Jurys Inn successfully completes financial restructuring
A group of institutional investors, including existing and new shareholders, have agreed to pump long-term equity into the business. The Jurys Inn bank debt has also been significantly restructured and extended.
"Today’s announcement is great news for all our employees, customers and suppliers and is a very strong vote of confidence in our business," said John Brennan, the Jurys Inn chief executive.
Well-capitalised
According to the Financial Times, the combination of new cash and a haircut for existing lenders has brought the company's debt down from more than £600m to around £250m.
The investor group now comprises Oman Investment Fund, the largest shareholder; Mount Kellett Capital Management, in partnership with Avestus Capital Partners; Ulster Bank and new investors North America-based Westmont Hospitality Group, one of the largest privately-held hospitality organizations in the world.
"We are especially delighted to have attracted such a prestigious group of long-term, well-capitalised, institutional investors with global experience in the hospitality sector.
"By choosing to take a stake in the future success of the business, they have recognised the value of our business and management team, which has been reflected in our strong operating performance over the past three years," Brennan added.
Operating performance
Jurys Inn, which was first listed as a public limited company in 1986, can trace its roots back to Dublin in 1839. Today it operates more than 30 hotels in Ireland, the UK and the Czech Republic.
According to the hotel firm, the new balance sheet will allow it to build on its strong operating performance which has seen growth of both profits and revenues over the past three years.
"The company is performing very well and has seen increased occupancy and market share during 2011 and 2012," Brennan revealed.
"The combination of great city centre locations, well invested contemporary hotels and great value for money is proving increasingly popular. Of particular note is the growing penetration Jurys Inn is achieving in the corporate market and today’s announcement allows us to further develop the business over the years ahead."
Jurys Inn has recently invested over £27m in the refurbishment of its existing properties, online booking and IT platforms. Its recent re-positioning led to an 8 per cent rise in corporate guest business last year.
