International Hotel Investments plc of Malta is increasing its issued capital to over Euro 500,000,000, welcoming Istithmar Hotels of Dubai as a new strategic investor and partner.At a ceremony held in Malta earlier today, Istithmar Hotels has subscribed to Euro 178,000,000 in new shares issued by IHI, which funds will be allocated entirely to the further growth of the Company by way of new acquisitions and developments of landmark five-star hotels in Europe and beyond. Simultaneous to the issue of new shares to Istithmar Hotels, IHI is also acquiring the Corinthia Bab Africa Hotel & Commercial Centre in Tripoli and the Corinthia Towers Hotel in Prague, from the Corinthia Group of Malta, principally in return for new shares issued to Corinthia in IHI.
Istithmar Hotels is part of Istithmar, a leading private equity and alternative investment company based in Dubai with global investment interests across various sectors, including hospitality, where Istithmar Hotels is fast establishing itself as a major investor in high-profile properties across the world. Istithmar is 100 per cent owned by Dubai World which in turn is wholly owned by the Government of Dubai.
Attending the signing of the agreement with Istithmar Hotels were the Hon. Lawrence Gonzi, Prime Minister of Malta; Mr Khaled Al Kamda, Vice Chairman of Istithmar and Mr Milad Taleddi of the Libyan Foreign Investment Company.
Mr Alfred Pisani, Chairman of IHI, told the distinguished guests attending the ceremony: “This is a momentous occasion for a Maltese company, welcoming Istithmar Hotels as our partners with a substantial shareholding interest in IHI. Together, we will grow this company into a major hotel company”.
Mr Khaled Al Kamda, Vice Chairman of Istithmar, said: “The investment by Istithmar Hotels in IHI is in line with the Istithmar’s strategy of taking major strategic stakes in high quality companies with strong management teams and good growth potential.
Mr Joe Sita, CEO of Istithmar Hotels, said: “We welcome this opportunity to partner and support a company which has a proven track record in acquiring and developing hotels in various countries, including some of the more exciting and fast-growing cities in Europe”.
The Directors of IHI have also announced that they will endeavour to obtain a second listing of the Company on an international stock exchange within 12 months from closing
IHI was founded in March 2000 by the Corinthia Group and has since acquired and developed five-star hotels in Malta (the Corinthia San Gorg Hotel), St Petersburg (the Corinthia Nevskij Palace Hotel and an adjoining development site), Budapest (the Corinthia Grand Hotel Royal) and Lisbon (the Corinthia Lisboa Hotel), to which are being added the hotels in Tripoli and Prague, besides an anticipated five new acquisitions over the coming months. IHI has also recently increased its shareholding in CHI Limited, a hotel management company, up to 70%, with the remaining 30% acquired by Wyndham Hotels Group of the United States.
Among the other dignitaries attending the ceremony was Mr Steven Rudnitsky, President & CEO of Wyndham Hotels Group.