Debt-ridden hotel chain Jurys Inn has completed its financial restructuring after private equity backers pumped money into the business in an effort to cut its debt.
The hotel’s new investor group comprises Oman Investment Fund; Mount Kellett Capital Management LP, a global, multi-strategy investment fund in partnership with Avestus Capital Partners; Ulster Bank, a member of The Royal Bank of Scotland Group; and Westmont Hospitality Group, one of North America’s largest privately-owned specialist hotel investors.
In addition to receiving new equity, the Jurys Inn bank debt has been restructured and extended.
The revised balance sheet structure will allow the group to build on its operating performance, which has seen profit as well as revenues grow each year over the past three years. This was underpinned by an on-going programme of capital expenditure which has seen £27m invested in the extensive refurbishment and renovation of Jurys Inn’s existing hotel properties, as well as its online booking and IT platforms.
Jurys Inn’s CEO, John Brennan, says: “Today’s announcement is great news for all our employees, customers and suppliers and is a very strong vote of confidence in our business.
“We are especially delighted to have attracted such a 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.”
The company saw increased occupancy and market share during 2011 and 2012.
It employs 2,000 people and operates 24 hotels in the UK, seven in Ireland, and one in Prague.
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