Portlaoise hotel goes into receivership

THE 87-BED Killeshin Hotel in Portlaoise, which is backed by Bernard McNamara, has been placed into receivership.

Gearóid Costello, a Limerick-based partner with Grant Thornton, has been appointed as receiver to the business by Anglo Irish Bank, which is believed to be owed about €20 million.

It is understood that Pembroke Hospitality, which is led by former Jury Doyle executive Niall Geoghegan and backed by DTZ Sherry Fitzgerald, has been appointed to manage the four-star hotel, which will remain open and will trade as a going concern.

Located on the edge of Portlaoise, Co Laois, the Killeshin was extensively rebuilt and reopened in May 2007 after a major upgrade of its facilities.

It was owned by a partnership that availed of generous tax breaks for hotel properties.

The investors included Mr McNamara.

A spokesman for Mr McNamara said he was a “dormant investor” in the hotel, with the result that the property has not been transferred to the National Asset Management Agency (Nama).

Documents filed at the Companies Office list Jerry O’Reilly, a long-time business partner of Mr McNamara, as a director of Killeshin Hotel Ltd.

Niall O’Carroll, a Limerick-based businessman, was also involved in the tax partnership behind the hotel.

As with other hotels in the midlands, the Killeshin has taken a major hit in the recession and has recently advertised rooms for just €50 a night to stimulate business.

A large number of hotels which were opened in the midlands region during the boom years and many of these are now struggling, particularly as corporate spending on meetings and conferences has dried up in the recession.

The Killeshin has a spa and wellness centre, an indoor swimming pool and sauna and a 100-seat restaurant.