Corinthia losses widen to €17 million as net debt approaches €800 million

International Hotel Investments (IHI), the owner of the Corinthia hotel portfolio, registered a €17 million loss during the first half of 2026 as its net debt approached €800 million.

According to its unaudited interim financial statements published yesterday, revenue remained practically unchanged at €150.3 million, compared with €149.7 million during the same period last year.

Its after-tax loss, however, widened by 70%, from €10 million in the first six months of 2025 to €17 million this year. The loss attributable to IHI’s shareholders increased from €4.1 million to €10.5 million.

After depreciation, IHI recorded an operating profit of just €360,000, down from almost €6 million a year earlier.

IHI’s total debt rose by more than €105 million, from €790 million at the end of 2025 to €895 million by June. Net debt increased from €697 million to almost €800 million, while its debt-to-assets ratio climbed from 40% to 43%.

The increase occurred despite IHI using €106 million to repay borrowings following the sale of a majority interest in its Corinthia Lisbon hotel.

Despite these results, IHI still financed an €18.5 million dividend to shareholders.

The results come as the Corinthia group – one of Malta’s largest in the hospitality sector – continues to seek a buyer for its Ħal Ferħ development project at Għajn Tuffieħa, originally public land sold by the government for peanuts.

The 83,580-square-metre former tourism complex was transferred by the government in 2009 for an annual ground rent of just €3,000, subject to conditions restricting it to tourism use and prohibiting permanent residences.

The ground rent was redeemed in 2020, while the government subsequently agreed to allow part of the site to be used for 25 luxury residences against compensation of just €10.3 million.

The former holiday complex was demolished in 2022 through the renewal of an old permit for an abandoned timeshare project. A new permit for the proposed Oasis development – comprising a 161-room luxury hotel, wellness facilities and 25 serviced villas – was approved in 2026, but construction never started.

The Shift reported a few weeks ago that Corinthia had been seeking between €80 and €90 million to sell the entire project amid its liquidity requirements. The company confirmed receiving several approaches involving a purchase or joint venture but insisted it had “no appetite” to dispose of the site.

IHI’s accounts do not refer to an impending Ħal Ferħ sale.

However, they confirm that the group is evaluating further disposals of mature or non-core properties as part of its debt-reduction strategy.

The group also said that it is considering selling its Prague property after planning changes increased its residential development potential.

IHI has approximately €115 million in bonds classified as current liabilities, compared with €95.4 million in cash and bank balances at the end of June.

Cash generated from operations fell by more than half, from €27 million to €13.2 million.

In a company announcement, IHI said its underlying operations performed more strongly after excluding the Lisbon sale and the initial costs of opening Corinthia Rome.