (H1 2025: €16.0 million).
Meanwhile, net finance costs increased by 19.7% to €23.5 million compared to €19.6 million in the same period last year, principally reflecting adverse exchange differences on borrowings as well as the recognition of an interest expense on the Corinthia Rome finance lease. The Group also registered other gains of €2.59 million during the period (H1 2025: nil).
The Group’s loss before tax amounted to €20.5 million compared to a loss of €13.6 million in the first half of 2025. After accounting for a tax credit of €3.46 million and losses attributable to non-controlling interests of €6.56 million, the net loss for the period attributable to IHI’s shareholders amounted to €10.5 million compared to a loss of €4.10 million in the first half of 2025.
The Statement of Financial Position as at 30 June 2026, when compared to the corresponding figures as at 31 December 2025 shows that total assets increased by 5.5% (or €109 million) to €2.08 billion.
Total liabilities increased by 12.9% (or €136 million) to €1.19 billion, which include borrowings of €728 million and lease liabilities of €157 million, the latter largely relating to the recognition of the Corinthia Rome lease.
Shareholders’ funds contracted by 3.3% (or €23.3 million) to €692 million, which translates into a net asset value per share of €1.124 (31 December 2025: €1.162), with the decline being partially impacted by the distribution of an interim dividend of €18.5 million (€0.03 per share) during the period.
Outlook
In their commentary, the Directors noted that most of the Group’s hotels are performing better than last year and that the Group expects to close the year with higher revenue and EBITDA compared to 2025, excluding the contribution from the Lisbon hotel, in which the Group now retains a 28% interest. The Directors added that all capital expenditure remains tightly controlled.
The Group’s hotel management arm had secured 32 hotel management agreements as at the reporting date, of which 20 are already operational, with works underway on projects in Dubai, Doha, Riyadh, the Maldives, Puglia, Lake Como, Tuscany and Chengdu.
Meanwhile, the Board stated that it continues to evaluate the Group’s portfolio of assets with a view to the selective disposal of mature or non-core assets, with net proceeds to be applied towards the Group’s deleveraging programme and redeployed into a combination of shareholder distributions and higher-return investment opportunities.
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.