Jurys shares up on talk of site sale

Shares in Jurys rose sharply yesterday on renewed speculation about plans for the company's seven-acre site in Ballsbridge, Dublin 4.

The hotel group has been reviewing its strategic options for the sizeable site for more than a year.

The market has seized upon the development potential of the property, which currently houses the Jurys Ballsbridge hotel, the Towers and the Berkeley Court.

The site, which lies in the heart of one of Dublin's most prosperous districts, has been valued at about €200 million.

Some estimates now suggest, however, that the Ballsbridge site could attract a price of up to €300 million from developers keen to build apartments on the prestigious address.

The most recent rumours on the market have focused on Jurys selling the site and then leasing back a four-star hotel that would be built within the new development.

This scenario would see the company refurbishing the Burlington Hotel and further expanding its Inns brand in the UK, as well as paying out a special dividend to shareholders.

Rumours of such a windfall have added significant sparkle to the hotel group's share price in recent trading.

The stock climbed by by 86 cent, or nearly 7 per cent, to €13.36 yesterday, as investors took a bet on Jurys announcing plans for the site over the very near term, possibly within the coming week. Such an announcement, however, is not thought to be likely.

A spokesman for the company declined to comment on plans for the site, saying simply that a review was ongoing.

He outlined no timeframe for the conclusion of the review.

The company's chairman, Richard Hooper, recently told shareholders that the performance across its Dublin hotels had been "very disappointing".

Jurys draws nearly two-thirds of its profits from the UK.