The Bryan Cullen-led consortium that took the Gresham Hotel Group private last year is understood to be behind the takeover approach to the Jurys Doyle Hotel group, write Dominic Coyle, Jack Fagan and Jane O'Sullivan
It is believed the consortium, which includes solicitor David Coleman and the Wexford-based builder and hotelier JJ Murphy, has secured the backing of the Doyle family members.
Between them, the three daughters of the late hotelier PV Doyle own more than a fifth of Jurys' shares and their support is seen as crucial if a bid is to succeed. It is likely they will have a significant stake in any bidding vehicle.
Following a 10 per cent rise in its share price last week, Jurys confirmed on Monday that it had received a preliminary and unsolicited approach that could lead to a bid for the company. It is understood Mr Cullen is the lead investor in the group seeking to acquire Jurys, which operates more than 30 hotels and inns in Ireland, Britain and the US.
One of the key attractions of the group is the eight-acre Ballsbridge site in Dublin 4 on which its flagship Berkeley Court and Jurys hotels are located. It is estimated to be worth at least €200 million.
Analysts estimate that, to gain control of the company, a bidder may have to pay up to €1 billion. Neither Mr Cullen nor Mr Coleman, who is travelling in the Far East, could be reached for comment yesterday. Mr Murphy declined to comment.
Mr Cullen, the managing director of Jackson Homes and a high profile property developer, held a 66 per cent stake in the Precinct consortium which bought the Gresham group for €117 million just last year.
His partners in the acquisition, Mr Murphy and Mr Coleman, of the Dublin-based law firm Lavelle Coleman, each held a 16.5 per cent stake. The deal was backed by Anglo Irish Bank and involved Mr Cullen giving the bank a personal guarantee for €10 million while the other two investors provided guarantees against €2.5 million each.
Last December, Precinct signed a deal with the Hyatt Group to operate its flagship property, the Gresham on O'Connell Street, Dublin, which will see the 200-year old hotel upgraded from four to five-star status.
Mr Cullen, who has been behind several apartment developments in Dublin, was previously involved in partnership with his father-in-law, Mr Jack Cosgrave, who founded the Cosgrave building firm. Mr Murphy owns the Hotel Rosslare in Wexford and has other hotel interests in Ireland and South Africa.
The value of property in Dublin 4 was underlined yesterday when a refurbished five-bedroom home on Ailesbury Road sold for €9 million. The house, which was owned by restaurateur Peter White, was bought as an investment by an undisclosed buyer.
