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Summary: Private Equity Firm Lone Star

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Private equity firm Lone Star has announced the launch of a new hotel investment and management group, Amaris Hospitality. The new hotel group will help the US-based private equity firm to bring together its existing portfolio of 89 properties.

The Announcement

The private equity firm announced that its Amaris Hospitality will bring together its recently acquired hotels, which are currently spread around four separate portfolios.

The hotel group will include 29 Jurys Inn hotels, 21 Mercury hotels, 17 Hotel Collection hotels and three Hilton Hotels. The private equity firm has acquired the units over the last two years.

Furthermore, the group will add 19 provincial hotels at the end of July. These are currently operating as Thistle venues. The firm currently has combined sales of over £450 million with its hotel chains. …show more content…

Mr Brennan is the former Jurys Inn boss. Furthermore, Grant Hearn, the former chief executive of Travelodge, has been appointed as the non-executive chairman of the new company.

Mr Brennan was quoted in the Financial Times saying, “The strategy is to create a branded hotels business. Many of these hotels have great locations but have not had much put into them. We have £100m to invest and renovate these hotels.”

Furthermore, Mr Brennan said in the official statement, “Through the successful implementation of our strategy in the coming years we expect the business to have a value of over £2 billion”.

Lone Star has more hotels in its portfolio, but these will not feature in the new group. According to Big Hospitality website, the hotels will continue to operate under the Hotel Collection portfolio run by Peter Manby.

Hotel Industry Becoming Increasingly Attractive

According to the Financial Times article, the hotel sector’s attractiveness is returning to the pre-financial crash levels. The industry has seen a flurry of deals involving private equity

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