Lone Star has revealed plans to bring together 89 UK hotels to form a £1 billion company, trading under the name Amaris.
The Dallas-based private equity group will become one of the largest hospitality operators in the UK, but said it hopes to sell or float the new company in the medium term.
Properties in the portfolio will include the 29 Jurys Inn hotels Lone Star purchased in January for £680 million and Puma Hotels, which cost a further £323 million in 2014.
A further 21 Mercure Hotels and three Hilton Hotels complete the existing stock.
Some 19 Thistle Hotels are also expected to be added on July 30th when Lone Star’s most recent deal completes.
When established the chain will have around 8,000 employees.
“The strategy is to create a branded hotels business.
“Many of these hotels have great locations but have not had much put into them.
“We have £100m to invest and renovate these hotels,” said John Brennan, the current head of Jurys Inn who will become Amaris’ chief executive, told the Financial Times.
Grant Hearn, the former chief executive of Travelodge, will become non-executive chairman of the new company.