Mary Upton (Dublin South Central, Labour)
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Question 119: To ask the Minister for Finance the number of hotel and accommodation businesses that have been transferred to the National Asset Management Agency; the number of these which are still trading; if a plan has been developed regarding these hotels; if his and the agency's attention have been drawn to the distorting effect these hotels are having on the wider market; and if he will make a statement on the matter. [19470/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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NAMA purchases eligible loans from participating institutions and manages these loans with the intention of generating the best possible return. NAMA does not directly purchase property, including hotels.

The loans to be purchased are land and development loans and certain associated loans. Loans secured on hotels will be eligible only if they fall within these categories. NAMA has the power to enforce security where a borrower whose loan has been transferred is in default. I am advised that to date there has not been enforcement of security by NAMA in respect of any loan.

NAMA will be seeking over time to maximise the return to the taxpayer on all loans transferred to it. The Supplementary Material to my statement on banking of 30 March 2010 shows a sectorial breakdown of the first tranche of loans then to be transferred to NAMA. Of the estimated €8.51bn total consideration in tranche 1, hotels accounted for €0.77bn.

NAMA has already sought business plans from the developers whose loans have transferred to it in tranche 1. These business plans will deal with the commercial prospects of any underlying securities, including hotels. NAMA will assess these plans on an individual basis and decide on the appropriate action.