Banking on the future

The Convention Centre Dublin is on target to open in the middle of the year. They have, so far, secured a number of prestigious conferences that will hopefully bring in much needed international business to the country. Whilst the bulk of the benefit will be felt initially in Dublin, it is an opportunity to sell the country as a destination. The CCD can accommodate conferences from eight to 8,000 participants. In the local market, forexample, the venue is likely to be popular in the standalone banqueting business, such as awards dinners and corporate staff events.

The forthcoming IHF conference in March will be watched with interest. Given the current turmoil, it will be interesting to see how many attend, and what issues will be raised at AGM. There are rumblings of discontent within the ranks and it will be interesting to see how these may manifest themselves. That said, the line-up of speakers and workshops should appeal to a cross section of the sector. It will also give participants the opportunity to bid farewell to John Power, who has announced his attention to step down as CEO in June.

Three banks recently announced they intend to take a substantial stake in the D4 Hotel group, which were bought for over €300 million in 2005. Collectively, they include the Berkeley Court, Jurys Ballsbridge and Towers Hotel. These iconic properties have been the subject of much speculation since their purchase by developer Sean Dunne, and this situation is already causing concern with hoteliers in Dublin. They fear that the banks may continue to drive the rate down even further, just to ensure they recoup some of their monies. If they go down this road they fear it will damage the industry to the point that we will lose market share and become a budget-only destination. Longterm, that would be the completely wrong option.

Some recent court decisions will be of interest to the sector. The ruling by Judge Peter Kelly raised a few eyebrows in certain circles in Dublin with regard to the Residence Club in Dublin. A receiver was appointed to the company, which operated the club at the request of Zurich Bank, who are among creditors owed over €4m. Judge Kelly was strongly critical of a failure on the part of the company to pay PAYE and PRSI monies collected from employees and ordered that the judgement and papers be referred to the Director of Corporate Enforcement. In Kerry, the Abbeygate Hotel had to pay over €10,000 to a couple who had endured almost three years of relentless disturbance as a result of noise coming from the hotel complex. The hotel had changed hands a number of times over the last few years with the current owner’s having taken possession in or around 2006.

On a more positive note, The Cliff House Hotel, County Waterford, was celebrating with news they had secured their first ever first Michelin star for The House restaurant, which was recently announced by the Michelin Guide. The hotel is the only Irish restaurant to be given a new star this year. The Michelin Guide has been running for over a century and is one of the best-selling restaurant guides in the world. The hotel is the only Irish restaurant to be given a new star this year and the only restaurant outside Dublin ever be awarded a star. Not to be outdone, Solis Lough Eske is also in celebrity mood having been awarded the "Myguideireland Top 10 Hotels in Ireland" list as well as being named one of the world’s best castle hotels by US based travel expert Stephanie Abrams. This comes hot on the heels of being named the World’s Top Luxury Country Hotel.

Congratulations to both properties on their achievements. I hope our friends in the three banks take a leaf from these hotels and realise that it is possible to be profitable, retain a good customer base, and still charge a realistic price for what’s on offer. Cheap isn’t always best. But they know that: just look at the bank charges!

Cyril McAree

EDITOR