The Limerick Ryan hotel is to close its doors just three weeks before Christmas with the loss of 92 jobs.
The owners of the Limerick Ryan, Budelli Ltd, informed staff and unions that the premises will close on December 5th.
Budelli is a development company headed up by former Ireland rugby manager and property developer Mr Pat Whelan.
A spokesman for the company said it had been "a very difficult decision" but added that the hotel was generating losses "which could no longer be sustained".
The Limerick Ryan was bought from the Gresham Group earlier this year for €10.5 million and was managed by Choice Hotels Ireland.
A spokeswoman for Budelli said the company had planning permission to redevelop the property as an aparthotel.
"There is a growing consumer demand for this type of accommodation and, ultimately, we have to respond to consumer demand if we are to have a viable business."
Workers at the Limerick Ryan spoke of their "devastation" yesterday on hearing confirmation of the hotel's imminent closure.
Head porter Mr John Walsh, who has worked at the hotel for the past 34 years, described the timing of the announcement as "vicious".
"The new owners never had any intention of marketing the hotel and only bought it for development purposes. Some of the staff here were in tears when the news came through. There are young people here with families and mortgages to pay who have been told they're being laid off just before Christmas," said Mr Walsh.
In a statement, the company said the hotel had been loss-making for four months and they were projected to continue into next year. "We cannot continue to sustain such significant losses," it said.
Since July, the hotel has been managed by Choice Hotels, which had a two-year contract. However, the contract has been terminated by mutual agreement, according to Budelli.
A spokesman for SIPTU described the offer from the company of statutory redundancy for the 92 staff members as "derisory" and "unacceptable".
A further meeting between staff and owners to discuss the redundancy package is due tomorrow.
Earlier this week, An Bord Pleanála upheld a Limerick City Council decision to refuse planning permission for five apartment blocks in the grounds of the hotel.
