International Hotel Investments plc - Interim Results

On 28 August 2025, International Hotel Investments plc published its interim financial statements covering the six-month period ended 30 June 2025.

Revenue increased by 10% to a record (at interim stage) of €150 million (H1 2024: €136 million) reflecting the income from the new Corinthia Hotel in Brussels which partially opened in December 2024 and the two hotels in Beverly Hills which were leased in March 2025. IHI explained that when excluding these contributions, revenue growth amounted to 4%.

On the expenditure side, operating costs (net of exchange gains/losses) surged by 14.2% to €144 million driven by higher direct costs as well as administrative and marketing expenses.

As a result, operating profit dropped by 39% to €5.97 million compared to €9.76 million in the corresponding period last year. Excluding depreciation, amortisation, and one-off losses, EBITDA fell by 10% to €20.7 million (H1 2024: €22.9 million) which translates into an EBITDA margin of 14% (H1 2024: 17%).

Meanwhile, net finance costs fell by 10% to €19.6 million compared to €21.8 million in the same period last year.

The Group’s loss before tax amounted to €13.6 million compared to a loss of €12.0 million in the first half of 2024. After accounting for a tax credit of €3.58 million and losses attributable to non-controlling interests of €5.94 million, the net loss for the period attributable to IHI’s shareholders amounted to €4.10 million compared to a loss of €7.58 million in the first half of 2024.

The Statement of Financial Position as at 30 June 2025, when compared to the corresponding figures as at 31 December 2024 shows that total assets increased by 2.1% (or €41.5 million) to €1.98 billion. Total liabilities increased by 5.8% (or €59.4 million) to €1.09 billion, which include borrowings of €761 million and lease liabilities of €24 million. Shareholders’ funds eased by 0.6% (or €4.3 million) to €670 million, which translates into a net asset value per share of €1.088.

Outlook

In their commentary, the Directors stated that most hotels are performing better than last year and the Group is expecting higher year-on-year revenues and EBITDA in financial year 2025. The Group’s hotel management arm has successfully launched the Surrey, a Corinthia Hotel, in New York and the Corinthia Grand Hotel du Boulevard in Bucharest, which are contributing management fee income. Meanwhile, the hotel in Rome, which IHI will lease upon the completion of extensive refurbishment works, is expected to be handed over at the end of 2025.

The Board highlighted that focus remains on debt reduction, through a programme of targeted sales of mature assets, with important developments expected by the end of 2025. In this respect, the Lisbon hotel is classified as available for sale with a book value of €145 million.