Ryan group to divide into two hotel chains

Ryan Hotels is to change its name and split its hotels into two branded chains. The company will be renamed the Gresham Hotel Group, after its first four-star property on Dublin's O'Connell Street.

Eight four-star hotels will be flagged as Gresham hotels, while two three-star properties will continue under the Ryan name.

Business development director David Bunworth said the move was needed because Ryan's hotels targeted two different markets that did not mix.

"We have the family leisure market and the corporate/city break market. Those two groupings don't mix or match. It's a different proposition," he said.

When booking, some corporate or city break customers in the four-star hotels were worried that the hotels would be family-orientated, like Ryan's leisure hotels. About 80% of the company's business now comes from the corporate and city break markets.

Ryan is to invest IR£5.2m (£4.1m) in its hotels over the next 12 months, including upgrading the lobby areas, restaurants and bedrooms in a number of properties. About IR£500,000 (£396,000) will be invested in additional training for all 850 staff.

The eight hotels being rebranded as Gresham are: the Gresham in Dublin; the Gresham Metropole in Cork; the Gresham Royal Marine in Dunlaoghaire; the Gresham Ardhu in Limerick (formerly the three-star Ryan Limerick); the Gresham Hyde Park, London; the Gresham Memphis, Amsterdam; the Gresham Belson, Brussels; and the Gresham Carat in Hamburg.

The two leisure hotels retaining the Ryan name are the Killarney Ryan hotel and the Galway Ryan hotel.

The decision is subject to approval by Ryan's shareholders at their annual general meeting in June.

By David Shrimpton