International Hotel Investments plc - Interim Directors’ Statement

On 9 November, International Hotel Investments plc issued its Interim Directors’ Statement covering the three months ended 30 September 2012 during which the performance of the Group’s owned hotels continued to improve in a similar manner to that seen in the first half of 2012. This was mainly due to the improved performances of the hotels in St. Petersburg and Tripoli. However, IHI noted that the performances of the properties in Lisbon and Budapest were lower than that registered in the same period in 2011 on account of the prevailing economic conditions in Portugal and Hungary.

The Corinthia Hotel London (which is 50% owned by IHI) continued to consolidate its position in the market leading to year-on-year improvements in its operating results. Similarly, the Commercial Centre in St. Petersburg attracted further leases and should register a 100% increase in revenues over 2011.

The improvements in the performance of the IHI Group also reflect the success of the increased revenues being generated from the global distribution system as these increased by 75% over 2011 and now account for 19% of the Group’s total revenue representing a 7 percentage point increase over 2011.

Overall, the Directors expect Group EBITDA for the whole of 2012 to show an improvement over that registered in 2011. Nonetheless, given the unpredictable conditions prevailing in the countries in which the Group operates, the Directors are not in a position to assess the eventual impact, if any, on the value of the Group’s properties at the end of the year.