The UK will become the prime focus of growth for the Jurys Doyle Group, chief executive Mr Pat McCann said yesterday at the announcement of the group's interim results.

He added that the group remained committed to expansion in the US and was examining possibilities in Central Europe.

The hotel group reported pretax profits to €32.82 million (£25.85 million) for the six months to the end of October 2000, an 18 per cent increase on the corresponding period in 1999. Turnover rose to €130 million (£102.4 million) from €109.5 million. Earnings per share increased by 18.2 per cent to 45.4 cents (35.76p). Mr McCann said the outlook for 2001 was promising. Trading in November and December was ahead of the previous year despite the poor weather.

Shareholders will be paid a dividend of 7.14 cents a share, an increase of 19 per cent.

Operating margins at the group, which has 30 hotels and inns in Ireland, Britain and the US, rose 1.7 per cent to 33 per cent. The group hopes to raise this figure to 35 per cent within 18 months.

Mr McCann said the results reflected strong trading in its overseas and Irish operations. "Revenues in all jurisdictions, the US, UK and Ireland, are up," he said. "The UK is an area of growth and this is reflected in the building of the new Jurys Inn in Croydon."

Expenditure in Britain over the past six months included the £10 million sterling (€15.7 million) redevelopment of the Jurys Clifton Ford Hotel in London and the opening of the Jurys Great Russell Hotel in London at a cost of £23 million sterling.

Mr McCann said the group would continue to seek out and develop new city centre locations in Europe and the US.

"Potential for development in the US market is positive, with our strategy focusing predominantly on the eastern seaboard," he said.

"We have made a conscious decision to stay in the US and that means expanding. But progress will be slower."

He added that the US slowdown had not been reflected either in its US operations or in traffic coming from the US.

Mr McCann said the group was examining a number of possibilities in eastern Europe, particularly Poland, but said no decision was imminent. However, he did not rule out the possibility of a joint venture.

"We've carried out research. Poland has good commercial centres and a lot of opportunities. We see opportunities with our Inns brand and our preferred option is to expand the Jury's brand," he said.

Opportunities in western Europe were less evident.

"It's much more difficult to get a foothold because it is much more expensive. We're not going to do something for the sake of doing it. We're not into putting flags on maps."

In Ireland, Mr McCann said the Dublin market had probably reached capacity.

"We've probably reached a nice equilibrium with the level of new developments. It's just right for the city in terms of hotel rooms. We're happy with our position from a geographical and market segment point of view," he said.

The group as a whole was operating with an occupancy percentage rate in the high seventies, he said.

"Dublin is not dissimilar. We're ahead of the figures for last year and slightly ahead of the market. Our occupancy is up year on year, so we would have increased our market share," he said.