New York-based Sheraton Hotels & Resorts has signed a deal with the developers of a €45 million hotel in Athlone to manage the four-star property, which will open next April and create 250 jobs, writes Ciarán Hancock, Business Affairs Correspondent

The 12-storey Sheraton Athlone Hotel is backed by Kerry-born property developer John O'Sullivan and his family. It will have 167 bedrooms, meeting rooms, a spa and leisure centre.

Mr O'Sullivan and his family also own the Hodson Bay Hotel in Athlone and the Galway Bay Hotel.

Sheraton is part of the Starwood worldwide chain of hotels and resorts, which also includes the Westin and Le Méridien brands. Sheraton opened its first property in Ireland in 2006 at Fota Island in Cork.

"We had a look at all of the hotel brands but Sheraton offered the consistency in quality across their hotels that we were looking for," Mr O'Sullivan said. "They've also got 35 million people signed up to their loyalty programme. . they were the obvious choice."

In addition to the Sheraton properties, Starwood operates the Westin hotel in Dublin and plans to open a five-star Luxury Collection property at Killeen Castle in Meath.

Enda Mullins, Starwood's area manager in Ireland, said it was "very keen to expand the footprint in Ireland and we're looking at other development opportunities".

Overlooking the river Shannon, the Sheraton hotel forms part of a €500 million town centre being developed by O'Sullivan and accountants Jim Keane and Con Donoghue.

The town centre comprises 50 retail outlets, 145 residential units, restaurants and cafes and 1,300 parking spaces.