Ryan Hotels targeting wider British market

Ryan Hotels regards the Irish market as already "well served" but is planning to buy more hotels in London and other parts of Britain. The group said it had now completed the purchase of the Hyde Park Ryan in London, for €27.3 million (£21.5 million).

Ryan also released financial results for the six months to the end of July. The firm said turnover rose 4 per cent to €21 million (£16.6 million), and pre-tax profits rose 11 per cent to €3.7 million.

The company said its operating margins rose 3 per cent to 22.5 per cent, earnings per share were 4.5 cents, and declared a dividend per share of 1.14 cents.

"This record of profitability has been achieved against a background of increased competition both in the domestic and continental markets, and demonstrates the effectiveness of the Ryan hotel brand," said the group's chairman, Mr Sean Henneberry.

"Trading for the second half has started well and, barring unforeseen circumstances, we are looking forward to the results for the full year with confidence," he added.

At a press conference, the group's chief executive, Mr Patrick Coyle, pointed to the acquisition of the Hyde Park and the Metropole in Cork, describing these purchases as "just the start of a process we intend to continue".

He pointed out that hotel capacity in Dublin had doubled over the past five years, while the number of rooms available in the Republic had risen by more than 60 per cent in the same period.

"We feel we are well served in the Republic at the moment. Our immediate focus will be the UK, and specifically the London market," he said.

Replying to questions from reporters, Mr Coyle said in his view, judging from the share price, the company appeared to be undervalued, and that it could prove an attractive take-over target. However, he stressed that the company had not received expressions of interest from larger hotel groups.

"As management, we are very much focused on our strategic development," he said.

Mr Coyle said Ryan would not be interested in buying the entire Great Southern chain of hotels, currently owned by Aer Rianta, but the company might consider purchasing one or two of the hotels were they to come on the market.

"It is difficult to say without knowing the profitability, and whether the staff would be behind a take-over, which is essential," he added.