On 15 April, International Hotel Investments plc announced its 2009 full-year results. The Preliminary Profit Statement shows a 19.3% drop in turnover to €103.3 million as a consequence of the slowdown in the hospitality industry witnessed during the year which was somewhat contained through the Group’s geographical diversification of its property portfolio. Gross profit declined by 27.1% to €31.6 million with the margin decreasing slightly from 33.9% in 2008 to 30.6% in 2009 as IHI successfully managed to reduce its cost base. IHI benefited from a net revaluation uplift in the income statement of €4.2 million (2008: €14.7 million). The Group explained that the increased valuations attributable to the properties in UK, Russia and Libya offset the impairments on the values of the other hotels in Central Europe. Net finance costs were marginally unchanged whilst IHI incurred a lower net fair value loss on interest swaps of €1.6 million. As a result the Group incurred a pre-tax loss of €1.6 million compared to the pre-tax profit of €22.3 million registered in 2008. Similar to previous years the Directors did not recommend the payment of a dividend.
In the Profit Statement the Directors provided details of the Group’s investment in 2009 which included an increase in shareholding from 33% to 50% in the London development and the completion of the Nevskij Palace in St. Petersburg. Moreover the Group, in partnership with LFICO, increased its efforts to commence the construction of the mixed-use development in Benghazi, Libya. Furthermore, the Group’s hotel operating arm, CHI Limited, in line with its strategy of managing third party properties started to operate the Tiran Island Hotel in Sharm El Sheikh, Egypt.
In conclusion, the Directors stated that on the international scene there are now signs of a gradual but slow recovery of the hospitality industry which augurs well for the group’s activities.
Download a copy of International Hotel Investments plc 2009 Preliminary Profit Statement.