Doyle's departure sows confusion

HE comings and goings at the Doyle Hotels group over the last couple of years has left many people in the industry wondering …

HE comings and goings at the Doyle Hotels group over the last couple of years has left many people in the industry wondering what's really going on at one of Ireland's oldest family-owned business.

The group, which was founded by the late P V Doyle, was widely believed to be on the verge of joining its competitors - Jurys and the Ryan Hotel group - on the official stock exchange list. A plethora high-profile appointments to the board and a strengthening of its management team over the past two years were taken to indicate painstaking preparations for a flotation.

But yesterday, it seemed that family members were again at odds over the future direction of the company, with the departure of Mr Doyle's two sons, Mr David Doyle and Mr Michael Doyle from the business.

Mr David Doyle's decision to step down as managing director has come as the biggest shock to the industry. Mr Doyle, who resigned as managing director in 1994, was reinstated to his former position again last year and was believed to be now firmly leading the group's development.,

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While Mr Doyle linked his earlier departure to his wish to concentrate full time on his business and property investments, industry sources believed he left following disagreements among family members about his plans for the group. It was felt that the family had reservations about his policy of heavy investment in the group's existing hotel properties.

Others say differences emerged over his plans to forge a link with the Marriott international hotel brand to which some members of the family were particularly sensitive. He had also raised the issue of going public.

His decision to once more leave the group has again fuelled speculation of a family rift and continuing uncertainty about the group's next move. The latest developments are expected to put any plans for an imminent flotation firmly on hold.

The Doyle family includes his mother, Mrs Margaret Doyle, his brother Michael and his three sisters, Mrs Bernie Gallagher, Mrs Ann Roche and Mrs Eileen Monahan. They each have a substantial stake in the business and a significant say in how it should develop. They have worked hard, however, to broaden the group's board, bringing in extensive executive expertise to advise and implement a development plan for its hotel business.

The appointment of Dr Paddy Galvin, the former chief executive of Waterford Crystal, as chairman was seen as a concerted effort by the family to resolve its differences. Dr Galvin, who would be seen as a strong independent chairman, brought a wealth of experience to the group and quickly set about introducing a management structure which mirrored that of a publicly-quoted company, steering the family along a less autocratic route.

Mrs Gallagher, who took on the role of managing director during her brother's absence, was appointed deputy chairman. The group also quickly brought two further outside members on to the board, with the appointment of the former managing partner of Craig Gardner, Mr Billy McCann and the former chairman and chief executive of the Hilton hotel chain, Mr Michael Hirst as non-executive members.

It has also strengthened its hotel management teams and recruited Mr Mike Glancey from the British hotel group Stakis as its new head of sales and marketing to promote its lO hotels.

The last available figures show the Doyle Hotel group made pre-tax profits of Pounds 11 million in 1995, on sales or more than Pounds 50 million.