State to sell loss-making hotel group
The loss-making Great Southern Hotels are to be sold off by the state, it emerged tonight.
The hotel group is owned by the Dublin Airport Authority (DAA) and is made up of famed hotels such as Parknasilla Hotel in Co Kerry, and others in Galway, Cork, Killarney, Dublin and Shannon.
Transport Minister Martin Cullen advised the cabinet today that the hotel group’s board had decided to engage advisers to assist with the disposal of the hotels.
The board said in a statement that it intended to sell the hotels as going concerns.
“Early meetings will be arranged with staff and trade union representatives to engage with them on the difficulties faced by Great Southern Hotels,” it said.
Last year, the DAA chairman Gary McCann told the Oireachtais Transport Committee that the Great Southern Hotel Group was facing a bleak future.
He said payroll costs were as high as 45% of the hotel’s turnover, compared to an industry norm of 35%.
In 2004, the chain made a loss of €2.2m.
The Great Southern Hotel chain will continue to operate as normal while the selling-off process begins.
Government approval will be required for the decision and there is expected to be fierce opposition from unions and the tourism sector.
