International Hotel Investments plc - Updated Financial Analysis Summary

On 2 June 2023, International Hotel Investments plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of IHI in 2023:

• Revenues are expected to increase to €282 million which would be 18% (or €43.8 million) higher than the previous year’s figure of €238 million and is also 5% higher than the record income of €268.3 million generated in 2019. The recovery in revenues from the hotel operations in Malta, Budapest, and Prague are the main drivers of the forecasted year-on-year growth.
• In view of the much higher level of business, EDITDA is projected to climb to €59.6 million compared to €51.7 million in 2022, however remains 15% below the record EBITDA of €69.8 million achieved in 2019, reflecting the higher level of operating costs.
• IHI is expecting net finance costs to increase to €39.1 million compared to €27.7 million in 2022. As a result, the interest cover is projected to ease to 1.53 times compared to 1.87 times in 2022.
• In terms of financial position, total assets are expected to increase by 3.7% to €1.72 billion while total liabilities are expected to increase by 9.5% to €0.92 billion.
• IHI’s total debt as at the end of 2023 is projected to reach €748.6 million, which is 14% (or €91.9 million) higher when compared to the end of the previous financial year. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 48.4% (31 December 2022: 44.5%).
• On the other hand, in view of the expected rebound in EBITDA, the net debt-to-EBITDA multiple is anticipated to ease marginally to 11.3 times compared to 11.4 times as at the end of 2022.