In the Part 1 of this article, I dealt with the key activities and primary sources of revenue of IHI, the Group’s business strategy, a significant group strategy that has been initiated in the past few years, and the  principal assets and properties of the Group.

INVESTMENT PROPERTIES: 

*Tripoli Commercial Centre Libya 

*St Petersburg Commercial Centre Russia 

*Corinthia Oasis Malta [The site located at Golden Bay, spanning approximately 83,530 sqm, is set to be transformed into a luxury resort featuring 162 keys, complemented by a high-end wellness centre, various food and beverage outlets, and 25 low-rise, detached hotel-serviced villas and bungalows. The architectural designs have been finalised, and the project is focused on preserving the area’s natural character and rural environment through extensive landscaping.]

*Site in Tripoli Libya 

*Craven House, London (office building) United Kingdom [The 876 sqm office building was acquired in August 2022. The Group occupies the top five floors, while the remaining three floors will be available for lease once the ongoing refurbishment is finished.]

*Pinhiero Chagas Residences Portugal [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 Lisbon, 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 €1.2 million up to Q1 2024. As at the date of this report, six apartments have been sold at a cumulative value of circa €4.8 million, with the Group continuing to explore offers on the remaining two apartments.]

OTHER ASSETS 

*BENGHAZI PROJECT

IHI holds a 55% equity stake in the Libya Hotel Development and Investment Joint Stock Company, which was established to own and develop a building previously known as the El-Jazeera Hotel and its adjacent site in Benghazi, Libya. The planned project includes a five-star hotel with 228 rooms, 2,000 square meters of retail space, and 10,000 square meters of office space. Although the Benghazi planning authorities granted the necessary permits for the project and demolition began in January 2014, all construction work has been paused due to the ongoing situation in Libya. Current plans will be re-evaluated based on future developments in the country. Once the project resumes, anticipated funding will come from a mix of equity contributions from shareholders and bank financing.

*MEDINA TOWER

IHI holds a 25% stake in the share capital of Medina Tower Joint Stock Company, an organisation established to own and develop 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 design is based on a four-storey podium that will feature a combination of residential, retail, commercial, and conference areas. The execution of this project is currently on hold. 

*RUSSIA 

In February 2019, IHI acquired a 10% minority share for USD5.5 million in a company formed with a consortium of investors to acquire a landmark property 10 Tverskaya Street, Moscow. The acquisition was intended to transform the site, which spans approximately 43,000 sqm, into a mixed-use real estate development featuring a 42-room boutique luxury Corinthia Hotel, 109 upscale serviced residential apartments for resale, high-end retail and commercial spaces, as well as underground parking. However, due to the ongoing conflict, the project has been temporarily suspended.

HOTEL OPERATIONS: 

**IHI 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. (This room count does not include managed hotels)

**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.

Over the past few years, CHL has effectively secured hotel management agreements with third-party owners to manage properties in Doha, Bucharest, Rome, New York, Riyadh, the Maldives, and most recently, Dubai. The company possesses internal expertise and resources that support the operations of the Corinthia and Verdi brands. Additionally, it has a proven history of enhancing performance while maintaining consistent service quality and operational standards across different hotels and regions.

CHL utilises capital and resources effectively, demonstrating the low capital expenditures required (if any) for each new management contract, while also providing a cost-effective method for acquiring extensive knowledge of different hotel markets.

 Which are the upcoming new Corinthia Hotels (Post2025)?

**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. 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. 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.

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. 

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.

PROJECT MANAGEMENT :

IHI has complete ownership of QP, is a multidisciplinary firm that specialises in luxury hospitality, high-end residential, and wellness projects including structural and architectural design, interior design, real estate valuation, and project & cost management services for clients both in Malta and internationally. However, QP functions autonomously from IHI and maintains an arm’s length relationship. Since January 2019, it has added archaeology and land surveying services to its portfolio, establishing itself as a comprehensive provider for intricate building projects. In addition to serving the Group, QP is broadening its international clientele, with revenue from these independent third-party clients now representing the largest portion of its annual earnings.

                                                                                                                                                                Concluded