GALWAY businessman Pat McDonagh has agreed the sale of the Castletroy Park Hotel for a figure in the region of €3.5 million and will take over its operation later this month.
The Supermacs Ireland LTD boss, who attended Mary Immaculate College, will take over operation of the four-star, 107-room hotel on October 23 and has assured the approximately 90 staff that there will be no job losses.
Current hotel operators Carlton will not be retained after the handover however, but Mr McDonagh has stated that the hotel “will be honouring all customer deposits, bookings, memberships and vouchers”.
The multi-millionaire businessman said, in a joint statement with the Carlton Hotel Group, that once the sale closes he will “take over the operation of the hotel”.
“There will be no job losses and business will continue as normal at the hotel, with no interruption in trade,” said Mr McDonagh in the statement.
Mr McDonagh added that he plans “to reinvest in the hotel and will continue to grow and develop the business”.
Staff were informed of the imminent handover at a meeting last Wednesday, which was conducted by senior staff from the Carlton group, and told that they were to be retained once the sale was completed and Mr McDonagh assumed control of the hotel.
“Staff were given an undertaking that there was no threat to jobs, that everything was fine,” said a source in the hotel.
Current hotel manager Denis Deery is the only one to lose out, and will not be staying after the handover, and instead will be working with Carlton head office after a new manager is appointed.
The hotel, which was was opened by President Mary Robinson in 1991, was owned by CPH Investments Limited, a subsidiary of parent company Fordmount Property Group Limited, which has been in receivership for some time.
Bank of Scotland Ireland held a charge over the hotel and sanctioned its sale for a figure in close to €3.5 million, according to a source with knowledge of the deal.