6 - 12 April 2000

Corinthia Group announces new company structure

by a staff reporter

The Corinthia Group has announced a major restructuring process within its principal divisions.

The main thrust of the new structure will see two of Corinthia's main business units, namely Corinthia Hotels International and Quality Project Management, becoming autonomous limited liability companies. At a later date, the group's catering interests will also be incorporated into a distinct company.

Both new companies have their own board of directors and management structure, functioning independently from Corinthia Group's main Board and holding structures. CHI's Board will be chaired by Sigi Bergmann, who has to date occupied the position of senior managing director with the Corinthia Group, and that of QPM will be chaired by Gerald Borg, the division's previous managing director.

"Recognising the challenges presented by our fast rate of expansion, we have set about the task of organising an increasingly focused and profit-orientated operation that is capable of maintaining our stringent standards while also keeping abreast with global developments affecting our interests," said Corinthia chairman Alfred Pisani.

"Besides the incorporation of our business interests in the hotel and project management sectors into independent companies within the group, we will also ensure that each subsidiary will generate its own added momentum for growth and internationalisation," he added.

Corinthia Hotels International is being incorporated as CHI Limited to provide hotel management services to hotel owners and investors including the group itself. Initially, CHI Limited will take over the group's existing agreements to manage hotels in Malta, Turkey, Tunisia, Hungary and the Czech Republic, the Gambia and Portugal.

Over the next few years, the number of hotels managed by this new company is expected to increase significantly on the strength of the Corinthia Group's own investments in hotel properties as well as the increasing number of independent hotel owners turning to Corinthia to provide them with hotel management services.

In fulfilling its hotel management obligations, CHI Limited is also being fully licensed by the Corinthia Group to trade under the brand name of Corinthia Hotels International and to employ the group's hotel management trademarks and know-how.

Besides operational staff in each of the hotels under its management, the company also employs over 50 hotel management and marketing specialists at its various regional and sales offices in the United Kingdom, France, Italy, Germany, the Russian Federation, Scandinavia, Turkey, Tunisia, Malta, the Czech Republic and Hungary.

On its part, QPM Limited will provide project management services to an increasing myriad of customers in Malta and overseas, including the Corinthia Group itself.

Since its inception in 1980 as a division of the Corinthia Group, QPM has completed more than forty projects valued at over US$400m.

These included new construction, as well as refurbishment works in Malta, Turkey, Hungary, the Czech Republic, Libya and Tunisia.

The newly set up company will now be seeking to enhance its excellent reputation through rigorous adherence to job and time programming, strict cost control, technical quality assurance, outstanding design and, most importantly, immediate responsiveness to client needs throughout the projects it undertakes.