Hotels sold in £680m deal
RBS recoups funds from sale of Jurys Inn to US investment house
RBS will recoup some of the loans provided to the group via its Ulster Bank subsidiary, part of a consortium of owners which includes the Oman Investment Fund, Mount Kellett Capital Management, Westmont Hospitality and Avestus Capital Partners.
Lone Star Funds will pay £680 million to acquire the four-star chain, which has 7,000 rooms and employs 2,000 staff in 31 countries, and will also take on the outstanding debt. Jurys has hotels in Edinburgh (pictured) and Glasgow among 25 in the UK.
The consortium has offloaded the business less than two years after a significant debt restructuring that followed the collapse of the Irish property market. The consortium funded property tycoon Derek Quinlan with the Oman Investment Fund taking a 50% stake.
The crash left the banks in control of Jurys and RBS agreed to a debt write-off of £280m (€328m). Private backers provided £120m of equity. the debt-for-equity swap saw RBS become a shareholder in the group.