Comments on: Exclusive: At least 1 in 6 Irish hotel rooms is under bank control, and 56% of these are controlled by NAMA, and NAMA banks

By: namawinelake

namawinelake — Thu, 05 Jul 2012 14:54:06 +0000

@Michael, Breaffy Sports Hotel is the same as Breaffy House Hotel (which is listed bove) – is it not?

By: namawinelake

namawinelake — Mon, 25 Jun 2012 15:16:26 +0000

Carton House is apparently owned by Swindon Investment Company Limited which Paddy Kelly, Jed Pierse and the Mallaghan family apparently control, and according to the Company Registrations Office, there is no receivership. It may indeed be in NAMA, but NAMA has 90 hotels in the Republic and less than 25 have had foreclosure action.

By: otto

otto — Sat, 23 Jun 2012 16:39:05 +0000

I think that the Competition Authority has, correctly, some sort of minimum measure for market dominance that must be cleared before market operations are subject to competition scrutiny, and unless NAMA controlled e.g. 30% of Ireland’s hotels, it is unlikely to have any ability to control prices in the sector.

Local oil distributors and rubbish collection companies however often have very strong pricing power and are just the sort of gougers that the Competition Authority needs to be firmly regulating. We could probably do with more prosecutions of these operators.

On other sectors, if the competition authority’s proposals for reform of the GP market come into being (and it’s in the IMF ECB agreement), it may result in a very sweeping change to Ireland’s medical professions. And in the law area, there is no restriction on entry beyond legal qualifications, there are lots of unemployed lawyers i.e. no shortage of supply, and – I think – no regulation-enforced minimum prices on legal services provided to private parties. If so, competition regulation may not be directly relevant. Likely more to the point is government procurement of legal services, where the amount the government pays for lawyering, esp at the top end, but yes also at the bottom, should be reduced by competitive tendering. Happy to be corrected if wrong …

By: Pease tell me I'm Wrong

Pease tell me I'm Wrong — Sat, 23 Jun 2012 05:49:46 +0000

@NWL At last someone is looking at the (non) role of our low profile Competition Authority. This outfit deserves intensive scrutiny in its own right. It embodies the spirit of “light touch” regulation that played such a huge part in our downfall. Like IFSRA, its regulatory sister, it was great at picking on small operators such as local oil distributors and rubbish collection companies while leaving the big boys to “get on with it”. No dawn raids on the Banks or the Law Library.

Interestingly, it seems light touch regulation is alive and well for the financial sector. Papers reported yesterday on a fine of €65k on UBS by CB in terms of “tough action” by Regulator. What are Irish journalists/editors on? Such sanctions are nothing more than the mildest of slaps on the wrist for outfits like UBS. That we are still in thrall to the financial sector is also sadly apparent from the Government’s lack of support for an EU wide FTT. Nothing has really changed, and nothing will.

By: otto

otto — Fri, 22 Jun 2012 14:33:28 +0000

You may be right for deals including dinners etc…

By: namawinelake

namawinelake — Fri, 22 Jun 2012 14:09:57 +0000

@otto, I would disagree with you on €260 for two nights for two people with two breakfasts each plus a dinner in an Irish five star hotel, not being “necessarily cheap”. I think it is “bite your hand off” good value. Not an expert on how stars are allocated though I remember having a discussion with a manager at an Ibis hotel once about it, but based on range of services, quality of accommodation and hotel setting including gardens, I think that Irish 5-star is certainly at the same high standard as the UK and US.

The “per person sharing” business is funny, especially given this country’s historical aversion to couples living “in sin” – you would think a “per person sharing” price was more appropriate to an unmarried couple going Dutch. The usual these days is a price per room with number of occupants.

By: otto

otto — Fri, 22 Jun 2012 13:51:02 +0000

€260 is not necessarily cheap for a five star hotel, lots of Irish hotels at 130 pps would not qualify as five stars internationally, and quoting “per person sharing” is not international best practice, so yes, its one of price gouging aspects of the Irish hotel industry, and should be got rid of.

By: namawinelake

namawinelake — Fri, 22 Jun 2012 08:56:19 +0000

@WSTT, there’s a problem with definitions.

ALL hotels in Ireland will have a relationship with a bank, which will generally include an overdraft facility for working capital, particularly needed in Ireland because of the seasonality of the business. It would obviously be an exaggeration to say that ALL hotels in Ireland are “bank controlled”!

So “bank control” for the purposes of the above blogpost was where there was evidence of foreclosure action by banks, or where companies owning the hotels admitted in their accounts – something that is not strictly speaking required under financial disclosure rules – that they are dependent on their banks for survival.

However NAMA has only published 25 hotels on its foreclosure list, of which 23 are in (the Republic of) Ireland. NAMA has previously said that it has 90 hotels in its portfolio, subject to NAMA loans. So most are still operating without foreclosure action. Some of these hotels may be “bank controlled” in that NAMA is closely overseeing their finances and insisting on its right to approve or reject spending.

It is hoped that there will be a follow-up blogpost next week, and any additions flagged here will be checked out and added. Commenters need to be careful though when referring to businesses.

By: who_shot_the_tiger

who_shot_the_tiger — Fri, 22 Jun 2012 08:41:27 +0000

In the “ghost hotel” category there is also the Red House Hotel in Newbridge, County Kildare.

And I believe that the Carton House Hotel which has a Paddy Kelly/ Pierse/McCormack connection may be in NAMA (subject to checking).

By: John Gallaher

John Gallaher — Fri, 22 Jun 2012 02:50:54 +0000

With Treasury Holdings web site now down a few days,updates on Ritz difficult,”ghost hotels” specifically Hugh O’Regans folly in Enniskerry,include as separate category,perhaps.Sorry,hear about Brooklodge,attend exceptional wedding there.The Bacon report is actually great read,the only comparable hotel market that I’m familiar with is Las Vegas.
Deutsche Bank,finished a hotel called The Cosmpolitan,they were in way too deep,similar to Kilternan in some ways.Finished it,with new pair hands,it’s a home run.The Venetain,shut a tower down for couple years,City Centre still struggling.Limited,direct govt. intervention or stimulus packages,still a bit of a war zone though,excess capacity.
Would appear to be a classic race to the bottom in the hotel sector in Ireland,yikes,it’s actually a good time to buy and do a roll up,if you are well capitalized and patient.

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