CORRIB Heights, formerly the Corrib Great Southern Hotel, is to close its doors for business at the end of the month just a year after it was purchased from the Dublin Airport Authority by developer Gerry Barrett.
It is understood that Mr Barrett, who also owns the G Hotel in Galway and Ashford Castle, is planning a residential development on the seven-acre site on the Dublin Road, Galway, although property sources have not ruled out the option of it being sold off.
Under the terms of the purchase of the hotel last year, which was sold by CBRE Richard Ellis, Mr Barrett was obliged to keep the hotel open for at least one year.
He is understood to have paid over €100m for the Corrib and the Eyre Square Great Southern Hotels last year. At the time he also bought the Great Southern in Killarney, Co Kerry which he subsequently sold off.
Property sources said yesterday that the site, which could be worth up to €40m, has zoning for residential development.
It is not yet known whether Mr Barrett has submitted plans for the development of the site to the relevant authorities. Mr Barrett was not available for comment yesterday.
Last year property developer Bernard McNamara bought the five acre Galway Crystal site for €20m and has applied for residential planning permission on the site.
Galway Crystal is located about a half a mile from the Corrib Great Southern Hotel. The former teacher bought Ashford Castle in Co Mayo has year for over €50m. Earlier this year Mr Barrett was refused permission to build a five star hotel in a former university residence on Hatch Street, Dublin. He recently completed a residential development at Edward Square.
He is also the owner of the form Bow Street magistrates court in London.