International Hotel Investments plc - Full-Year Results

On 30 April 2021, International Hotel Investments plc (“IHI”) published its Annual Report and Financial Statements for the year ended 31 December 2020. 

Performance Overview

During 2020, IHI generated revenues of €91.9 million compared to €268.3 million in the previous comparable period as the Group’s performance was severely dented by the COVID-19 pandemic. In fact, IHI recorded lower revenues across all its business segments except from the hotel operations in Tripoli where revenues increased by 63% to €5.15 million (2019: €3.16 million).

On the expenditure side, total operating costs dropped markedly to €131.4 million (2019: €235.3 million) as IHI implemented various cost reduction measures in order to preserve cash flows and mitigate the substantial negative impact from the pandemic. Moreover, the Group took advantage of the support measures introduced by Governments in response to the pandemic, including salary subsidies, waiver or deferral of taxes and social security contributions. Excluding depreciation and amortisation charges which amounted to €35.8 million, IHI recorded an adjusted negative EBITDA of €3.12 million (when including the share of EBITDA of associates and joint ventures but excluding the 50% non-controlling interest in NLI Holding Limited which is also the parent company of Corinthia Hotel London) compared to the positive EBITDA of €60.3 million generated in 2019.

The financial performance of IHI was also negatively impacted by losses in relation to assets which are in the course of construction (-€2.93 million), impairment losses attributable to intangible assets (-€2.37 million), as well as negative fair value movements of investment properties (-€5.23 million). As a result, IHI reported an operating loss of €50.1 million compared to an operating profit of €34.2 million in 2019.

Meanwhile, net finance costs almost doubled to €37.1 million compared to €18.6 million in 2019 reflecting unfavourable net exchange differences on borrowings which, in 2020, resulted into a loss of €12.3 million compared to a positive adjustment of €4.66 million in 2019. Moreover, although the share of net loss of associates and joint ventures dropped to €2.45 million compared to €3.95 million in 2019, IHI recorded a loss of €2.8 million in relation to the reclassification of currency translation reserves which, in turn, is related to the liquidation of the Azure Resorts Group which was engaged in the operation and management of the Golden Sands Resort.

Overall, IHI reported a pre-tax loss of €90.4 million compared to a pre-tax profit of €13.9 million in 2019. After accounting for a tax credit of €14.7 million and a loss of €12.6 million pertaining to minority interests, the net loss for the year amounted to €63.1 million compared to a profit of €6.82 million in 2019.

The Statement of Financial Position as at 31 December 2020 shows that total assets dropped by 8.5% to €1.54 billion largely driven by lower amounts of property, plant and equipment (-€79.1 million to €1.1 billion), cash balances (-€26.6 million to €46.1 million), and investment property (-€22.8 million to €191.4 million). Similarly, total liabilities decreased by 2.4% to €770.9 million as the slight increase in total borrowings to €608.2 million (when including lease liabilities amounting to €12.1 million) was offset by the reduction in tax liabilities (-€14.4 million) and trade payables (-€5.78 million). Shareholders’ funds contracted by almost 14% to €603.2 million which, in turn, translates into a net asset value per share of €0.9798 (31 December 2019: €1.1386).


In their commentary, the Directors explained that the outlook for the rest of 2021 depend on the continued roll out of vaccination as any further delays would derail the return of travelling. Nonetheless, as the economic recovery will accelerate, IHI is well-positioned to welcome the opportunities that will arise in the future, especially as the Group continues to expand its global outreach into new geographic regions. In fact, IHI has a number of projects in the pipeline which are expected to be completed within the next two years (namely new Corinthia hotels in Brussels, Bucharest, Doha, Dubai, Moscow and Rome) whilst it will also kick-start the re-development of the Hal-Ferh land which is in close proximity to the Golden Sands Resort which is now fully-owned by IHI.


International Hotel Investments plc – 2020 Annual Report & Financial Statements.