Marriott International is to take over the running of the Shelbourne Hotel in Dublin from late-January next, ending months of speculation about its future.
Marriott, which also runs the Druids Glen Hotel in Co Wicklow, has agreed a long-term lease with the Royal Bank of Scotland (RBS) to operate the Shelbourne from January 31st, 2004.
Until that date, Le Meridien - whose name the hotel has carried since 1996, when its parent company Granada bought the property from the Forte Hotel Group - will continue to run the hotel under "a short-term transitional agreement".
Financial problems, including an estimated €1 billion in debts, meant Le Meridien had to offload the hotel to RBS in 2001 as part of a €115 million sale and lease-back agreement.
Ten other properties, including London's Grosvenor House and Waldorf Hotels, were sold by Le Meridian in a similar manner.
Last summer, RBS said it planned to take over the hotels, putting some into receivership in an attempt to find new investors. The Marriott and Hilton groups were among those to express interest in assuming management contracts within the portfolio.
In a statement, Marriott said it had agreed to operate both the Shelbourne and Grosvenor House under the deal.
It said RBS, which would continue to own the hotels, "plans to complete substantial renovations and improvements to both over the next few years, including guest rooms, public areas and infrastructure.
"Following the renovations and improvements, the Grosvenor House will become a 498-room JW Marriott hotel and the Shelbourne a 276-room Renaissance hotel."
No other terms of the agreement were disclosed.
Mr James M. Sullivan, Marriott International's executive vice president, said: "We are delighted to conclude an agreement that will bring two legendary properties and prime conference space into the Marriott International system, in two of the most coveted and prestigious locations in Europe."
Staff at the Shelbourne were informed of the takeover at the weekend.
The Shelbourne, which is valued conservatively at €100 million, has had an eventful history since it opened its doors nearly 180 years ago.
Established in 1824 as a retreat for Dublin's landed gentry, the hotel played host in 1922 to the drafting of the Free State constitution by Michael Collins.
The hotel has changed hands on several occasions, passing into British ownership in 1960.
