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International Hotel Investments plc – Updated Financial Analysis Summary

Jonathan Falzon

February 24, 2025

24 February, 2025
5 min read
24 February, 2025
5 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.

On 24 February 2025, International Hotel Investments plc published an updated Financial Analysis Summary including forecasts for the financial year ended 31 December 2024 and projections the year ending 31 December 2025. The following are the main highlights of the expected financial performance and position of IHI:

  • In FY2024, revenue is expected to have risen by 5.0% to a record of €302.1 million from €287.8 million in the previous year as the increase in revenue from practically all Corinthia hotels offset the decrease in revenue from the Prague hotel which was leased out from the second quarter of 2024.
  • EBITDA is anticipated to have remained unchanged from FY2023 at €60.6 million, reflecting the impact of around €7 million in hotel preopening costs.
  • In FY2025, revenue is projected to fall by 0.8% to €299.8 million as the contributions from the new hotels in Brussels and Rome will be offset by the reduced revenue from the anticipated sale of the Corinthia Hotel Lisbon property, which however will be retained under the hotel management services of the Corinthia brand.
  • Despite the projected reduction in revenue, EBITDA in FY2025 is anticipated to increase by 2.9% to €62.4 million resulting in a slight improvement in margin to 20.8% from 20.1% in the prior year. Nonetheless, the EBITDA figure for FY2025 is still 10.6% lower than the record EBITDA of €69.8 million in FY2019.
  • During 2025, the Group anticipates disposing of the Corinthia Hotel Lisbon property and non-core businesses, resulting in a net cash inflow of €127.7 million. As such, IHI is recognising net gains from the sale of property and businesses of €55.1 million in its income statement projections for 2025.
  • IHI is projecting net finance costs to increase to €40.4 million and €40.8 million in FY2024 and FY2025 respectively compared to €37.5 million in 2023. As a result, the interest cover is projected to be around 1.5 times in both years, compared to 1.6 times in 2023.
  • In terms of financial position, total assets are expected to increase to €1.87 billion by the end of 2025 compared to €1.77 billion as at 31 December 2023. IHI is expecting to hold cash balances totalling €130 million as at 31 December 2025, largely reflecting the proceeds from the expected sale of property and non-core businesses.
  • Total debt as at the end of 2024 stood at €860 million but is expected to decline to €828 million by the end of 2025. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 48.6% as at 31 December 2025, compared to 50.7% at 31 December 2024.
  • Likewise, the net debt-to-EBITDA multiple is anticipated to drop to 11.2 times in FY2025 from 13.3 times in FY2024.

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 24 February 2025, International Hotel Investments plc published an updated Financial Analysis Summary including forecasts for the financial year ended 31 December 2024 and projections the year ending 31 December 2025. The following are the main highlights of the expected financial performance and position of IHI:

  • In FY2024, revenue is expected to have risen by 5.0% to a record of €302.1 million from €287.8 million in the previous year as the increase in revenue from practically all Corinthia hotels offset the decrease in revenue from the Prague hotel which was leased out from the second quarter of 2024.
  • EBITDA is anticipated to have remained unchanged from FY2023 at €60.6 million, reflecting the impact of around €7 million in hotel preopening costs.
  • In FY2025, revenue is projected to fall by 0.8% to €299.8 million as the contributions from the new hotels in Brussels and Rome will be offset by the reduced revenue from the anticipated sale of the Corinthia Hotel Lisbon property, which however will be retained under the hotel management services of the Corinthia brand.
  • Despite the projected reduction in revenue, EBITDA in FY2025 is anticipated to increase by 2.9% to €62.4 million resulting in a slight improvement in margin to 20.8% from 20.1% in the prior year. Nonetheless, the EBITDA figure for FY2025 is still 10.6% lower than the record EBITDA of €69.8 million in FY2019.
  • During 2025, the Group anticipates disposing of the Corinthia Hotel Lisbon property and non-core businesses, resulting in a net cash inflow of €127.7 million. As such, IHI is recognising net gains from the sale of property and businesses of €55.1 million in its income statement projections for 2025.
  • IHI is projecting net finance costs to increase to €40.4 million and €40.8 million in FY2024 and FY2025 respectively compared to €37.5 million in 2023. As a result, the interest cover is projected to be around 1.5 times in both years, compared to 1.6 times in 2023.
  • In terms of financial position, total assets are expected to increase to €1.87 billion by the end of 2025 compared to €1.77 billion as at 31 December 2023. IHI is expecting to hold cash balances totalling €130 million as at 31 December 2025, largely reflecting the proceeds from the expected sale of property and non-core businesses.
  • Total debt as at the end of 2024 stood at €860 million but is expected to decline to €828 million by the end of 2025. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 48.6% as at 31 December 2025, compared to 50.7% at 31 December 2024.
  • Likewise, the net debt-to-EBITDA multiple is anticipated to drop to 11.2 times in FY2025 from 13.3 times in FY2024.