IT HAS provided the backdrop for The Quiet Manfilm and hosted foreign presidents and princes but yesterday the five-star Ashford Castle Hotel in Co Mayo was placed into receivership by its owner, Galway businessman Gerry Barrett.
Luke Charleton and David Hughes of Ernst & Young were appointed as joint receivers to the castle, which sits on 365 acres and overlooks Lough Corrib beside the village of Cong.
It is understood that Tifco Hotel Group, a specialist Irish-owned asset manager, has been appointed by the receivers to run the castle.
The receivers said their appointment would ensure that the hotel would continue “without any interruption to guests, staff and suppliers”. It employs about 140 staff.
Mr Barrett acquired Ashford Castle from a group of American investors in 2008 for €50 million through Edward Holdings.
He largely financed the purchase with a loan from Bank of Scotland (Ireland), part of the Lloyds Banking Group in the UK.
The last set of accounts filed for Ashford Castle Estate Ltd relate to 2009 and show it owed BoSI €29.2 million.
This loan was secured, in part, by a guarantee from Mr Barrett of €10 million and security over a mortgage protection policy in his name of €7 million.
It also owed €29.1 million to companies within the Edward Holdings group. Bank loans in those companies were transferred to Nama in February 2010.
Ashford Castle made a loss of €16 million in 2009 while the value of the property was reduced to €21 million from €35 million.
Mr Barrett could not be reached for comment yesterday.
The receivers said they would have “access to the necessary funding to maintain and, if necessary, enhance the current high standards of the hotel”.
“It will be business as normal with all employment being maintained, suppliers being retained, and full commitment to the scheduled Christmas programme for the hotel,” the receivers added.
All events booked will go ahead as normal and deposits paid will be honoured, they added.
The hotel is believed to have been trading well in recent times. One staff representative said they hadn’t seen the receivership “coming down the tracks”.
Irish hotels have been badly hit by the recession, with the number of tourists declining since 2008 and domestic spending falling sharply.
Earlier this year Ashford Castle took over the running of Lisloughrey Lodge, a 50-bed hotel built in 1865 for the estate manager in the grounds of the castle.
It was rebranded as the Lodge at Ashford but it is understood the Ernst Young receivers have not taken charge of this property.
Ashford Castle dates back to the 13th century when it was founded by the Anglo-Norman de Burgo family.
It was later owned by the Guinness family.
Famous guests have included former US president Ronald Regan, who stayed there while on his State visit in 1984, Britain’s Prince Edward and Hollywood actors Brad Pitt and Russell Crowe.
