Dáil Éireann Debate, Wednesday - 1 December 2010
97 Deputy John O’Mahony asked the Minister for Finance his views on the fact that there may be some hotels in Ireland that were constructed by developers during the boom, which are now in financial difficulties, that are being sustained by the National Asset Management Agency and if this is distorting competition; and if he will make a statement on the matter. [45492/10]
View answer98 Deputy John O’Mahony asked the Minister for Finance if some hotels constructed by developers during the boom and now being sustained by the National Asset Management Agency are putting at risk hostels and hotels, which have provided many years of professional service to tourists and which are companies which would otherwise be profitable, out of business, leaving NAMA-supported hotels operated by developers on the market; and if he will make a statement on the matter. [45493/10]
View answerI propose to take Questions Nos. 97 and 98 together.
To date, as part of the debtor business plan process, NAMA has rigorously sought to ensure efficiencies in all areas of the debtor's businesses, including hotels, and is not in the business of supporting hotels that are not viable. I am informed by NAMA that it has acquired loans secured by 139 hotels in total of which 87 are located in Ireland, 37 in the United Kingdom, five each in Germany and France, two in the Czech Republic and one each in Belgium, Malta and Spain. These hotels have been built and are already in operation. As part of the business plan process with the borrowers, NAMA looks to the hotel owners to introduce efficiencies into the operation of their hotels so they are viable.
I am further informed by NAMA that, towards the middle of 2011, it will be developing a comprehensive strategy to deal with the hotels that are within its portfolio. NAMA has acknowledged that there are hotels which have been built with the wrong grading and in the wrong location. Ultimately, the long-term future of those hotels may not be as hotels and alternative uses will have to be found for them.
