Lone Star to check out of Jurys Inn hotel chain
Sale of portfolio worth £1 billion to affect six hotels in Ireland
The properties Lone Star is putting up for sale are run by Amaris Hospitality, which is led by Irishman John Brennan (above). Photograph: Eric Luke
The Jurys Inn hotel chain has been put up for sale by its owner, US private-equity group Lone Star, along with a number of Hilton hotels.
The sale will affect six hotels in Ireland – Jurys Inns at Christchurch and Parnell Street in Dublin, and properties in Cork, Galway and Belfast. It also includes the Hilton Garden Inn at Customs Quay in Dublin, which was previously a Jurys Inn.
Neither Lone Star nor Amaris would comment on the process.
According to a report in the Times newspaper in London, a sale is said to be the preferred exit, while an initial public offering has not been ruled out. The company is reported to be willing to sell the brands separately.
Lone Star bought Jurys Inn for €900 million in 2015, and sold some hotels, rebranded others and completed a £100 million investment programme. A further £30 million investment has just started.
Mr Quinlan subsequently sold half the equity to Oman Investment Fund but it ran into difficulties with its lenders following the 2008 global financial crash. In 2013, the hotel chain succeeded in restructuring its debt, agreeing a debt write-off of £290 million with its banks, which included Irish Bank Resolution Corporation, AIB and Ulster Bank.
Lone Star is also known in the Republic as the buyer of hundreds of millions of euro of troubled mortgages that it has moved to restructure and, in some cases, sell forward or use to to back bonds.
Funds controlled by the Dallas-based firm, founded by billionaire financier John Grayken, own 600 acres of land in Dublin with the potential for 7,000 homes. In Adamstown, it has partnered with developer Joe O’Reilly’s Castlethorn Construction, while in Portmarnock it is working with Ballymore Development. The funds also hold land in Skerries.