Troubled 5-star hotel forced to turn customers away

THE troubled €70 million luxury five-star Castlemartyr hotel in east Cork is being forced to turn business away pending the outcome of takeover talks.

The hotel, which is due to close for several weeks from next week to facilitate the takeover, said it cannot take room or dinner bookings from November 19 until the talks are complete.

However, it has assured that existing bookings will be honoured.

The hotel is awaiting confirmation of the new operators and a statement outlining their plans before new bookings can be taken.

It is thought the new operators, believed to be the Dromoland Group, will be confirmed within days.

But the uncertainty has affected some wedding parties due to take place at the luxury resort in the coming weeks.

Guests due to attend those weddings, but who have yet to book rooms to stay overnight, have been told they cannot be accommodated in Castlemartyr.

It is understood the hotel is making alternative arrangements for those affected.

The hotel’s website has also been removed from the internet.

A spokesman for the hotel confirmed yesterday that it will close soon to facilitate the installation of the new operators.

He would not comment on reports that it could remain closed until next February.

“We are in discussions with a new operator but we are bound by a confidentiality agreement and cannot comment further,” he said.

It is understood the hotel’s developers and owners, the Cork engineering firm, John F Supple, is viewing the temporary closure and planned takeover as a positive move for the hotel and its staff.

The resort was developed by Supple, which last month agreed a financial survival package with creditors.

The hotel, a restored 17th-century manor house, set on a 220-acre site that includes an 800-year-old castle, an 18-hole golf course, clubhouse, and spa and fitness centre opened amid great fanfare in August 2007.

It was officially opened by former taoiseach Bertie Ahern in February.

It oozed exclusivity and rooms were charged at more than €400 per person a night.

However, prices have been slashed in recent months with midweek rates advertised at €179 per person sharing for two nights’ bed-and-breakfast plus one evening meal.

Capella will cease involvement with the hotel on November 19 after Supple cut ties with its management group, West Paces Hotel Group.

As negotiations with another hotel brand continue, the 103 staff have been told that a significant number of the employees will be retained under the new management contract.