The Hilton Hotel is pulling out of its partnership with the property company that redeveloped the former Jury’s Hotel after just 15 months.
The Hilton moniker will be removed and the hotel will be known as The Strand from next Tuesday.
All staff have been told of the change and no jobs are under threat.
Galway businessman John Lally purchased the former Jurys Hotel in 2004 and continued to operate under The Strand name until the entire property was redeveloped in 2005.
Mr Lally said: “Limerick has always had a connection with hotels on this site and it was always seen as a Limerick hotel. We look forward to it returning to centre stage in the social and commercial life of the city.”
The Limerick Hilton opened for business in May 2007 as a four-star hotel.
Hotel manager Meredith Bevan said: “My main task at the moment is to ensure we have a smooth transition, look after our guests and team members and, as far as I am concerned, it is business as usual.”
Hotels in the city have been hit by the fall-off in US visitor numbers to the country and top heavy room capacity. Industry sources say Limerick has two hotels too many in the present climate.
One city centre hotel recently entered a deal with the Department of Justice to accommodate asylum seekers.