Flatley launches High Court bid to wind up luxury hotel

MILLIONAIRE dancer Michael Flatley will launch a High Court battle today in a bid to wind up a luxury hotel he privately bankrolled for three years.

A consortium of 17 businessmen who invested in the 13-bedroom Castlehyde Hotel in Fermoy, Co Cork, stand to lose out on tax breaks if Flatley succeeds.

The consortium, headed by motor dealer Tom Kavanagh, head of the Irish Business Against Litter initiative, are expected to mount a strong defence. Mr Kavanagh was unavailable for comment.

The circumstances surrounding Flatley’s involvement in Castlehyde Hotel, located across the road from his mansion, are complex.

Flatley lodged papers on April 15 petitioning the High Court to wind up CH Management, which ran the hotel. He was listed in the papers as a creditor. However, what has emerged in the last week is that Flatley had entered into a long-standing agreement in August 2002 to purchase the property from the consortium later this year. He privately bankrolled the hotel and, as refurbishment work was ongoing on his mansion, he kept the hotel’s main suite empty for his personal use.

He installed his former butler, Patrick Kelly, as the hotel manager. His girlfriend, Lisa Murphy, would also cast an occasional eye over the hotel’s books.

Contractors who were working on his mansion also had use of the hotel.

An attempt by Flatley to turn the hotel into a top wedding venue also failed. Despite the losses, the hotel continued to operate.

However, Flatley’s accountants conducted an audit of the hotel earlier this year and decided it should shut immediately.

The 35 staff were shocked at the decision. Many are angry at the way the situation was handled and some say they are owed money.

The consortium, who are entitled to tax breaks on their investment only if the hotel operates until November, are expected to mount a separate legal battle to stop Flatley.