Ireland's two largest hotel groups, Jurys and Doyle, are preparing to amalgamate in a deal which would create a dominant force in the domestic market.
Jurys has announced that it is in discussions to buy the family-owned Doyle Hotel Group and create a chain of 28 hotels and inns. If agreement is reached, the enlarged group will be valued at about £400 million and will be renamed the Jurys Doyle Hotel Group.
The Doyle Hotel Group, which is owned by Mrs Margaret Doyle, her son, David, and her three daughters, Mrs Bernie Gallagher, Mrs Ann Roche and Mrs Eileen Monahan, has a value between £150 million and £200 million.
The family members have equal shareholdings, putting the value of their individual holdings at up to £40 million. They are understood to have been offered a mixture of Jurys shares and cash for their holdings, although Mr David Doyle - who has been at the centre of boardroom tensions in recent years - will receive a cash payment for his shares and will leave the company.
The Doyle Hotel Group, founded in 1961 by the late Mr P.V. Doyle, employs 1,100 people, with a further 300 working on a seasonal or part-time basis. The Jurys group is valued on the Irish Stock Exchange at £220 million. It employs 1,650 people.
A Jurys spokesman said that no job losses were envisaged and that employment could increase. Any rationalisation of staff in the future would be on a voluntary basis.
However, the deal would result in the enlarged group operating a number of large hotels in close proximity to each other. Analysts believe some might be sold. The acquisition, if it goes ahead, may also raise regulatory issues and will have to meet any requirements laid down by the Competition Authority.
Mrs Gallagher, Mrs Monahan and Mrs Roche's husband, Mr Tom Roche, will be invited to join the board of the enlarged group as non-executive directors while Mrs Doyle will become its honorary life president. Any final agreement will have to be approved by Jurys's shareholders.