FBD buys out Tower Hotel Group minority partner

FBD has bought out its minority partner in the Tower Hotel Group, businessman Con Horgan. The group previously had a 75 per cent stake.

The group comprises five hotels, including the Temple Bar Hotel in Dublin and Faithlegg House in Waterford. It recently opened a new property at Castleknock in Dublin.

Until last week, the Tower Group also included the Castlerosse Hotel in Killarney, but this has now been sold, in a separate deal, to Mr Horgan.

Prices were not disclosed for the transactions, but they are believed to cancel each other out on FBD's balance sheet effectively. Market sources valued both deals at between €5 million and €10 million.

FBD chief executive Philip Fitzsimons yesterday said the company was the "natural acquirer" of the minority stake in the hotel group. Mr Horgan, the founder of Abbey Travel, had previously held an option to sell his stake at the end of this year but this has been accelerated.

FBD, which has its principal interests in the insurance sector, retains the La Cala golf resort and a housing project in Spain.

Mr Fitzsimons said the company would remain committed to its hotel interests for as long as they made sense.

FBD chairman Michael Berkery yesterday told the group's annual general meeting that economic buoyancy would provide a "positive platform" for its insurance business this year.

He expressed some concerns about the momentum behind reform in the sector however, calling on the Government to redouble its efforts. Specifically, he urged the Ministers for Justice, Enterprise Trade and Employment, and Transport to re-establish the interministerial committee that helped advance the reform agenda before last year's Cabinet reshuffle.

Mr Berkery also called for a renewed focus on the Personal Injuries Assessment Board (PIAB), in the wake of a ruling that the board must deal directly with lawyers if asked to do so.

Shares in FBD weakened along with other financials yesterday, falling 15 cents to €22.65.