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Job fears at two struggling hotels

FEARS are growing for jobs at two hotels that are being put into receivership.

A receiver has been appointed to the Clare Inn near Shannon and Breaffy House in Castlebar, Co Mayo, run by the Lynch Hotel Group.

Managing director Michael B Lynch said the group had found difficulty in raising finance over the winter months, following the withdrawal of Bank of Scotland Ireland from the market here.

Mr McAteer has appointed Pat McCann of Maldron Hotels to operate the two properties.

Despite the negative news, the group has pledged to retain 150 staff at the hotels.

Breaffy has about 200 rooms and a sports and events arena, while the Clare Inn has about 180 rooms and self-catering lodges.

Michael Lynch, founder of the Clare-based hotel chain, said that average room rates were down 15pc this year, which made it much harder to trade in the family and corporate markets.

"It is with great regret that we have had to make this decision but I am happy that in our discussions with the bank and receiver we have secured a position where the properties will remain open and continue to trade," Mr Lynch added.

He said the poor weather leading up to Christmas led to a "large numbers of cancellations" which was a "significant blow" for the hotel chain.

The Lynch chain has seven properties with 900 bedrooms in three counties in the west.