Jurys Inns is about to embark on a radical expansion that could see it open hotels in up to 120 cities in central and eastern Europe over the coming decade. Una McCaffreyreports.
The firm, which is on track to deliver a 10 per cent increase in profits for this year, is preparing to launch its first central European hotel in Budapest.
The company's parent, Quinlan Private, is conducting a €400 million-plus fund-raising to finance the expansion of the chain, both in Britain and throughout continental Europe.
Niall Geoghegan, Jurys Inns chief executive, said the chain of "premium budget" properties could more than triple in size from its current 22 properties to have more than 70 hotels over the next couple of years.
The company's business plan sees it having 15 hotels in central and Eastern Europe within five years. At least 13 sites have already been identified by Quinlan's European property and development arm, Quinlan Private Golub.
Mr Geoghegan said the company was engaged in a "land grab" in continental Europe. "This can become a big business relatively quickly," he said.
This year, Jurys Inns is expected to record turnover of €177 million, up from €159 million. Earnings before interest, tax, depreciation and amortisation are meanwhile set to grow by 10 per cent to €68 million.
A Jurys Inns site has already been secured in Budapest, with another in Prague close to being finalised. Mr Geoghegan has visited Poland in the past week, where he is considering sites in cities including Krakow and Gdansk. He is scouting at least three locations in the Czech Republic and more in Slovakia, including two in Bratislava. The firm is also examining opportunities in Germany and the Benelux region, with Mr Geoghegan also preparing to visit sites in Russia.
He said Jurys Inns would also like to establish a presence in Croatia, Slovenia, Bosnia and the Baltic states.
The company also has advanced plans for eight new properties in Britain which will open by the end of 2009. The management team has identified 35 cities in Britain where it could open a hotel and would also like to add to its presence in cities such as London and Manchester.
Mr Geoghegan said Quinlan Private had provided a "substantially different" operational environment to the hotel chain's previous plc status and subsequent ownership by the Doyle family.
"There is a sense of commercial urgency," he said.
The fund-raising that is ongoing will include Quinlan clients in the Republic, the UK and the US, with a greater proportion of the funds to come from institutions than individuals.
Quinlan Private paid €1.165 billion to take over Jurys Inns from the Doyle family over the summer. John Gallagher, who fronted the deal on the Doyle side, subsequently said "sensible people" would not buy into the hotel sector for at least two years. "They might not have been the best comments for us to hear at the time," said Mr Geoghegan this week.
