Jurys Hotel Group has reported a strong half-year performance, with pre-tax profits up 24 per cent to £13.3 million (16.89 million). Announcing its results of the six months to the end of October 1998 yesterday, Jurys managing director, Mr Peter Malone, said that barring any unforeseen circumstances, the hotel group was on course to record a "very favourable" full-year result.

Meanwhile, Mr Malone said discussions regarding the possible acquisition of the Doyle Hotel Group were continuing and were well advanced. He refused to make any further comment on the negotiations but added that he was "very confident" that they would be brought to a conclusion shortly.

The amalgamation would create a dominant force in the Irish market, creating a chain of 28 hotels and inns. If agreement is reached the enlarged group could be valued at about £400 million (508 million).

"The discussions are ongoing at present and any transaction will be subject to Jurys shareholder approval, due diligence, regulatory clearance and contract," Mr Malone said. The half-year figures were boosted by a good contribution from its two recently opened inns in London and Edinburgh, with both expected to make a profit over a 12-month period. Group turnover rose by 18 per cent from £37 million (47 million) to £43.7 million (55.5 million).

Earnings per share increased by 31.6 per cent to 25p (0.32). The board has declared an interim dividend of 4p (0.5) per share, up 28 per cent on the previous half-year.

Jurys will continue to focus on expansion in the British market this year, and will consider establishing inns in locations such as Birmingham, Coventry and Nottingham. Mr Malone said the group would look at possible greenfield sites and was optimistic that it could add two or three inns to the group's British business.

So far it has not seen any signs of recession in Britain and believes its city-centre locations will continue to perform well for the foreseeable future. Across the group, Jurys says it is achieving occupancy rates of around 80 per cent throughout the year. Bookings also continue to be strong and an increase in visitors from the US is expected as a result of the additional flights being operated on transatlantic routes to and from Dublin this year.