Annual report and financial statements prepared in accordance with

International Financial Reporting Standards

IHI Magyarorszag Zrt.

Year ended December 31, 2021

IHI Magyarorszag Zrt.


Annual report and financial statements

Year ended December 31, 2021




Directors’ report


independent auditor report


Statement of comprehensive income


Statement of financial position


Statement of changes in equity


Cash flow statement


Notes to the financial statements


Directors’ report

The directors present their report together with the audited financial statements of IHI Magyarorszag Zrt. (the ‘Company’) for the year ended December 31, 2021.

Mission and strategy

The Company’s mission is to maximize shareholder wealth by owning and operating assets at the top end of the market in which it operates.

Main activities

The company operates the Corinthia Hotel Budapest, a historic five-star luxury hotel located in the heart of Budapest, building on an unrivaled 112-year history of excellence and tradition. The company also owns and operates the Royal Residence and the Royal Spa.

The sole shareholder of the Company is IHI, a company domiciled in Malta.

Business review and future outlook

The results for the year are presented in the income statement and other comprehensive income on page 9 financial statements. The loss for the year of €1.07 million (2020 loss: €2.52 million) will be deducted from retained earnings. Following a revaluation assessment, the 2020 impairment of 5 million euros was reversed in 2021 as indicated in the statement of comprehensive income following the improvement observed in the occupancy rate and forecasts.

Future developments

The COVID-19 pandemic has had far-reaching effects on 2020 and 2021. While in 2020, global border restrictions, local mobility restrictions and forced closure of hotel, food and beverage outlets and other entertainment venues negatively impacted the Company, 2021 presented an improved situation as various governments lifted border restrictions and local mobility restrictions following an aggressive vaccination process. The company expects revenue levels to return to pre-COVID-19 baseline levels in 2025. Directors recognize that the trajectory to such performance will depend on the level of travel restrictions maintained by governments. The Directors continue to closely monitor the situation on an ongoing basis with a view to minimizing the impact of the COVID-19 pandemic.

The Directors take due account of the uncertainties and mitigating factors which have been taken at all levels in order to ensure the continuity of the operation of the Company. The Company is also constantly reviewing the resizing of its operational base, especially since the level of activity generated will be lower than that generated in the last pre-COVID year in 2019.

Continuity of exploitation

The Directors have reviewed the operating and cash flow forecasts of the Company and IHI Group plc.

Based on this review, after enquiry, and in light of the current financial situation, existing banking facilities and other funding arrangements, the Directors confirm that they reasonably expect the Company and the Group to have adequate resources to continue in operational existence for the foreseeable future.

Deposit of directorsrt – continued


The statement of changes in equity is presented on page 10 of the financial statements.

In 2021, no dividends were declared to parent company IHI plc


The Board of Directors is composed as follows:

Franck Xerri de Caro

Joseph Pisani

Joseph Galea (resigned: May 31, 2021) Joseph Fenech (appointed: May 31, 2021)

The company’s articles of association do not oblige any director to retire.

Approved by the Board of Directors on April 29, 2022 and signed on its behalf by:

Franck Xerri de Caro


Joseph PisaniDirector

Erzsébet krt 43-49 1073 Budapest Hungary

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