On 11 May, International Hotel Investments plc published its Interim Directors’ Statement covering the first quarter of 2012. The statement revealed that a marked improvement in the performance of IHI-owned hotels took place during the period under review compared to the first three months of 2011. Most notably, the improvement is mainly due to the Corinthia Hotel Tripoli which is gradually returning to a stabilised performance. Furthermore, the latest addition to the property portfolio, the Corinthia Hotel London, has been registering improved performances in the first quarter of 2012 compared to the budget set for the period. The Directors noted that the seven penthouse suites launched in early 2012 are making a considerable contribution to revenue whilst work on the twelve luxury apartments (which the Group is seeking to sell) in Whitehall Place are close to completion.
Significant improvements in performance were also registered by the Group’s hotels in St Petersburg and Prague as both properties gained market share in their respective locations. The first quarter results also include the figures of the Marina Hotel in Malta for the first time following its acquisition in mid-February.
The announcement also revealed a major reorganisation at CHI Limited (the Group’s hotel management arm) in order to create a leaner organisation which is more responsive to market requirements. Moreover, the Directors noted that the internally-developed reservation and distribution system has been successful and is generating a sustained increase in higher-rated business.
In conclusion, the Directors explained that the improved results have been registered in the first quarter of 2012 despite the difficult economic conditions in the markets in which the Group operates. Nonetheless, the Directors expect the business environment to remain challenging throughout 2012.