International Hotel Investments plc – Updated Financial Analysis Summary
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.
On 11 June 2026, International Hotel Investments plc published an updated Financial Analysis Summary including forecasts for the financial year ending 31 December 2026 and projections for the year ending 31 December 2027. The following are the main highlights of the expected financial performance and position of IHI:
- In 2026, revenue is forecasted to increase by 9.1% to €366.0 million (2025: €335.3 million) as the first contribution from Corinthia Hotel Rome and the improvement in income from the hotel in Brussels is expected to offset the derecognition of Corinthia Hotel Lisbon revenue, which is held through an associate following the sale of a 72% shareholding in a transaction concluded in April 2026.
- EBITDA is forecasted to rise by 22.2% to €75.7 million in 2026 as the EBITDA margin is set to improve to 20.7% from 18.5% in the previous year.
- In 2027, revenue is projected to grow by a further 8.7% to €398.0 million mainly reflecting continued improvement in hotel operations.
- EBITDA is projected to surge by a further 35% to €102.1 million in 2027, mostly due to higher EBITDA contributions from the hotels in Rome, Tripoli, Brussels and London resulting in an improving EBITDA margin of 25.7%.
- IHI is also expecting a share of profits from associates and joint ventures of €2.24 million in 2026 and €4.76 million in 2027. In this respect, by the end of June 2026, IHI is anticipated to acquire 25% of Mediterranean Investments Holding plc for a consideration of around €37 million, mainly funded by bank borrowings.
- Net finance costs are forecasted to increase by 8.2% to €45.5 million in 2026 and then remain broadly stable at €45.3 million in 2027. As a result, the interest cover from EBITDA is expected to improve to 1.7 times in 2026 and 2.3 times in 2027, compared to 1.5 times in 2025.
- In terms of financial position, total assets are anticipated to increase from €1.97 billion as at 31 December 2025 to €2.02 billion by the end of 2026 and increase further to €2.05 billion by the end of FY2027.
- Total debt is expected to climb from €790 million in December 2025 to €879 million as at 31 December 2026 largely reflecting the increase in lease liabilities associated with Corinthia Hotel Rome. Total debt is expected to grow by a further 1.9% to €895 million by the end of 2027. As a result, the gearing ratio (calculated as total debt divided by total debt + equity) is anticipated to increase from 46.2% as at 31 December 2025 to 49.2% as at 31 December 2026 and then remained unchanged at the same level in 2027.
- Since the growth in EBITDA is anticipated to exceed the increase in net debt, the net debt-to-EBITDA multiple is forecasted to improve from 11.3 times in 2025 to 11.0 times in 2026 and then projected to strengthen further to 8.2 times in 2027.
- The net asset value per share of IHI is projected at €1.141 per share as at 31 December 2026 and €1.175 per share in 2027, compared to €1.162 per share as at 31 December 2025.
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.