COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by International Hotel Investments p.l.c. pursuant to the Capital Markets Rules as issued by the Malta Financial Services Authority.

FINANCIAL ANALYSIS SUMMARY

The Board of Directors of International Hotel Investments p.l.c. hereby announces that the Financial Analysis Summary dated 30 June 2025 has been approved for publication. A copy of the document is attached to this announcement and can also be accessed at https://corinthiagroup.com/investors/analysis-reports/

Stephen Bajada Company Secretary

30 June 2025

FINANCIAL ANALYSIS SUMMARY

30 JUNE 2025

ISSUER

INTERNATIONAL HOTEL INVESTMENTS P.L.C.

(C 26136)

Prepared by:

63, MZ House, St Rita Street, Rabat RBT 1523, Malta

E [email protected] W mzinvestments.com

The Board of Directors International Hotel Investments p.l.c. 22, Europa Centre Floriana FRN 1400 Malta

30 June 2025

Dear Board Members,

Financial Analysis Summary

In accordance with your instructions, and in line with the requirements of the MFSA Listing Policies, we have compiled the Financial Analysis Summary (the "Analysis") set out on the following pages and which is being forwarded to you together with this letter.

The purpose of this Analysis is that of summarising key financial data appertaining to International Hotel Investments p.l.c. (the "Issuer", "Group", or "IHI"). The data is derived from various sources or is based on our own computations as follows:

(a) Historical information for the most recent three financial years ended 31 December 2022, 31 December 2023, and 31 December 2024 has been extracted from the respective audited consolidated annual financial statements.
(b) The forecast and projected information for the financial year ending 31 December 2025 has been provided by the Group.
(c) Our commentary on the financial performance, cash flows, and financial position of the Issuer is based on explanations provided by IHI.
(d) The ratios quoted in this Analysis have been computed by applying the definitions set out in Part 4 – Explanatory Definitions.
(e) Relevant financial data in respect of the companies included in Part 3 Comparative Analysis has been extracted from public sources such as websites of the companies concerned, financial statements filed with the Malta Business Registry, as well as other sources providing financial information.

M.Z. Investment Services Limited is regulated by the Malta Financial Services Authority and licensed to conduct investment services business in terms of the Investment Services Act (Cap. 370 of the Laws of Malta). MZ Investments is a member of the Malta Stock Exchange and an enrolled Tied Insurance Intermediary for MAPFRE MSV Life p.l.c. under the Insurance Distribution Act (Cap. 487 of the Laws of Malta).

M.Z. Investment Services Limited

63, MZ House, St Rita Street, Rabat RBT 1523, Malta

E [email protected] W mzinvestments.com

This Analysis is meant to assist investors by summarising the more important financial information of the Group. This Analysis does not contain all data that is relevant to investors. Furthermore, it does not constitute an endorsement by our firm of any securities of the Issuer and should not be interpreted as a recommendation to invest or not invest in any of the Issuer's securities. We will not accept any liability for any loss or damage arising out of the use of this Analysis. As with all investments, investors are encouraged to seek professional advice before investing in the Issuer's securities.

Yours faithfully,

Evan Mohnani Head Corporate Broking

PART 1 – INFORMATION ABOUT THE ISSUER	2
1. KEY ACTIVITIES	2
2. DIRECTORS AND SENIOR MANAGEMENT	6
3. ORGANISATIONAL STRUCTURE	7
4. SEGMENT INFORMATION	7
5. ECONOMIC UPDATE	15
PART 2 – PERFORMANCE REVIEW 23
6. FINANCIAL ANALYSIS	23
7. VARIANCE ANALYSIS	35
8. RELATED PARTY DEBT SECURITIES	38
9. INFORMATION RELATING TO THE ISSUER'S SECURITIES	39
PART 3 – COMPARATIVE ANALYSIS 40
PART 4 – EXPLANATORY DEFINITIONS 43

PART 1 – INFORMATION ABOUT THE ISSUER

1. KEY ACTIVITIES

International Hotel Investments p.l.c. carries on the business of an investment company in connection with the ownership, development and operation of hotels, residential and commercial real estate. The Issuer owns a number of investments in subsidiary and associate companies through which it furthers the business of the Group.

IHI generates revenue primarily from the operation of own hotels. Other income is derived from the following sources:

i) Corinthia Hotels Limited ("CHL"), a fully owned subsidiary of IHI, manages and operates a number of hotel properties owned by IHI, related parties and other third parties.
ii) The Group generates rental income mainly from the lease of commercial centres in Tripoli and St Petersburg, and the Grand Hotel Prague Towers1 .
iii) Catering services are provided by the Group through the operation of Corinthia Caterers Limited, Catermax Limited, and Costa Coffee Malta.
iv) Project management, engineering, and related architectural services are provided by QPM Limited ("QP"), a wholly owned subsidiary of IHI.
v) Corinthia Real Estate Ventures ("C-REV") (formerly Corinthia Developments International Limited or CDI), a fully owned subsidiary of IHI, specialises in the origination, financing and development of real estate projects.

The Group's business strategy is based on three main pillars, these being: (i) the maximisation of revenue and earnings from its hotel operations and other businesses; (ii) the disposal of non-core properties and other properties which are mature in terms of gains to be made and properties which do not fit the Corinthia brand standards; and (iii) putting the Corinthia flag on luxury third-party owned properties and being ready to acquire a minority investment in such properties when the right opportunity presents itself.

An important initiative spearheaded by the Group in the last few years was to expand into the upper 4-star and lower 5-star segment through the establishment of the Verdi Hotels brand.

As at the date of this Analysis, the Group manages the following Verdi Hotels: (i) Verdi St George's Bay Marina (owned hotel); (ii) Verdi Budapest Aquincum (CPHCL Company Limited "CPHCL" owned); (iii) Verdi Hotel Tunis (CPHCL owned); (iv) Verdi Gzira Promenade (The Libyan Arab Maltese Holding Company Limited "LAMHCO" owned); and (v) Vivaldi Malta, powered by Verdi Hotels (LAMHCO

¹ Formerly operated as the Corinthia Hotel Prague. The property was leased to third parties on 1 April 2024 and has since been rebranded.

owned). The Group took over the management of the latter hotel in November 2024 on a white label basis.

In February 2025, the Group entered into a lease agreement to operate two hotels having 93 rooms in Beverly Hills, California: The Maison 140 Hotel and The Mosaic Hotel. Furthermore, the Group has entered into a joint venture to lease an office block in Beverly Hills, California, as of Q3 2025. The office block comprises 35,000 square feet of office space.

The following table provides a list of the principal assets and operations of the Group:

International Hotel Investments p.l.c.
Principal Assets and Operations
			No. of hotel		Asset Value
	Location	% ownership	rooms	2022	2023	2024	Notes
				€'000	€'000	€'000
Owned and managed hotels
Corinthia Hotel London	UK	50	283	512,990	536,218	580,091	(1)
Corinthia Hotel Lisbon	Portugal	100	515	108,615	119,091	143,988
Corinthia Hotel Budapest	Hungary	100	414	119,632	116,025	112,600	(2)
Corinthia Grand Hotel Astoria Brussels	Belgium	50	126	47,897	82,118	124,709	(1)
Radisson Blu Resort & Spa Golden Sands	Malta	100	329	62,455	68,000	91,001
Corinthia Hotel Tripoli	Libya	100	300	67,135	65,400	70,888
Corinthia Hotel St George's Bay	Malta	100	248	36,384	56,039	55,562
Corinthia Hotel St Petersburg	Russia	100	388	71,830	53,458	56,945
Radisson Blu Resort St Julian's	Malta	100	252	34,028	46,000	45,069
Verdi St George's Bay Marina	Malta	100	200	28,977	34,800	34,239
Corinthia Palace Hotel & Spa	Malta	100	147	32,717	31,482	31,223
Owned hotel ‒ leased to third parties
Grand Hotel Prague Towers	Czech Republic	100	539	89,438	87,980	90,300
Managed hotels
Panorama Hotel Prague	Czech Republic	n/a	441	n/a	n/a	n/a
Verdi Budapest Aquincum	Hungary	n/a	310	n/a	n/a	n/a	(3)
Verdi Hotel Tunis	Tunisia	n/a	309	n/a	n/a	n/a	(3)
Vivaldi Malta, powered by Verdi Hotels	Malta	n/a	263	n/a	n/a	n/a
Verdi Gzira Promenade	Malta	n/a	106	n/a	n/a	n/a
The Surrey Corinthia Hotel New York	USA	n/a	100	n/a	n/a	n/a	(4)
Corinthia Hotel & Residences Doha (2025)	Qatar	n/a	110	n/a	n/a	n/a	(5)
Corinthia Hotel Rome (2026)	Italy	n/a	60	n/a	n/a	n/a	(6)
Corinthia Grand Hotel Du Boulevard Bucharest (2025)	Romania	n/a	35	n/a	n/a	n/a	(7)
Corinthia Hotel & Residences Riyadh (2027)	Saudi Arabia	n/a	85	n/a	n/a	n/a	(8)
Corinthia Hotel Maldives (2027)	Maldives	n/a	77	n/a	n/a	n/a
Corinthia Hotel & Residences Dubai (2028)	United Arab Emira	n/a	125	n/a	n/a	n/a	(9)
Investment properties
Tripoli Commercial Centre	Libya	100	n/a	75,344	83,260	86,300
St Petersburg Commercial Centre	Russia	100	n/a	52,484	38,316	36,829
Corinthia Oasis	Malta	100	n/a	28,657	30,817	48,200	(10)
Site in Tripoli	Libya	100	n/a	29,500	29,500	29,500
Craven House, London (office building)	United Kingdom	100	n/a	9,020	11,333	11,675	(11)
Pinhiero Chagas Residences	Portugal	100	n/a	5,908	6,386	3,342	(12)
Total			5,762	1,413,011	1,496,223	1,652,461

Notes:

(1) Although the two properties are 50% owned by IHI, both are under the control and management of the Group. As such, the Brussels and London properties are fully consolidated in the financial statements of the Issuer.

(2) The property includes an additional 26 apartments which are not included in the room count.
(3) Owned by CPHCL, the majority shareholder of the Issuer (vide Section 3 – Organisational Structure).
(4) The property includes an additional 14 residences which are not included in the room count. These residences are subject to promise of sale agreements and will be serviced by the hotel. In terms of the hotel management agreement, such sales will generate income for CHL in the form of a branding fee.
(5) The property will include an additional 18 villas which are not included in the room count. CHL has contractual arrangements with United Development Company ("UDC") – the Qatari master developer of The Pearl in Doha – to manage and operate a luxury Corinthia resort being built on UDC's newest flagship real estate development – Gewan Island. The latter covers an area of circa 400,000 sqm and is situated next to The Pearl. The island will accommodate 3,500 residents and will have 641 apartments, 20 standalone villas located along a placid beach in a quiet and gated seaside community, as well as 21 beachfront villas with private beach, 26 waterfront villas equipped with private pontoons for private boats, 6 island villas, and 11,000 sqm of retail spaces and several multi-use buildings. In addition, Gewan Island will feature an air conditioned 'Crystal Walkway' outdoor promenade, parks, and green areas which will play a major role in attracting various new brands to Doha. The island will also be home to a number of entertainment facilities, a sports club, and a mosque.
(6) The 7,000 sqm building is the former seat of the Bank of Italy in Parliament Square and is owned by a third-party investor. CHL will be leasing and operating the hotel once redevelopment works are completed. IHI is the contractor supporting the delivery of the project.
(7) Formerly known as the Grand Hotel du Boulevard, the new Corinthia hotel features 30 luxury suites as well as a fully restored Grand Ballroom and various dining and leisure venues.
(8) The property will include an additional 10 villas which are not included in the room count.
(9) The property will include an additional 240 branded residences which are not included in the room count.
(10) The site at Golden Bay, measuring circa 83,530 sqm, will be developed into a 162-key luxury resort, supported by a top-tier wellness centre, food and beverage outlets, as well as 25 low-rise detached hotel-serviced villas and bungalows. Architectural designs are complete, and the overall project is aimed at maintaining a highly landscaped surrounding that is very sensitive to the area's natural character and rural environment. An application to Planning Authority has been submitted, which is shortly expected to be granted approvals from the environmental authorities in anticipation of a full permit later in 2025.
(11) The 876 sqm office building was acquired in August 2022. The Group occupies the top five floors whilst the remaining three floors are being held for use by other group companies and/or placed on the market for lease once current refurbishment works are complete.
(12) The Group has recently completed the refurbishment of seven premium apartments, collectively known as Pinheiro Chagas Residences, situated in an affluent residential area in central
(13) , behind El Corte Ingles. The apartment block was acquired at the same time as the Alfa Hotel (now the Corinthia Hotel Lisbon) and has since been meticulously transformed into a luxury apartment block at an overall cost of circa €1.7 million. As at the date of this report, six apartments have been sold at a cumulative value of circa €5.5 million, and a promise of sale agreement has been signed in respect of the remaining apartment.

1.1 OTHER ASSETS

BENGHAZI PROJECT

IHI has a 55% equity participation in Libya Hotel Development and Investment Joint Stock Company – an entity set up for the purpose of owning and developing a building formerly known as the El-Jazeera Hotel and adjoining site situated in Benghazi, Libya. The project will consist of a 228-room five-star hotel, 2,000 sqm of retail space, and 10,000 sqm of office space. Whilst the necessary planning permits for the project were issued by the Benghazi planning authorities and demolition works commenced in January 2014, in view of the prevailing situation in Libya, all works on this development have been put on hold, and current plans are due for reconsideration depending on future developments in the country. It is anticipated that funding required for the project, once resumed, will be sourced from a combination of equity injected by the shareholders as well as bank financing.

MEDINA TOWER

IHI owns 25% of the share capital of Medina Tower Joint Stock Company which is an entity set up for the purpose of owning and developing the Medina Tower in Tripoli. The parcel of land, over which the project will be developed, measures circa 13,000 sqm and is situated in Tripoli's main high street. The architectural concept stems from a four-storey podium that will include a mix of residential, retail, commercial and conference space. A curved tower rises from the sixth level and peaks at the 40th level, where a double height restaurant will complete the property. The development will comprise a total gross floor area of circa 199,000 sqm. The execution of this project is currently on hold.

RUSSIA

In February 2019, IHI acquired a 10% minority share in a company formed with a consortium of investors to acquire a landmark property 10 Tverskaya Street, Moscow. The contributions to date amount to USD 7 million. The acquisition was made with a view to developing the site, covering a gross area of circa 43,000 sqm, into a mixed-use real estate project consisting of a 42-room boutique luxury Corinthia Hotel, 109 upmarket residential serviced apartments for re-sale, high-end retail and commercial outlets, and underground parking. In view of the ongoing conflict between Russia and Ukraine, this project has been put on hold.

BEVERLY HILLS

On 27 January 2025, IHI formed a joint venture with third parties for the purposes of realising an investment opportunity in Beverly Hills, California, whose principal business is the ownership of an office block and two hotels located in Beverly Hills, California. C-REV originated and manages the execution of the transaction and has been appointed to act as asset manager.

This joint venture will be leasing out the office block (excluding a portion of the third floor) to another joint venture, where IHI holds a 50% shareholding, for an initial annual rent of USD 3,000,000. The term of the office lease shall expire on 31 December 2034.

Similarly, the two hotels (the Mosaic Hotel and the Maison 140 Hotel) shall be leased from the owning company to IHI for a period of five years against an initial annual rent of USD 3,000,000.

IHI has appointed two separate management companies based in the United States to operate the hotels and office block respectively.

2. DIRECTORS AND SENIOR MANAGEMENT

The Board of Directors of IHI comprises the following ten individuals who are responsible for the overall development, strategic direction, and risk management of the Group:

Mr Alfred Pisani	Chairman
Mr Simon Naudi	Managing Director and Chief Executive Officer
Mr Frank Xerri de Caro	Non-Executive Director
Mr Joseph Pisani	Non-Executive Director
Mr Moussa Atiq Ali	Non-Executive Director
Mr Douraid Zaghouani	Non-Executive Director
Mr Richard Cachia Caruana	Senior Independent Non-Executive Director
Mr Alfred Camilleri	Independent Non-Executive Director
Mr Hamad Mubarak Mohd Buamin	Non-Executive Director
Mr Mohamed Mahmoud Alzarouq Shawsh	Non-Executive Director

The weekly average number of employees within the Group during FY2024 was 2,469 compared to 2,592 in FY2023. The Chief Executive Officer is responsible for managing IHI's assets and subsidiary businesses covering all aspects relating to investments, development, and operations, as well as for identifying and executing new investment opportunities. The other key members of the Group's senior management team are Neville Fenech (Group Chief Financial Officer), Michael Izzo (Chief Strategy Officer), Clinton Fenech (General Counsel), and Stephen Bajada (Company Secretary).

3. ORGANISATIONAL STRUCTURE

The diagram below provides a condensed illustration of the organisational structure of IHI. A complete list of the companies forming part of the Group is included in section 17 of the 2024 Annual Report which is also available at: https://www.corinthiagroup.com/investors/.

IHI's shares have been listed on the Official List of the Malta Stock Exchange since 2 June 2000. As at the date of this report, CPHCL holds 355,988,463 shares equivalent to 57.81%, Istithmar Hotels FZE holds 133,561,548 shares equivalent to 21.69% and LAFICO holds 66,780,771 shares equivalent to 10.85% of IHI's total issued share capital (half of this 10.85% is subject to a call option in favour of CPHCL).2

The Group's organisational structure has expanded considerably over the years in line with IHI's growth and development. The current organisational structure allows the Issuer to keep its strategic direction and development in focus whilst allowing the respective boards and management teams of the Group's various subsidiaries to focus on achieving IHI's operational objectives. Indeed, the Issuer has an autonomous organisational structure for each hotel property and operation. Furthermore, IHI's philosophy is based on the ownership of each hotel property through a company established in the jurisdiction where the hotel is located.

4. SEGMENT INFORMATION

4.1 HOTEL OPERATIONS

The Issuer owns and operates a total of 3,202 rooms across nine fully owned hotels and two other properties which are 50% owned, namely Corinthia Hotel London and Corinthia Grand Hotel Astoria Brussels.

Corinthia Grand Hotel Astoria Brussels was inaugurated on 9 December 2024 and features 126 luxury rooms and suites and offers unrivalled amenities for the city of Brussels, including a fully restored grand ballroom, a 1,200 sqm spa, various dining venues, meeting facilities, and high-end retail shops.

² Istithmar Hotels FZE is ultimately owned by the Government of Dubai whilst LAFICO is owned by the State of Libya.

The all-in total investment of the Group in the project, including design, construction and fit out, as well as land, finance costs and all pre-opening costs was around €125 million, which equates to €1 million per bedroom, an industry metric which should be well regarded when viewed against comparable projects across Europe. The project was funded through a combination of debt funding and contributions from shareholders.

Hotel Operations
For the financial year 31 December	2022	2023	2024	2025
	Actual €'000	Actual €'000	Actual €'000	Forecast €'000

Revenue:
London	82,472	92,326	95,774	93,912
Malta	53,466	70,298	74,782	76,556
Budapest	15,686	21,870	26,936	29,754
Brussels	-	-	-	19,179
St Petersburg	10,053	11,954	14,157	17,319
Tripoli	4,293	4,413	9,408	6,573
Lisbon	25,189	31,977	38,005	40,514
Prague*	10,735	16,287	2,815	-
Beverly Hills	-	-	-	5,682
	201,894	249,125	261,877	289,489
EBITDA:
London	21,251	22,677	22,757	20,739
Malta	9,565	15,457	16,149	17,713
Budapest	2,885	4,128	5,944	6,799
Brussels	-	-	-	(5,876)
St Petersburg	1,552	3,180	5,016	6,193
Tripoli	143	(389)	2,620	(566)
Lisbon	5,506	8,414	10,187	11,087
Prague*	(90)	1,954	(824)	-
Beverly Hills	-	-	-	1,983
	40,812	55,421	61,849	58,072
Depreciation and amortisation	(26,436)	(25,016)	(25,319)	(24,973)
Segment profit	14,376	30,405	36,530	33,099

EBITDA Margin (%) :
London	25.77	24.56	23.76	22.08
Malta	17.89	21.99	21.59	23.14
Budapest	18.39	18.88	22.07	22.85
Brussels	-	-	-	(30.64)
St Petersburg	15.44	26.60	35.43	35.76
Tripoli	3.33	(8.81)	27.85	(8.61)
Lisbon	21.86	26.31	26.80	27.37
Prague*	(0.84)	12.00	(29.27)	-
Beverly Hills	-	-	-	34.90
EBITDA Margin	20.21	22.25	23.62	20.06

Hotel operations in FY2022 were still in a phase of recovery following the significant negative impact of the COVID-19 pandemic, but demand for travel gradually returned to pre-pandemic levels in the following year. In FY2023, revenues from hotel operations surpassed the FY2019 figure and amounted to €249.13 million (year-on-year increase of 23.39%).

The hotels in London (€92.33 million) and Malta3 (€70.30 million) generated combined revenues of €162.62 million in FY2023, accounting for 65.28% of IHI's total income from hotel operations. The hotels located in Lisbon (€31.98 million), Budapest (€21.87 million), and Prague (€16.29 million) represented most of the remaining income. Corinthia Hotel St Petersburg (€11.95 million) and Corinthia Hotel Tripoli (€4.41 million) contributed to an aggregate revenue of €16.37 million, equivalent to 6.57% of the total income from hotel operations.

In terms of EBITDA, the Corinthia Hotel London was the highest contributor in FY2023 at €22.68 million, followed by the hotels located in Malta at €15.46 million, Corinthia Hotel Lisbon (€8.41 million), and Corinthia Hotel Budapest (€4.13 million). Corinthia Hotel St Petersburg recorded the highest EBITDA margin at 26.60%, whilst Corinthia Hotel Prague registered the weakest EBITDA margin at 12%. Corinthia Hotel Tripoli reported a negative EBITDA of €0.39 million.

In aggregate, IHI generated an EBITDA of €55.42 million from its hotel operations in FY2023 compared to €40.81 million in FY2022 (+35.80% year-on-year). Although revenues in FY2023 exceeded those achieved in FY2019, the EBITDA margin of 22.25% recorded in FY2023 was lower than the level of 23.21% registered in FY2019. This decline was primarily attributable to adverse geopolitical developments in Russia and the surge in inflation which particularly affected payroll, energy, and supply costs.

In FY2024, revenues from hotel operations increased by €12.75 million (+5.12%) to €261.88 million. The year-on-year growth was adversely impacted by the Group's decision to cease operations of the Corinthia Hotel Prague and instead lease the property to third parties as of 1 April 2024.4 Excluding the Corinthia Hotel Prague, revenues increased year-on-year by €26.22 million or +11.26%. It is worth noting that all hotels improved performance on a comparable basis, including Corinthia Hotel Tripoli and Corinthia Hotel St Petersburg.

Approximately 37% (or €22.76 million) of EBITDA was generated by Corinthia Hotel London. Corinthia Hotel Lisbon achieved a year-on-year growth of 21.07% to €10.19 million, while Corinthia Hotel Budapest registered annual growth of 43.99% to €5.94 million. It is also worth noting that the Tripoli operation converted a loss of €0.39 million incurred in FY2023 to a gain of €2.62 million. Overall, the hotel operations segment registered an EBITDA margin of 23.62% in FY2024, compared to 22.25% in the prior year.

⁴ The lease of Corinthia Hotel Prague took place in line with the Group's strategy to focus on luxury hotel operations whilst seeking other brands and solutions for its upscale and mid-market hotels.

³ The hotels in Malta comprise the following properties: Radisson Blu Resort & Spa Golden Sands, Corinthia Hotel St George's Bay, Radisson Blu Resort St Julian's, Verdi St George's Bay Marina, and Corinthia Palace Hotel & Spa.

Revenue in FY2025 shall comprise the first full year of operations of Corinthia Grand Hotel Astoria Brussels and 10 months of the 2 hotels in Beverly Hills. The afore-mentioned properties are projected to generate revenue of €19.18 million and €5.68 million respectively. The commencement of the 60 room Corinthia Hotel Rome has been postponed to Q1 2026 (previously Q4 2025).

Another important development for the year is the projected partial sale of Corinthia Hotel Lisbon at the end of the financial year. The Group anticipates that it will sell a significant portion and stay on as a shareholder and will continue to manage and operate the Lisbon hotel through CHL.

Over 35% (€20.74 million) of projected Hotel Operations EBITDA (€58.07 million) is expected to be generated by Corinthia Hotel London. The second largest contributor in terms of EBITDA are the hotels located in Malta (31%, €17.71 million) and Lisbon (19%, €11.09 million).

The EBITDA margin of Group hotel operations is expected to contract from 24% in FY2024 to 20% on account of the addition of the Corinthia Grand Hotel Astoria Brussels, which will require a few years of operation in order to achieve stabilised earnings.

International Hotel Investments p.l.c.

Revenue & EBITDA ‒ Owned & Leased Hotels

4.2 HOTEL MANAGEMENT SERVICES

CHL manages and operates several hotels the majority of which are owned by IHI but there is now more focus to grow the provision of management services and the Corinthia brand to third party hotel owners. In the last few years, CHL has successfully signed hotel management agreements with third party owners to operate hotels in Doha, Bucharest, Rome, New York, Riyadh, Maldives and lately Dubai.

The company has in-house skills and capabilities supporting the Corinthia and Verdi brands and operations. Furthermore, it has a track record of driving performance improvements whilst ensuring consistent service levels and performance across various hotels and jurisdictions.

Management contracts are typically entered into and structured for a period of 20 years. Key commercial terms include management fees based on total turnover, marketing and reservation fees based on rooms' revenue, and incentive fees based on gross operating profit. Moreover, CHL makes efficient use of capital and resources, reflecting the minimal capital outlays involved (if any) for each new management contract, and a cost-effective way for gaining in-depth knowledge of various hotel markets.

The services offered by CHL focus on the following areas of expertise:

(i) Operations comprises the design and development of new hotels under development, as well as the responsibility for overall operations and support to general managers, engineering, standards, quality, and sustainability.
(ii) Finance covers procurement and information technology.
(iii) Human resources involves organisational culture and the management of people.
(iv) Commercial covers revenue management, sales, public relations, marketing, distribution and loyalty programmes.
(v) Business growth includes sourcing of new opportunities and negotiation of agreements for the management of new Corinthia Hotels.

CHL also has a 13% shareholding (as at 31 December 2024) in GHA Holdings Limited ("GHA") – a company that owns the Global Hotel Alliance of which CHL is a member with 39 other hotel brands. The ownership of GHA also comprises founding shareholders Kempinski, Minor, Pan Pacific, Oracle, and, since 2022, ASmallWorld.

GHA achieved strong growth over the years and today it serves as an umbrella for more than 800 upmarket and luxury hotels in over 100 countries. Furthermore, GHA provides a low-cost full-service loyalty programme – GHA DISCOVERY – on a unique multi-brand technology platform, allowing brands to retain loyal customers and attract new business from members enrolled by other brands around the world.

Hotel Management Services For the financial year 31 December	2022 Actual €'000	2023 Actual €'000	2024 Actual €'000	2025 Forecast €'000
Revenue:
Owned hotels	12,275	14,916	16,700	17,544
Third party owned hotels	1,383	1,808	2,196	3,738
Other	168	279	575	1,632
	13,826	17,003	19,471	22,914
EBITDA	2,652	2,759	609	2,971
EBITDA margin (%)	19.18	16.23	3.13	12.97

The following table summarises the financial performance of CHL between FY2022 and FY2024, and the forecast for FY2025:

Hotel management revenues increased from €13.83 million in FY2022 to €19.47 million in FY2024 (+41%), which largely reflected the recovery of the hospitality sector post-pandemic (FY2019: €16.96 million). The growth of 15% (y-o-y) in FY2024 reflects an improvement in performance from the majority of hotels under management. The Corinthia Hotel Prague has been leased to third parties as from 1 April 2024 and therefore CHL's results comprise only three months of management fees from this property. During Q4 2024, CHL included to its portfolio The Surrey Corinthia Hotel New York, Corinthia Grand Hotel Astoria Brussels and Vivaldi Malta, powered by Verdi Hotels.

The EBITDA results in FY2022 and FY2023 was mostly flat despite the revenue growth. The lacklustre performance was mainly attributed to the following: (i) an increase in employees and payroll costs as CHL had to ramp up its headcount ahead of new management agreements and planned hotel openings; (ii) the lower returns from certain activities such as quality audits, employee satisfaction surveys, as well as health and safety and property audits; and (iii) one-time set up costs in relation to the new hotel openings in New York and Rome.

Due to the impact of pre-opening costs in relation to Corinthia Grand Hotel Astoria Brussels and Corinthia Hotel Rome, EBITDA generated in FY2024 amounted to €0.61 million compared to €2.76 million in the prior year (-€2.15 million y-o-y).

FY2025 will mark the first full year of operation of The Surrey Corinthia Hotel New York and Corinthia Grand Hotel Astoria Brussels, and the opening of Corinthia Grand Hotel Du Boulevard Bucharest in Q1 2025. Moreover, Corinthia Hotel & Residences Doha is expected to commence operations in Q4 2025. The Corinthia Hotel & Residences Doha will occupy an area of 13,000 sqm and will feature 110 guestrooms, a 1,000-person banquet hall, several restaurants, and a luxurious spa facility. The project also includes 18 branded villas for sale, a golf course and a beach club (which are already in operation) all managed by CHL under the Corinthia brand. A yacht club built close by on The Pearl is now

operational and is affiliated to the Monaco Yacht Club. It features members' lounges and amenities as well as a signature restaurant from Mayfair, London.5

During FY2025, it is also projected that the Group will sell a significant portion of the Corinthia Hotel Lisbon and stay on as a shareholder whilst retaining management thereof through CHL. Accordingly, revenues relating to the Lisbon property will be reclassified from 'owned hotels' to 'third party owned hotels' in FY2026. Overall, revenue is projected to increase year-on-year by €3.44 million (+18%) to €22.91 million. EBITDA for the projected year is expected to amount to €2.97 million (FY2024: €0.61 million).

4.2.1 UPCOMING NEW CORINTHIA HOTELS (POST 2025)

CORINTHIA HOTEL & RESIDENCES RIYADH (2027)

On 17 November 2022, CHL entered into a technical and pre-opening services agreement, as well as a 20-year hotel management agreement, with Diriyah Gate Company Limited ("DGCL") – a company incorporated under the laws of the Kingdom of Saudi Arabia that is committed to delivering the Diriyah Gate development project. Diriyah is situated to the northwest of Saudi Arabia's capital city of Riyadh and seeks to attract visitors from around the world with an array of world-class cultural landmarks and experiences.

Diriyah Gate is a USD20 billion heritage and tourism project spearheaded by Diriyah Gate Development Authority. The project will be home to 100,000 people and aims to attract 25 million visitors annually. It will comprise museums, shopping, restaurants, and hotels, and will be a world-class hub for education, recreation, culture, retail, and hospitality.

DGCL is fully owned by the Saudi Arabia Public Investment Fund (the government of Saudi Arabia's sovereign wealth fund) which has made a commitment to inject into DGCL funds to ensure that DGCL can fulfil its commitments and obligations, including the Diriyah Gate development, which, amongst other hotel developments, will include the Corinthia Hotel & Residences Riyadh.

The Corinthia property will be an ultra-luxury venue, located on the main luxury shopping street of the newly redeveloped historic city and surrounded by several other luxury hotels. It will comprise 85 rooms and suites and 10 residences for sale which will have access to hotel services.

CORINTHIA HOTEL MALDIVES (2027)

In May 2023, CHL entered into a technical and pre-opening services agreement, as well as a 20-year hotel management agreement, with Maarah Pvt Ltd ("Maarah") – a Maldivian entity, forming part of Niro Investment Group which, in turn, is a Romanian investment company having operations in Romania, the Middle East, and Asia.

⁵ CHL has also been entrusted to manage a serviced residential tower, to be built on the main island of The Pearl, comprising 150 units of varying sizes for sale and lease.

Maarah exclusively holds the head lease to the lagoon known as Lagoon 19 located in Kaafu Atoll, Maldives. Works on the reclamation of the land for the development of the Corinthia Hotel Maldives island-resort are underway, and the project will feature 77 keys, state of the art wellness facilities, multiple fitness spaces, and a choice of five restaurants operated with internationally renowned brands.

The island resort will extend on a main island of circa 124,000 sqm and a second and third exclusive islands of circa 150,000 sqm and 6,000 sqm respectively which are being reclaimed over a submerged atoll. The project will consist of an aquatic-inspired architecture designed by global firm HKS Co. Ltd., with the main pavilion and independent water-edge villas on the main island and wellness facilities on the smaller islands.

CORINTHIA HOTEL & RESIDENCES DUBAI (2028)

In November 2024, CHL entered into a technical and pre-opening services agreement and a hotel management agreement in relation to the development and eventual operation of a Corinthia branded city hotel that will comprise 125 rooms, 240 branded apartments, multiple food and beverage facilities, spa and gym, and a signature roof top club and restaurant, situated within the Dubai International Financial Centre. Development works are set to commence, and the target opening is set for 2028.

4.3 REAL ESTATE

The Group has a portfolio of commercial real estate mainly comprising the commercial centres located in Tripoli (rentable area of 7,555 sqm) and St Petersburg (rentable area of 12,422 sqm), the Grand Hotel Prague Towers, and part of an office building in London (Craven House). With respect to the latter property, the Group occupies the top five floors whilst the remaining space is available for lease by third parties.

Rental Income
For the financial year 31 December	2022	2023	2024	2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000
EBITDA:
Tripoli Commercial Centre	7,281	6,769	5,329	5,642
St Petersburg Commercial Centre	1,745	1,180	3,641	3,551
Grand Hotel Prague Towers			3,970	5,600
	9,026	7,949	12,940	14,793

Rental income generated in FY2024 amounted to €12.94 million, an increase of €4.99 million (+63%) from the previous financial year (FY2023: €7.95 million). This y-o-y increase reflects the new contribution from the lease of Grand Hotel Prague Towers and an improvement in the performance of St Petersburg Commercial Centre (which is at full occupancy for the first time since opening). In

contrast, EBITDA from the Tripoli Commercial Centre, which is 100% occupied, decreased in FY2024 by 21% to €5.33 million, mainly impacted by improved terms offered to a key tenant.

EBITDA is expected to increase by 14% to €14.79 million in FY2025.

4.4 CATERING

Event catering services are provided under the Group's brands Corinthia Caterers and Catermax. Furthermore, the Group operates the Costa Coffee franchise in Malta. The catering segment reported revenue of €19.65 million in FY2024, being relatively unchanged from the prior year (FY2023: €19.77 million). However, at EBITDA level, the Group converted a loss of €0.37 million in FY2023 to a profit of €0.80 million in FY2024. No material variance in operational performance is forecasted for FY2025 compared to FY2024.

4.5 PROJECT MANAGEMENT

IHI owns 100% of QP, a company specialising in construction, interior design, real estate valuation, and project management services for clients in Malta and overseas. QP operates independently of IHI and at arm's length. Since January 2019, it has included archaeology and land surveying services as part of its offerings, thus positioning itself as a one-stop shop for complex building projects. While continuing to serve the Group, QP is expanding its international independent third-party client base, with revenue from these clients now constituting the largest share of its annual turnover.

Revenues generated by QP in FY2024 increased by 20% from the prior year to €10.18 million (FY2023: €8.50 million). FY2025 is expected to be another positive year for the company with a projected increase in revenue of 47% to €14.92 million.

5. ECONOMIC UPDATE

The following is an overview of the most significant recent trends affecting IHI and the principal markets in which it operates:

5.1 BELGIUM6

Economic activity in Belgium is expected to slow down to 0.8% in 2025, mainly due to high global uncertainty and decreased exports. It is projected to increase slightly to 0.9% in 2026, supported by improving external demand. Inflation is forecast to decrease to 2.8% in 2025 and 1.8% in 2026, driven by lower price pressures for industrial goods and energy. The government deficit is projected to increase over the forecast horizon due to rising expenditure, mainly on ageing related costs, defence and interest payments. Therefore, the government debt is also expected to continue its increasing path.

The Belgian economy grew by 1% in 2024, mainly supported by strong private consumption despite weakened purchasing power. Investment increased only moderately, and while both exports and

⁶ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

imports declined, net export had a slightly positive contribution to growth. GDP growth remained robust at 0.4% q-o-q in the first quarter of 2025.

Domestic demand is expected to slow down in 2025, with a further moderation anticipated in 2026. Decelerating employment growth and declining consumer sentiment are projected to weigh on private consumption. Consequently, the saving rate is forecast to decrease only moderately to around 12.6% of disposable income in 2026. Investment is set to increase by 0.5% in 2025 and 1.2% 2026, respectively. While construction is set to expand, uncertainties in the external environment are expected to hold equipment investment back. The introduction of US tariffs is projected to adversely affect Belgian exports, the US being Belgium's fourth largest export market, especially in the pharmaceuticals sector (exempted from tariffs so far), machinery and equipment, and transportrelated sectors. Imports are set to decrease less than exports, resulting in a negative contribution of exports to growth in 2025. Following a contraction in 2025 exports and imports are expected to rebound in 2026, driven by the expected mild improvement of the external environment.

Overall, the economic activity is forecast to grow by 0.8% in 2025, followed by a mild recovery of 0.9% in 2026.

5.2 CZECH REPUBLIC7

Czech Republic's economy resumed its expansion in 2024 with real GDP growth at 1.1% and forecast to accelerate to 1.9% in 2025 and 2.1% in 2026. Growth is expected to be driven primarily by domestic demand, while the external environment remains challenging. The resumption of growth in real wages helped households' consumption re-emerge as the main driver of economic activity, despite still depressed consumer confidence. With ongoing trade wars and an economic slowdown expected for Czech Republic's main trading partners, net exports are forecast to contribute negatively to growth. Headline inflation is projected at 2.2% in 2025, with services contributing the most and negative energy inflation offsetting the growth in food prices. A forecasted broad-based decline in inflationary pressures leads to headline inflation dropping to 2.0% in 2026. After the phase-out of energy-related measures and the government's public finance consolidation package in 2024, public finances are set to stay in deficit at around 2.3% in 2025 and 2.2% in 2026.

Czech Republic's real GDP grew by 1.1% in 2024 driven by both domestic and external demand. GDP growth is set to accelerate in 2025 and 2026 with households' consumption and investment activity contributing positively and the contribution from net exports turning negative. Household consumption was the main engine of GDP growth in the last two quarters of 2024. While consumer confidence is still affected by perceived risks of economic and income growth uncertainty, household consumption resumed growth from a low base, propelled by real wage increasing again in 2024. As purchasing power has been eroded by high inflation in 2022-23, household consumption volume is still below 2019 levels, with bigger gaps persisting in housing, water and electricity expenditures or in restaurants and accommodation services. Saving rates are expected to moderate in the forecast horizon but otherwise remain high from historical perspective. They are also skewed towards higherincome households who gained the most from the permanent cut in personal income tax effective

⁷ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

from 2021 and who have a lower propensity to consume. Despite contracting in 2024, investment is set to resume growth in 2025 and 2026, due to an assumed increased absorption of EU funds, a recovery in the residential construction and foreign direct investment (e.g. a potential significant investment in a new semiconductors manufacturing facility).

Rising trade restrictions affect the Czech economy mostly indirectly via the exposure of Czech automotive components producers to the main trading partner Germany and are set to weigh on the dynamics of exports' growth. Driven by strong internal demand, imports look set to grow faster than exports and result in a negative contribution of net exports to economic growth. Risks remain to the downside due to the high degree of trade openness of the Czech economy.

5.3 HUNGARY8

GDP is projected to grow at 0.8% in 2025 and to pick up to 2.5% in 2026, supported by consumption and a gradual recovery of investment and exports. Although inflation has decreased from very high levels, underlying inflationary pressures remain strong. After a significant correction in 2024, the general government deficit is projected to remain elevated at 4.6% this year. The debt-to-GDP ratio is expected to increase to reach 74.1% this year.

Real GDP grew by 0.5% in 2024, benefitting from steady consumption bolstered by substantial wage increases and a decline in households' savings. By contrast, investment declined, due to an uncertain business environment and cuts in public investment. Exports remained sluggish due do the weak performance of machinery and vehicle exports. Economic activity declined in 2025 Q1 by an estimated 0.2% q-o-q, partly owing to a decline in industrial production.

GDP growth is forecast to reach 0.8% in 2025 and 2.5% in 2026. Private consumption is expected to remain the key growth driver, supported by real income growth, as well as higher personal income tax exemptions and allowances. Investment, particularly by corporations, is expected to be limited in 2025 but is set to rebound in 2026 as the headwinds from global trade uncertainties ease and governmentsupported construction picks up. Exports are projected to recover, driven by improving demand and new production capacity in foreign direct investment funded facilities. Higher domestic demand is also set to boost imports and reduce the current account balance while income outflows to the rest of the world are assumed to remain low.

Risks to the outlook include subdued external demand, which is particularly important given Hungary's trade exposure and deep integration into global supply chain in key sectors, as well as inflationary pressures, which have been exacerbated by high wage increases and other government-funded policy measures.

5.4 LIBYA9

Libya's economic performance in 2024 was shaped by internal political instability and disruptions in oil production. The forced contraction in activities related to the extraction, production, and processing

⁹ Source: International Monetary Fund, 'Libya: Staff Concluding Statement of the 2025 Article IV Mission', 16 April 2025.

⁸ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

of crude oil, natural gas, and refined petroleum products, following the August 2023 dispute over central bank leadership, led to an overall decline in real output. Although government spending continued to support non-oil sectors, this was not sufficient to offset the loss in hydrocarbon-related activity. With the resolution of the leadership dispute, oil production has since recovered and is now approaching 1.4 million barrels per day, providing a more stable foundation for growth.

Official inflation stood at close to 2% in 2024. However, this figure is influenced by widespread subsidies10 and methodological shortcomings in price measurement. Recent improvements to the CPI, including broader geographical coverage and updated weighting, are expected to enhance the accuracy of future inflation data.

Preliminary estimates point to fiscal and current account deficits in 2024, as government spending continued to rise amid declining oil revenues caused by the shutdown of oil production and exports. The current account balance is estimated to have contracted sharply in 2024 due to the drop in hydrocarbon exports, while imports remained broadly unchanged. Although international reserves stayed at a comfortable level – partly supported by the revaluation of the CBL's gold holdings – concerns over reserve pressure prompted the central bank to devalue the Libyan dinar by about 13% in early April 2025 and implement tighter foreign exchange restrictions.

The banking sector has successfully increased capital and enhanced its financial soundness metrics. In late 2022, the CBL instructed banks to increase their capital to meet Basel II regulatory requirements, and the majority of banks met their targets in 2024 resulting in a doubling of paid-in capital. Additionally, banks' financial soundness indicators have strengthened, with significant improvements in non-performing loan ratios. Private sector credit growth remained strong in 2024, primarily in the form of personal loans to retail customers and salary advances to public employees, whereas corporate financing was limited.

The economic outlook is dominated by developments in the oil sector. Real GDP growth is projected to rebound in 2025, primarily driven by an expansion of oil production, before moderating in the medium term. Non-hydrocarbon growth is set to remain around its 2021-2024 average of between 5% and 6% in the near term, supported by sustained government spending. The current account and fiscal balances are slated to remain under pressure over the medium term, driven by projected lower oil prices and continued demands for the government to spend its entire revenues. The outlook is however subject to considerable uncertainties and risks are tilted to the downside, particularly from domestic political instability, oil price volatility, intensifying regional conflicts, and deepening geoeconomic fragmentation.

In its latest assessment, the IMF is recommending Libya to undertake a comprehensive set of reforms aimed at improving fiscal discipline, monetary stability, governance, and private sector development. At the top of the agenda is the unification of the national budget, which would help prioritise spending

¹⁰ Subsidised goods and services account for around one-third of the CPI.

and reinforce fiscal credibility. In the short term, authorities are urged to avoid increasing current expenditures and instead focus on building capacity for better public financial management.

To preserve long-term fiscal sustainability and fairness across generations, the IMF also recommends gradual reforms to wages and energy subsidies, alongside efforts to boost non-oil revenues. On monetary policy, Libya is encouraged to reduce the gap between official and parallel exchange rates by phasing out the foreign exchange tax and easing currency restrictions. The CBL is also expected to create a proper domestic monetary policy framework, including a clear policy interest rate, to help stabilise the dinar and improve financial intermediation.

While acknowledging that steps have been taken to inject new currency and promote financial inclusion, the IMF emphasises that the country must implement further measures with a view to curbing cash hoarding and rebuilding trust in the banking sector. Enhancing transparency, promoting financial literacy, and strengthening the anti-money laundering and counter-terrorism financing framework are also seen as essential for financial stability.

To diversify its economy, the IMF is urging Libya to support private sector development through business regulation reforms, improved access to finance, and enhanced security. Furthermore, the IMF highlights that governance reform is critical. While some progress has been made – such as publishing audit reports and launching an anti-corruption strategy – serious vulnerabilities remain, particularly in the management of state-owned enterprises, public spending, and the rule of law. Addressing these weaknesses are seen as vital for the country to foster a more robust and diversified economy going forward.

5.5 MALTA11

Malta's economy is expected to sustain its growth momentum in 2025, driven by robust domestic consumption and positive net exports. Following a notable 6.0% expansion in GDP in 2024, the Maltese economy is expected to grow by 4.1% in 2025 and 4.0% in 2026. The labour market is projected to stabilise and inflation to slow down. On the fiscal front, the government deficit narrowed to 3.7% of GDP in 2024, and is expected to decline further, going below the 3.0% threshold in 2026, with the debt ratio stabilising below 48% of GDP.

Real GDP in 2024 grew by an outstanding 6%, 1 percentage point higher than expected in autumn, on the back of robust private and public consumption and positive contribution from net exports, namely by the tourism and financial and professional services sectors.

As inflation slowed down, real households' incomes grew and private consumption exhibited an expansion of 5.7%, while government consumption rose by 7.3%, giving a substantial boost to overall GDP growth.

¹¹ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

Services exports remain a strong growth factor in Malta, driving the positive net trade contribution to GDP. During 2024, total tourist expenditures in Malta grew by a remarkable 23.1% compared to 2023, when the tourist flows already exceeded the pre-pandemic levels. Other service-oriented sectors such as recreational, professional, IT, and financial services expanded as well. Concerning the uncertainty in the international environment, Malta's economy has a limited exposure to shocks in goods trade and is set to benefit from lower international commodity prices. Investment growth recovered by 2.4% in 2024 after a sharp drop in 2023.

Real GDP growth in Malta is forecast to slow down somewhat but to remain robust, at 4.1% in 2025 and 4.0% in 2026. Private consumption is expected to grow at 4.1% in 2025 and 3.9% in 2026, continuing to provide the biggest impulse to economic expansion. Net exports and investment are also expected to continue to provide a positive contribution. In particular, investment is forecast to increase by 2.5% in 2025 and 2.1% in 2026. These rates, however, are visibly below their long-term average.

5.6 PORTUGAL12

Domestic demand is set to continue supporting economic growth in Portugal while exports of goods face significant headwinds due to global trade tensions. Headline inflation is projected to continue easing amid moderating employment and wage growth and a marginal drop in unemployment. Portugal is expected to continue to pursue an expansionary fiscal policy, turning the general government surplus into a deficit by 2026.

Following a strong rebound in the last quarter of 2024, Portugal's economy contracted by 0.5% (q-oq) in the first quarter of 2025. This was mainly driven by retroactive wage tax adjustments that temporarily pushed up disposable income in late 2024. Both private consumption and savings increased substantially and were followed by a correction at the beginning of 2025. In addition, business and consumer sentiments deteriorated in the first quarter of the year facing high geopolitical uncertainty. By contrast, exports of goods increased, most likely due to anticipation of sales ahead of the forthcoming US tariff hikes. Across the main business sectors, services continued to support the economy, helped by solid income growth.

The escalation of global trade tensions in April 2025 is expected to weigh on Portugal's economic performance in the coming months. By contrast, the projected acceleration in the implementation of the Recovery and Resilience Plan is set to boost investments along with two large private projects in the car industry. In the external sector, imports are projected to grow faster than exports, but the current account is expected to remain in surplus, benefiting from lower energy prices.

Growth is forecast to moderate from 1.9% in 2024 to 1.8% in 2025 as the strong domestic demand is offset by setbacks in external demand. In 2026, growth is expected to improve to 2.2%. While Portugal's direct exposure to the US market is relatively limited, risks of significant indirect setbacks remain high and relate to global trade disruptions and uncertainty. On the positive side, Portugal's

¹² Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

recent increase in household savings and possible expenditure switching towards domestically produced goods could result in higher than projected demand. All in all, the balance of risks is tilted to the downside as the high level of external risks appears only partly offset by domestic factors.

5.7 RUSSIA13

After two years of unexpectedly strong growth, the Russian economy is forecast to cool off considerably in 2025 and 2026. Despite historically high interest rates, inflation continued increasing in recent months but is expected to decelerate going forward. Further war-related spending paired with depressed oil and gas receipts, as well as declining tax receipts due to the projected economic deceleration, are expected to widen the budget deficit over the forecast horizon. Accordingly, Russian public debt is also forecast to increase until 2026.

The Russian economy continued expanding at a faster-than-expected pace in 2024, against the background of strong investment and robust private consumption. The war-driven expansion carried on but has been dented by Western sanctions, which have partially disrupted key sectors such as energy, finance, and technology, contributing to higher inflation, supply chain bottlenecks, and growing pressure on the government budget. In early 2025, clear signs of a slowdown have been emerging. Real wage growth, which supported household expenditure, slowed to 3.2% in February 2025, its lowest value in almost two years. High inflation and the protracted high-interest rate environment, with which the Central Bank has been trying to curb price growth, also hamper private consumption. Private investment in civilian sectors without access to government subsidised loans is similarly suffering under the impact of the needed tight monetary policy stance.

High-frequency indicators are pointing towards a cooling of economic activity. Industrial production yo-y growth and business confidence slumped in the first months of 2025 to values last seen in early 2023. In March, the Manufacturing PMI fell to 48.2 points into contractionary territory and its lowest value since April 2022. On the household side, retail sales growth dropped to 2.2% y-o-y in February and March, its lowest value since March 2023. Consumer confidence fell for its third consecutive quarter in Q1 2025.

Over the forecast horizon private consumption and investment growth are projected to ease substantially, with a slight uptick in 2026 as the inflation and interest rate environment becomes more benign for both investors and consumers. Public investment and subsidised private investment in warrelated sectors are expected to buoy aggregate investment and prevent it from contracting, despite the high interest rates. Government consumption growth is set to decrease over the forecast horizon but outperform other GDP components as it is carried by war-related spending. In the external sector, the deteriorating global economic and foreign trade environment is expected to depress export and import growth.

Overall, GDP growth is projected to decelerate from 4.3% in 2024 to 1.7% in 2025 and further to 1.2% in 2026.

¹³ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

5.8 UNITED KINGDOM14

After ending 2024 on a weak footing, the UK economy is forecast to grow modestly in both 2025 and 2026. Private consumption and investment remain subdued, though lower interest rates and energy prices are expected to provide some support ahead. Inflation is projected to tick up slightly in coming months, before gradually subsiding as the labour market loosens further. Fiscal policy is set to remain restrictive. Risks are tilted to the downside. While there is scope for domestic demand to pick-up more rapidly than projected if saving rates fall back from current high levels, uncertainty remains high, sentiment weak, and external risks are exceptionally elevated.

The UK economy grew by 1.1% in 2024 and began 2025 with weak momentum. Private consumption and investment were both subdued in 2024, while public consumption and public investment provided significant support to demand. Growth in exports was also weak, with goods trade volumes (excluding precious metals) falling by close to 5%, though services exports were much more buoyant. Import growth was somewhat stronger for both goods and services. The UK economy grew by just 0.1% in 2024-Q4, and high frequency indicators have worsened in recent months. Services PMIs were above 50 in early 2025 but fell in April to 48.9. Manufacturing PMIs have been below 50 since September 2024 and were at 45.4 in April. Retail sales showed a little more strength, being up over 2% y-o-y in January, but this momentum slowed in February and March. Consumer confidence measures have also slipped back since the start of 2025. The latest monthly GDP growth estimates have been volatile, being flat in January 2025, then rising by 0.5% m-o-m in February, though this relatively strong reading may be weather related.

Overall, GDP growth is expected to be 1% in 2025, rising to 1.3% 2026. The household savings rate is projected to stabilise in 2025 and edge down in 2026 as interest rates fall. Private consumption is expected to grow by around 1% in 2025 and 1.4% in 2026, with some support from the fall in energy prices, relative to the Autumn Forecast. Despite the tight overall fiscal stance, both public consumption and investment are expected to grow quite strongly in 2025 before moderating in 2026. With uncertainty high and real interest rates still elevated, private investment - including residential and business investment - is projected to remain soft in 2025 and to recover only in 2026. Goods exports are expected to remain weak, with little prospect of a strong recovery given the less supportive external climate, with the new US tariffs, an appreciation of the sterling exchange rate, and slower growth in the EU than projected in the Autumn. However, services trade remains buoyant, and services imports and exports are expected to grow steadily over the forecast horizon.

¹⁴ Source: European Commission, 'Spring 2025 Economic Forecast: Moderate Growth Amid Global Economic Uncertainty', 19 May 2025.

PART 2 – FINANCIAL REVIEW

6. FINANCIAL ANALYSIS

The historical information is extracted from the audited annual financial statements of IHI for the years ended 31 December 2022, 31 December 2023, and 31 December 2024.

The forecast information for the financial year ending 31 December 2025 has been provided by the Group and is based on assumptions deemed reasonable. However, actual outcomes may be affected by unforeseen circumstances, and the variation between forecasts and actual results could be material. Moreover, the estimates for FY2025 assume that the carrying values of the Group's hotels and investment properties will not be revalued upwards or impaired, and therefore no adjustments have been made as to possible uplifts or impairments in value of assets which can materially affect the Income Statement and the Statement of Financial Position.

THE GROUP'S OPERATIONS IN LIBYA

Note 5 to the 2024 Annual Report and Financial Statements outlines the significant uncertainties and judgments associated with the valuation of the Group's assets in Libya. These uncertainties directly affect the projected cash flows from related operations, which are themselves influenced by the timing of a recovery in the country. As a result, various plausible scenarios could materially impact the financial performance of the Group's operations in Libya and the valuation of the associated assets. This matter is considered fundamental to stakeholders due to the potential effects that these uncertainties could have on the valuation of the Group's assets in Libya and the recoverability of certain debtors. As at 31 December 2024, the Group's assets in Libya were carried at €191.89 million (2023: €183.2 million) whilst related debtors amounted to €3.8 million (2023: €2.4 million).

THE GROUP'S OPERATIONS IN RUSSIA

Note 5 to the 2024 Annual Report and Financial Statements also addresses the prevailing circumstances in Russia and the higher element of uncertainties surrounding the valuation of the Group's assets in this country. Following the military conflict that erupted between Russia and Ukraine in February 2022, international sanctions were imposed on Russia, along with countersanctions introduced by the Russian government. These measures continue to evolve, making it challenging to assess their full impact on the Group. To navigate these complexities, the Group has engaged international legal advisors to help manage the implications of the sanctions.

The Corinthia Hotel St Petersburg and adjoining commercial centre have remained fully operational despite the adverse circumstances. However, future operational income remains uncertain, as the level of business activity depends on the duration and developments of the conflict. Additionally, the ongoing situation has led to increased volatility in the Rouble exchange rate, which may further influence the valuation and contribution amounts reported in the Group's financial statements.

As at 31 December 2024, the Group's assets in Russia were carried at €100.1 million compared to €97.9 million as at the end of 2023.

International Hotel Investments p.l.c.
Statement of Total Comprehensive Income
For the financial year 31 December	2022	2023	2024	2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000

Revenue	238,207	287,773	306,788	345,609
Costs of providing services	(125,586)	(151,241)	(158,082)	(179,257)
Gross profit	112,621	136,532	148,706	166,352
Marketing costs and administrative expenses	(44,545)	(58,825)	(68,649)	(78,370)
Other operating costs	(16,370)	(17,382)	(17,677)	(19,580)
EBITDA	51,706	60,325	62,380	68,402
Depreciation and amortisation	(29,164)	(27,592)	(28,468)	(29,900)
Adjusted operating profit	22,542	32,733	33,912	38,502
Net gains from the sale of property and businesses	-	-	-	5,834
Adjustments in value of property and intangible assets	(7,927)	5,018	12,434	-
Other operational exchange gains (losses)	(304)	(1,246)	812	-
Operating profit	14,311	36,505	47,158	44,336
Share of profit / (loss) of equity accounted investments	(61)	(25)	(15)	(325)
Finance income	440	1,266	1,693	942
Finance costs	(28,160)	(38,754)	(44,382)	(42,518)
Other	12,376	(3,118)	(2,112)	2,003
Profit / (loss) before tax	(1,094)	(4,126)	2,342	4,438
Taxation	(1,248)	(7,177)	(3,588)	(3,125)
Profit / (loss) for the year	(2,342)	(11,303)	(1,246)	1,313

Other comprehensive income / (expense)
Gross surplus / (impairment) on revaluation of hotel properties	2,959	62,495	75,894	-
Other effects, currency translation differences and tax	(20,941)	(32,736)	(620)	29,462
Total comprehensive income / (expense) for the year net of tax	(20,324)	18,456	74,028	30,775

International Hotel Investments p.l.c. Key Financial Ratios	FY2022 Actual	FY2023 Actual	FY2024 Actual	FY2025 Forecast
Gross profit margin (%) (Gross profit / revenue)	47.28	47.44	48.47	48.13
EBITDA margin (%) (EBITDA / revenue)	21.71	20.96	20.33	19.79
Operating profit margin (%) (Adjusted operating profit / revenue)	9.46	11.37	11.05	11.14
Net profit margin (%) (Profit after tax / revenue)	(0.98)	(3.93)	(0.41)	0.38
Return on equity (%) (Profit after tax / average equity)	(0.28)	(1.37)	(0.14)	0.14
Return on assets (%) (Profit after tax / average assets)	(0.14)	(0.66)	(0.07)	0.07
Return on invested capital (%) (Adjusted operating profit / average invested capital)	1.60	2.28	2.20	2.45
Interest cover (times) (EBITDA / net finance costs)	1.87	1.61	1.46	1.65

INCOME STATEMENT

The Group's revenue in FY2022 increased by 84.28% or €108.94 million (year-on-year) to €238.21 million mainly on account of the recovery in hospitality activities. All hotels registered higher revenues over the prior year, most notably the properties in London, Lisbon, Budapest, Malta and Prague.

As a result of higher revenues, the Group's EBITDA increased to €51.71 million in FY2022 (+94.91% or €25.18 million). The EBITDA margin improved marginally to 21.71% which was considerably lower to the level of 26.01% achieved in FY2019. The underperformance at EBITDA level reflected the adverse impact of rising costs due to inflation, payroll, and the termination of wage supplements and other similar schemes that were made available by governments during FY2020 and FY2021 to mitigate to some extent the downturn caused by the COVID-19 pandemic.

Depreciation and amortisation charges remained broadly unchanged at circa €30 million but finance costs increased by €3.18 million to €28.16 million (FY2021: €24.98 million). Notwithstanding, the interest cover improved to 1.87 times. The Group registered a loss of €7.93 million in value of property and intangible assets (FY2021: loss of €4.03 million), which principally comprised a fair value loss of almost €6 million on the St Petersburg Commercial Centre.

The Group reported a gain of €12.38 million in the income statement compared to a loss of €0.32 million in FY2021, mostly related to a recovery in the Rouble relative to the Euro. The repayment of the bank loan on the properties located in St Petersburg was affected in May 2022, thus eliminating future exchange rate volatility from the income statement on this loan.

In FY2022, on account of the continued recovery in business, the Group recognised a further uplift of €12.7 million on the value of its properties in London. However, this positive movement was dented by fair value losses recognised on the property in St Petersburg amounting to €9.7 million following the hostilities by Russia on Ukraine and the ensuing sanctions which materially affected the business. Furthermore, the weakening of the Pound Sterling in FY2022 relative to the Euro resulted in a loss on translation of the investment in London. The Group recorded a combined currency translation loss and other effects of €20.94 million in 'Other Comprehensive Income' relative to a gain of €16.98 million registered in FY2021. Overall, the Group registered a loss on total comprehensive income of €20.32 million in FY2022.

The Group generated revenues of €287.77 million in FY2023, an increase of €49.57 million (+20.81%) from the prior year and +7.26% over FY2019's reported turnover. Notable year-on-year increases were registered by the hotels in Malta (+31.48%), Corinthia Hotel Budapest (+39.42%), Corinthia Hotel Lisbon (+26.95%), and Corinthia Hotel Prague (+51.72%). Revenue generated from Corinthia Hotel St Petersburg was 18.91% higher than the prior year, while Corinthia Hotel Tripoli's revenue remained virtually unchanged from FY2022. The geopolitical situation in Russia adversely impacted international business at the Corinthia Hotel St Petersburg but domestic tourism remained stable.

In consequence of the year-on-year increase in Group revenue, EBITDA grew by 16.67% to €60.33 million. However, the EBITDA margin decreased by 75 basis points to 20.96% whilst the interest cover retracted to 1.61 times. EBITDA conversion was impacted by inflationary pressures on payroll and other costs such as energy, as well as additional expenses from CHL's operations. CHL engaged new senior personnel and incurred pre-opening (one-off) costs as it ramped up its activity, expertise, and resources in advance of the opening of several new luxury hotels in 2024 and 2025. In 2023, the Group incurred pre-opening costs amounting to €1.9 million relating to the new properties in Rome and Brussels. On the other hand, in FY2022, the Group was positively impacted by wage subsidies and other governments-induced assistance.

In FY2023, the Group recognised net positive movements in the carrying value on its investment properties amounting to €5.02 million. These mainly related to an uplift of €7.9 million on the Tripoli Commercial Centre, on account of consistent cash flows based on long term agreements, offset by a decrease in fair value of €1.7 million relating to St Petersburg Commercial Centre (FY2022: impairment of €7.9 million).

Finance costs increased by €10.59 million to €38.75 million, on account of higher interest rates vis-àvis loans with variable interest rates and an increase in total borrowings. Furthermore, the Group reported a net loss of €3.12 million on account of exchange differences on borrowings, movements in fair value of financial assets, and other items.

Overall, the Group registered a loss for the year of €11.30 million compared to a loss of €2.34 million in FY2022.

During FY2023, the Group also recognised uplifts relating to Corinthia Hotel London (€17.3 million), Corinthia Hotel Lisbon (€12.2 million), and the properties in Malta (€37.5 million) on account of continued recovery and improved operational performance. These uplifts were offset by a fair value loss recognised on Corinthia Hotel Budapest amounting to €4.5 million, following the delay in recovery for this operation due to inflationary pressures including a hike in energy prices.

In FY2023, the Group recorded a combined currency translation loss of €20.84 million. The weakening of the Rouble in 2023 relative to the Euro currency resulted in a loss on translation of the Group's investments in Russia. This was partially offset by gains on the Pound Sterling in relation to Corinthia Hotel London. Meanwhile, deferred tax on surplus arising on revaluation of hotel property amounted to €15.46 million, thus leading to a total comprehensive income of €18.46 million for FY2023.

The Group's revenue in FY2024 amounted to €306.79 million, compared to €287.77 million generated in the prior year (+6.6%), reflecting continued improvement in operational performance of owned hotels. In the last month of the year, the Group initiated operations of the newly developed Corinthia Grand Hotel Astoria Brussels. In hotel management, CHL added to its portfolio in Q4 2024 The Surrey Corinthia Hotel New York and Corinthia Grand Hotel Astoria Brussels.

Direct costs increased by 4.5% (or €6.84 million) to €158.08 million, while other costs increased by €10.12 million (+13.3%) from €76.21 million in FY2023 to €86.33 million. EBITDA for the year under review amounted to €62.38 million compared to €60.33 million in FY2023, though it should be noted that €6.1 million in pre-opening costs, which are one-off in nature, have diluted FY2024 results. The pre-opening costs mainly consist of expensed payroll and marketing costs incurred by the Group in relation to the launch of the Corinthia hotels in Brussels and Rome. The EBITDA margin for FY2024 decreased by circa 1 percentage point to 20.33%.

In FY2024, the Group recognised net uplifts on its investment properties amounting to €6.22 million. These related mainly to an uplift of €3 million on the Tripoli Commercial Centre, an uplift of €2.6 million on the Prague property and an uplift of €1 million on the St. Petersburg Commercial Centre, offset by a decrease in fair value of €0.3 million on the apartments in Lisbon and €0.2 million on the offices in London.

Furthermore, an amount of €6.48 million was also recognised in relation to an impairment reversal on the Corinthia Hotel Tripoli. This was partially offset by an impairment of €0.15 million on the office block in London.

In FY2024, the Group reported an exchange gain of €0.81 million compared to a loss of €1.25 million in FY2023.

Net finance costs amounted to €42.69 million in FY2024, an increase of €5.21 million from a year earlier. In consequence, the interest cover declined from 1.61 times in FY2023 to 1.46 times.

During the current year, the Group also recognised significant fair value uplifts across several properties. These include an increase of €27.7 million on the Lisbon hotel, €15.4 million on the Corinthia Hotel London, €12.0 million on the Radisson Golden Sands Hotel, €9.3 million on the Corinthia Oasis, €8.3 million on the Corinthia Hotel St. Petersburg and €6.3 million on the Prague property. These gains were partially offset by a €3.0 million fair value loss on the property in Hungary, attributed to a delayed recovery in this operation due to ongoing inflationary pressures.

The Group recorded a combined currency translation gain of €15.1 million in Other Comprehensive Income, relative to a loss of €20.8 million registered in FY2023. The strengthening of the Pound Sterling in 2024, relative to the reporting currency of the Group, which is the Euro, resulted in a gain on translation of the investment in London. This was partially offset by the weakening of the Rouble in relation to the Group's operations in Russia.

The Group registered total comprehensive income of €74.03 million in FY2024 compared to a gain of €18.46 million in FY2023.

For FY2025, the Group is projecting a 13% (+€38.82 million) increase in revenue to €345.61 million, on account of the first full year of operations of the Corinthia Grand Hotel Astoria Brussels and The Surrey Corinthia Hotel New York, and 10 months operational activity of the 2 hotels in Beverly Hills. The revised projections assume the sale of Corinthia Hotel Lisbon will take effect at the end of the financial year and therefore, the projections comprise a full year's operating results of said hotel.

FY2025 is expected to mark the inclusion of the Corinthia Grand Hotel Du Boulevard Bucharest and the Corinthia Hotel & Residences Doha to the Group's hospitality portfolio, while the commencement of operations of the Corinthia Hotel Rome has been postponed to Q1 2026.

EBITDA is expected to increase year-on-year by €6 million to €68.40 million, thereby maintaining an EBITDA margin of 20%.

Net gains from the proposed sale of Corinthia Hotel Lisbon and non-core businesses is projected to amount to €5.84 million.

Net finance costs are projected to decrease by €1.86 million, from €44.38 million in FY2024 to €42.52 million, resulting in a slight improvement in interest cover from 1.46 times in the prior year to 1.65 times.

Overall, the Group anticipates a net profit of €1.31 million in FY2025, compared to a net loss of €1.25 million in FY2024. Total comprehensive income is projected to amount to €30.78 million (FY2024: €74.03 million) after releasing deferred tax on revaluation of the Corinthia Hotel Lisbon.

International Hotel Investments p.l.c. Statement of Cash Flows For the financial year 31 December	2022 Actual €'000	2023 Actual €'000	2024 Actual €'000	2025 Forecast €'000
Net cash from operating activities	49,781	54,593	53,070	62,371
Net cash from / (used in) investing activities	(38,672)	(54,066)	(68,017)	106,278
Net cash from / (used in) financing activities	(46,789)	19,180	(5,067)	(82,365)
Net movement in cash and cash equivalents	(35,680)	19,707	(20,014)	86,284
Cash and cash equivalents at beginning of year	97,906	55,740	78,533	62,448
Effect of translation to the presentation currency	(6,486)	3,086	3,929	1,190
Cash and cash equivalents at end of year	55,740	78,533	62,448	149,922

Capital expenditure	45,295	56,452	69,710	34,556
Free cash flow	4,486	(1,859)	(16,640)	27,815

STATEMENT OF CASH FLOWS

Net cash flows from operating activities showed continued improvement in FY2023, reaching €54.59 million compared to €49.78 million in FY2022 and €29.75 million in FY2021.

Net cash used in investing activities amounted to €54.07 million (FY2022: €38.67 million) mainly on account of the development of the Corinthia Grand Hotel Astoria Brussels and other capital expenditure. During the year, the Group generated €1.10 million from the disposal of financial assets (FY2022: €6.27 million) and received €1.27 million in interest (FY2022: €0.44 million).

In FY2023, the Group generated €19.18 million from financing activities (FY2022: net cash outflows of €46.79 million). Net drawdowns from bank borrowings and net proceeds from the issue of bonds amounted to €58.86 million, compared to net repayments of €17.35 million in the prior year. Lease payment obligations were €2.27 million (FY2022: €2.55 million), while interest paid amounted to €38.41 million, an increase of €11.53 million from the previous year (FY2022: €26.88 million).

Cash and cash equivalents in FY2024 decreased by €16.08 million, from €78.53 million in FY2023 to €62.45 million, as further explained below.

Net cash flows from operations amounted to €53.07 million, a decrease of €1.52 million compared to the previous year, on account of adverse working capital movements. In terms of investing activities, the Group utilised €72.73 million for capital expenditure purposes (FY2023: €56.45 million), which included ongoing development costs for the Corinthia Grand Hotel Astoria Brussels, investments in the conversion of several rooms into suites at Corinthia Hotel London, various renovation and refurbishment projects and key money payments related to The Surrey Corinthia Hotel New York. Cash inflows of €3.02 million related to the disposal of apartments in Lisbon.

In FY2024, net cash used in financing activities amounted to €5.07 million (FY2023: net cash inflows of €19.18 million). Net drawdowns from borrowings amounted to €41.04 million compared to €59.86 million in the previous year. Lease obligations were broadly unchanged at €2.50 million (FY2023: €2.27 million). Interest payments totalled €43.60 million, reflecting an increase of €5.19 million from the prior year (FY2023: €38.41 million).

Net cash inflows from operating activities are projected to increase in FY2025 by €9.30 million when compared to the prior year to €62.37 million, mainly on account of new hotel operations and general improvement in performance of existing operations.

Net cash inflows from investing activities are forecasted to amount to €106.28 million. During the year, the Group expects to dispose of a significant portion of the Corinthia Hotel Lisbon and non-core businesses, resulting in a net cash inflow of €136.37 million. On the expenditure side, ongoing costs related to the Corinthia Grand Hotel Astoria Brussels and other projects are projected to amount to €34.56 million.

Net cash used in financing activities is projected to amount to €82.36 million, as follows:

(i) Net repayment of borrowings and debt securities are estimated at €20.82 million.
(ii) Lease payments are projected to amount to €4.07 million.
(iii) Interest payments are estimated at €57.47 million.

International Hotel Investments p.l.c. Statement of Financial Position
As at 31 December	2022	2023	2024	2025
	Actual	Actual	Actual	Forecast
	€'000	€'000	€'000	€'000

ASSETS
Non-current assets Intangible and indemnification assets	63,953	63,563	63,140	61,041
Investment property	167,682	161,635	253,492	260,445
Property, plant and equipment	1,254,715	1,341,845	1,262,807	1,272,554
Right-of-use assets	11,626	14,810	12,601	20,792
Investments in associates and joint ventures	5,198	5,034	5,207	24,882
Other investments	5,373	3,411	3,411	3,720
Other financial assets at amortised cost and receivables	7,995	6,536	17,408	17,408
Deferred tax assets	18,019	20,761	27,870	27,704
	1,534,561	1,617,595	1,645,936	1,688,546
Current assets
Inventories	14,606	14,535	19,187	17,006
Other financial assets at amortised cost	152	110	86	87
Trade and other receivables	45,337	48,707	58,216	62,581
Tax assets	50	228	189	32
Cash and cash equivalents	66,231	87,084	71,656	154,560
Financial assets at fair value through profit or loss	1,018	-	-	-
Assets classified as held for sale	-	-	147,330	-
Assets placed under trust management	77	77	77	77
	127,471	150,741	296,741	234,343
Total assets	1,662,032	1,768,336	1,942,677	1,922,889

EQUITY
Capital and reserves
Called up share capital	615,685	615,685	615,685	615,685
Reserves and other equity components	31,596	48,317	105,006	116,245
Accumulated losses	(40,382)	(50,728)	(46,361)	(17,858)
Minority interest	210,993	223,074	236,046	227,079
Total equity	817,892	836,348	910,376	941,151
LIABILITIES
Non-current liabilities
Bank borrowings	277,490	332,844	382,581	388,173
Bonds	273,062	297,769	253,275	172,996
Lease liabilities	10,542	13,221	11,582	17,931
Other financial liabilities	26,714	24,623	33,224	29,223
Other non-current liabilities	102,345	119,126	159,979	133,078
	690,153	787,583	840,641	741,401
Current liabilities
Bank overdraft	10,491	8,551	9,208	4,638
Bank borrowings	46,299	29,845	31,731	19,282
Bonds	9,985	10,362	44,953	115,000
Lease liabilities	1,943	2,715	2,174	4,820
Other financial liabilities	113	91	-	-
Other current liabilities	85,156 153,987	92,841 144,405	103,594 191,660	96,597 240,337
Total liabilities	844,140	931,988	1,032,301	981,738

Total equity and liabilities	1,662,032	1,768,336	1,942,677	1,922,889
Total debt	656,639	720,021	768,728	752,063
Net debt	590,331	632,860	696,995	597,426
Invested capital (total equity plus net debt)	1,408,223	1,469,208	1,607,371	1,538,577

International Hotel Investments p.l.c. Key Financial Ratios	FY2022 Actual	FY2023 Actual	FY2024 Actual	FY2025 Forecast
Net debt-to-EBITDA (times) (Net debt / EBITDA)	11.42	10.49	11.17	8.73
Net debt-to-equity (times) (Net debt / total equity)	0.72	0.76	0.77	0.63
Net gearing (%) (Net debt / net debt and total equity)	41.92	43.07	43.36	38.83
Debt-to-assets (times) (Total debt / total assets)	0.40	0.41	0.40	0.39
Leverage (times) (Total assets / total equity)	2.03	2.11	2.13	2.04
Current ratio (times) (Current assets / current liabilities)	0.83	1.04	1.55	0.98

STATEMENT OF FINANCIAL POSITION

During FY2023, the value of total assets of the Group increased by €106.30 million to €1.77 billion, mainly on account of the following:

i) Investment property decreased year-on-year by €6.05 million to €161.64 million, on account of currency translation losses amounting to €12.4 million mainly due to a weaker Rouble versus the Euro, which was partly mitigated by net fair value uplifts of €6.4 million (primarily relating to Tripoli Commercial Centre [+€7.9 million] and St Petersburg Commercial Centre [-€1.7 million]).
ii) Property, plant and equipment increased by €87.13 million (net of depreciation charges) to €1.34 billion reflecting various refurbishment programmes, the investments relating to Corinthia Grand Hotel Astoria Brussels, as well as a net uplift in the fair value of hotels of €62.5 million.
iii) Cash balances were higher compared to FY2022 by €20.85 million, as explained further in the commentary on the Statement of Cash Flows above.

Total liabilities increased by €87.85 million year-on-year to €931.99 million mostly in view of the increase in total debt to €720.02 million compared to €656.64 million as at the end of FY2022. Bank borrowings increased by €36.96 million to €371.24 million (31 December 2022: €334.28 million), while the amount of debt securities increased by €25.08 million to €308.13 million. In view of the higher level of debt, the Group's gearing ratio increased by 115 basis points to 43.07%. On the other hand, the net debt-to-EBITDA multiple retracted from 11.42 times in FY2022 to 10.49 times in FY2023 in view of the strong growth in EBITDA.

During the year, other current liabilities (mainly comprising trade and other payables) increased on a comparable basis by €7.69 million to €92.84 million (31 December 2022: €85.16 million). Nonetheless, the current ratio for FY2023 improved to 1.04 times compared to 0.83 times in the prior year as current assets increased by 18.26% to €150.74 million.

Non-current deferred tax liabilities increased by €19.40 million year-on-year to €110.99 million on account of the net uplifts in the carrying value of the Group's properties.

In FY2024, total assets increased by €174.34 million primarily due to the following:

i) Investment property increased year-on-year by €91.86 million, reflecting the reclassification of the Grand Hotel Prague Towers(formerly Corinthia Hotel Prague) as an investment property and the deduction of the Lisbon apartments pursuant to part disposal and the remaining units reclassified to current assets held-for-sale. Furthermore, an increase of €6.22 million refers to a change in fair value, while adverse currency translation differences amounted to €2.29 million.
ii) Property, plant and equipment decreased year-on-year by €79.04 million. In FY2024, development costs in connection with Corinthia Grand Hotel Astoria Brussels and improvements to other properties (comprising renovation and refurbishment projects) amounted to €78.81 million. Uplifts in carrying value of various properties amounted to €75.89 million, and reversal of net impairment losses amounted to €6.33 million. The Prague hotel, having a carrying value of €93.77 million, was reclassified from property, plant and equipment to investment property. Furthermore, the Lisbon hotel valued at €143.99 million was reclassified to assets held for sale in current assets. Depreciation charge for the year amounted to €24.16 million.
iii) The year-on-year increase in 'other investments' of €10.87 million mainly represents key money related to The Surrey Corinthia Hotel New York.
iv) An increase in trade and other receivables of €9.51 million is reflective of the continued increase in operating activities.
v) The movement in cash and cash equivalents is explained in the commentary on the cash flow statement above.
vi) Assets classified as held for sale relate to the Lisbon hotel and the Pinhiero Chagas Residences.

Total liabilities rose by €100.31 million year-on-year, primarily driven by an increase in total debt of €48.71 million and deferred tax of €22.98 million.

As at 31 December 2024, the Group's bank borrowings totalled €423.52 million, reflecting an increase of €52.28 million compared to the previous year, while debt securities decreased by €9.90 million to €298.23 million. Additionally, other financial liabilities and lease liabilities increased by €6.33 million.

The Group's net gearing ratio remained stable at 43%, while net debt-to-EBITDA increased from 10.49 times in 2023 to 11.17 times in 2024.

The significant changes in the projected statement of financial position as at 31 December 2025 compared to the prior year are as follows:

i) 'Assets classified as held for sale': Corinthia Hotel Lisbon and non-core businesses are expected to be sold in 2025.
ii) 'Investments in associates and joint ventures': represents an investment by the Group in a new company being formed with the new owner of the Corinthia Lisbon as part of the sale structure, thereby retaining partial ownership as highlighted earlier.
iii) 'Right-of-use assets': the y-o-y increase relates to the inclusion of the two hotels in Beverly Hills.

As at 31 December 2025, the Group's total debt is projected to total €752 million, down from €769 million a year earlier. An amount of €115 million in bonds is being reclassified as current liabilities due to their maturity in the second half of 2026. The Group's net gearing ratio is expected to decrease by circa 4 percentage points to 39%, while net debt-to-EBITDA ratio is anticipated to improve from 11 times in 2024 to 9 times in 2025.

7. VARIANCE ANALYSIS

The following financial information relates to the variance analysis between the forecast financial information for the year ended 31 December 2024 included in the last published Financial Analysis Summary dated 20 February 2025 and the actual financial information for the year ending 31 December 2024.

International Hotel Investments p.l.c.
Consolidated Statement of Comprehensive Income
for the financial year 31 December 2024	Actual	Forecast	Variance
	€'000	€'000	€'000
Revenue	306,788	302,161	4,627
Costs of providing services	(158,082)	(163,975)	5,893
Gross profit	148,706	138,186	10,520
Marketing costs and administrative expenses	(68,649)	(69,038)	389
Other operating costs	(17,677)	(8,568)	(9,109)
EBITDA	62,380	60,580	1,800
Depreciation and amortisation	(28,468)	(29,057)	589
Adjustments in value of property and intangible assets	12,434	-	12,434
Other operational exchange gains (losses)	812	(2,852)	3,664
Results from operating activities	47,158	28,671	18,487
Share of profit / (loss): equity accounted investments	(15)	-	(15)
Finance income	1,693	327	1,366
Finance costs	(44,382)	(40,763)	(3,619)
Other	(2,112)	-	(2,112)
Profit (loss) before tax	2,342	(11,765)	14,107
Taxation	(3,588)	1,195	(4,783)
Loss for the year	(1,246)	(10,570)	9,324
Other comprehensive income / (expense)
Gross surplus / (impairment) - revaluation of hotel properties	75,894	-	75,894
Other effects, currency translation diff. and tax	(620)	-	(620)
	75,274	-	75,274
Total comprehensive income / (expense) for the year net of tax	74,028	(10,570)	84,598