Dalata Hotel Group has announced that the Clyde Court Hotel in Dublin will close in January as the site is redeveloped by Chartered Land.
The hotel group said the lease on the four star hotel in Ballsbridge in Dublin 4 will be surrendered in line with the terms of its agreement.
Meanwhile, Dalata also said today that it was extending the lease on its Ballsbridge Hotel, which is adjacent to the Clyde Court, to at least April 2018.
The company said it has informed the 100 workers at the Clyde Court Hotel of the closure but said it was expecting no job losses as a result of the decision as the workers will be transferred to other hotels in the Dalata chain.
Chartered Land will start work on the Clyde Court Hotel site early next year and will build a residential scheme of 190 apartments there.
Over 500 jobs will be created during the construction period and the new apartments are expected to come to market in 2017.
"While there is a certain sadness at the closure of the Clyde Court Hotel, I am delighted that the Ballsbridge Hotel will continue in operation until at least April 2018," commented Dalata's chief executive Pat McCann.
"The certainty that we will operate the Ballsbridge Hotel until at least April 2018 is very good news not least for our employees, customers and suppliers but also ensuring that there are 400 rooms and a multitude of meetings rooms available in a market that requires additional hotel space," he added.
Dalata is in the process of raising €160m in fresh equity capital which it said will allow it to buy more hotels in Ireland, add bedrooms at certain existing hotels and explore opportunities to build new hotels in Dublin.