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Quinlan Private, the Irish private equity real estate group, has sold a 50% stake in its Jurys Inns portfolio company to the Oman Investment Fund (OIF), an investment arm of the Sultanate of Oman. The sales price was not disclosed although media reports have suggested the transaction was worth about EUR 200mln, or half Quinlan's original EUR 400mln equity investment in the Dublin-based premium budget hotel group.

'OIF was impressed with the quality of the Jurys Inns business as well as with its growth potential and Jurys Inns operates in the fastest growing sector of the hotel industry which is proving very resilient in the current environment,' said Hassan Al Nabhani, deputy CEO of the Oman fund. 'Jurys anticipates being in a position to take advantage of the correction in site values by acquiring additional UK locations.'

Quinlan noted that Jurys Inns had made significant progress since it acquired the group in July 2007. That transaction took place at an enterprise value of nearly EUR 1.2bn, which was composed of EUR 400mln in an equity investment and EUR 800mln in the debt taken on with the purchase. Under Quinlan, three new Jurys Inns have opened, bringing the total number of hotels up to 23 across the UK and Ireland. A further 10 inns are under development and due to open in 2009 and 2010. In addition, Quinlan noted that an extensive pipeline of new hotel sites have been acquired that will result in 48 Inns being fully operational by 2012, including the opening of the first Jurys Inns in Central Europe in 2010.

OIF and Quinlan will have equal representation on the hotel chain's board of directors and anticipate that they will join forces for other investment opportunities.

Farragut Capital advised Quinlan on the transaction.