International Hotel Investments (IHI) has increased its assets to EUR533 million, after the company sealed an agreement with Dubai-based institutional investor Istithmar Hotels FZE and Corinthia Palace Hotel Company Ltd (CPHCL), IHI chairman Alfred Pisani announced
yesterday.
Addressing shareholders at IHI’s sixth annual general meeting held at Corinthia San Gorg Hotel, Mr Pisani said that all the conditions pursuant in the agreement signed with Istithmar on 5 December last year have now been met.
Managing director Joseph Fenech said that last year, IHI generated revenues of EUR60.4 million, which is 11 per cent higher than the EUR54.4 million generated in 2005.
Likewise, the gross operating profit increased to EUR16.1 million – an increase of 16.7 per cent over the amount generated in 2005.
Before shareholders approved all the resolutions on the agenda, they were informed that, as agreed at the extraordinary general meeting held on 31 January this year, IHI will capitalise the amount not exceeding EUR5 million from revaluation reserves and issue such as fully paid up bonus shares of a nominal value of EUR1 each equivalent to the amount of the capitalisation.
The bonus shares will be issued and allotted in a ration of one bonus share for every six ordinary shares. Shareholders who are entitled to such allotments are being individually informed by post with full details of their entitlement.
The most recent agreement signed by IHI will see Istithmar taking up a 33 per cent stake in IHI through a EUR178 million cash
injection, which will in turn allow the company to begin implementing its expansion plans.
CPHCL will be investing the remaining EUR192 million, which will increase IHI’s assets by a total of EUR370 million, bringing up the total capital to EUR533 million.
Mr Pisani introduced the first new director nominated by Istithmar, Giusppe Sita, who is also chief executive officer of Istithmar Hotels.
Mr Sita has had financial, operational and development positions within the hospitality industry, gained with major international organisations.
Mr Pisani said IHI was seeking to strike a balance between medium-risk destinations and established ones. In the light of this strategy, he said, IHI has entered into agreements to acquire two landmark hotels that are already in full operation and delivering substantial operating performances.
These are the 550-room five-star Corinthia Towers Hotel in Prague and the 300-room Corinthia Bab Africa Hotel & Commercial Centre in Tripoli.
Apart from these two acquisitions, IHI is also considering a series of new investments in a wide range of other destinations. Discussions are already underway in Europe, Africa, the Middle Ease, the Russian Federation and other states in Central Asia.
“In our plans, we are targeting some four to five new investments over the coming years, giving us a portfolio of 10 or 11 hotels with a total of approximately 4,000 to 4,500 bedrooms,” said Mr Pisani.