Former Dublin Ibis Hotel Manager Sues Receivers Over Interference and Contract Breach

Interstate Hotel Management Ireland Ltd, manager of the 150-room X8 Hotel (formerly Ibis at Red Cow Roundabout, Clondalkin), is suing receivers appointed over the lessee, Propiteer Ibis Red Cow Operations Ltd, for alleged interference with its management and breach of contract. The hotel accommodates 270-370 international protection applicants, including children.

Receivers Ken Fennell and Andrew O’Leary of Interpath Advisory were appointed by Bank of Ireland over Propiteer in March 2023. Interstate director Barry Dawson stated that relations were initially good but deteriorated sharply in May, with receivers raising numerous complaints including safeguarding, child protection, unvetted staff, health and safety, fire safety issues (corroded extinguishers, cluttered rooms), and only three operational washing machines for 270-370 residents (16 required).

On May 25, the receivers claimed a repudiatory breach of contract, entitling them to take immediate control and exclude Interstate. Interstate alleges the receivers issued a «non-cooperation» instruction to hotel staff, hindering its ability to perform contractual duties. Interstate seeks permanent injunctions to prevent interference and maintain its management, damages for breach of contract, and orders against Propiteer to preserve the status quo pending arbitration. The High Court granted permission for short service of injunction proceedings, with the case returning next week.