PUBS AND HOTELS: Dublin publican and hotelier Mr Hugh O'Regan (38) is to sell his majority shareholding in Thomas Reid Holdings (TRH), which includes 11 pubs, the Morrison Hotel and other property interests. The stake could realise more than €30 million (£23.6 million).
TRH includes some of Dublin's trendiest pubs, such as Hogan's, The Bailey, Pravda and the 40 Foot restaurant and bar in Dún Laoghaire, the most recent to open. Mr O'Regan has appointed Davy Corporate Finance to handle the sale, which could be completed by the summer.
He intends to concentrate on some private investments, which include the Kilternan Hotel and Country Club he purchased for €12.7 million last year. Mr O'Regan said he feels he has taken the group as far as he can and reached a final decision to sell his 75 per cent stake in TRH last week.
The remaining 25 per cent of TRH is owned by his brother Declan, Mr Martin Conroy and Mr Anthony Kenna, the company's managing director.
Mr O'Regan's interests are likely to be sold separately, with pubs, property assets and the Morrison Hotel expected to be sold in three lots.
Speaking to The Irish Times, Mr O'Regan said TRH had received a number of approaches from international groups regarding the Morrison Hotel. The hotel has won many awards for its design, which featured the input of fashion designer Mr John Rocha.
Davy will assess the level of interest in TRH's assets over the coming months. Mr Declan O'Regan, Mr Conroy and Mr Kenna may set up a management buyout of Mr O'Regan's interest in the pubs, although international groups may also look at the portfolio.
The group also runs the five bars at Dublin Airport. This exclusive contract lasts for another seven years.
Mr O'Regan purchased his first pub, The Temple Bar, in 1988 for €190,460, just as the city-centre area was being rejuvenated. He came to public attention in 1994 when he sold - for €2.54 million - an option on a site in the Smithfield area that he had purchased for €63,490.
He has not played a hands-on role in the running of the pubs for almost two years, but has had a large input into the design of each premises. Mr O'Regan said he has been moving towards his decision for the past five months.
"The September 11th terrorist attacks on New York brought it to a head for me and last week I made a final decision. Regardless of the price I have decided to move on," he said.
Two years ago Mr O'Regan failed to take over Capital Bars, the company that has now been taken private by the O'Dwyer brothers. He was also involved in Bar Trader, a company that aimed to secure bulk discounts from brewers, using an internet-based trading system. The company abandoned a legal challenge against Guinness because of the associated costs and has effectively ceased trading. Mr O'Regan estimates he lost €1.9 million in Bar Trader.
TRH employs 700 people and had a turnover of €46 million last year. The company's gross value, before debts, is estimated at between €60 and €70 million.
