International Hotel Investments (IHI) plc announced that it is increasing its issued capital to over euro 537 million as Istithmar Hotels of Dubai has joined in as a new strategic investor and partner.

During a signing ceremony held yesterday, Istithmar Hotels subscribed to euro178 million in new shares issued by IHI. The funds will be allocated to the further growth of the company by way of new acquisitions and developments of five-star hotels in Europe and beyond. IHI has also acquired the Corinthia Bab Africa Hotel & Commercial Centre in Tripoli and the Corinthia Towers Hotel in Prague, from the Corinthia Group, principally in return for new shares issued to Corinthia in IHI.

IHI Chairman Alfred Pisani went over the 44-year history of IHI and Corinthia. He recounted how he and his brothers in 1962 borrowed Lm9,000 to open a new restaurant while in 1968 they opened their first hotel. He said how in 1974, the group made a quantum leap as new shareholders from the Libyan Foreign Investment Company (Lafico) decided to invest in the company. Mr Pisani welcomed Istithmar Hotels as “the new member of our family.”

Istithmar Hotels is part of Istithmar, a leading private equity and alternative investment company based in Dubai with global investment interests across various sectors, including hospitality, where Istithmar Hotels is fast establishing itself as a major investor in high-profile properties across the world. Istithmar is 100 per cent owned by Dubai World which in turn is wholly owned by the government of Dubai.

Prime Minister Lawrence Gonzi, who was present for the signing ceremony said this was an exciting event for the Pisani family, Corinthia and Malta.

He said Corinthia has accompanied Malta’s development since its independence and said that the entrepreneurial spirit of the Pisanis coupled with the confidence in Maltese employees has enabled the company to expand beyond the shores of the Maltese islands.

Istithmar Vice-Chairman Khaled Al Kamda, Vice Chairman of Istithmar, said: “The investment by Istithmar Hotels in IHI is in line with the Istithmar’s strategy of taking major strategic stakes in high-quality companies with strong management teams and good growth potential.