Investment firm acquires Jurys Inn chain for €910m

The Jurys Inn hotel group has been acquired — pending regulatory approval — by US investment firm Lone Star Funds for £680m (€910m).

Lone Star has a strong recent track record of making purchases in and relating to Ireland, having bought a portion of Lloyds Banking Group’s Irish loan book, Anglo Irish Bank’s UK loan book and assets previously held by Nama and AIB.

The Jurys Inn purchase is being conducted through an affiliate and the deal — subject to approval from the Competiton and Consumer Protection Commission — is expected to close before the end of March. Jurys Inn is co-owned by a number of shareholders including Mount Kellett Capital Management, the Oman Investment Fund, Ulster Bank, Avestus Capital Partners and Westmont Hostpitality Group.

Its portfolio numbers 21 hotels in the UK — including four in London — five in Ireland and one in Prague.

The company last year restructured its debt, agreeing a sizeable write-off of nearly £300m with its lenders, including AIB, Ulster Bank and the IBRC.

Nick Weber, head of Mount Kellett’s European operations said the Lone Star deal marks the completion of “a tremendously successful repositioning” for the Jurys Inn business.

“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,” he said.

John Brennan, Jurys Inn’s chief executive, said: “The substantial investment in our business and brand, coupled with the efforts of management and employees, have allowed us to deliver record results in recent years. We are 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.”

Jurys Inn is in the midst of a €50m investment programme to enhance its current properties and has recently acquired three existing leasehold properties.