Corinthia Group has issued an update to the market regarding its Russian interests in view of the conflict in Ukraine and the sanctions imposed on Russia and Russian individuals, admitting that these may have an adverse affect on its hotel operations in the country, although it does not expect the local market to be “materially adversely affected”.

In a company announcement posted to the Malta Stock Exchange, International Hotel Investments (IHI), the holding company for Corinthia Group, told shareholders that its St Petersburg hotel and adjoining commercial centre remain fully operational.

It acknowledged that the latest events may have “an adverse effect on the hotel operations in St Petersburg, particularly in so far as international travellers to the hotel are concerned”, adding that much depended on the duration of the conflict.

However, the company does not expect the local market to be materially adversely affected by the recent events, noting that over the last two years, in view of travel restrictions imposed by the pandemic, the principal source of the hotel’s business originated from the local Russian market.

It said the operating forecasts of IHI’s other properties remain encouraging, “confirming the company’s resilience arising from its geographic diversification”.

The company said: “Management is and will continue to closely follow the events as they unfold in full compliance with any applicable sanctions and shall keep the market informed of developments.

IHI’s interest in St Petersburg goes back a number of years and represents approximately eight per cent of the group’s total revenue and assets.