International Hotel Investments said today that it made a loss after tax of €10.7m last year, but despite the conflict in Libya, where it has a hotel, its revenues were still up.
The group said the highlight of this year’s performance review was the conflict in Libya, where it has a hotel.
"Ordinarily, one would have expected to see reduced consolidated revenues and profitability year on year, but fortunately this was not the case. Despite the downturn in business at Corinthia Hotel Tripoli, the Group registered consolidated revenues that were 2% higher than those registered in 2010.
"The hotel in Libya registered a drop in revenues of 35% equivalent to €10.6 million. All the other Group hotel properties achieved increases in revenues over last year equivalent to €13.1 million. The revenues achieved are indeed encouraging not only for the Tripoli hotel but also for those located in the other European cities as the economic downturn was still being felt in 2011," the group said.
It said that its internally developed global distribution system also continued to yield positive results, generating improved revenues since its launch last year. The percentage increases in revenue over last year were as follows: Corinthia Hotel St Petersburg 24%, Corinthia Hotel Lisbon and Corinthia Hotel Prague 18%, Corinthia Hotel Budapest 13% and Corinthia Hotel St George’s Bay 8%.
"Whilst consolidated direct costs increased on account of the improved hotel occupancy levels, other operating costs decreased slightly principally as a result of measures taken at Corinthia Hotel Tripoli to reduce overhead costs. These costs were however impacted by the write-off of €1.8 million in non-recurring costs incurred in prior years."
The Group registered a profit before depreciation, amortization, interest, and revaluation and other adjustments of €22.4 million compared to a profit of €22.9 million in 2010.
Whereas the depreciation charge of €24.4 million remained at the same level of the charge recognised in 2010, the valuation of the Group’s investment properties resulted in a net uplift of €5.5 million mainly through the increase in value of the commercial centre in St Petersburg.
On the other hand, the valuation of the Group’s hotel properties resulted in a net impairment of €2.5 million. The valuation of Corinthia Hotel Prague resulted in an uplift in value with a consequent reversal of impairment of €4.5 million.
Corinthia Hotel Budapest and Corinthia Hotel St George’s Bay registered an impairment of €4.3 million and €2.7 million respectively.
During the year under review the Group registered a loss after tax of €10.7 million compared to a loss after tax of €13.1 million in 2010.
The total expense of €13.4 million recognised in the statement of comprehensive income mainly reflects an impairment charge, net of tax, of €10.2 million on Corinthia Hotel St Petersburg and the Group’s share of impairment incurred on the value of Corinthia Hotel London amounting to €4.4 million. These impairments in value are being clawed back from revaluation reserves.
After adding the net comprehensive expense amounting to €13.4 million to the loss after tax of €10.7 million, the total comprehensive expense for 2011 amounted to €24.1 million against a total comprehensive income of €5.4 million in 2010.
(Source: Times of Malta)
