Jurys Inn has been sold to an affiliate of US-based Lone Star Funds for £680 million.
Current owners Oman Investment Fund (OIF), Mount Kellett Capital Management, Ulster Bank, Westmont Hospitality Group and Avestus Capital Partners have agreed on the sale, which is subject to approval in Ireland and is expected to close later this quarter.
Jurys Inn owns 31 hotels predominantly in the UK and Ireland as well as one in Prague. More than EUR50 million has been put into updating its hotels and it recently acquired three leasehold properties.
It has been turned around in the last two years under the current shareholders.
Hassan Al Nabhani, CEO of OIF, said: “Jurys Inn is one of OIF’s earliest investments. The capital restructuring undertaken in May 2013, with the co-operation of the lenders and our partners, revived the group paving a new path of growth and progress.”
Nick Weber, head of Europe for Mount Kellett Capital Management, added: “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.”
Current CEO John Brennan and the rest of the management team will remain.
“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,” said Brennan. “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.”