An explosive report by The Shift has renewed scrutiny of International Hotel Investments (IHI), the owner of the global brand Corinthia Hotels, after it outlined the scale of debt owed by one of Malta’s most prominent hospitality groups. The Maltese investigative outlet analysed IHI’s own Financial Analysis Summary, which shows a company struggling under a heavy debt burden while operating with limited short-term liquidity.
The financial analysis, published by the company, shows that Corinthia Group’s global expansion strategy has left the company increasingly dependent on borrowing and refinancing. According to the financial report, by the end of 2025, IHI has accumulated a total debt of almost €790 million, with net debt standing at €697 million. Total liabilities exceeded €1 billion, compared to shareholders’ equity of €919 million.
For Corinthia, these figures raise serious concerns about a hotel group that actively presents itself as an expanding luxury hospitality brand, carrying a debt load so large that it now threatens to overshadow the value of its growth strategy.
Corinthia Group has sought to frame these pressures as the cost of international expansion and long-term investment. Yet, net debt stood at more than 11 times the company’s EBITDA in 2025, far above the threshold that corporate-finance guidance regards as high. Simultaneously, its liquidity ratio fell to 0.94, meaning short-term liabilities exceeded short-term assets. According to industry sources, Corinthia does not hold sufficient short-term assets to cover obligations falling due within the next twelve months without relying on refinancing, more loans, asset disposals, or future cash generation.
Against this backdrop, Corinthia’s recent announcement of plans to issue €30 million in new unsecured bonds redeemable in 2036 invites further scrutiny, as the timing suggests the new borrowing may be less about funding long-term growth and more about smoothing short-term liabilities. According to the company announcement, the proceeds are intended to refinance part of a €55 million bond issue due to mature next month, with the remaining balance to be repaid through a bank loan facility. This is taking place while IHI continues to pursue an international expansion strategy across the Middle East, Asia and South Asia.
The financial pressure is compounded by the fact that the Corinthia Grand Hotel Astoria in Brussels and the recently launched Rome Hotel remain in their market penetration phase and have yet to generate profits on their investments. Even so, IHI’s own financial forecasts predict that debt levels will remain elevated, with net debt projected to rise further during 2026 and total debt expected to approach €880 million. According to The Shift, the company has not excluded selling existing assets as it seeks to manage its financial position.
A closer review of Corinthia Group’s own 2025 Annual Report and Financial Statements raises further questions on how clearly investors were alerted to the debt scale of the company. The independent auditor’s report, signed by PwC, does not appear to single out the €800 million debt or the company’s return to the bond market as a specific audit concern. The issue, therefore, is whether the risks attached to those numbers were presented with sufficient prominence for investors, auditors, and prospective bondholders to understand the company’s financial position before any further financial decisions.
So far, neither IHI nor Corinthia Group has publicly responded to the concerns raised in the Financial Analysis Summary. Until Corinthia addresses the scale of its financial instability, questions will remain over whether the group’s luxury growth strategy is being financed on unstable foundations. Investors will be watching carefully whether Corinthia can provide clear answers on its debt exposure, liquidity pressures, and refinancing strategy.
