Speculation on the future ownership of Ryan Hotels has intensified after it emerged that the two Donegal hotelier brothers, Mr Brian and Mr Sean McEniff, have built up a 5.3 per cent stake in Ryan. This follows the disclosure two weeks ago that the Israeli group, Red Sea Hotels, had bought a 16.6 per cent stake in Ryan.
Speaking to The Irish Times about the investment, which cost the brothers about €4 million (£3.2 million), Mr Brian McEniff said: "I'm a hotelier and I'm always looking towards expansion and there was opportunity in Ryan to do that." He declined to say whether he and his brother intend to buy more shares or whether they intended to bid for Ryan.
The 5.3 per cent stake had been bought over a period of months, he said, and began before Red Sea Hotels suddenly emerged two weeks ago as a major shareholder after buying the entire 16.6 per cent stake held by the Guernsey-based Ashdown family.
The McEniff brothers operate separate hotel chains, mainly in the north-west, but have combined for the investment in Ryan. Mr Brian McEniff owns five hotels: the Holyrood and Great Northern in Bundoran; the Sligo Southern; the Yeats Country Hotel in Rosses Point; and the Westport Woods Hotel. His brother Sean owns: the Mount Errigal Hotel in Letterkenny; the Bellingham Hotel in Bundoran; and the Camden Court Hotel in central Dublin.
There is virtually no gerographical overlap between the McEniff hotels and Ryan's six hotels in the Republic - apart from Dublin where Ryan has the Gresham Hotel in central Dublin. Ryan's other Irish hotels are in Dun Laoghaire, Cork, Galway, Limerick and Killarney - areas where the McEniffs have no presence.
Ryan chief executive Mr Patrick Coyle said: "It's encouraging that an industry player sees value in Ryan and its unlocked potential." His comment on the apparent geographical synergy between the Ryan and McEniff chains was: "Some people might say that."
Mr Coyle said Ryan had already met representatives of Red Sea Hotels, but only about Ryan's strategy and not about board representation for the Israeli group.
Industry sources believe that the move by the Israelis may have frustrated more aggressive plans by Mr McEniff towards Ryan. They believe the Donegal brothers may have to make some arrangement with Red Sea if they have any plans to increase their stake or bid for Ryan.
One source suggested that one potential accommodation would be for either Red Sea or the McEniffs to bid for Ryan and then sell the other hotel assets they did not want.
Industry sources believe the McEniffs would have no real interest in Ryan's four non-Irish hotels in London, Brussels, Amsterdam and Hamburg while Red Sea would have little interest in Ryan's Irish hotels with the possible exception of the Gresham.
