Great Southern Hotels sale to make €170 mn

The Dublin Airport Authority (DAA) has is planning to sell its Great Southern Hotels Group (GSHG) portfolio which industry sources estimate is worth around €170 million, according to reports.
There has been much speculation as to who will buy the eight hotels, some of which have significant landholdings attached. The hotels will be sold by tender in one or more lots and as going concerns, and agent CB Richard Ellis has set a deadline for offers of June 23rd.
It appears likely that the hotels will be bought in a number of lots. CIÉ, which once owned the Great Southern chain, is expected to attempt to buy back the Galway Great Southern Hotel on Eyre Square.
“The whole idea is to maximise the proceeds,” says Dermot Curtin of CBRE, “and that will happen in whatever way or grouping the market decides.”
There are six four-star and two three-star hotels in the portfolio. The DAA, formerly Aer Rianta, which has owned the hotels for a decade, is offloading the hotels due to financial losses - reaching €6 million at the end of 2005.