• Cyril McAree

iNua Hospitality Secures Fresh Investment To Support Future Growth In Hotel Group

iNua Hospitality, one of the largest regional hotel groups in Ireland, has secured investment of €40million to support the future growth of the group, it was announced today (Monday). The group announced its intention to commence a funding round last March, targeting up to €40million in fresh investment and consolidating the Group under a single entity. The group also signalled its intention to target investment from its original seed investors and has confirmed reinvestment by 70% of its original investor base. The newly formed entity, iNua Hospitality PLC, now owns and operates seven hotels including Radisson Blu Hotel, Little Island, Cork; Radisson Blu, Limerick; Kilkenny Hibernian Hotel, Kilkenny; Muckross Park Hotel and Spa, Killarney; Radisson Blu Hotel and Spa, Athlone; Hillgrove Hotel, Leisure and Spa, Monaghan and the latest addition to the group, the Radisson Blu Hotel & Spa, Sligo. The group announced its intention to purchase the Radisson Blu Hotel & Spa, Sligo in April. With a portfolio of seven hotels, the group employs over 1,000 people, propelling iNua Hospitality PLC to become one of the largest regional hotel groups in Ireland. The group of hotels is currently 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 increased from 60% in 2014 to 73% in 2017. In 2018, there is 760 rooms across the seven-hotel portfolio. CONSOLIDATION As part of its five-year growth strategy, having secured the fresh investment of €40 million reported today, iNua Hospitality has now fully consolidated its current asset base of seven individual hotels, moving to a single hotel group structure. The Group is focused on driving performance and revenue and growing its hotel base further up to 2022. With a new fully consolidated structure, iNua Hospitality PLC can now drive operational efficiency, synergies and EBITDA growth across the entire portfolio, making iNua Hospitality the leading regional hotel group in Ireland. iNua Hospitality was established in 2012 by Founder and CEO, Noel Creedon. Mr Paul Fitzgerald is the Group’s CFO, while former hotelier Sean O’Driscoll is COO at iNua Hospitality. COMMENT Commenting, Founder and CEO, Noel Creedon said: “Having secured fresh investment, and finalised the consolidation of our hotel group in a PLC structure, iNua Hospitality is positioned for further growth across our current portfolio and for new opportunities as part of the next phase of our development. We have successfully grown a portfolio of seven well-performing assets, over four years, with increased profitability across the group. We remain focused on continuing to invest in our existing portfolio and our people, as well as making further strategic investments and returning value to our investors.”

The consolidation was funded from a debt perspective by Earlsfort Capital Partners and from an equity perspective by BlackBee Investments. Deloitte acted as lead advisors on the transaction, led by Ronan Murray, Partner Corporate Finance and John Doddy, Head of Debt and Capital Advisory. Group CFO, Paul Fitzgerald said: ‘Working with a team of strategic partners, we have successfully completed this transaction and will now operate as a fully consolidated entity. We look forward to pursuing the next phase of growth and development as iNua Hospitality PLC.”

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