IIB BANK has appointed a receiver to a Co Tipperary hotel over a debt of about €7 million.

Racket Hall Hotel, which is located outside Roscrea, was put into receivership last Thursday by the bank. The hotel is continuing to trade and the receiver, Kieran Wallace of KPMG, is expected to try to sell the hotel as a going concern.

The hotel, which is owned by Limerick businessman Michael Costello, employs about 50 people and has 40 bedrooms.

Mr Costello also owns the Bank bar and Rogue Traders restaurant on O’Connell Street in Limerick, which are unconnected to the hotel company.

Racket Hall Trading, the company behind the hotel, made a loss of €95,400 from a turnover of €3.3 million in 2006, the most recent year for which accounts are available. This compared with a loss of €52,800 on a turnover of €3.15 million the previous year.

The company had retained losses of €472,700 at the end of 2006. Mr Costello was owed €446,300 by the company on a director’s loan, up from €375,800 the previous year. The hotel has undergone a significant refurbishment in recent years.

Mr Costello could not be reached for comment. IIB Bank declined to comment.