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	International Hotel Investments plc - Prospectus 17th March 2006

The Company

International Hotel Investments plc (IHI) was incorporated in March 2000 by the Corinthia Group, a leading international hotel company originating in Malta, to develop and invest in upscale hotels in various countries in Europe and the Mediterranean region. Upon inception IHI acquired Five Star Hotels Ltd., the owner of the five-star Corinthia San Gorg in Malta, IHI Hungary Rt (formerly Corinthia Investments (Hungary) Kft), owner of the Corinthia Grand Hotel Royal in Budapest and a 20% shareholding in both Corinthia Hotels International Ltd., the management company, and Quality Project Management Ltd., the construction and project management company specialising in hotel projects. Since incpetion IHI acquired another two hotels: the Alfa Lisboa Hotel in Lisbon (Portugal) and the Nevskij Palace Hotel in St.Petersburg (the Russian Federation).

Use of Proceeds

The net proceeds of the bond issue were used for the extension of the existing Corinthia Nevskji Palace Hotel in St. Petersburg, Russia and the development of the two sites adjoining the Hotel. The extension of the Corinthia Nevskji Palace Hotel in St. Petersburg, Russia consists of the construction of an additional 104 executive rooms, together with the construction of the largest hotel conference centre in St Petersburg accommodating over 1000 conference delegates in its main hall. In addition the extension project also comprises the upgrading of the hotel’s public areas including the main lobby and restaurants. This extension and upgrading project is intended to compliment the extensive upgrading programme of the hotel’s existing 285 rooms carried out in 2004-2005. Additionally the Company intends to develop, adjacent to the hotel, a site to provide approximately 14,000 square metres of retail and office space to be leased out to third parties. The extension and development project is estimated to cost around €75 million. The Company has also made arrangements for bank funding from three Austrian Banks Rzb, BACA and Volksbank) for part funding of the project.

Security & Status

Unsecured & Unsubordinated

Coupon

6.5%

Amount Issued

€12,500,000

ISIN Code

MT0000111246

Maturity

The Bonds will be redeemed at 100% (par) on 27 March 2014. The Issuer reserves the right to redeem the Bonds or any part of the issue prior to the stated maturity on either 27 March 2012 and/or 27 March 2013.

Interest Payment

Annually on 27 March

XD Date

13 March

Listing

Official List

No. of Bondholders

316

Directors

Alfred Pisani, Mustafa Khattabi, Giuseppe Sita, Joseph Fenech, Joseph J. Vella, Frank Xerri de Caro, Simon Naudi, Khaled Al Kamda and Richard Johnson.