The major expansion programme is part of the company's terms of agreement with Cendant International, the world's largest hotel franchising group, to introduce the Days Hotel brand throughout the country in a five-year period from 2005.

"We've spent the last three years, since signing the agreement, with Cendant, tracking down suitable product, " explained managing director Jim Murphy. "Days is a town centre/city centre boutiquetype product and all of the new developments have been chosen based on location."

As a result of the expansion, four new Days Hotels are scheduled to open this year at Dublin Airport, Kilkenny, Park West and Castlebar.

The Prem Group also has plans to open three new serviced apartment developments at Dublin Airport, Galway and Sandyford.

Although 350m is a significant level of investment, all of the hotel developments benefit from the capital allowances available as part of the tax-incentive schemes and the expansion has been fast tracked for 2006 in order to comply with the deadlines for the winding down of the schemes.

Given the current conditions and climate for growth in the hotel sector, the company is aiming to roll out 15 new outlets within the next two years. Murphy envisages that further investment and expansion is likely in 2007, particularly in Cork and Limerick, as the company currently has no penetration in these locations.

"The hotel product is still quite new to Ireland although there has been a lot built in the last 15 years. The taxincentive schemes have been a boost to the market, in providing a lot of new product . . .

now the task will be how to fill it. However, a lot of that product is unbranded and represents good opportunity for continued investment and growth for the Prem Group, " said Murphy.

Murphy also believes that the sector is moving towards the next generation of hotels and that the independent hotel sector will find it much more difficult to compete with the big branded groups.

"Our brand competes internationally and a lot of our business is now driven towards the overseas tourist.

Our marketing is now focused on the US and Europe as well as attracting the corporate and home market.

"We're in business for the long haul and we're providing good indigenous jobs. We can't afford to put all our eggs in one basket."