Active Fund

The iNua Collection

The iNua Collection is an opportunity to invest in high-quality, sophisticated and desirable hotels that raise the standard of hospitality in Ireland.

About this fund

One of the largest regional hospitality operators in Ireland, iNua Hospitality comprises an impressive portfolio of 4 & 5 star hotels that deliver classic quality with sophisticated hospitality. This portfolio provides investors with a well-diversified set of hospitality assets, managed through a clear strategy to capitalise and leverage the portfolio for growth, monetise asset synergy and operational efficiencies, that takes advantage of economic and sector recoveries that remain robust. The team at iNua Hospitality continue to be driven by improving operational efficiencies benefitting from a group structure capitalising on the existing trading performance, resulting in increased EBITDA.

The Opportunity

The iNua Collection is a portfolio of eight 4 & 5 star regional hotels in Ireland that is currently valued at over €120 million in market valuation. More acquisitions may be made as the portfolio expands and embeds asset efficiencies.

Current holdings are:

      • Muckross Park Hotel, Killarney

      • Radisson Blu, Little Island, Co. Cork

      • Radisson Blu Limerick, Co. Limerick

      • Radisson Athlone, Co. Westmeath

      • Killkenny Hibernian Hotel, Kilkenny

      • Hillgrove Hotel, Co. Monaghan

      • Tullamore Court Hotel, Co. Offaly

      • Radisson Blu Hotel & Spa Sligo (acquired in 2018)

In February 2020, iNua announced that Noel Creedon would be stepping down as CEO while remaining with iNua as a Non-Executive Director, and former COO Sean O’Driscoll would be taking over as CEO.

The total target return on this investment is 75% (12% IRR).

Investment Profile

Investment Start Date: 25th June 2018

Target Exit Date: 25th June 2023

Investment Size: €110 million

Asset Managers: iNua Hospitality
NAV (Net Asset Value) as of June 2019*: 0.79

The iNua Collection portfolio provides investors with a well-diversified set of hospitality assets, managed through a clear strategy to capitalise and leverage the portfolio for growth, monetise asset synergy and operational efficiencies, and take advantage of economic and sector recoveries that remain robust.

Investment Highlights

Target EBITDA bridge ahead of forecast
Largest operator of regional hotel assets in Ireland
Average room rate increased to €106
Acquisition of 8th hotel complete
Hotel Sector performing strongly
Occupancy levels increased to 73.1%

Return

Now consisting of eight hotel assets, the iNua Collection has delivered a strong Year 1 performance reflecting the 12 month period from July 2018 to end June 2019. Actual EBITDA delivered in Year 1 was €8.1m versus a budget of €8m.

iNua’s strong performance to date demonstrates the quality of the hotel assets, their market-leading sales and marketing strategy, and their continued strive for operational excellence.

iNua Hospitality continues to operate based on their mandate of delivering shareholder value and ultimately increase enterprise value as they aim for an exit event in the medium term. In summary, the iNua Collection is moving forward, driving its growth and keeping a strategic focus on the future.

Significant focus has been placed on reducing operational costs and integrating the new acquisitions into the group structure and further leveraging synergies. Margin improvement is now showing on the food and beverage areas, which will assist with revenue pressure in this area.

Further improvement in costs is also expected to be generated from an energy consumption audit that has been recently concluded. Driven by strong cost controls, EBITDA performance for the 12 months to June 2019 (0.8%) is marginally ahead of forecast.

 

*The Net Asset Value of the iNua Sub Fund has been calculated on the basis of an

Overall, performance for the period is satisfactory and relatively in line with the five-year strategy; average room rate for the period has increased to €106 and occupancy increased slightly to 73.1%.

Looking forward, a focus on sales and marketing is considered a key area, and additional spend in this area is necessary and welcomed. A new business development team is being implemented to drive additional revenues and target new markets. There are also a number of proactive initiatives underway to improve offerings and customer experience across the hotels, which will assist in protecting and enhancing revenues and occupancy rates.

active portfolio iNua collection
iNua Hospitality is confident that they are on target for a year-end EBITDA of €8.4M .

Want to know more?

Investors: For information about how to invest contact your Financial Advisor.

Financial Advisors: Please contact @blackbee.ie or call on 021 123 4567