Alfred Pisani, the chairman of International Hotel Investments plc (IHI) – which owns and operates Corinthia Group – believes that ultimately, despite the massive disruptions caused by COVID-19, the Group will come out “leaner and healthier”.

Mr Pisani, who describes himself as the “perennial optimist” in a message to shareholders, delivered his statement around a month after the Group published its half-yearly results for 2020.

IHI were hit hard by the pandemic, the company acknowledged in its half-yearly report on the year up to 30th June. Despite drastic pay cuts, as high as 60 per cent for upper management, downsizing the workforce by 30 per cent and minimising operating expenses to the “barest of minimums”, the group posted a half-yearly net loss of €35 million.

Following a successful 2019 – where it closed off the financial year with a net profit of €13.9 million – nobody could foresee the disruption to come in 2020.

After the outbreak hit Europe in March, Ms Pisani stressed that the ensuing lockdowns and restrictions gave the Group no choice but to react immediately by reducing its operating expenses to a minimum.

“Even that proved insufficient, and we had to reduce the staff complement, revise our salaries and wages, which setback obviously made it impossible for us to issue a dividend.

“Notwithstanding all the savings and the subsidies and support provided by various Governments of countries where we operate, the unrelenting fact remained that the Group would still incur substantial cash losses.”

Mr Pisani commented that the Group is now in a better position to assess the deficiency in its cashflow for 2020, “and, to a certain extent, forecast for next year”.

He stressed that the Group is fully aware “of the hard times we have to face with more determination than ever.

“With this in view, the Board is keeping vigilant to assess and recommend further solutions, including how to retain our best resources, that is our workforce.”

Mr Pisani affirms that he has never allowed himself to be overtaken by pessimism, and “have for these last years led this Group through think and thin in very difficult circumstances”.

“I am doing so once again, this time against an unprecedented world disaster. I am a perennial optimist and positive thinker, and in this vein I share with you my very deep conviction that we have a robust Company which derives its strength from its people and the assets of its properties.

“This places us in a strong position with financial institutions and fills us with the confidence to face these difficult times with grit and a strong determination to see our way through this tunnel and ultimately exit from the other end as a stronger and a more efficient organisation.

“We all look forward to the arrival of a COVID vaccine that will enable us to slowly but surely recoup the time lost and return to a normal way of life, even though normality could change to a different experience.

“I sincerely believe our Group will in the end be leaner and healthier. And I am equally confident that your backing will not slacken. All this gives me and my colleagues that extra drive to succeed.”