Two city hotels to shut in shake-up
The company had become dissatisfied with the contribution from its four- and five-star hotels, which in recent years acted as a drag on the more efficient three-star inns.
Revenues from the Irish hotels division, which includes the three Ballsbridge hotels, the nearby Burlington and the Westbury, fell 5% last year on the back of increased competition, while trading profits tumbled 10%. But the six Irish inns, in Dublin, Cork, Limerick and Galway, increased trading profits by 5% and revenues by 12%. Hotels in Britain and America have also outperformed their struggling Irish equivalents.
The decision to close the Towers and Jurys Ballsbridge hotels follow similar moves to sell off or overhaul other operations that were considered surplus to requirements. The company offloaded its hotel in Limerick last year after selling the Skylon, Green Isle and Tara hotels in Dublin and Jurys Waterford since 2002.
It also closed its hotel on Cork’s Western Road earlier this year, but this will be rebuilt using a more efficient design that takes up a smaller footprint. Part of the site will be used for residential development and will provide the company with a windfall from property that would otherwise have been used unproductively. A three-star hotel in Glasgow is also on the market.
The disposals announced yesterday could reap up to €400 million that the company will plough into new hotels and inns in other locations. It will retain its presence on the site with a redeveloped Berkeley Court, a 250-bedroom hotel on two acres. This will be welcomed by shareholders, who until now had three hotels that sprawled over 7 acres and contained just 600 rooms.
Staff numbers in Ballsbridge will fall from 640, including 230 casual workers, to around 200, but the company will offer voluntary redundancy or redeployment to those affected.
