Jurys Doyle Hotel Group plc today, 16 March 2001, announced the purchase of the privately owned, Birmingham based Chamberlain Hotels Limited, for a total consideration of Stg£41.9 million (€66.2 million) The purchase consideration is made up of Stg£8.0 million (€12.6 million) in cash, £Stg£19.6 million (€31.0) million in convertible loan notes (dated 2004) and the assumption of existing bank loans and other liabilities of Stg£14.3 million (€22.6 million). Audited earnings before interest, tax, depreciation and amortisation for the year ended 31 October 2000 amounted to Stg£3.75 million (€5.52 million). It is estimated that non-recurring expenses will amount to approximately Stg£0.7 million (€1.1 million). Turnover for the period was Stg£11.4 million (€18.0 million). The audited net assets of the company at 31 October 2000 were Stg£8.7 million (€13.7 million). The Directors of Jurys Doyle Hotel Group plc believe that the fair value of assets is not less that the purchase consideration. The cost per bedroom of the entire transaction is approximately Stg£60,300 (€95,300).
Chamberlain Hotels operate two landmark hotel properties in Birmingham, the 3-star, Chamberlain Tower Hotel and the two-star, Chamberlain Park Hotel. The Tower Hotel will be re-branded Jurys Birmingham Inn, a significant addition to the network of Jurys Inns in the UK. The Park Hotel while an excellent property does not fit with the Group`s development strategy in the UK and it is intended that it will be disposed of.
The Chamberlain Tower Hotel, which will immediately operate as Jurys Birmingham Inn, is the most prominent hotel property in the city. The property comprises 445 rooms, two restaurants, a bar, a purpose built conference floor with sixteen meeting rooms, and car parking for 220 vehicles. All bedrooms have ensuite facilities and are equipped to a high modern specification.
The hotel is centrally located on Broad Street, in the heart of the city`s financial and entertainment district, close to all major business, recreational and entertainment amenities and with easy access to Birmingham International Airport and all major rail links. The National Exhibition Centre, (the largest in Britian, attracting 70 million visitors since it opened), home of the motor show and a host of high profile exhibitions and events, attracts sizeable year round business to the hotel. The International Convention Centre, National Indoor Arena, Birmingham Symphony Hall, the recently developed Brindley Place complex, home to 520,000 square feet of blue chip office space and a range of bars restaurants and a host of other entertainment facilities are all within easy walking distances from the hotel.
The 250-bedroom Chamberlain Park Hotel is 15 minutes walk from the city centre and comprises 14 conference rooms, restaurant and bar, with car parking for 200 vehicles. The hotel enjoys a constant corporate and local trade. Prior to the completion of the disposal the hotel will be fully managed as part of the Jurys Doyle Hotel Group`s portfolio.
Commenting on the acquisition, Pat McCann, Chief Executive of Jurys Doyle Hotel Group said: “This is a tremendous deal for us. Our stated strategy is to develop our inns brand in strong city centre locations throughout the UK. Jurys Birmingham Inn, together with our development in Croydon, which will open for business in January 2002, add 685 rooms to our existing portfolio of 870 rooms in our UK Jurys Inns network.
time. We are delighted to now arrive in one of the UK headline cities with such a prestigious landmark presence in the city centre. Birmingham is the regional capital of the West Midlands, has a population of 2.5 million people and is home to the largest professional and financial services centre in the UK outside of London. The Chamberlain Tower Hotel meets our criteria perfectly, it is prominently located in a thriving city centre with a good business mix. The largest hotel in the city, the Chamberlain Tower gives us good revenue streams and a strong and commanding immediate market presence in the Midlands from which to build.”
Mr. McCann went on to say: “The hotel already enjoys an excellent mix of corporate, leisure and tourism related business. As part of the Jurys Doyle Hotel Group, the Jurys Birmingham Inn will benefit from improved yield management, continued strong occupancy levels, with enhanced cross selling opportunities from both our Central Reservations Office and expanding network of hotels and Inns throughout the UK.”
The Jurys Doyle Hotel Group now has a total of 31 hotels and Inns throughout Ireland, the United Kingdom and the US and will expand further with the addition of Jurys Croydon Inn, which is due to open in January 2002. In Ireland, there are twelve hotels and five inns including landmark properties such as the Berkeley Court Hotel and Jurys Hotel and Towers in Ballsbridge. Properties in the UK extend to six hotels and five inns. The group has three hotels in the US, all located in Washington D.C.