Six offers have been received for the Moran and Bewley's Hotel Group, run by Limerick businessman Tom Moran and his family.
All bids are above €400 million, a price that obliged its board to undertake a sales process under the terms of a restructuring agreement with its lenders late last year.
It is understood that Dalata Hotel Group, a publicly quoted Irish company led by Pat McCann, is one of the bidders for the Moran and Bewley's chain. Others are thought to include Goldman Sachs, private equity group Blackstone (which owns the Burlington in Dublin and Hilton brand), Westmont Hospitality Group in north America, London and Regional (which owns the Four Seasons in Dublin), and Starwood, a global hotel operator whose brands include Westin and Sheraton.
Dalata is the biggest hotel operator in Ireland with a 9.4 per cent share of the market while Moran and Bewley’s has 2.9 per cent. It raised €256 million earlier this year through a stock-market flotation.
The Moran and Bewley's chain has appointed international financial advisory group Rothschild to handle the sale. A data room has been opened and first-round bids must be in by mid-October.
It is understood that estate agent Jones Lang LaSalle recently valued the group, for the board, at more than €450 million.
It is understood that the Moran and Bewley’s Group, with 10 hotels in Ireland and the UK, will record revenues of more than €100 million this year and earnings before interest, tax, depreciation and amortisation of over €32 million. All of its hotels are said to be operating ahead of budget.
Unsolicited speculation
In a statement issued to
The Irish Times
yesterday, the company said the chain has enjoyed a “strong year to date”, which “coupled with a heated market [for Irish hotel assets], means that the company has started to attract unsolicited speculation”.
“Where appropriate, Rothschild will open/manage discussions with potential suitors, partners or investors for the group,” the company said. “However, the process may not yield any suitable offer to put before its shareholders.”
Pat Power, chief operating officer, added: "Given our shareholder base and this market, we are naturally targets for this kind of speculation, which needs to be managed properly so that the management team continue to stay focused on growth. As always, it is business as usual at the Moran and Bewley's Hotel Group."
