Dubai invests 178 mln euros in Malta hotels firm

VALLETTA, Dec 5 (Reuters) - Dubai-based Istithmar Hotels on Tuesday bought a 23 percent stake in Malta's International Hotels Investment Plc <IHI.MT> in a deal worth 178 million euros.

IHI said in a company announcement that the funds would be used entirely for the purchase and development of up to five new five-star hotels in Europe and beyond.

The Maltese company said it was also acquiring the five star Corinthia Bab Africa Hotel, the leading hotel in Tripoli, and the Corinthia Towers Hotel in Prague from its mother company, the Corinthia Group, principally in return for new shares issued to Corinthia in IHI.

IHI currently owns five-star hotels in Malta, St Petersburg, Budapest and Lisbon.

Istithmar Hotels is part of Istithmar, a leading private equity and alternative investment company with global investment interests across various sectors, including hospitality. Istithmar is fully owned by Dubai World which in turn is wholly owned by the government of Dubai.

IHI is listed on the Maltese stock exchange and has said it is planning a second listing on an international stock exchange within a year. ((EMEA Equities desk +44 20 7542 1438, paul.bolding@reuters.com))

Keywords: MALTA HOTELS/