International Hotel Investments plc - Interim Results

The 2009 half-year results of International Hotel Investments plc were published on Thursday 6 August 2009.

During the first six months of the year, the Company’s turnover dropped by 20% to €51.4 million mainly due to the fact that the hospitality industry suffered from the effects of the global economic recession. This caused a sharp fall in occupancy levels in some of IHI’s markets and increasing pressure on room rates. The decline in revenue led to a loss of €2.8 million for the period under review when compared to a profit after tax of €2.3 million registered in the first half of 2008. Similar to previous years no interim dividend was declared.

The Directors explained that it is still early to determine when the international economy will start showing signs of recovery which may have a negative impact on the value of some of the Group’s properties at year end. In order to counteract and mitigate these recessionary effects, the IHI Group is pursuing its strategy of seeking new markets, streamlining its operations and reducing costs without impinging on the quality of service provided by its properties.

A copy of the Preliminary Profits Announcement can be downloaded from here.

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