Ramada Jarvis

Ramada Jarvis was a United Kingdom hotel chain operating mainly four- and five-star properties across mainland Britain, with a smaller number of internationally managed hotels. The business originated in 1990 when John Jarvis, a former chairman and chief executive of Hilton International, established Jarvis Hotels and acquired the 41-hotel Embassy Hotels chain from Allied-Lyons. The acquisition was intended to create a substantial hotel group focused on conferences, leisure short breaks and related hospitality services, with the possibility of selling the enlarged business to a trade buyer after a period of expansion. The Embassy transaction was initially valued at £202 million and was subsequently revised to £186 million. It completed in July 1990 with backing led by Candover Investments. The acquired portfolio included the Parkway Hotel in Leeds, a property with a personal connection to John Jarvis because his father had previously managed it. Jarvis Hotels soon placed eight properties on the market, including the Royal Oxford Hotel in Oxford, the Royal Hotel in Cardiff and the Salutation Hotel in Perth, indicating an early effort to reshape the portfolio and release capital. The group also sought to strengthen its appeal in the short-break and leisure market. In April 1991, the first Sebastian Coe Health Park opened at the Penns Hall Hotel in Sutton Coldfield. The facility resulted from a joint venture with athlete Sebastian Coe and formed part of a wider attempt to add health, recreation and experience-led offerings to the hotel proposition. Jarvis Hotels was floated on the London Stock Exchange in 1996 at an approximate valuation of £495 million. It was later taken private in 2003 through a management buyout valued at £159 million. The business subsequently operated a portfolio associated with the Ramada name, becoming known as Ramada Jarvis. At its peak, the group comprised 42 hotels in the United Kingdom and five overseas properties, although the Ramada relationship also involved franchise and management arrangements rather than a wholly owned international network. Ramada Jarvis entered liquidation on 30 September 2011. The immediate cause described in the reference material was severely restricted cash flow after the group's principal bankers called in loans before their scheduled term. The liquidation resulted in the dispersal of the hotel portfolio. Twenty-six hotels were acquired by Jupiter Hotels Limited, a 50:50 joint venture between Patron Capital and West Register, a vehicle associated with the Royal Bank of Scotland Group's Global Restructuring Group. Those properties were subsequently rebranded as Mercure hotels under a franchise agreement with Accor. The investors committed additional capital and obtained debt financing from lenders that included RBS, HSBC and Bank of Ireland. The remaining properties followed separate paths. The Ramada Heathrow Airport hotel was later rebranded as a DoubleTree by Hilton in August 2012. The Ramada Glasgow Airport property became a Courtyard by Marriott in September 2016. A Ramada Jarvis hotel at Junction 25 of the M1 was privately acquired and later operated under the Best Western banner. Ramada Jarvis therefore no longer exists as an operating hotel chain, but its history illustrates the consolidation, refinancing pressure and brand migration that affected parts of the United Kingdom hotel sector during and after the 2008 financial crisis.

Ramada Jarvis developed from Jarvis Hotels, which was founded by John Jarvis in 1990. Jarvis had previously served as chairman and chief executive of Hilton International. His initial expansion came through the purchase of the 41-hotel Embassy Hotels chain from Allied-Lyons. The deal was first reported at £202 million and later revised to £186 million before completion in July 1990. Candover Investments led the backing for the transaction. The acquisition provided Jarvis with a sizeable United Kingdom hotel platform. Its stated strategic direction was to build a chain serving conferences and leisure short breaks, with the prospect of eventually selling the business to another hospitality company. The portfolio included the Parkway Hotel in Leeds, which had a personal connection to Jarvis because his father had once managed the property. Jarvis quickly placed eight hotels on the market, including the Royal Oxford Hotel, the Royal Hotel in Cardiff and the Salutation Hotel in Perth, as it adjusted the composition of the acquired estate. Jarvis Hotels expanded its leisure proposition through a joint venture with athlete Sebastian Coe. In April 1991, the first Sebastian Coe Health Park opened at the Penns Hall Hotel in Sutton Coldfield. The initiative added health and recreation facilities to the group's short-break offer and helped distinguish the chain from a purely accommodation-led hotel business. The company became publicly traded in 1996 through a London Stock Exchange flotation, at which point it was valued at approximately £495 million. In 2003, the business was taken private in a management buyout valued at £159 million. It later operated its United Kingdom hotel portfolio under the Ramada Jarvis identity, with the group consisting primarily of four- and five-star hotels and a small number of internationally managed properties. By the time of its collapse, the group had 42 hotels in the United Kingdom and five overseas. Ramada Jarvis entered liquidation on 30 September 2011. The stated trigger was a severe restriction of cash flow after the principal banks called in loans before their contractual term. The resulting insolvency led to a break-up of the estate rather than a continuation of the chain under the same ownership. Jupiter Hotels Limited acquired 26 of the hotels. Jupiter was structured as a 50:50 joint venture between Patron Capital and West Register, an entity associated with the Royal Bank of Scotland Group's Global Restructuring Group. The acquired hotels were rebranded as Mercure properties under a franchise agreement with Accor. The transaction was supported by new investment and debt financing from RBS, HSBC and Bank of Ireland, which had also been among Jarvis's original lenders. The properties not included in the Jupiter transaction followed different ownership and branding paths. Ramada Heathrow Airport became a DoubleTree by Hilton in August 2012. Ramada Glasgow Airport changed to the Courtyard by Marriott brand in September 2016. The Ramada Jarvis property at Junction 25 of the M1 was privately purchased and later traded under the Best Western banner. These changes marked the end of Ramada Jarvis as a distinct operating hotel chain.

• 2016

  Glasgow Airport property changes to Courtyard by Marriott

  [1]Ramada Jarvisen.wikipedia.org

  The Ramada Glasgow Airport hotel was rebranded as Courtyard by Marriott.

• 2012

  Heathrow property changes to DoubleTree by Hilton

  [1]Ramada Jarvisen.wikipedia.org

  The Ramada Heathrow Airport hotel was rebranded as DoubleTree by Hilton.

• 2011

  Ramada Jarvis enters liquidation

  [1]Ramada Jarvisen.wikipedia.org

  The hotel group entered liquidation on 30 September after a severe cash-flow crisis linked to loans being called in by its principal bankers.

• 2011

  Twenty-six hotels transferred to Jupiter Hotels

  [1]Ramada Jarvisen.wikipedia.org

  Jupiter Hotels acquired 26 properties and subsequently moved them to the Mercure brand under an Accor franchise agreement.

• 2003

  Management buyout takes the company private

  [1]Ramada Jarvisen.wikipedia.org

  The company was taken private through a management buyout valued at £159 million.

• 1996

  Jarvis Hotels floats on the London Stock Exchange

  [1]Ramada Jarvisen.wikipedia.org

  Jarvis Hotels became publicly listed, with an approximate valuation of £495 million at flotation.

• 1991

  First Sebastian Coe Health Park opens

  [1]Ramada Jarvisen.wikipedia.org

  The first Sebastian Coe Health Park opened at Penns Hall Hotel in Sutton Coldfield through a joint venture involving Sebastian Coe.

• 1990

  Jarvis Hotels founded and Embassy Hotels acquired

  [1]Ramada Jarvisen.wikipedia.org

  John Jarvis founded Jarvis Hotels and completed the acquisition of the 41-hotel Embassy Hotels chain from Allied-Lyons in July, following a revision of the transaction value to £186 million.

An upscale United Kingdom hotel chain combining business conferences, leisure short breaks, accommodation and selected health and recreation facilities.

• Hotel accommodation

  Ramada Jarvis Hotels

  The core offering was an estate of mainly four- and five-star hotels located throughout mainland United Kingdom, supplemented by five overseas properties. Hotels served business travellers, conferences, leisure short breaks and general accommodation demand, with food and beverage and meeting services forming part of the broader hospitality proposition.

• Health and leisure facilities · 1991

  Sebastian Coe Health Parks

  Sebastian Coe Health Parks were health and recreation facilities developed through a joint venture between Jarvis Hotels and Sebastian Coe. The first site opened at Penns Hall Hotel in Sutton Coldfield in April 1991 and was intended to reinforce the group's positioning in leisure short breaks.

• Business hospitality · 1990

  Conference and meeting facilities

  Conference-oriented accommodation and meeting facilities were central to Jarvis Hotels' original expansion strategy. The chain was designed to combine overnight stays with venues and services for business events, meetings and conferences.

• 2011

  Liquidation following banking pressureOther

  Background

  Ramada Jarvis faced severely restricted cash flow after its principal bankers called in loans before their scheduled term.

  Action taken

  The group entered liquidation on 30 September 2011, ending the chain as an operating hotel group.

  Aftermath

  The portfolio was divided among different buyers and successor hotel brands. Jupiter Hotels acquired 26 properties and moved them to Mercure, while other properties later became DoubleTree by Hilton, Courtyard by Marriott or Best Western hotels.

  Source

• 2011

  Jupiter Hotels acquires 26 propertiesM&A

  Background

  The liquidation created an opportunity to acquire a substantial part of the Ramada Jarvis estate.

  Action taken

  Jupiter Hotels Limited purchased 26 hotels through a joint venture between Patron Capital and West Register and arranged an Accor franchise for the Mercure brand.

  Aftermath

  The acquired hotels left the Ramada Jarvis identity and were incorporated into a new operating and brand structure.

  New equity investment and debt financing. £40 million equity investment and £71 million debt financing (2011)

  Source

1. 1Ramada Jarvisen.wikipedia.org