Shares in Jurys jumped 25p to 650p as the hotel group announced better-than-expected annual pre-tax profits of £19.52 million, a 41 per cent improvement on the previous year.

"The economic fundamentals for trade and tourism in both Ireland and the UK remain positive and, as a result, we are looking forward to the year ahead with confidence," chairman Mr Walter Beatty said.

Boosted by a first-year contribution from its inns in Belfast and Limerick, group turnover rose by 24 per cent to £71.4 million.

Managing director, Mr Peter Malone, said Belfast traded above expectations while business generally in May and June, the first two months of the group's financial year, was "exceptionally good".

Although corporate business now accounts for 50-55 per cent of Jurys trade, tourism is also looking strong and should receive a further boost from extra flights from North America, the Tour de France and the Tall Ships visit, Mr Malone said.

The company, which opened another new inn in Edinburgh on Wednesday following the April opening of its London Inn, said average room rates in the year ended April 30th, 1998 were 7.5 per cent higher than the previous year. Occupancy rates were broadly similar at 78 to 79 per cent while gross operating margins rose to 30.4 per cent from 27.7 per cent.

The group also benefited from the strength of sterling which contributed between £800,000 and £900,000 to profits.

After a Manchester inn opens in May next year, the group will have a presence in six cities in Britain and more than 3,100 rooms in total compared with 2,850 at present. It remains on the lookout for further expansion opportunities.

"We see ourselves going into Britain more, to places like Coventry, Leeds, Birmingham, London again as well as northern Europe," Mr Malone said. Jurys looks at about 100 hotels a year, but will only move when the time is right and when its investment criteria including price and location are met, he said.

The group's land and buildings were revalued at March 31st, 1998, resulting in a surplus of £61.5 million which has been added to the revaluation reserve. Jurys London hotel, bought for less than £10 million nearly five years ago, was the biggest contributor to the revaluation, the company said.

The group announced a 40 per cent increase in earnings per share to 34.9 pence while the final dividend was increased by 26 per cent to 5.88p, resulting in a full-year payout of 9.00p.

Analysts expect to announce upgrades to the current year's forecasts.