International Hotel Investments plc - Information to maintain a fair market

On 17 December International Hotel Investments plc issued an announcement explaining that as agreed during the last Annual General Meeting held in July, the Company has continued to work on a strategy to issue new equity to new investors with the intention of:

1)    Raising the number of shares held in free float by the public so as to meet regulatory requirements;

2)    Raising fresh capital in order to take advantage of current acquisition and development opportunities in key cities.

IHI’s objective of issuing new shares is being planned by way of a Public Offer on a major international stock exchange. The Company’s advisors and underwriters are recommending to target this new share issue at an appropriate time in 2011 given current challenging market conditions which have significantly limited IPO activity during 2010.

IHI also explained that the opening of the Corinthia Hotel & Residences in London, scheduled for April 2011, will also benefit the Company from an increased profile and visibility in the United Kingdom which should in turn further support price expectations. IHI confirmed that legal and due diligence work related to the mentioned listing is ongoing so that the Company will be fully prepared to launch its international public offering as soon as market conditions are right.

Meanwhile, in anticipation of this new public offering, IHI’s Board of Directors believe that efforts to issue new equity in the Company should proceed by way of private placement to institutional and high-net worth investors. Accordingly, senior executives from the Company are currently meeting international institutional investors and high net worth investors. IHI’s objective is to conclude share participation agreements at a price superior to the nominal value of €1.00 per share.

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