Ryan Hotels believes growth will continue this year. The trading performance in the first half was ahead of the same period last year, the chairman told shareholders at yesterday's extraordinary general meeting.

Mr Sean Henneberry added: "The directors are looking forward to continued good trading for the enlarged group in the second half of 1999."

At the meeting, shareholders approved the acquisition of Charles Dickens Hotel, in Lancaster Gate, London. Mr Henneberry said the £21.5 million (€27.3 million) acquisition cost was fair value when compared with the carrying value of more than £23 million and the independent value of £23 million.

He said the hotel was "very profitable, producing in excess of £2 million in profitability which equates to just over a 10 times multiple". Where possible it has been the group's preference "to acquire a successful operation rather than trying to re-launch a product that has experienced difficulties," he added.

Mr Henneberry said the group intended to reposition the recently acquired Metropole Hotel in Cork as "one of Cork's premier hotels by the development of a meeting room centre similar to that in the Gresham and the Royal Marine hotels". That acquisition, and the option to buy the Leisure Centre, in Cork, in the year 2008 for £1.5 million, "represents good value for the group".