The UK-listed Intercontinental Hotels Group (IHG) wants to bring the Hotel Indigo boutique hotel brand to Dublin, following its announcement that the Four Seasons hotel in Ballsbridge will become the Intercontinental Dublin on January 1st.
Despite speculation that a deal had been struck with Hyatt, IHG has signed a “long- term” franchise agreement with the hotel’s owners, London & Regional (L&R), which is controlled by the UK’s billionaire Livingstone brothers.
A subsidiary of L&R will also take over as the operator of the luxury hotel, which is currently also managed by Four Seasons.
IHG said parts of the hotel, including its public areas, meeting rooms and restaurants will be upgraded as part of a five- year capital investment programme, but its stock of 197 bedrooms will not be increased.
The hotel’s staff will transfer over to the new operator. L&R is engaged in a process to appoint a new general manager.
Paul Dowling, a UK consultant to L&R and former senior Marriott executive, will oversee the Dublin property as a "transitionary arrangement".
Strong rebound
Robert Shepherd
, IHG’s chief development officer for Europe, said the group was encouraged by the strong rebound in the performance of hotels in Ireland since the recovery started.
“Hotel values and operational performance are increasing. We absolutely have plans for more hotels in Ireland,” he said.
Intercontinental is the premier five-star offering in the stable of nine brands owned by IHG, which is involved with more than 4,700 hotels globally and also owns Holiday Inn and Crowne Plaza.
The deal with L&R is the Intercontinental brand’s first foray into the Irish hotel market since the 1960s, when it operated what later became the Jurys hotel in Ballsbridge.
IHG’s Holiday Inn, Holiday Inn Express and Crowne Plaza brands are already present in the Irish market, although Mr Shepherd highlighted the boutique Hotel Indigo as one the group it is particularly keen to introduce.
“We are looking at Dublin for Hotel Indigo, while Cork and Galway also are possible locations for Holiday Inn and Holiday Inn Express,” he said.
London & Regional acquired the Four Seasons in June 2011 for €15 million, a figure believed to be a quarter of what it cost to develop the hotel.
The hotel was built in 2001 by an 18-member consortium put together by Quinlan Private and known as the Nollaig Partnership.
It was recently reported by the Sunday Times that Denis O'Brien is among several potential investors who have shown interest in the property.
