Midmarket hotel group Jurys Inn has today completed a lengthy financial restructuring that has seen its £600m debt cut to a figure believed to be around £250m.
While the company has enjoyed a recent strong operating performance, which has seen profit and revenues grow each year over the past three years, it has been held back from expanding by its heavy debt. Jurys Inn's most recent accounts, which are due to be filed shortly, show revenue increased by 6% during 2011 to £147.5m, with EBITDA up 4% to £33.4m.
The company has continued to invest in its portfolio, with £27m being spent on an extensive refurbishment of the hotels and improvements to its online booking and IT platforms.
The restructuring has involved existing shareholders, Oman Investment Fund and Avestus Capital Partners, working closely with Jurys Inn lenders IBRC, Ulster Bank and AIB and the Jurys Inn management team.
Jurys Inn's new investor group comprises: Oman Investment Fund; Mount Kellett Capital Management, a global, multi-strategy investment fund in partnership with Avestus Capital Partners; Ulster Bank, a member of the Royal Bank of Scotland Group; and Westmont Hospitality, one of the world's largest privately-owned hospitality groups.
John Brennan (pictured), chief executive of Jurys Inn, described the financial restructure as "great news" for the company's employees, customers and suppliers.
"We are especially delighted to have attracted such a prestigious group of long-term, well-capitalised, institutional investors with global experience in the hospitality sector," he said. "By choosing to take a stake in the future success of the business, they have recognised the value of our business and management team, which has been reflected in our strong operating performance over the past three years.
"The company is performing very well and has seen increased occupancy and market share during 2011 and 2012. The combination of great city centre locations, well invested contemporary hotels and great value for money is proving increasingly popular. Of particular note is the growing penetration Jurys Inn is achieving in the corporate market and today's announcement allows us to further develop the business over the years ahead."
With the new finance in place, the group's first priority will be to add a 150-bedroom extension to its Islington hotel in London, which currently has 229 rooms, and to "pursue new opportunities".