It is understood that higher than expected levels of interest in buying some or all of the eight group hotels has come from both international and domestic property and hotel interests. The hotels, which lost nearly 6m last year, are being sold either as a unit or piecemeal.

The closing date for tenders was originally last Friday, but has been postponed for three weeks in a move the DAA said last week is in response to the interest expressed. The delay could also help smooth the impasse between the authority and the hotels' 1,000 employees.

Great Southern employees have been offered a deal that could cost the state more than 20m. Those who take a severance package have been offered six weeks pay per year of service, plus an extra week for "orderly disposal" of the hotels. Those who move to work for new owners have been offered five weeks plus one, with both payments uncapped.

Pension rights are a sticking point, however, with Siptu seeking preservation of existing pension rights and the same rights for new employees.

Siptu had refused to go to the Labour Court unless the DAA agreed to put the sale on hold completely. The union has informed its members it will ballot for strike action on Wednesday, but it is understood that behind-the-scenes negotiations are ongoing.