Lioncourt sets up Jarvis Hotels MBO

LIONCOURT Capital, the Dublin corporate finance house set up by former GE Woodchester executives, Michael Tunney and David Andrews, is arranging the finance for the management buyout of UK group Jarvis Hotels.

One year ago, Lioncourt, which is based in Blackrock in Dublin, arranged the funding for the sale and leaseback by Jarvis Hotels of nine of its top hotels in a stg£150m deal.

The Ramada hotels ranged in size from 87 rooms in Guildford to 214 rooms in West London, totalling 1,341 rooms in all.

Each of the nine properties was sold to a separate special purpose company owned by a large number of private investors. Negotiations were conducted on behalf of the buyers by Lioncourt Capital.

Jarvis Hotels is the latest publicly-quoted UK hotel group after Thistle, Hanover and MacDonald which has decided to go private in a £153m deal. Lioncourt is understood to be financing the deal in a mixture of equity and debt using its own high net worth clients.


The management buyout is being led by chief executive John Jarvis and David Thomas. IBI Corporate Finance is advising Kayterm, the vehicle making the buyout.

Lioncourt is already involved in student travel company Usit, where Mr Tunney is chairman.

The Jarvis MBO is expected to be successful after Kayterm won support from London entrepreneur Jack Petchey who holds a 29.7pc stake. Mr Petchey was behind the privatisation of the Hanover hotel group.