Business Irish

Monday 23 April 2018

Jurys Inns share worth nothing returns €220m to Ulster Bank

Jurys Inn
Jurys Inn
Nick Webb

Nick Webb

Ulster Bank is understood to have received close to €220m for its near 25pc stake in Jurys Inns - just over a year after valuing its shareholding at zero.

Earlier this year, private equity group Lone Star, headed by Irish passport holder John Grayken, bought the hotel group for around €900m.

Ulster Bank had become a shareholder in the budget hotel group in 2013 following a debt for equity deal, agreed after a lengthy restructuring process. It is understood that despite a hefty write-off on its loans to the Jurys Inns group, that Ulster Bank has more than made its money back, which indicates the steady rise in the value of hotel and other property assets as the economy recovers.

Ulster Bank documents show that the equity stake in the hotel chain was valued at "nil" in 2013 after a write-off of the debt. The bank increased its valuation slightly to €28m at the end of last year.

Ulster Bank and other lenders, including AIB and IBRC, agreed a stg £290m (€403m) write-off on loans to the group in 2013 as part of a deal that saw a group including the Oman Investment Fund, Mount Kellett Capital Management, Ulster Bank, Westmont Hospitality Group and Avestus Capital Partners take control of the hotel firm.

Jurys Inn operates 21 UK provincial hotels, four London hotels, five hotels in Ireland and one in Prague. It employs around 2,000 people.

The shareholders and Jurys Inn were advised by Credit Suisse and Eastdil Secured, with the buyout expected to be completed shortly.

Jurys Inns was subject to a huge takeover deal just before markets crashed, when a Derek Quinlan-led group outbid rivals to pay €1.1bn for the group.

However, the seizing up of credit markets soon put the purchasers under pressure, with banks and backers ultimately taking control of the hotel group.

Sunday Indo Business

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