International Hotel Investments Plc

Capital/Financing Update • Jun 30, 2016

COMPANY ANNOUNCEMENT

Issue of €55,000,000 4% International Hotel Investments p.l.c. Secured Bonds 2026 guaranteed by IHI Magyarország Zrt. (the owner and operator of the Corinthia Hotel Budapest)

Following regulatory approval received on 28 June 2016, International Hotel Investments p.l.c. (the "Company") announces that it will be issuing €55,000,000 4% Secured Bonds redeemable in 2026 (the "New Bonds") with a nominal value of €100 per Bond, issued at par.

The Company will be granting preference of up to €30 million to IHI shareholders appearing on the register of the Company on the Official List of the Malta Stock Exchange as at close of business on 30 June 2016 (the "Cut-off Date") to subscribe to the New Bonds.

Full details of the Bond Issue are included in the prospectus dated 28 June 2016 which will be available on the Company's website (www.ihiplc.com) from 1 July 2016 and at authorised financial intermediaries from 4 July 2016. Application forms will be mailed to IHI Shareholders on 1 July 2016, while application forms for other investors will be available from authorised financial intermediaries as from 4 July 2016.

Alfred Fabri Company Secretary

30 June 2016