Ryan in line to buy hotel

Cork's 103-year-old Metropole Hotel is about to be acquired by the Ryan Hotel Group from the Fitzwilliam Group for between £6 million and £8 million (€7.6E10.2 million). The Metropole, once a temperance hotel, was modernised by its current owners four years ago and now includes a swimming pool and leisure centre - the Leeside Leisure Centre. But, while centrally placed in Cork city, it is one of the hotels that has suffered for a lack of investment. With more than 100 bedrooms, it employs 80 people. Negotiations, now at a midway stage, are understood to have included assurances to management at the hotel that jobs will be secure if the deal goes ahead. Industry sources believe a deal could be concluded by the end of the week. Ryan Hotels confirmed last night that it was in discussions to acquire the hotel, adding that a deal had not yet been signed. The Metropole is owned by the Fitzwilliam hotel group, founded 11 years ago by its chief executive, Mr Michael Holland and Mr Brendan Gilmore.

They formerly worked at Bastow Charleton accountants but took over the Country Club Hotel in Portmarnock, Dublin, in 1988, and renamed it the Portmarnock Hotel and Golf Links.

They acquired the Royal Dublin Hotel in 1989 and the Metropole, on Cork's MacCurtain Street, in 1991. Last year, they opened their flagship 135-bedroom five star Fitzwilliam Hotel in St Stephen's Green, Dublin, built at a cost of £17 million.

The Ryan group owns The Gresham Hotel in Dublin as well as the Limerick, Galway and Killarney Ryan Hotels plus the Royal Marine Hotel in Dun Laoghaire.

It also owns the Memphis Hotel in Amsterdam, Le Belson Hotel in Brussels and the Carat Hotel in Hamburg.

There was speculation yesterday as to the likely price, some property observers suggesting that it could be up to £10 million.

Ryan Hotels has made clear its interest in growing its hotel chain.

The group chairman, Mr Sean Henneberry, said at last month's a.g.m. that the group was assessing prospective acquisitions.

It has stated its interest in acquiring one or two of the Great Southern Hotels chain whose owner, Aer Rianta, has said it wishes to leave the business. Ryan Hotels is also believed to be interested in the London market.