O’Donoghue: Hotel group cannot remain in state hands

Tourism Minister John O'Donoghue has said the Great Southern Hotel group cannot remain under state control.

The Dublin Airport Authority yesterday announced plans to sell the group's nine hotels, which employ around 660 people.

The move has been sharply criticised by SIPTU, which wants the group to remain in state ownership under the auspices of Fáilte Ireland.

However, Mr O'Donoghue insisted today that on-going losses meant the hotels had to be sold off.

"I'm deeply disappointed about that. I wish that the situation were otherwise," he said, "but there are commercial realities to be faced here.

"It would be unfair of me to offer what might only be false hope in terms of the hotels staying in public ownership."