Ryan Hotels has said it would be interested in one or two of the hotels in the Great Southern Hotels chain but does not intend to bid for the whole group.

The company, which announced a 22 per cent increase in pre-tax profits to €7.8 million (£6.1 million) in the year ending January 1999, said there were some very fine properties in the Great Southern chain but there was a degree of overlap with its own properties, while the Great Southern business was also seasonal.

"It's difficult to comment without knowing the profitability of the hotels but we would have an interest in one or two properties," chief executive Mr Patrick Coyle said, noting that the new Great Southern hotel at Dublin Airport had several advantages. Meanwhile, Ryan is in acquisition talks with parties in Britain and Ireland.

Buying a London hotel is high on its agenda, while the group would not be averse to acquiring another property in Dublin, Mr Coyle said.

The group can afford to spend £40 million to £50 million on acquisitions.