Jurys meeting approves Doyle deal

Over 99 per cent of the shareholders of Jurys approved its £187.6 million (€238

Over 99 per cent of the shareholders of Jurys approved its £187.6 million (€238.2 million) acquisition of the Doyle Hotel Group at an extraordinary general meeting yesterday.

Resolutions to issue 14.8 million new ordinary shares to the vendors, Thornhill Inc, and the changing of the name of the enlarged group to Jurys Doyle Hotel Group plc were also approved. Completion of the acquisition, which gives the owners of Thornhill, the Doyle Group holding company, a 25 per cent stake in the enlarged company, is now imminent.

The Doyle portfolio is made up of seven Dublin hotels, including the 5-star Westbury and Berkeley Court, one London hotel and three Washington hotels.

It also includes the Westbury Mall and the apartment block between the Berkeley Court and Jurys in Ballsbridge.

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"This acquisition is an acquisition of profits. They are there, we have gone into them, we are happy with them.

"But it is also an acquisition of property, very well held property. Nearly all of it is freehold and in excellent locations," Jurys chairman Mr Walter Beatty said.

Shareholders applauded the board on the deal, although there was some questioning of aspects of it. One shareholder asked why the staff of the Doyle group had not been given shares after they worked "so hard to make it what it is today".

Mr Beatty said what the Doyles did for their staff was a matter for them but he believed they had treated the staff well.

He later said the provision of a share option scheme for the staff was being considered. "You may take it that there is a very positive approach to that," he said.

As part of the agreement, Thornhill has agreed, for a period of two years, not to compete with the enlarged group in the State, except in Co Sligo, and in the District of Columbia in the US. Mr Beatty said a member of the Doyle member may be establishing a hotel in Co Sligo.

"That certainly did not cause us any difficulty," Mr Beatty said. It is believed Mrs Eileen Monahan is considering the Sligo investment.

Mr Beatty added that the board had decided not to rename the Skylon Hotel and the Tara Hotel as Jurys Inn hotels.

"We believe at this stage that it would cause confusion in our customers minds," he said.