
Under the terms of the deal, additional investors have been brought on board with new equity of £120 million (€140 million) At the same time, the debts of Jurys Inn have been reduced from about £650 million to about £240 million (€280 million).
The new equity will be paid to the former lenders – Irish Bank Resolution Corporation, AIB and Ulster Bank – with a debt-for-equity swap in the transaction, in exchange for a write-off of approximately £350 million (€410 million)Jurys Inn shareholders now comprise the Oman Investment Fund; US-based investment group Mount Kellett Capital Management LP in partnership with Dublin-based Avestus Capital Partners; Ulster Bank; and Westmont Hospitality Group, one of North America's biggest privately owned specialist hotel investors.Jurys Inn was acquired from Irish hotel group Jurys Doyle in 2007 for €1.166 billion by a consortium of investors led by Quinlan Private, then headed by Derek Quinlan. Mount Kellett, Ulster Bank and Westmont Hospitality are new shareholders. Avestus is an investment vehicle established by senior executives from Quinlan Private. Mr Quinlan is not involved.The Oman Investment Fund became a shareholder in 2008 via a reported €200 million investment and remains the biggest shareholder.Jurys Inn said yesterday that the revised balance sheet structure would allow it to “build on its strong operating performance, which has seen profit as well as revenues grow each year over the past three years”. A spokesman for Jurys Inn said the company’s 2011 accounts would be filed shortly and would show that revenues rose by 6 per cent to £147.5 million while its earnings before interest, tax, depreciation and amortisation increased by 4 per cent to £33.4 million.Jurys Inn employs 2,000 staff and operates 24 hotels in the UK, seven in Ireland, and one in Prague. This is some way short of the 48 hotels by 2012 that the company had planned at the time of the original deal.