Ryan Hotels' shareholders were a disappointed lot with many of the 200-plus group who turned up at its a.g.m. yesterday disillusioned by the poor performance of the company's share price.

The group's new chairman, Mr Sean Henneberry, sympathised with his audience but offered them little optimism, blaming market conditions for the share's current woes. As one of the smaller capitalised stocks quoted on the Dublin market, Ryan, like many other companies, has experienced great difficulties in attracting and sustaining investor interest, he said.

"The stock market has always been subject to fashions and we all remember the excitement generated by shell companies, exploration companies, financial services companies, food companies and until quite recently, high-tech companies quoted on Nasdaq. The fashion at the moment is that small is not beautiful," the chairman explained.

Mr Henneberry said the group has talked to analysts who indicated they are pleased with the performance of the business, but the shares continue to suffer nonetheless. "We are hoping there might be an outbreak of common sense in the investment community soon. The phenomenon whereby companies are producing profit increases of the order of 10 times the rate of inflation but seeing little or no change in the share price is extremely frustrating."

Shareholders were quick to offer suggestions to the chairman and his board of directors on how they might exert greater influence over the share price. More than one highlighted the fact that just four out of nine of Ryan's board of directors hold shares in the group. "Are we not sending out a wrong message to the investment community if the directors will not invest in their own company?" one asked.

Mr Liam Bradley suggested that with such a low market capitalisation, the group was a prime target for a take-over bid. Mr Henneberry agreed that the current share price does make it vulnerable to a bid. "There is always that possibility. We have had no approaches so far, we don't envisage any and are not enthusiastic about that prospect. We are producing solid results and believe it is in the best interest of shareholders to stick with us while we work to drive up the share price."

The hotel group is also closely assessing a number of prospective acquisitions, shareholders were told. It hopes to add new hotels to the chain by the end of the year, the chairman said. Ryans is understood to be focusing on acquisitions in Dublin and the south-east and would also consider a hotel in the London area. Ryan chief executive, Mr Patrick Coyle said the group could spend between £40 million (€51 million) and £50 million (€64 million) on acquisitions.