Quarterly report and Financial Statements for the nine months ended 31 May 2017

GROUP HIGHLIGHTS

  • Nine months to May 2017 underlying distributable earnings of GBP2.19 million (2016: GBP0.83 million)
  • Underlying distributable earnings per share of 3.90 pence (2016: 2.37 pence)
  • Portfolio now consists of 9 hotels with 1,143 bedrooms
  • Gearing at 51% loan to value (‘LTV')
  • Key stats for Owner-operated hotels:
    • 7.4% RevPAR growth on prior year
    • RGI (market share of revenue) at 110.1% of the competitor set - all hotels above fair market share
    • Trading remains positive and in line with expectations

CHAIRMAN'S REVIEW
Trading for the 9 months to May 2017 remains positive and in line with expectations. Total revenues were GBP13.35 million, delivering underlying distributable earnings of GBP2.19 million and underlying distributable earnings per share of 3.90 pence.

All trading hotels are performing in line with expectations, with the most recent IHL acquisition, the Holiday Inn Express Edinburgh City Centre, comfortably exceeding monthly revenue and EBITDA expectations since the acquisition was completed in January 2017. There are no issues to report with IHL's four Investment properties that are let to Travelodge - all rent has been received on time and no rent reviews are currently due.

There were no new acquisitions during the third quarter, although management continues to monitor both on-market and off-market opportunities.

All major capital expenditure projects have now been completed for the current financial year.

IHL's banking facilities, currently all with Santander, continue to be fully covenant compliant and the Group's LTV is circa 51%.

Shareholders are referred to the announcement released on 19 July 2017 (the “announcement”) wherein shareholders were advised that the Board has concluded that the listing of the Company’s shares on the JSE and the LuxSE has not provided, and is not anticipated in the medium term to provide, the liquidity or access to equity capital markets required to facilitate the growth of the Company and that the costs and administrative burden of maintaining the listings are no longer justified. Accordingly, it has been proposed that a delisting be effected by way of a scheme of arrangement to be proposed by Redefine International P.L.C. (“Redefine International”), between IHL and its shareholders other than (i) Redefine Share Investments Limited (a subsidiary of Redefine International), (ii) Redefine Properties Limited and (iii) Southern Sun Africa Limited (the “scheme members”), pursuant to which Redefine International will acquire all IHL shares held by scheme members in consideration for 2.5 Redefine International shares for every 1 IHL share held and on implementation of the scheme the listing of the Company’s shares on both the JSE and LuxSE will be terminated. Shareholders are referred to the announcement for further details in this regard.
 

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