Irish firm help finance hotel group takeover bid

An Irish firm is helping finance a potential £157m (€228m) bid to take UK chain Jarvis Hotels back into private ownership.

John Jarvis, the firm’s chairman, is working on the takeover plan with fellow director Richard Thomason.

The pair are backed by Lioncourt Capital, the Dublin-based firm which funded the purchase of nine Jarvis hotels last year.

The hotel group’s largest shareholder – entrepreneur Jack Petchey’s investment vehicle Trefick – owns almost 30% of Jarvis and has already undertaken to accept an offer if one is made.

Jarvis’ independent directors are supportive of the 145p a share proposal, which still requires the completion of finance arrangements and due diligence.

Founded in 1990 by Mr Jarvis – formerly the chairman of Hilton International - and David Thomas, the chain now has a portfolio of more than 60 hotels in around 50 locations in the UK.

The company was floated in 1996 and made a deal with Marriott International in 2001 to re-brand 56 of its hotels under the Ramada name.

Richard Thomason, who was one of the firm’s founding directors, took over as chief executive of the company in 2002 from John Jarvis who remains as executive chairman of the group.

The chain has suffered from the slowdown in commercial bookings across the hotel industry and reported flat profits and turnover in the first three months of this year.