Cashel Palace Hotel put in receivership

 

THE Cashel Palace Hotel in Cashel, Co Tipperary, looks likely to change hands once again after being put under the control of receiver Mr Ray Jackson of accountants KPMG.

Mr Jackson was appointed receiver by five senior executives of stockbrokers J&E Davy, who bought the hotel freehold last April and then leased the hotel back to the former owner, American investor Mr Robert Keyes. The five Davy executives who bought the Cashel Palace as a private investment are Mr Brian Davy, Mr Joe Davy, Mr Kyran McLaughlin, Mr Tony Garry and Mr Brian McKiernan.

Mr McKiernan declined to say how much the investment group paid Mr Keyes for the Cashel Palace last April, nor would he go into detail on the circumstances which led the five executives to appoint Mr Jackson receiver of Volador Ltd, the company which trades as the Cashel Palace Hotel, and Nallomire Ltd, a subsidiary of Volador. The Davy executives hold a mortgage debenture on Volador and an ordinary debenture on Nallomire.

It is understood, however, that serious differences arose between the investment group and Mr Keyes, who has invested substantial sums in refurbishing the 13 bedroom hotel in recent years to restore it to its four star status. Prior to its reopening last April after the sale and leaseback deal with the Davy executives the hotel had been closed for a year.

Mr Jackson, who visited the hotel yesterday after being appointed receiver last Friday, said that he expects to put the hotel on the market soon as a going concern and added that he was confident of finding a buyer. Mr McKiernan described the hotel as "a superb quality asset".

Situated in the centre of Cashel - on the main Dublin Cork road, the Cashel Palace Hotel, has for many years been a stopping point for travellers between the two cities. The hotel has, passed through various owners in recent years, and assuming that Mr Jackson finds a buyer, will have its fifth owner in 10 years.