Deadline for hotel chain offers today

BIDDERS for the Great Southern Hotel chain have until today to lodge their offers.

The eight hotels were put up for sale by the Dublin Airport Authority earlier this year after continuing to incur heavy trading losses.

The group is being sold by property agents CB Richard Ellis and the hotels may be sold individually to maximise the return for the State.

The Great South Hotel chain includes six four-star and two three-star properties, many of which are in envious locations.

It is believed that the hotels at Dublin Airport, on Eyre Square in Galway and at Parknasilla in Kerry are the most sought after.

According to estimates, the hotels could be worth between €170m-€200m, around twice their book value. A bidding war for individual locations could drive up the price.

The hotels have been loss-making for some years and have not been helped by a high cost base.

Ownership of the hotels, some of which have been open since 1845, had passed around various State bodies for a number of years, before coming under the management of Aer Rianta in the 1990s.

With Aer Rianta now broken up in its three constituent airports, control of the hotels has moved to the Dublin Airport Authority.

According to sources, around 100 initial expressions of interest were received for the Great Southern group.

The hotel at Parknasilla comes with planning permission for a complete renovation for the property and for the development of apartments.

In Galway, the Corrib Hotel sits on seven acres of residential land near the city, making these the most enviable for property developers.