THE estimated 30 per cent of Doyle Hotels held by Mr David Doyle and Mr Michael Doyle is expected to be bought back by the company for upwards of Pounds 40 million and is unlikely to be sold to outside investors.
The rumoured stock market flotation of Doyle is now unlikely to take place for some considerable time, after the company announced yesterday that Mr David Doyle had ceased to be managing director.
Discussions on the transfer of the shares to the company are now taking place and come against the background of the announcement of Mr Doyle's departure. In March last year, he rejoined the hotels group afier leaving two years' previously. At that time he said he wanted to pursue personal business interests.
Many felt, however, that Mr Doyle left because he had fallen out with other members of the family over his policy of heavy investment in the group's chain of hotels. This latest rift in the family-controlled hotels group is likely to be permanent with a new chief executive from outside the family to be appointed at some time in the future.
A spokesman for Doyle's would not elaborate on the brief statement. It is understood that the board met yesterday and decided that Mr David Doyle should no longer act as managing director. He is remaining on the board as a non-executive director, but it is understood that this is unlikely to be a long term appointment if he does sell his shares back to the company. Mr Doyle could not be contacted for comment.
Doyle Hotels staff were told yesterday that David and Michael Doyle had served notices of transfer of the shares and that the company was in discussions with the two brothers. When Mr David Doyle rejoined the company in March 1996, a restructuring of the shareholdings took place which saw the shares divided roughly evenly between Mrs P.V. Doyle and her five sons and daughters, giving each of the six family members about 16 per cent of the company.
The statement from Doyle made no reference to a replacement managing director. Non-executive chairman, Dr Paddy Galvin is heading a team to direct operations on an interim basis. Hotel industry sources, suggested, however, that one possible candidate for the job is Mr John Glynn who was given management responsibility for the group's seven Irish hotels in September last year.
While the departure of Mr David Doyle from the managing director's job will undoubtedly cause something of an upheaval, the company is probably better equipped to manage in his absence than when he first resigned. In the past two years, the group has appointed a battery of high-profile, non- executive directors, including Dr Galvin, former Craig Gardner partner and ESB chairman, Mr Billy McCann, and Mr Michael Hirst, former chief executive of Hilton Hotels. Mr Eoin Ryan is also a non-executive director.
As well as the non-family members, the Doyle board currently has six family members: Mrs P V Doyle, widow of the founder, her daughters, Ms Bernie Gallagher and Ms Eileen Monahan, Mr David Doyle, Mr Michael Doyle's wife, Susan, and Mr Tom Roche, husband of Ms Ann Doyle.
