Announcing strong annual results today, Jurys Hotel Group said it was selling the Burlington Hotel in Dublin and planned to invest €200m in its hotels and on acquisitions.
The group said operating profit for its first year since it was taken private jumped by 18% to €125m, with turnover up 11% to €355m.
The group was taken private in late 2005 by JDH Acquisitions, which is controlled by the Doyle family.
Jurys said it has appointed commercial agents CBRE to sell its Burlington Hotel site in Dublin, in order to release funds so the group can re-invest in premium hotels and expand internationally.
The group said the sale is expected to take a number of months and the hotel will remain open throughout 2007.
'The value of the property has appreciated significantly in the past twelve months, particularly in the light of a recent transaction in the area,' it said. A neighbouring site owned by insurer Allianz was sold for €100m. This works out at around €66m an acre, implying a value of around €246m for the Burlington site.
Jurys also said it plans to invest over €200m in its existing assets including the Westbury, Jurys Kensington, Jurys Clifton Ford, Jurys Great Russell Street and Jurys Bristol, as well as on new purchases in key international cities.
Following the acquisition of the Group in late 2005, Jurys was re-structured into two divisions- a premium hotels business and an Inns business.
The group said that the Inns business, which is now in 20 city centre locations in Ireland and the UK, continues to trade strongly, with a significant pipeline of additional Inns planned in the UK and Europe.
Ms Bernie Gallagher, Chairman of JDHA, said the decision to sell the Burlington site was a difficult one but the significant investment the hotel would need, and the current value of the site, ultimately influenced the decision.
She added that the proceeds of the Burlington will enable the Group to achieve its objectives and expand internationally.
'Our strategy is to firmly position the hotels in the Group at the premium end of the markets in which they operate and we are committed to invest accordingly. We also plan to accelerate the roll-out of the Inns', she said.
The sales of the hotel also means the loss of 250 jobs.
Workers at the hotel will receive a redundancy package equivalent to seven weeks' salary for every year of service.
