JURYS INNS is in talks to add two new budget hotels in central London to its chain and has decided to build a 150-bed extension to its Islington property in the city.
But the chain, which was acquired by Quinlan Private for €1.166 million in 2007, has shelved plans to expand into central and eastern Europe until there is an economic recovery in the region.
Speaking exclusively to The Irish Timesthis week, John Brennan, group chief executive of Jurys Inns, said: "We're very hopeful of being able to secure two additional sites in London in prime locations for Jurys Inns."
Mr Brennan suggested that these properties would involve conversions from offices and would see Jurys Inns operate them on a leasehold basis. He hopes the deals will probably come to fruition in the next six to 12 months.
Jurys Inns has five hotels in London – at Chelsea, Croydon, Heathrow, Islington and Watford.
The Islington property, which already has 387 rooms, is to get a 150-bed expansion.
“We were running at nearly 90 per cent occupancy in Islington last year,” he said.
Mr Brennan said the London market has outperformed most other cities in the economic downturn. “The revpar has been down very modestly, if at all,” he said.
In terms of central and eastern Europe, Mr Brennan said its plans to expand the brand into the region have been postponed. The chain opened its first property on continental Europe in Prague last September and owns a site in Budapest. “We have enough to keep us going for a couple of years in the UK,” Mr Brennan said. “In due course there will be great opportunities in Poland and elsewhere but at the moment there’s better opportunities in the UK. The Czech Republic and Poland are best positioned to come out of recession first and then others will follow,” he said.
Mr Brennan said Jurys Inn would open in Bradford and Portsmouth this year and in Gateshead and Glasgow in 2011.
Jurys Inns, which is heavily indebted, experienced a difficult 2009 with its earnings declining by close to 30 per cent.
But Mr Brennan said a cash injection of £60 million last year and a restructuring of its debt meant the company had sufficient funding for its needs.
