Interim results next week from the Jurys Doyle Hotel Group will be strong reflecting the booming economy, the popularity of the Republic as a short-term break destination and the ongoing integration of the Doyle hotels.
ABN-Amro expects a rise in pre-tax profits of 56 per cent to about €26.4 million, reflecting both organic growth and a contribution from the Doyle hotels acquired in April 1999. Earnings per share growth will be lower at around 13 per cent reflecting goodwill charges and the new share issue for the Doyle acquisition.
Shareholders can expect to hear how the integration of the Doyle hotels is progressing - market indications are that it is well on schedule.
The current focus is on completing this integration with purchasing agreements, to get full advantage of the group's new scale, yet to be finalised.
In addition, Jurys plans to have a new centralised reservation system for all the hotels in the Republic, the UK and the US in operation by May.
With the Doyle acquisition now almost bedded down, the group is in a strong position to look to further expansion. By the end of its trading year in April gearing will be about 62 per cent with very comfortable interest cover of over five times.
Already adding rooms at the Clifton Court Hotel in London, the group is expected to focus in the short term on expansion in the UK with acquisitions in provincial cities likely.
In the medium term the group is expected to add to its operations in the US while a Jurys Inn in Poland is a possibility as a first step into eastern European markets.
