International Hotel Investments plc - Updated Financial Analysis Summary

On 30 June 2025, 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 2025:

• Revenue is expected to increase by 12.7% to a record of €346 million (2024: €307 million) driven by the full-year income from the Corinthia Grand Hotel Astoria Brussels and The Surrey Corinthia Hotel New York, which opened towards the end of 2024 and management income from two hotels in Beverly Hills and Corinthia Grand Hotel Du Boulevard Bucharest, which opened in the beginning of 2025.
• EBITDA is anticipated to increase by 9.7% to €68.4 million (2024: €62.4 million). As such, the EBITDA margin is set to remain unchanged at about 20%.
• Net finance costs are projected to ease by 2.6% to €41.6 million. As a result of the anticipated improvement in EBITDA as well as the reduced finance costs, the interest cover is projected improve to 1.65 times from 1.46 times in 2024.
• A significant stake in the Corinthia Hotel Lisbon (having a book value of €144 million as at 31 December 2024) is expected to be sold during the current financial year. This transaction and the sale of other non-core businesses are expected to result in net cash inflows of €136 million, which will also impact the operating profit with the recognition of net gains totalling €5.8 million. Additionally, the Group anticipates €31 million in other comprehensive income relating to the release of deferred taxation on the revaluation of the Corinthia Hotel Lisbon. Corinthia Hotels Limited is expected to retain the management of the hotel.
• Total debt is projected to fall by 2.2% (or €17 million) to €752 million, which includes €52 million in lease liabilities. Consequently, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to fall to 44.4% from 45.8% as at the end of 2024.
• After accounting for expected cash balances totalling €155 million as at the end of 2025, the Group’s net debt is projected at €597 million. As a result, the net debt-to-EBITDA multiple is set to improve to 8.7 times compared to 11.2 times in 2024.
• In terms of upcoming new Corinthia hotels under management, Corinthia Hotel & Residences Doha is expected to commence operations by the end of 2025, Corinthia Hotel Rome is anticipated to open in 2026, followed by Corinthia hotels in Riyadh and Maldives in 2027.