Oman Investment Fund, Mount Kellett Capital Management, Ulster Bank (part of the Royal Bank of Scotland), Westmont Hospitality Group and Avestus Capital Partners (together ‘the Shareholders’) have announced that they have entered into a definitive agreement for the sale of Jurys Inn to an affiliate of Lone Star Funds for a total consideration of £680 million.
The transaction is subject to approval from the Competition and Consumer Protection Commission in Ireland, and is expected to close in Q1 2015.
Jurys Inn is a leading hotel brand and property owner operating over 7000 rooms across 31 prime city centre hotels comprising 21 UK provincial hotels, four London hotels, five hotels in Ireland and one in Prague. It employs approximately 2000 people.
Jurys Inn’s strong market positioning and positive trading performance, which has seen the business outperform its competitors in the UK and Ireland, has been underpinned by a programme of continuous investment and innovation, including an ongoing ¬50 million investment programme to enhance its hotels.
The company has also recently acquired three existing leasehold properties as part of its strategy to strengthen its portfolio of hotel assets and provide greater flexibility around their future development. The existing management team, led by CEO John Brennan, will continue to lead Jurys Inn, building on the successes achieved in recent years.
“We are delighted with this transaction, which marks the completion of a tremendously successful repositioning of Jurys Inn,” says Nick Weber, head of europe for Mount Kellett Capital Management. “Prior to its acquisition less than two years ago, Jurys Inn was burdened by excessive debt and faced an uncertain future.
“The investor group brought fresh capital, restructuring expertise, and a focused strategy to help transform the company into one of the leading mid-market hotel groups in the UK and Ireland. We are grateful to the management team, the Group’s employees and our fellow investors for their partnership in securing what is a great outcome for all stakeholders. I would also like to congratulate Lone Star on this acquisition and wish them every success as they take the Group to its next stage of development.”
John Brennan, CEO of Jurys Inn, says: “I would like to thank our existing shareholders for their commitment and support and welcome Lone Star Funds as our new owners. The substantial investment in our business and brand, coupled with the efforts of management and our employees, have allowed us to deliver record results in recent years.
“We are now delighted to have attracted a new owner of the scale and calibre of Lone Star Funds, who are very committed to the future growth and development of the Jurys Inn brand and business and we look forward to working with them in realising our joint ambition for the business and to capitalise on the significant opportunities emerging within our sector.”