Private investors eye Kerry Great Southern hotels

POTENTIAL purchasers are already showing an interest in the Great Southern Hotel (GSH) group, which is to be taken out of State ownership and sold.

The two Kerry hotels in Killarney and Parknasilla are being eyed by established hoteliers in the private sector, including some in Killarney, it has been learned.

The Kerry hotels in the GSH group have been among the tourism flagships in the south-west for generations, and the 172-bedroom Killarney GSH recently underwent a €14 million refurbishment, which included a new conference/leisure centre and upgrading of bedrooms.

Even prior to the decision to sell off the hotels, private investors were making approaches with a view to purchasing the 60-bedroom Parknasilla hotel, near Sneem.

Set on 300 acres of parkland by the sea, the Parknasilla hotel has a golf course and has the potential to become one of the country’s most exclusive hotels.

A key issue will be whether all nine GSH hotels are sold together or individually.

If sold individually, the two Kerry hotels, which employ about 180 people, would attract huge interest from Irish hoteliers and overseas investors, according to property sources.

Hotel staff and trade unions had hoped Taoiseach Bertie Ahern, who regularly spends some of his holidays in Parknasilla, and who has often stayed in the Killarney GSH, would keep the hotels in State ownership.

But Mr Ahern accepts the sale as the best option.

This position is also supported by Tourism Minister John O’Donoghue, though he had been under intense pressure to oppose the sale of the hotels, both of which are in his Kerry South constituency.

One of the longest serving staff in Killarney GSH, head porter Mossie Horgan, yesterday said staff and unions would continue to lobby the Government not to approve the Dublin Airport Authority (DAA) decision to sell the hotels.

“We’re convinced of the viability of the hotels, but have to ask why the hotels are not making money and if money is being squandered,” said Mr Horgan, who is also chairman of the Killarney SIPTU branch.

Moves to sell off the group have been going on for years, but Mr Horgan, who has worked in the Killarney GSH hotel for over 40 years, said staff were still shocked, especially at the way they were informed of the latest decision.

“The first many of the staff heard about the decision was on the news on Tuesday evening. That’s not good enough,” he said.

Jimmy Kelly, worker director on the GSH board, said most staff had been with the group for a long time, some for 30-35 years, and were now fearful for their jobs.

“They’ve always had trade union-negotiated wages and conditions, but these may not be the same in a privatised situation,” he said

Killarney GSH general manager Conor Hennigan said emotions were running high, but their priority would be to maintain high standards and protect the level of business.