Lone Star puts Jurys Inn chain, other hotels up for sale

The Jurys Inn London Watford is part of a portfolio Lone Star is putting up for sale.

Reports from the UK say that global private equity firm Lone Star Funds is taking 42 hotels to market, including its Jurys Inn chain. The sale of the hotels could bring in more than £1 billion ($1.3 billion). 

Jurys Inn is composed of 36 hotels in the UK, Ireland and the Czech Republic. The six additional hotels being floated for sale are Hilton branded. 

Credit Suisse and Eastdil Secured are reportedly advising on the sale.


Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

The Times reports that a sale is the preferred method over an IPO and the Jurys chain and six Hilton properties could be sold separately.

The 42 hotels are part of Amaris Hospitality, which was formed by Lone Star in June 2015 and composed of 89 hotels. Lone Star targeted distressed hotels in recent years, purchasing 29 Jurys Inn hotels in January 2015 for £680 million and Puma Hotels, which owned the Lygon Arms in the Cotswolds and the Imperial in Torquay, for £323 million last year.

Amaris also included 21 Mercure hotels and 19 Thistle hotels.

“The strategy is to create a branded hotels business. Many of these hotels have great locations but have not had much put into them. We have £100m to invest and renovate these hotels,” John Brennan, the current head of Jurys Inn who became Amaris’ CEO, said at the time, adding that  "2017 is when we should see the fruits of our labours."

It appears a sale is the fruits.

A source told The Times that "Lone Star had decided to explore options after receiving unsolicited approaches from a number of interested parties, thought to include Chinese suitors."

Lone Star acquired the Jurys Inn chain from a group of investors: the Oman Investment Fund, Mount Kellett Capital Management, Ulster Bank, Westmont Hospitality Group and Avestus Capital Partners.

Ireland's Independent points out that the sale of Jurys could bring in a profit of as much as €300 million.

Suggested Articles

Pat Pacious discusses the seismic shifts the sector has seen and will continue to experience.

Results season has started to make itself felt and the impact of the coronavirus was at the forefront of analysts’ questions on the earnings calls.

Hotel pipeline data for Europe showed a 29.4% year-one-year increase to 1,654 projects as of the end of January, according to STR.