The sale of investment properties owned by Doyle Hotels and worth more than £35 million will net in excess of £20 million after deducting costs, according to figures produced by the group as part of its proposed buyout by Jurys.
Payment of tax on the sale of the properties will reduce that sum to an estimated £15 million which will form part of the consideration received by members of the Doyle family in return for the sale of the hotel chain.
In addition, they will receive a further £94 million in cash. Mrs Margaret Doyle and her two daughters will also get shares equal to about 25 per cent of the proposed new entity, the Jurys Doyle Hotel group. These shares would be worth approximately £100 million.
Mr David Doyle, a former managing director of Doyle Hotels and son of the founder of the group, the late P.V. Doyle, is receiving only cash from the deal. The members of the family who will receive shares in the new group are Mrs Margaret Doyle, widow of the founder, and her two daughters, Mrs Bernadette Gallagher and Mrs Eileen Monahan. Another son, Mr Michael Doyle, is understood to have been paid £24 million for his shares in the group in 1995.
Among the properties owned by the group are 94 St Stephen's Green, Dublin 2, currently home to Smurfit Paribas, which has an estimated market value of £5.5 million and Shelbourne House, on Shelbourne Road, Dublin 4, which has an estimated value of £5.8 million.
A site owned by the group on St Stephen's Green has an estimated value of £8 million. Numbers 99 to 102 Upr Leeson Street, Dublin 2 have an estimated value of £3 million. Apartments on Lad Lane, off Baggot St, Dublin 2 are valued at £7.5 million. The group is understood to own about 20 investment properties in all.
The Doyle group is made up of more than 20 companies, some of which have been dormant for many years. Several of the companies own and are involved in the letting of investment properties, while others own and are involved in the running of the group's hotels and the provision of building maintenance and construction services to the group.
Jurys announced in September that it was in discussion with the Doyle Hotel group with a view to amalgamation, creating a chain of 28 hotels and inns. The enlarged group would be known as Jurys Doyle Hotel group, Jurys stated. It would be valued at £400 million compared to Jurys' current market capitalisation of £220 million.
