Senior management at the Jurys Doyle hotel group have held detailed presentations with shortlisted bidders for its Jurys Inns chain.
It is understood that Jurys has provided an update on current trading at the Inns chain and outlined the potential for new budget hotels at 50 locations in the UK that they have identified as being suitable for the three-star product.
The sale process is expected to conclude by mid-June.
The briefings have been led by Niall Geoghegan, Jurys Doyle's chief executive, and have also included senior members of management at Jurys Inns.
It is understood that four groups have made the final stage of bidding. These are believed to be private equity group Permira - which is being advised by AIB Corporate Finance and owns the Principal hotel chain - led by Irishman Tony Troy; Whitbread, which owns the budget Premier Travel Inns; Quinlan Private, which is headed by Irish financier Derek Quinlan; and Lydian Capital, a Switzerland-based investment house backed by John Magnier, JP McManus and chaired by Denis Brosnan, former head of Kerry Group.
Bids in excess of €1 billion are now expected for the Inns chain.
According to an information memorandum circulated to interested parties, Jurys Inns had earnings before interest, tax, depreciation and amortisation of €60 million in 2006.
The chain comprises 20 hotels, with an aggregate 4,900 bedrooms.
It is understood that Jurys' management has highlighted a number of key aspects to the shortlisted bidders. These include the fact that the properties have an average of 245 rooms each, more than twice the level that is typical among three-star hotels in the UK.
In addition, the hotels achieve a higher average room rate and also have four-star ground-floor facilities, including bars and restaurants, which generate extra revenue.
On average, the properties are only six years old and would require little by way of refurbishment in the short term.
In addition, 14 of the 20 properties are freehold, offering the buyers the opportunity for possible development potential or a sale and leaseback opportunity.
The sale process is now being driven by Crownway Investments, a vehicle controlled by John Gallagher and his wife Bernie, a daughter of the late PV Doyle.
Merrill Lynch has also advised the company, while Ernst & Young carried out extensive vendor due diligence.
The sale of the Inns chain would be the latest in a string of disposals by the privately-owned hotel group.
Jurys recently agreed to sell the Burlington Hotel to developer Bernard McNamara for €288 million. Mr McNamara is also part of a group that has agreed to acquire the Montrose Hotel in Stillorgan for more than €40 million.
The hotel group also pocketed about €350 million from the sale of its Berkeley Court and Jurys Hotel in Ballsbridge to developer Seán Dunne.
