The Doyle Hotel Group has acquired a four-star hotel in one of Washington DC's wealthiest districts, at a cost of $40 million (£28.5 million). The group now has three hotels in the city.
The price for the Dupont Plaza hotel, on Dupont Circle, close to Capitol Hill, includes the cost of an extensive refurbishment programme.
The 314-bedroom hotel is the biggest of the Doyle hotels in Washington and is scheduled to open in August 1998, under the name Doyle Washington.
The purchase brings to 570 the total room stock of Doyle's hotels in the city. The other two hotels, the Washington Courtyard and the Normandy, are located close to the Dupont Plaza.
The hotel will feature a business centre, a conference facility, a health club, an Irish bar and "state-of-the-art" rooms with Internet access.
The complex has been closed for the last month and refurbishment has already begun.
The company plans to take advantage of the proximity of the three hotels and says significant synergies can be achieved. It says it is looking closely at further acquisitions in the US and in Ireland, where it is the largest hotel group.
The location of the hotel is in one of the most lucrative areas of the city and is very popular with tourists. A lot of business in the area is also generated by diplomats working in the nearby embassy district.
Earlier this year there was speculation the group would soon float on the stock market, but sources later said this had been postponed. It is understood that the group is still seeking to reach agreement with its former managing director, Mr David Doyle, and his brother, Mr Michael Doyle, over the purchase of their shareholdings in the group.
Commenting on the purchase, the chairman of Doyle Hotels, Dr E.P. Galvin, said: "This acquisition is consistent with our objective of value-driven expansion. The market prospects in Washington are strong and it is a market we know well." He said the company is committed to a "planned, strategic programme of development and investment" over the next few years.
The last available accounts filed by the company for 1995 show it made pre-tax profits of £11 million, on sales of more than £50 million. It is likely these figures have considerably increased since then.
There are now 11 hotels in the group, seven in Dublin, one in London and the three in Washington.
