Jurys Doyle hotel group said today it had rejected an unsolicited takeover bid of €15.25 per ordinary share made by Precinct Investments Limited.
"The board has now rejected the approach as, in the opinion of the board, it fails to reflect the value of Jurys Doyle and its prospects," the company said in a statement.
Jurys, which operates more than 30 properties in Ireland, the UK and the United States, announced last Monday it had received the bid, sending its shares to an all-time high of €15.2.
Earlier this morning shares in the company were up 2 per cent at €14.9 euros.
Precinct Investments, which took Gresham Hotel Group private last year, is among a number of parties said to be interested in Jurys.
Analysts say Jurys is fully valued at its current share price but that a buyer may have to pay a sizeable premium to get hold of its valuable Jurys Inn chain and an underused eight-acre site, home to three hotels, in Dublin's Ballsbridge.
NCB Stockbrokers analyst Shane Matthews put the "base case" break-up value for Jurys at €14.80.
"We believe a successful bidder will need to pay a substantial premium to this level. Based on historical exit prices we think the bidder may need to pay as much as a 20 per cent premium to the pre-announcement price - i.e. €16.50 (per share)," he said.
Media reports have named a host of other possible bidders including a group of Dublin property developers and hoteliers who recently paid €120 million for Dublin's well-known Shelbourne Hotel.
Market speculation has also mooted Irish-based investor group Quinlan Private, which last year bought London's exclusive Savoy, Connaught, Berkeley and Claridge's hotels for £750 million.
Any bid would require the backing of the Doyle and Beatty families who together hold around 30 per cent of the firm.