In 2003, IONIAN HOTEL ENTERPRISES posted losses of Euro 6.4 million compared to losses of Euro 4.5 million in 2002. This is mainly due to additional depreciation charges of Euro 3 million related to the recently completed renovation of Athens Hilton, which started again operations from February 2003 in stages. Moreover, taxes of Euro 1.6 million were charged against 2003 results following tax audit findings for the period 1996 - 2002.

In addition, turnover rose to Euro 27,2 million from Euro 7.6 million. This increase is attributed to the reopening (in stages) of the Athens Hilton Hotel from 11 February 2003 onwards, following 15 months of renovation works during which the hotel remained closed. As a result, gross operating income improved from losses of 1.4 million in 2002 to losses of Euro 1 million in 2003.

Substantial financial performance improvement is expected in the future as Athens Hilton and Hilton Rhodes Resort are now in a position to fully exploit tourism growth in the years to come, and especially during the 2004 Olympic Games in Athens, when Athens Hilton will accommodate the International Olympic Committee.