Media Article / Feature

19/11/06 - Sunday Business Post

'Managing hotels to the advantage of investors.'

Seeking to capitalise on the boom in hotel construction, hoteliers Paul O'Meara and Paul Taaffe have set up a company that offers "a complete outsourcing solution" for hotel owners and investors.

With more than 40 years experience in the hotel industry between them, the two men believe there is a gap in the market for a hotel management company with good local market knowledge, so they have set up Vantage Hotel Management.

O'Meara, who worked with the Doyle Hotel Group and managed the Connemara Coast Hotel in Galway, said independent hotels in Ireland "found the current industry tough, faced with increasing competitiveness, international chains buying into Ireland and ever-increasing running costs".

He said Vantage would offer cost efficiencies to Irish hotel investors who chose to outsource the management of their asset.

"We act as agents for investors and operate through long-term management contracts. The overall aim of the business is to add asset value to contracted hotels by delivering above-average returns on hotel investment," O'Meara said.

The concept of setting up a hotel management company started with O'Meara's business partner, Paul Taaffe, former finance director of Fitzpatrick Hotels, the US and Irish hotel group.

This type of management solution was customary for all types of independent hotels and hotel chains in the United States, he said.

O'Meara believes there is a gap in the market for a company such as Vantage, as most hotel management companies are aligned to global brands. The market conditions are also favourable, he said.

"Fifteen or 20 years ago most hotel owners who set up were ex-general managers. The current tax breaks mean a large number of hotels are being built and a greater number of investors are getting into the hotel market," said O'Meara.

Such arrangements usually involve the management company earning a percentage of gross revenue or gross operating profits.

Although Vantage will initially concentrate on hotel management, O'Meara said he and Taaffe, who have equal stakes in the company, plan to move into leasing and joint ventures later. Vantage recently signed a contract with Galway property developer Oysterhomes, which is owned by Galway businessman Eamon Conneely.

Vantage will operate the Athlone Springs hotel which is part of a mixed project of commercial units, homes and a supermarket.

The €20 million hotel is due to open in April and will have 68 bedrooms, a conference and banqueting centre, and a health and leisure club.

© Sunday Business Post - 19th November 2006

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