International Hotel Investments p.l.c., the owner of the Corinthia brand and portfolio of hotels, commercial and residential real estate across Europe and the Middle East, has published its financial results for the pandemic year 2020.
Results show a marginal EBITDA loss of €3.8 million in 2020 relative to the €69.8 million EBITDA profit reported in 2019. [Earnings before Interest, Tax, Depreciation and Amortisation].
Overall, revenues amounted to €91.9 million in 2020, derived from activity in the company’s owned hotels, commercial rents and fees paid by third parties for services rendered by various companies in the IHI Group. This compares to €268.3 million in 2019.
This drop in revenue was however partly mitigated by extensive savings on payroll and operating costs resulting in the marginal negative EBITDA reported for 2020.
Throughout the year, IHI successfully raised €24.5 million in new loans whilst paying down other debt, meaning the net increase in the Group’s total indebtedness was a marginal €3.4 million, less than a 0.6% increase overall.
The year end results show total assets of the IHI Group valued independently at €1.544 billion.
Cash and equivalents stood at €46.1 million.
IHI chairman Alfred Pisani said:
“The 2020 pandemic has devastated the hotel industry worldwide. On the other hand, the immediate and far-reaching action on curtailing all costs throughout 2020 means we have ended the year in a quasi-breakeven position at an operating level. Our reserves, conservative balance sheet, refinancing activity, together with Government subsidies on salaries in many countries where we operate, has meant we successfully weathered the storm and now look forward to emerging from the pandemic in the months ahead. This has not been without pain and sacrifices endured by many in the Group, for which I, and the Board, extend our profound appreciation. The Corinthia family and our unbending spirit remains as strong as ever”.
Throughout 2020, the company has proceeded with development projects of new Corinthia hotels in Brussels, Moscow, Rome, Doha, Dubai and Bucharest, mostly acting as an operator and developer providing services in return for fees from other investors. Further announcements on new Corinthia hotel projects are expected imminently.
The company looks ahead with optimism as it emerges from the pandemic, rebuilds its revenue and extends its brand footprint across all corners of the globe.
The financial results can be accessed via the following link: www.corinthiagroup.com/investors/financial-report/.
For further information contact: Jean-Pierre Schembri on [email protected].