IHI registers €35 million in profits in 2013

International Hotel Investments plc published their financial results for 2013, registering a profit of €35 million in 2013.

Despite sluggish economic conditions, IHI showed an EBITDA profit increase of 26% in 2013 over the previous year. The company’s performance was the result of higher revenues and profits in almost all of the company’s owned and managed hotels.

IHI owns 100% shareholdings in five-star hotels in St Petersburg, Prague, Budapest, Lisbon, Tripoli and two in Malta, as well as a 50% share in the Corinthia Hotel and residences in London.

The EBITDA of €35 million does not include the significant performance of IHI’s London hotel since IHI’s 50% ownership of this hotel renders it an associated company, with its results being reported separate to EBITDA. This hotel has established itself among the foremost luxury properties in London, with operating profits in 2013 rising to €17 million from €9.7 million in 2012.

Projections for 2014 suggest a further improvement across the company’s operations, which coupled with the sale of 11 of the company’s 12 residential apartments in London, have prompted the Directors to declare an interim dividend of 3c per share in April 2014.

IHI’s financial statements report further comprehensive revaluation income of €26 million (€8 million in 2012) mainly reflecting the effect of the annual end-of-year revaluation of its hotels. This brings the total asset value of the group’s assets to over €1 billion, with a resultant net asset value per share of €1.13.

IHI Chairman Alfred Pisani said that the consolidated results of IHI are a direct result of improved brand recognition, effective marketing, better distribution and reservation systems, a higher focus on service standards and tighter operating efficiencies.