Checking out at Bewley’s after so long

In spite of nearly 45 years in the hospitality trade, retirement has never interested Limerick hotelier Tom Moran. He was too busy running the 10 hotels of the Moran & Bewley's Hotel Group in Ireland and the UK. Now, 26 years after founding the business, Moran is set to lose control of the chain that has consumed most of his working life and which he would have expected to hand over to his seven children, five of whom work in his hotels.

Moran must curse the day he spent nearly €580 million in acquiring a handful of Bewley’s hotels. The boomtime acquisition saddled the company with a debt burden that became unmanageable when the recession hit in 2009.

A major financial restructuring last year reduced its debts by €490 million and resulted in a capital injection of €125 million. That appeared to put the group back on an even keel. But it came at a price. Moran and his family found their stake squeezed as the company's lenders – Bank of Ireland, AIB and Canyon Capital from the US – took large equity positions. Also a clause stipulated the board initiate a sale process if a bid of €400 million or more was tabled by a third party. This looked highly improbable at the time, but the sharp turnaround in the economy and hotel group Dalata's stunning stock market debut, where it raised €256 million in cash, changed everything.

Pat McCann of Dalata suddenly had the financial firepower to pursue the Moran chain and solidify Dalata’s position as the number one player in this market.

Handing over the business won’t be easy for the Moran family. But there could be a silver lining. Moran is close to agreeing a deal to acquire the Red Cow hotel and pub, where it all started for the group back in 1988. It’s not how he would have imagined it in 2008 when he signed the cheque for Bewley’s but it beats retirement.