More hotels will close - McEniff
One of Donegal's best-known hoteliers has warned that more hotels will close due to the unprecedented crisis hotels are facing.
Brian McEniff said the traditional hotelier is also under threat due to new hotels built under tax incentives which are offering rooms at rates other hotels can't compete with.
Donegal has already had the closure of one well-known hotel, Ostan Na Rossan in Dungloe which closed last November.
Mr McEniff made the comments following a radio interview last week when the said his own business, which includes six hotels in Donegal, Dublin, Sligo and Mayo, was "right up against the wall".
He told RT's News at One that his hotel business was facing difficulty in servicing debt.
"I am not overly borrowed ...but I am finding it difficult to go in there and compete with these hotels and service my debt. That's my big problem in the short term, service my debt and keep this hotel up to standard which is suffering because I am not spending money I would normally spend on the plumber, the carpenter,the painter, the central heating man or whoever is involved in the modernisation and upkeep of the hotel. That money is not being spent so there is a loss to economy of the north-west as well in that respect."
He said the crisis facing the hotel industry was worse than in previous recessions because this time the banks are in difficulty as well.
"There are about 15,000 to 20,000 extra hotel beds in the country that are not needed. More hotels are going to close, there will be hotels in bankruptcy and there will be hotels in administration."
He added he could not afford to close any of his hotels because he needs cashflow.
"I am finding it very tight myself and it is well-high impossible to make money in the hotel business,” Mr McEniff said.
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Saturday 04 February 2012
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