NAMA and Receivers are not dictating pricing or the day to day operation of hotels under their control, Pat McCann said yesterday.

The ceo of Dalata Hotel Group which operates 17 hotels on behalf of banks and receivers, told the National Hospitality Conference that his company has 'zero interaction with NAMA' and makes quarterly reports to receivers and banks. 'As long as a hotel can generate its own working capital and repay a few bob of their loans, the banks are content to allow it to operate. They are interested in the amount of capital expenditure we plan to invest in a property, but they do not dictate pricing or get involved in  day to day operations', he said.

Dalata, he said, had generated all its own working capital since 'Day One' but he was aware of other hotels where banks are providing working capital. This situation, he believed could not last indefinitely. Dublin hotels 'inside the M50' are performing well, he said, but othert parts of the country, such as Limerick city, are suffering from the overcapacity situation.

He said that the requirement of the Irish hotel sector is around 50,000 rooms, but the sector currently has 61,000 rooms. 'The Government will not close down hotels', he said. 'Only the banks can take hotels out of the market'.

Bank of Scotland Ireland, he said is 'upping the game' by selling hotels and this policy is affecting the capital value of other indebted hotels.'There are cash buyers out there up to €5m'.

He said thart the coming year could see 'turmoil' in the market as banks unload hotels. 'No bank wants to be a hotelier in the long term'

The future, he said is in Irish-owned hotels. 'The big international brands came here and failed to deliver. They tend to concentrate on room sales but the Irish hotel is a more complext product with a strong emphasis on food and beverage.

Brand loyalty, he said, is being eroded by new marketing channels and consumers who choose their hotels through the internet and TripAdvisor.