‘Anglo should be used to pump money into hotels’
This is according to the chief executive of the Irish Hotels Federation (IHF) John Power, who said many hotels badly need capital to get them over this “slump”.
Speaking to the Irish Examiner, he said if that the Government will not give money to the sector then it should look at providing money through Anglo.
He said many smaller hotels need just e50,000 to e60,000 to get through the downturn. A e250,000 cap could be placed on the funding available to hotels.
“If the State cannot come to an arrangement with the normal commercial banks to lend they should start about having a separate state bank or using Anglo as a vehicle because at least they own Anglo,” said Mr Power.
“Normally hotels going into a period off the back of a reasonably good season would have surplus funds to get them through the winter. 2008 was so challenging that the hotels haven’t got the surplus funds going into the winter. They will need just additional working capital this year and perhaps next year and that’s where we believe that assistance should be provided.”
He said that if this is not provided, hotels will be under “enormous pressure”.
Mr Power also said hoteliers realise the economic situation at the moment is difficult and the challenge is to make the most of it.
“The problems are not going to go away. You’ve got to face up to it.”
He believes there is good value and quality at Irish hotels. “Where in Europe today would you get two nights stay at a five star hotel plus a dinner for e200?”
General manager of the five star Park Hotel in Kenmare Rory O’Sullivan said many five star hotels are cutting prices by up to 30%.
“There’s great value there at the moment. We are offering three nights stay plus a dinner for e365,” he said.
The IHF also called for an immediate reduction of 20% in energy costs.
More than 250 hoteliers met at the Malton Hotel in Killarney for their 71st annual conference this week.
