US private equity group Lone Star Funds is to pay £680 million (€909mn) to acquire the Jurys Inn chain of 31 hotels from a group of investors.

The hotel chain is being sold by the Oman Investment Fund, Mount Kellett Capital Management, Ulster Bank, Westmont Hospitality Group and Avestus Capital Partners.

Jurys Inn operates 21 UK provincial hotels, four London hotels, five hotels in Ireland and one in Prague. It employs approximately 2,000 people.

The existing management team, led by chief executive John Brennan, will continue to lead Jurys Inn, building on the successes achieved in recent years.

In 2013 the hotel chain succeeded in restructuring its debt, agreeing a debt write-off of £290 million with its lenders, which included Irish Bank Resolution Corporation, AIB and Ulster Bank.

Nick Weber, head of Europe for Mount Kellett Capital Management, said that the deal marks the completion of a "tremendously successful repositioning of Jurys Inn".

“Prior to its acquisition less than two years ago, Jurys Inn was burdened by excessive debt and faced an uncertain future. The investor group brought fresh capital, restructuring expertise, and a focused strategy to help transform the company into one of the leading mid-market hotel groups in the UK and Ireland.”

The deal is subject to approval from the Competition and Consumer Protection Commission in Ireland, and is expected to close in the first quarter of this year.

The shareholders and Jurys Inn were advised by Credit Suisse and Eastdil Secured.

Lone Star Funds has been active in the Irish market in recent years, acquiring sub-prime mortgage lender Start Mortgages as well as acquiring a portfolio of assets from IBRC as well as property assets in Dublin.