Absolute hotel not closing?

Amazotheamazing

Apparently the manager was on the radio today to refute the rumours that is was closing?

What is with Limerick and negative rumours? We love to depress ourselves.

Poxyshamrock

Great stuff!

Limerick's rumours are mad.
I heard first via boards that it was the absolute.
Then I heard it off a friend.
I then heard that all of these were closing:

Clarion
Marriott
The George
Glentworth
Hilton

Chances are none will close.

johnmolloy554

Poxyshamrock wrote: »

Limerick's rumours are mad. Chances are none will close.[/QUOTE

Have to agree with the above as the vast majority of these rumours are being spread by ignoramuses (a word we don't use enough of) who have nothing better to do but speak about things they know nothing of. A few years ago, these same people were berating the city for not having enough good hotels. The problem is simple supply and demand, and like most problems, it will sort itself out. A perfect storm of a global credit crunch, high oil prices and a downturn in the Irish economy (most of it caused by the preceeding factors) has turned the Irish tourism industry upside down. Limerick has the additional problem of too many hotels but the losers were always going to be the older shabbier ones.

It is important to remember who actually owns these hotels and also the fact that most were constructed using capital allowances under the Tax Consolidation Act 1997 i.e. there's too much of investors monies tied up in these buildings to be allowed to fail. Also, under the Act, the allowances would be lost if there was a change of use.

Absolute Hotel - owned by Gerry O'Reilly - owner of the Aghdoe Heights, Radisson Galway, Superquinn, the Opera Center site, The Shelbourne Hotel, Sarsfield House etc, etc, etc. These superious rumours about the demise of the Absolute emanate from this story - http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=IRELAND-qqqm=news-qqqid=33148-qqqx=1.asp . Apparently, O'Reilly also owns this hotel and it is quite small so when the leasee ran into difficulties, there was no way he was staying in the Absolute.

Clarion - owned by Pat Whelan & Pat Chesser - leased to Choice Hotels. The two Pats are now developing a large chunk of Leicester Square in a €250 million scheme.

Marriott - owned by Fordmount Developments - essentially a development company owned by accountants/solicitors and an architect. Many of their private practice clients would also be investors in many of their projects including the Castletroy Park, Marriott, Riverpoint etc, etc.

The George - owned by Aidan Brooks who has now turned his attention to farming on the North Circular Road

Glentworth - is for sale for €8m. I do believe the hotel's occupancy is quite high but I can't see it being sold due to the difficulty in raising that amount of cash in the present market.

Hilton - owned by Lalco (John Lally) who are having trouble with a site purchase in Sandyford but still have substantial assets.

So,it would be very doubtful if any of the above closed but you may see a change in management/leasee (as happened in the Absloute). Either way, the buildings will remain as they are.

Gambra

johnmolloy554 wrote: »

Poxyshamrock wrote: »

Limerick's rumours are mad. Chances are none will close.[/QUOTE

Have to agree with the above as the vast majority of these rumours are being spread by ignoramuses (a word we don't use enough of) who have nothing better to do but speak about things they know nothing of. A few years ago, these same people were berating the city for not having enough good hotels. The problem is simple supply and demand, and like most problems, it will sort itself out. A perfect storm of a global credit crunch, high oil prices and a downturn in the Irish economy (most of it caused by the preceeding factors) has turned the Irish tourism industry upside down. Limerick has the additional problem of too many hotels but the losers were always going to be the older shabbier ones.

It is important to remember who actually owns these hotels and also the fact that most were constructed using capital allowances under the Tax Consolidation Act 1997 i.e. there's too much of investors monies tied up in these buildings to be allowed to fail. Also, under the Act, the allowances would be lost if there was a change of use.

Absolute Hotel - owned by Gerry O'Reilly - owner of the Aghdoe Heights, Radisson Galway, Superquinn, the Opera Center site, The Shelbourne Hotel, Sarsfield House etc, etc, etc. These superious rumours about the demise of the Absolute emanate from this story - http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=IRELAND-qqqm=news-qqqid=33148-qqqx=1.asp . Apparently, O'Reilly also owns this hotel and it is quite small so when the leasee ran into difficulties, there was no way he was staying in the Absolute.

Clarion - owned by Pat Whelan & Pat Chesser - leased to Choice Hotels. The two Pats are now developing a large chunk of Leicester Square in a €250 million scheme.

Marriott - owned by Fordmount Developments - essentially a development company owned by accountants/solicitors and an architect. Many of their private practice clients would also be investors in many of their projects including the Castletroy Park, Marriott, Riverpoint etc, etc.

The George - owned by Aidan Brooks who has now turned his attention to farming on the North Circular Road

Glentworth - is for sale for €8m. I do believe the hotel's occupancy is quite high but I can't see it being sold due to the difficulty in raising that amount of cash in the present market.

Hilton - owned by Lalco (John Lally) who are having trouble with a site purchase in Sandyford but still have substantial assets.

So,it would be very doubtful if any of the above closed but you may see a change in management/leasee (as happened in the Absloute). Either way, the buildings will remain as they are.

Wow, I don't usually thank people for posts but that's the most informed post I've read yet. I for one can't wait until the "global downturn" leaves lots of empty buildings ripe for squats and raves.

black & white

Confusion may have come from this taken from D'Examiner;



"The job losses came with uncertainty hanging over 200 jobs at the Limerick-based Dunne hotel group.

The company, which has five hotels, is seeking High Court protection from creditors. The group suffered pre-tax losses of e11 million in 2006.

Hotels owned by the group include the Two Mile Inn and Punch’s Hotel in Limerick.

The High Court has appointed an interim examiner who has 70 days to devise a financial rescue plan during which the company will have protection from its creditors.

The company recently warned of a downturn in the tourism sector unless Ireland’s label as an expensive destination was redressed"

Also includes the Shannon/Bunratty Shamrock and the Woodstock in Ennis.

Roadend

johnmolloy554 wrote: »

The George - owned by Aidan Brooks who has now turned his attention to farming on the North Circular Road

I thought the George was part of the Lynch group.

johnmolloy554

Roadend wrote: »

I thought the George was part of the Lynch group.

You're right, it is. But again, they are only tenants. The way forward for many hotel chains in not to own the hotels but to lease instead by way of an actual lease or management agreement. See http://development.starwoodhotels.com/contact/faq.php. Chains such as Starwood see effective hotel chain expansion as opening as many as possible without being held back by having finance tied up in the properties.

zuroph

im going to stick by my rumour. we'll see.