IRISH FINANCIER Derek Quinlan has hired investment bank Lazard to identify opportunities on how he might expand his London-based Maybourne Hotel Group, which comprises the five-star properties the Berkeley, Claridge's and the Connaught.
A spokesman for the Maybourne Hotel Group yesterday confirmed to The Irish Timesthat Lazard had been hired by Mr Quinlan. "Lazard has been appointed to advise Maybourne on a range of options to grow the brand internationally," he said.
The spokesman added that Mr Quinlan was not seeking to sell off the luxury hotel chain, which he acquired in 2004.
Reports recently suggested that Italian fashion designer Giorgio Armani had expressed an interest in buying the Berkeley. These were described as "hogwash" by sources close to Mr Quinlan.
Weekend newspaper reports in Britain suggested that Lazard will look at attracting external investors to fund Maybourne's expansion to other major capitals around the world.
It will also consider a stock market listing that could value the hotel business at about £1 billion, although this could be difficult to achieve given the current global financial crisis. It is understood that a decision on which route Mr Quinlan takes could be some time away.
Mr Quinlan is believed to see an opportunity to expand the hotel chain to other major cities, including Dubai, Moscow, New York and Paris.
Maybourne, which is run by experienced hotelier Stephen Alden, is thought to be keen to take on hotel management contracts in those locations.
The Berkeley, Claridge's and the Connaught are based in Mayfair and are world-renowned. The Connaught recently had a £70 million makeover while the others are having a £250 million refurbishment.
Mr Quinlan also owns property adjacent to the Berkeley and has retained Lord Foster, a leading architect, to develop a plans for an extension of the hotel.
Maybourne has performed strongly in recent times following a major investment programme to upgrade the three landmark London hotels.
In the year to the end of June 2007, Coroin Ltd, which owns the London hotels, recorded an after-tax profit of £8 million. This compared with a £7.5 million loss in the previous year.
Coroin's turnover rose by 21 per cent to £94.3 million.
Coroin's backers include Davy stockbroker Kyran McLaughlin and Irish property developer Paddy McKillen.
In September, The Irish Timesrevealed that Riverdance creators John McColgan and Moya Doherty had sold their shares in Coroin and resigned as directors in July.
The pair are believed to have sold their stakes to Coroin's other shareholders. Coroin was acquired in May 2004 for £750 million by Mr Quinlan's consortium. Reports at the time suggested that the investors put up €150 million in equity and borrowed the balance to buy the hotel chain.
The deal included the up-market Savoy Hotel in London, the Savoy Theatre and Simpson's in the Strand restaurant, all of which were sold on, leaving him with the Berkeley, Claridge's and the Connaught.
The disposals are believed to have netted the Irish investors about €60 million.
