Last year was a watershed year for IHI plc, with the successful completion of a five-year investment programme announced on the company’s formation in March 2000.

Last year saw the completion of the total refurbishment of the 517-room Corinthia Alfa Hotel in Lisbon, thus completing the investment programme which included the acquisition and completion of hotel investment projects in Malta, Budapest and St Petersburg undertaken in previous years.

Over these years, IHI has raised E140 million in equity, which, backed by an equivalent amount of bank borrowings and corporate bonds, has enabled the company to acquire and develop these four landmark hotels, with 1,466 hotel rooms in the five-star category.

IHI plc chairman and CEO Alfred Pisani told shareholders at the annual general meeting, that the company was well on track to achieve its performance targets, with all the company’s hotels now in full operation.

“2005 is our first year in business with all our hotels in operation for the whole year, and performance to date is well in line with our expectations, no doubt resulting in achieving the true value of these assets,” he told shareholders.

“Malta, Budapest and St Petersburg, in particular, have all registered strong increases in demand and profitability, while our newly-refurbished hotel in Lisbon is on its way to re-establishing itself as a leading five-star conference hotel in the Portuguese market,” he said.

With 2005 being the first year of full operation for IHI, turnover is expected to reach E57 million in 2005. This improved performance is being further underpinned by a general positive turnaround in the global hospitality industry, as well as the lifting of sanctions which had previously prohibited US citizens and corporations from conducting business with IHI.

IHI was launched by the Corinthia Group of Malta in March 2000 and was floated on the Malta Stock Exchange soon afterwards. Corinthia retains a 78 per cent shareholding in the company.

The hotels acquired and developed by IHI since then include: The 250-room Corinthia San Gorg Hotel in Malta, the 288-room Corinthia Nevskij Palace Hotel in St Petersburg, Russia, the 414-room Corinthia Grand Hotel Royal in Budapest, Hungary and the high-rise, 517-room Corinthia Alfa Hotel in the financial district of Lisbon, Portugal.

IHI has also since acquired a 20 per cent shareholding in Corinthia Hotels International, which is the Corinthia Group’s hotel management arm. It has also acquired 20 per cent shareholding in Quality Project Management Ltd, a construction project management company that has supported IHI in developing new projects, exercising discipline over consultants and contractors, and providing expertise in evaluating architectural designs and tender bids.

IHI is now aiming to raise further capital and debt to fund the extension project in St Petersburg, as well as to proceed with more acquisitions and developments in the hotel sector, particularly in newly emerging countries.