Irish group scotches sale rumours

THE owner of Irish hotel group Great Southern Hotels has rebuffed rumours that it will sell its eight-strong group to a rival company this year.

Instead, it claims, it is considering expanding the group with another airport-based hotel in Cork.

Great Southern, which has two airport hotels, is owned by Irish Airports Authority Aer Rianta, a part government-owned organisation.

In August the group produced a report detailing ideas for the company's future. "This involved various possible activities within the group. Speculation arose from that report," said a spokesman. "The hotels are not our core activity but they contribute considerable profit to the group." It is understood that a sale could raise about IR£70m (£65m).

A further midmarket hotel, said the spokesman, could be built at Cork airport this year if board directors give the go-ahead.

Hotels in the Great Southern group include three- and four-star properties. Last March the group invested about £9m in a 147-bedroom hotel at Dublin airport.