• Cyril McAree

iNua Hospitality Reports Strong Financial Performance And Investor Return


iNua Hospitality, one of the largest regional hotel groups in Ireland, has reported strong financial performance and investor return, as the company outlines a robust strategy for growth over the next five years.

The company owns six hotels including the Radisson Blu Hotel and Spa, Athlone; Radisson Blu Hotel, Little Island, Cork; Radisson Blu, Limerick; Muckross Park Hotel and Spa, Killarney; Kilkenny Hibernian Hotel, Kilkenny and the Hillgrove Hotel, Leisure and Spa, Monaghan.

iNua Hospitality has acquired its current portfolio over the past four years and it is understood that a seventh hotel acquisition is in an advanced stage of planning. With a portfolio of seven hotels, the group will employ 750 people, propelling iNua Hospitality to become one of the largest regional hotel groups in Ireland. In 2018, the group of hotels is valued at €90 million, while over €10 million capital expenditure has been invested in hotel improvements to date.

PERFORMANCE

The iNua Hospitality portfolio recorded an EBITDA of €7.1 million in 2017. Under iNua Hospitality management, average occupancy across the portfolio of hotels has increased from 60% in 2014 to 73% in 2017. In 2018, there will be 760 rooms across the seven-hotel portfolio.

PROJECTED GROWTH

Outlining a five-year growth strategy, the company has a clear plan to grow the portfolio and deliver further shareholder value. iNua Hospitality is targeting a 34% increase in EBITDA over the next five years, to €9.5 million by the end of 2022, while it aims to reach average occupancy of 75% across the portfolio.

It is understood that further acquisitions are in an advanced stage of planning.

CONSOLIDATION

As part of its five-year growth strategy, iNua Hospitality has moved to consolidate its current asset base of six individual hotels, moving to a single hotel group structure, focused on driving performance and revenue and growing its hotel base further up to 2022. Specifically, the move will drive operational efficiency, synergies and EBITDA growth across the portfolio, making iNua Hospitality the leading regional hotel group in Ireland. The consolidation comes following a strong financial performance for iNua Hospitality over the last four years, enabling it to deliver a robust return – an average of 70% - to investors.

As the newly consolidated entity moves to its next phase of development, it has commenced a funding round, targeting €40 million in fresh investment. iNua Hospitality expects that as many as 60% to 70% of its original (seed) investors will reinvest in the hotel group.

iNua Hospitality published figures today as the company completes a nationwide roadshow to meet investors in Cork, Killarney, Galway, Limerick and Dublin.

SENIOR TEAM

The company was established in 2012 by Noel Creedon. Today, as a new consolidated hotel group, the iNua Hospitality senior management team are highly qualified and experienced leaders and include Founder and Managing Director, Noel Creedon; CEO, Paul Fitzgerald and COO, Sean O’Driscoll.

Mr Creedon has held senior management roles with Bank of Scotland and Halifax in the UK while Fitzgerald, a qualified chartered accountant from PWC, has held senior management positions in finance, buying and operations in the FMCG sector, among others.

O’Driscoll, a senior and experienced hotelier, has held senior management roles in the Great Southern Hotel Group, the Intercontinental Hotel Group in Switzerland and most recently as General Manager of the Muckross Park Hotel, Killarney.

COMMENT

Commenting, Founder and Managing Director, Noel Creedon said:

“We have successfully grown a portfolio of performing assets, over the past four years, with increased profitability across the group. We remain focused on making strategic investments that return value to our investors. Market conditions are positive, and we continue to see strong potential in the regional hotel market, our primary concentration. With a new structure in place, we will now operate our hotels as a group, bringing operational efficiency and synergies to drive our revenues further. Together, with a strong and experienced team and a strategy for growth, including firm plans for additional investments in 2018, we’re confident in the potential over the period.”

iNua Hospitality is funded through a network of equity and debt providers including Earlsfort Capital Partners and BlackBee Investments.

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