Ryan Hotels has met the two hotel groups which have bought a 22 per cent stake in the firm, but insists there is no takeover bid.
Speaking after its annual general meeting in Dublin yesterday, Ryan Hotels chief executive Mr Patrick Coyle said it met its new shareholders, Israeli group Red Sea Hotels and the Donegal-based McEniff brothers, to outline its strategic plan. Red Sea was "very supportive" of its plans, which include a re-branding of sections of its business and the development of lands attached to its five Irish hotels. The McEniff hotel group "noted" the plans, he added. Mr Coyle said neither of these shareholders has sought boardroom representation.
Red Sea took a 16.6 per cent stake in the hotel group last month, while the McEniff brothers purchased a 5.3 per cent stake. There is a belief in the market that a bid will emerge from either Red Sea or McEniffs, with both sides splitting Ryan's assets between them.
At the meeting, Ryan Hotels chairman Mr Sean Henneberry highlighted the group's financial performance last year and suggested that trade in the current year was ahead of target.
Mr Henneberry said the group had some very valuable assets, with its properties increasing in value by over 125 per cent in the past five years to €211 million (£166 million). He told shareholders the share performance has not fully reflected the group's value but that the ongoing strategic review will enhance that.
The group is focusing on further expansion in cities. Central to the review is the development of land banks at its various Irish hotels. Ryan has five acres available for development at its Royal Marine Hotel in Dun Laoghaire in Dublin and is looking at extracting further value from its sites at Limerick, Galway and Killarney. Mr Henneberry said these proposals have been well received by institutional investors.
When questioned about the share price, the chairman accepted that the recent jump in value was due to the takeover speculation, although he pointed to the increase in the shares the day before the new shareholdings were acquired, following a 15 per cent increase in profits to €9 million last year. The rise in the share price in recent weeks means a takeover would be more expensive.
The McEniff brothers, Sean and Brian, attended yesterday's meeting but refused to comment on their future plans. Industry sources have speculated that they are interested in Ryan's Irish hotels, particularly the four properties outside Dublin. Red Sea is believed to be interested in Ryan's four overseas hotels in London, Brussels, Amsterdam and Hamburg. The two hotels in Dun Laoghaire and in Dublin would probably be of interest to both groups.
