International Hotel Investments Plc

Board/Management Information • Nov 3, 2014

COMPANY ANNOUNCEMENT

Interim Directors' Statement

IHI-owned hotels performed better in the first nine months of the year in relation to the corresponding period in 2013, other than the hotels in Tripoli and St Petersburg where external circumstances have dampened demand for accommodation.

The Corinthia Hotel St George's Bay and the Marina Hotel in Malta have experienced their best performance since opening. A similar positive performance has been achieved at the Corinthia Hotels in Lisbon and Budapest. The Corinthia Hotel Prague has also significantly improved its bottom line performance over 2013.

The Corinthia Hotel London which is 50 per cent owned by IHI, similarly improved its performance over 2013. The hotel, which has since opening in 2012 nurtured a strong high-end US-based clientele, has been accepted into the exclusive American Express Fine Hotel and Resorts program as well as in the upscale consortium of travel agencies known as Virtouso, also principally based in the USA.

In Libya, the Corinthia Hotel Tripoli has remained operational throughout the period under review and is currently the only international five-star hotel open in the city. Despite the end of hostilities at the city outskirts which started in June, management has continued to adapt to a period of low occupancies and has implemented extensive cost savings with the objective to break-even over the 12-month period. The commercial centre of offices adjoining the hotel remains in full operation and occupancy.

The Corinthia Hotel St Petersburg has also been affected by a reduction in corporate travel to the Russian Federation as a result of international political issues. Hotel management has acted to source alternative markets, in particular the domestic Russian market. A sales office has been opened in Moscow and Russian-language online marketing has been given prominence.

Alfred Fabri Company Secretary

3 rd November 2014