On 22 November 2022, International Hotel Investments plc announced that Group revenue for 2022 is now expected to reach €232 million. This figure is 3.6% higher than the forecasted revenue figure of €224 million announced on 3 September 2022, and 6.9% above the revenue forecast of €217 million published in the Financial Analysis Summary on 30 June 2022. The improvement is driven by the post-pandemic recovery of the hotel business, especially at the Corinthia Hotel London, which managed to exceed its 2019 performance due to higher average room rates. Meanwhile, hotel revenues in St Petersburg have been seriously impacted while performance of IHI’s conference-oriented hotels in Prague and Budapest remains subdued.
IHI explained that while the industry remains impacted by salary pressures, IHI’s focus remains on keeping these under control, including by keeping staff numbers below 2019 levels. Other cost pressures are also being experienced in the development projects which are in the pipeline.
In view of the stronger recovery, IHI is now expecting an EBITDA of €49.1 million in 2022, which in turn is 12.9% higher than the forecasted EBITDA of €43.5 million announced in September 2022 and 26.2% above the previous estimate of €39 million included in the FAS published in June 2022. The more positive performance is also expected to translate into improved margins with the EBITDA margin now anticipated to reach 21.2% compared to 19.4% in the previous estimates.
IHI explained that a Yacht Club in Doha operated by Corinthia will be launched this month and forms part of a wider management agreement which includes Corinthia branded residences and apartments and a 110 key 5-star luxury Corinthia hotel which is currently being developed.
Meanwhile, works on Corinthia Hotels in Rome, Bucharest, and New York are ongoing and the Group expects income from these three projects to commence as from Q1 2024.
Furthermore, works on the Corinthia Hotel Brussels (50% owned) are advanced and income is expected as from Q2 2024. Preparatory works on the Corinthia Oasis project at Golden Bay are also progressing with planning permits expected in early 2023.
Within its non-hotel business segments, IHI is looking to continue the international expansion of QP with a focus on Africa and Middle East and also exploring new associations to further increase revenues and cost efficiencies of the Corinthia Catering business.