Great Southern Hotels Announces Beginning of Public Tender for Sale of Eight Hotels - Tender Deadline, June 23rd 2006

A comprehensive marketing campaign for the sale of Great Southern Hotels
(GSH) will commence on Wednesday, May 17th 2006 with advertisements in the
property sections of the national media followed by international press.
This follows the decision by the board of GSH in February to sell eight
hotels on a going concern basis.

The sales process, which will be carried out by public tender, offers the
hotels as one overall lot, as individual lots or as various combinations of
lots.  The deadline for receipt of tenders is 12 noon, Friday, June 23rd
2006. 

Tenders received by the deadline will be opened and assessed over a period
of several weeks with a view to establishing a preferred bidder or bidders.
It is estimated that the process will conclude in late August or early
September.

Since the decision was taken to sell the hotels, the company and its
advisors have engaged fully with the employees and their representatives.
This engagement process will continue to address any issues employees may
have arising from the sale. 

The board of GSH is pleased with the level of informal expressions of
interest in the hotels to date as recorded by the agents for the properties,
CBRE.  The board is confident that the planned marketing campaign will
stimulate even greater interest, both in the Irish and overseas markets.

The eight hotels for sale are located at Dublin, Shannon and Cork Airports,
at Parknasilla and Killarney in County Kerry, at Eyre Square and the Dublin
Road (Corrib) in Galway city, and at Rosslare Harbour, County Wexford.

BDO Simpson Xavier Corporate Finance is the lead advisor to the board of GSH
on the sale of the hotels.

ENDS

Great Southern Hotels
16th May 2006

For reference:

Conor Dempsey: 086-247 9892/ 01-634 2508/ conor.dempsey@scomms.ie Padraig
Slattery: 086-255 0009/ 01-634 2518/ padraig.slattery@scomms.ie Slattery
Communications

For property related queries please contact CBRE:
Dublin
Dermot Curtin (01-618 5540/ Dermot.curtin@cbre.com) Paul Collins (01-618
5540/ paul.collins@cbre.com) London Dominic Murray (+44-20 7643 3954/
dominic.murray@cbrehotels.com)