In a company announcement to its shareholders, International Hotels Investments plc, owner and manager of the Corinthia brand, remarked that following wage subsidies being provided, and projecting a scenario of little-to-no income, it will be able to make payment obligations for up to six months.

It made the announcement on Saturday 28th March, saying:

“On the basis of the measures taken thus far, and projecting a scenario of little to no income for the next six months up to and including September, the Company has sufficient resources and funds to maintain all its payment obligations, not least salaries, but also bond interest payments as they arise through the course of the year.”

Corinthia Group currently has nine properties within its portfolio. On the island, it has its original hotel, founded in 1968, Corinthia Palace Hotel & Spa, in Attard, as well as the Corinthia Hotel St George’s Bay.

In addition, it also has hotels in Tripoli (Libya), London (United Kingdom), Budapest (Hungary), Lisbon (Prague), Khartoum (Sudan), Prague (Czech Republic) and St Petersburg (Russia).

As the COVID-19 pandemic severely impacts several industries, hotels are among the worst hit.

IHI reassured shareholders and investors that it took immediate measures to reduce all operating costs “to the absolute minimum required to secure and maintain our properties, which are at best in partial operation with significantly reduced business”.

“The Company’s focus at this stage is to preserve its financial resources.

“The largest, single operating cost remaining in the business is payroll. The Company has taken immediate action to curtail its payroll. Moreover, in all countries in which we operate, including Malta and the United Kingdom, the Company will benefit from varying schemes adopted by the respective Governments which include outright salary subsidies, as well as the waiver or deferral of payroll taxes and social security contributions and waiver of property taxes for 2020.

“These schemes are of significant benefit to the Company,” reads the statement.

IHI plc has also been in correspondence with its funding banks, both in Malta and internationally. “To varying degrees, all banks have agreed or are in advanced discussions with the Company to defer payment of capital and, in some cases also interest.

“The Company has also organized separate lines of credit with related parties in case of any cashflow shortfalls.”