Managers of former Ibis hotel claim receivers interfering with their operation

High Court Reporter

The managers of a former Dublin Ibis Hotel, which is used to accommodate refugees, claim that receivers appointed over a separate company involved in the premises are interfering with its management, the High Court heard.

Interstate Hotel Management Ireland Ltd provides management services for the 150-room X8 Hotel, formerly the Ibis at the Red Cow Roundabout, Monastery Road, Clondalkin.

Interstate is an affiliate of Texas-based Aimbridge Hospitality LLC.

The Clondalkin hotel is leased to Propiteer Ibis Red Cow Operations Ltd, now in receivership, and used to accommodate between 270 and 370 international protection applicants, including children.

Receivers Ken Fennell and Andrew O'Leary of Interpath Advisory were appointed over Propiteer by Bank of Ireland in March 2023.

Interstate continued to provide management services for the hotel.

On Thursday, Interstate was granted permission for short service of injunction proceedings on the receivers and Propiteer following an ex parte (one side only represented) application by David Whelan, for Interstate.

Relations between Interstate and the receivers functioned "reasonably well" between March 2023 and May of this year, Interstate director Barry Dawson said in an affidavit.

At that point, there was a "sudden change" in the relationship with the receivers, making a "host of complaints" about the operation of the hotel, Dawson said.

The complaints were later detailed as including safeguarding and child protection, and that several staff were allegedly not Garda vetted.

There were also health and safety complaints, fire safety issues, including corroded fire extinguishers and rooms cluttered with bikes, prams and suitcases.

Facilities and maintenance issues were also raised, including that there were only three operational washing machines when the requirement for the number of residents involved was 16, Dawson said.

Interstate said that while there had been ongoing discussions with the receivers about certain issues, many had not been raised before the receivers wrote on May 25th last that there had been a repudiatory breach of the contract between Interstate and the lessee.

This, the receivers said, entitled them to repudiate the contract, and they sought to take immediate control of the hotel to the exclusion of Interstate.

Dawson said it appears the receivers issued a "non-cooperation" instruction with Interstate to all hotel staff, who are employed by Propiteer though managed by Interstate. As a result, he said, Interstate has been unable to properly discharge its functions under the contract.

As a result, Interstate is seeking permanent injunctions restraining the receivers from interfering with its management of the hotel or its relationship with staff. It also seeks damages for breach of contract.

Against Propiteer, it seeks an order to maintain the status quo pending the determination of an arbitration process, which it says is a requirement of the contract between Interstate and the lessee.

It also seeks an order restraining Propiteer from purporting to terminate the contract pending the arbitration.

Judge Brian Cregan said the case could come back next week.