Jurys Inn owner records €170m loss
The rebranding and hotel transformation programme at Amaris Hospitality, that group operating the Jurys Inn hotel brand, will deliver significant uplift in profitability.
That is according to the chief executive of Amaris, John Brennan, who was commenting on new accounts showing that the Amaris group recorded losses of £152m (€170m) last year.
The group, owned by equity fund Texas Lone Star, bought the Jury's Inn group in a £681m deal last year and the loss was largely attributable to finance costs of €121.69m largely connected with the group's expansion.
The loss also takes account of non-cash impairment costs of £72m and combined depreciation and amortisation costs of £27.5m.
The business recorded revenues of £392m in the 12 months to the end of last year. The biggest revenue generator was the Jurys Inn brand, creating 43pc of income.
Mr Brennan said in his report attached to the accounts that over 90pc, or £366m, of revenues were generated in the UK with the remaining £25m in Ireland. The Jurys Inn deal resulted in the group operating 13,500 rooms and employing 6,000 people.
Dublin-based Amaris Hospitality was incorporated in June 2015, bringing together a number of brands assembled by Lone Star in 2014 and 2015.
"Overall, the group has recorded a positive trading performance in early 2016 and the group continues to outperform its competitive set," Mr Brennan said.
"We anticipate that the completion of our rebranding and hotel transformation programme, coupled with the ongoing implementation of our wider strategy, will deliver significant uplift in performance and profitability."
He added: "Strong market conditions and impressive market outperformance in Ireland evident in 2015 are continuing in 2016. The excellent city centre locations and recent renovations in all our Irish hotels are a factor in their excellent performance.
"Despite current market challenges, the UK and Irish hospitality sectors remain robust, driven in part by the growth in the number of international tourists visiting the UK and Ireland. We believe that through our strategy we are well positioned to take advantage of future growth in these markets."
He said Amaris is implementing a £100m programme aimed at accelerating the growth and development of the hotel portfolio. The group obtained £250m in funding last March to finance its expansion.