Quinlan sells 50% stake in Jurys Inns

The Oman Investment Fund acquires half of the hotel chain from the Dublin-based private equity real estate firm, just one year after Quinlan purchased Jurys Inns for €1.17bn. The deal will allow Quinlan to take advantage of falling real estate values in the UK.

Quinlan Private has sold a 50 percent stake in the hotel chain Jurys Inns to the Oman Investment Fund for an undisclosed sum.

The deal comes just one year after the Dublin-based property investment manager bought Jurys Inns for €1.17 billion ($1.8 billion) beating bids from rival Swiss-based private equity firm Lydian Capital Partners and UK hotel and restaurant company Whitbread.

Quinlan has expanded the “budget-plus” chain from 20 to 23 hotels over the past 12 months with 10 more properties due to open in 2009/2010. The firm is expanding the brand out of its core market in Ireland and the UK, with plans to open a hotel in Prague and Budapest.
Quinlan partner Thomas Dowd said the deal would allow the firm to expand the hotel even further, with Hassan Al Nabhani, the deputy chief executive officer of the Oman Investment Fund – the investment arm of the Oman state – saying real estate and land price corrections in the UK left Jurys “in a position to take advantage of … site values by acquiring additional UK locations.”

Founded by Derek Quinlan in 1989, Quinlan Private is planning to raise its second private equity real estate fund later this year, as first reported on PERE. In May, the firm closed on its first institutional fund, European Strategic Real Estate, on €400 million of equity commitments from US investors. The fund will invest the equity alongside €325 million from Quinlan’s private UK and Irish clients in a separate vehicle, giving the firm a total investment capacity of €2.5 billion.

However in an interview with PERE magazine in May, principal and chief executive Olan Cremin said the firm would launch a second European fund later this year. The difference is that the new fund will target institutional investors from Europe and the Middle East, not just from the US.

Quinlan also bought the Savoy Group, which included the landmark London hotel, The Savoy, along with three other hotels, in 2004 for £750 million. The firm promptly flipped The Savoy Hotel for a £30 million profit several months later.