‘Very sad’: Hopes of Leitrim Hotel reopening diminish as apartment plans approved

This week, the owners of Lough Allen Hotel received permission from Leitrim County Council to convert 24 apartments into residential apartments, meaning they can be rented for long-term or as holiday homes.

It is unclear what the next step for the hotel building is; however, the chances of the building returning to use as a hotel for tourists in the town are “diminishing” says local county councillor Enda McGloin, which he views as “very sad.”

Drumshanbo has been without the use of the hotel for around twenty years, with the building passing through receivership under the National Asset Management Agency following the crash.

More recently, the building was used to accommodate Ukrainian refugees fleeing the war, with 170 Ukrainian residents living there under the State’s temporary protection programme.

In 2024, those residents were given short notice to vacate, prompting concern locally as many had become embedded in the community through work and school. Following their departure, some remained in Drumshanbo and surrounding areas, while others were relocated elsewhere.

There have been a number of false dawns when it comes to the sale of the Lough Allen Hotel over the years, but nothing is finalised until the contract is signed and money has changed hands.

The hotel has been for sale on the Irish market for some time, with expressions of interest but no sales ever going to completion; however, McGloin says he would have liked to have seen the hotel marketed internationally.

Significant investments have been made into tourism infrastructure in the area, with walkways and greenways in the county being built as well as businesses like the Shed Distillery and Lough Allen Adventure Centre coming to prominence in recent years.

The number of tourists in the area is rising, says Cllr McGloin; however, they are still lower than other areas of the country, which means the hotel is a less viable option to potential buyers.

“We still are well behind when it comes to visitor numbers. We're coming up, and we're doing our best to come up. We're investing heavily in infrastructure.”

“Our numbers are rising, but we're still at the level of, let's say, the likes of what Kerry and Cork, Clare, and Galway have. And I guess if the Loch Allen Hotel was based in some of those locations, it might have more of an interest from hotel groups to be purchased. So that's where I guess we're under pressure.“

The plans accepted this week by Leitrim County Council were put forth in August by P & A Lakeside Investments Ltd.