Sunday 18 November 2018

Quinlan considers expanding exclusive hotel group

The Savoy Hotel was bought by a consortium led by Derek Quinlan in 2004
The Savoy Hotel was bought by a consortium led by Derek Quinlan in 2004

Maeve Dineen

Property tycoon Derek Quinlan has appointed investment bankers to assess an expansion plan for his hotel group.

Mr Quinlan, who owns some of London's most exclusive hotels, has asked Lazard to identify opportunities to help him expand the company internationally.

Mr Quinlan is a controlling shareholder in Maybourne Hotel Group, which owns and manages the Berkeley, Claridge's and the Connaught.

A spokesperson for Maybourne confirmed that "Lazard has been appointed to advise Maybourne on a range of options to grow the brand internationally".

It is understood the investments will be very selective and targeted to specific international cities, such as Dubai, Paris, Moscow and New York.

A newspaper report yesterday stated that the outright sale of the business is not on Mr Quinlan's agenda, and a final decision about the route that Maybourne will ultimately pursue could still be some time off.

"The injection of third-party capital into the company will be looked at seriously," a person close to Mr Quinlan said.

Maybourne's hotels are among the best known in the world.

Through his private equity and real estate investment firm Quinlan Private, Mr Quinlan had led a consortium of wealthy individuals who bought the then Savoy Group for £750m in 2004. He sold it in 2005.

According to accounts filed at Companies House, Maybourne Group is controlled by its parent company, Coroin.

Alongside Mr Quinlan, Coroin's investors include Patrick McKillen, the Irish property mogul, Moya Doherty and John McColgan, the promoters of Riverdance, and Kyran McLaughlin, who is the chairman of Elan Corporation, the Irish pharmaceuticals group, and is also a director of budget airline Ryanair and Davy Stockbrokers.

Quinlan Private has invested tens of millions of pounds on investment properties, including a £500m acquisition of a 3.5 acre site adjacent to Harrods in London, in May 2006.

The investment firm was also involved in the €300m-plus acquisition of Diagonal Mar Shopping Centre, one of the largest shopping centres in Spain. Other Quinlan Private acquisitions include a €270m purchase of prime "Maximilianhofe" retail space in Munich city centre and the €430m acquisition of prime office developments in the UK, Holland and Germany.

In April 2007, Quinlan Private acquired a portfolio of 47 Marriott hotels throughout the UK for £1.1bn. Quinlan Private also owns the Jurys Inn hotel chain, having acquired the budget group in a deal worth €1.2bn that included debt. In August, Quinlan Private announced that it had sold a 50pc equity stake in the Jurys Inn business for €200m.

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