International Hotel Investments Plc

Report Publication Announcement • May 18, 2016

COMPANY ANNOUNCEMENT

Interim Directors' Statement

In overall terms, IHI generated more revenue and operating profit in the first quarter of this year, compared with last year. This notwithstanding a challenging market in London, where IHI's associate company owning the Corinthia Hotel, NLI Holdings, has had a testing start to the year, although still gaining in market share contrary to the competing luxury hotel set which has generally seen reduced levels of patronage.

The necessary upgrading works have been finalised in Tripoli and the hotel is ready to reopen for business once the situation in the country normalises.

As already announced the Company will be issuing a 3 per cent bonus share to shareholders appearing on the register of members of the Company on the Official List of the Malta Stock Exchange as at close of business on 30 June, 2016. The bonus share distribution is to be made out of the Company's capital reserves.

Alfred Fabri Company Secretary

18th May 2016