Hotel group plans major expansion

A LEADING hotel operator is to open 18 new hotels across the country within the next five years.

Prem Group is already building hotels in Dublin Airport, Tullamore, County Offaly, Castlebar, County Mayo and expanding the Ryan hotel in Galway.

Prem Group chief executive Jim Murphy said yesterday that the hotels would offer a four-star service at a three-star price.

“Quite a few hotel brands have come into Ireland over the last few years but we don’t believe anyone has come in offering this product. We’re firmly convinced that every town and city needs good quality, premier budget accommodation.”

The €350 million investment is expected to create 200 jobs here next year alone. It will also include 50 new hotels in Britain.

The hotels will mainly target business travellers, as well as tourists.

“In the bed and breakfast and guesthouse sectors, a lot of that product is closing down. We see ourselves taking up the slack in that area,” said Mr Murphy.

The Prem Group employs 300 people and operates five hotels in Britain and two more in Dublin under the Days Hotel brand. The Days brand is licensed from Cendant International and is used by 1,400 hotels in 14 countries.

Mr Murphy also said that there was a demand for accommodation in provincial towns like Castlebar and Tullamore, where Days hotels will open in December.

“The towns can sustain a new hotel. There’s no question about that. I think most towns around the country need a hotel in order to generate investment into their communities.”

Further hotels are also planned for Tipperary, Waterford, Kerry, and Dublin City Centre.

Mr Murphy said the capital investment allowances for hotel building, which were extended until 2006 in last year’s budget, had contributed to his company’s success.

“We wouldn’t be employing the people we employ today if it was not for the capital allowances.

“A lot of talk is going on about the wealthy individuals who are not paying tax but what’s also happening is that we’re creating employment and a lot of revenue for the Government and providing a world class product,” he said.