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	International Hotel Investments plc - Prospectus dated 1 March 2010

The Company

International Hotels Investments plc was incorporated on 29 March 2000 by Corinthia Palace Hotel Company Limited (CPHCL) with the objective of pursuing hotel acquisitions and investments in selected geographical areas including Central and Eastern Europe, the Mediterranean rim, and the Middle East.

IHI’s owned hotels are listed hereunder:
• Corinthia Grand Hotel Royal in Budapest, Hungary, which was acquired in April 2000 as a vacant site. It was subsequently demolished and entirely rebuilt as a landmark deluxe hotel which opened in April 2003. The hotel consists of 414 executive bedrooms, extensive conference facilities, 29 luxury apartments, a multi-storey carpark and a 19th century Spa.

• Corinthia Palace Hotel in St Petersburg, Russia which was acquired in January 2002 together with four vacant adjacent properties. IHI developed these four sites into an additional 105 executive rooms, conference facilities and 15,000 sqm of retail and office space for rental to third parties.

• Corinthia Lisboa Hotel in Lisbon, Portugal, acquired in August 2001 and closed for refurbishment in February 2003. The Corinthia Lisboa Hotel was re-opened in May 2004 comprising 517 rooms with extensive conference facilities. Further refurbishment on 248 guestrooms was completed in September 2007 while the new spa and health centre has recently been finalised.

• Corinthia San Gorg, St. Julians, Malta, acquired in April 2000. This 5-star hotel has 250 rooms, with a total area of 28,000 metres squared.

• Corinthia Hotel, Prague, Czech Republic. This 550-room hotel (acquired on 1 June 2007) is primarily aimed at the conference, leisure and executive traveler markets. Its facilities include an entire floor dedicated to conference facilities, an executive business lounge, a casino, nightclub and various retail outlets.

• Corinthia Bab Africa Hotel, Tripoli, Libya. This 300-room deluxe hotel (acquired on 1 June 2007), includes extensive meeting and banqueting facilities together with large office space currently leased to blue chip oil companies.

• Metropole Building & 10 Whitehall Palace, located in London, United Kingdom. On 6 February 2008, the consortium, made up of IHI, Libyan Foreign Investment Company (LFICO) and Istithmar Hotels FZE (Istithmar) of Dubai, acquired these two properties from the Crown Estate for a total consideration of £130million (equivalent to €174million). The 130-year old Metropole Building is to be refurbished into a 296-room, 5-star hotel to operate under the Corinthia Hotel brand. On the other hand, Whitehall Palace will be redeveloped into a spa and 12 luxury apartments for sale. CHI Ltd (IHI’s management arm) will be managing the new hotel which is due to be completed by end of 2010.

• Benghazi, Libya: On 22 February 2008 IHI announced that it had entered into a joint-venture agreement with Libyan Foreign Investment Company (LFICO) to develop a 360-room 5-star hotel on the waterfront in central Benghazi (Libya’s second largest city). Part of the 7,000 square metre site used to house the former, historic, El Jazeera Hotel and adjoining site. The development, scheduled to begin in 2008, will contain a 250- room 5-star hotel, 30 luxury apartments, 700 sqm of retail space and 3,700 sqm of office space. On completion, the hotel and other facilities will be under the management of CHI Limited.

IHI’s Management Company:
CHI Limited (70%): IHI acquired a 20% shareholding of CHI in April 2000 and a further 50% in August 2006 bringing IHI’s shareholding to 70%. Wyndham Hotel Group International of the United States owns the remaining 30%. CHI is the hotel management arm of the Group operating four and five star hotels in Europe, Africa and the Mediterranean region. CHI entered into licensing arrangements with CPHCL to offer management services in the EMEA region for the Corinthia Brand, and with WHGI to offer management services in the EMEA region for the Wyndham Grand, Wyndham and Ramada Plaza Brands.

Wyndham Hotel Group is engaged in the lodging business, franchising of hotels and provides property management services to owners of its various brands. Through steady organic growth and acquisitions of established lodging franchise systems over the last 15 years, Wyndham Hotel Group has become the world’s largest lodging franchisor as measured by the number of franchised hotels. Its lodging business has more than 6,400 franchised and managed hotels, which represent more than 535,000 rooms worldwide. Its franchised hotels operate under one of its ten lodging brands, which are Wyndham, Wingate Inn, Ramada, Baymont Inn, Days Inn, Super 8, Howard Johnson, AmeriHost Inn, Travelodge and Knights Inn.

CHI currently recently signed agreements for the management of properties in Abu Dhabi, Sharm el Sheikh, London, Benghazi, Bucharest, Budapest and Morocco.

Use of Proceeds

The proceeds from this bond issue is partly earmarked to fund the redemption of the €11.6 million 5% convertible bonds issued in 2000 and due to mature on 29 May 2010. The remaining bond issue proceeds will be used to fully repay an outstanding loan amounting to €12 million with an international bank whilst the balance will be used for the general corporate funding purposes of IHI and its subsidiaries.

Security & Status

Unsecured & Unsubordinated

Coupon

6.25%

Amount Issued

€25,000,000

ISIN Code

MT0000111261

Interest Payment

Annually on 8 April

XD Date

25 March

Maturity

The bonds will be redeemed at 100% (par) on 8 April 2020 but may be redeemed on any day between and including 9 April 2017 to 7 April 2020.

Listing

Official List

Directors

Alfred Pisani, Joseph Fenech, Simon Naudi, Ibrahim Zletni, Binod Narasimhan, Andrew Watson, Hamza Mustafa, Joseph J Vella, Frank Xerri de Caro.