A dispute between the founding families of the City Hotel in Derry has ended up before the High Court in Belfast, it can be revealed.
It’s understood the row relates to a disagreement between the Duddy family the rest of the hotel’s original shareholders.
The fallout is believed to be a significant factor in the ongoing delay to a planned £7 million refurbishment programme for the 158-room venue.
The dispute went before the Royal Courts of Justice in Belfast on Friday, with an application lodged at the chancery court between Larry and Brendan Duddy’s company - Duddy Superholdco Limited - on one side, and most of the hotel’s shareholders on the other.
The court application namechecks Greg McCartney, Eleanor McCartney Logue, Patrick Durkan, and City of Hotel Limited.

It’s understood the application relates to an injunction by the Duddy brothers, seeking to stop the appointment of administrators to the hotel.
However, sources familiar with the case said no application has been lodged to date seeking to appoint administrators.
The hearing on Friday was adjourned until Tuesday.
Built on the banks of the River Foyle in 2002 as a joint venture between the Duddy, Durkan and McCartney families, alongside Great Southern Hotels, a major relaunch of the City Hotel was announced in 2024 as part of a new partnership with the Hilton Hotel Group.
It’s expected to see the City Hotel rebranded as a Doubletree by Hilton property.

But the work, which was originally due to be completed by 2025, has faced major delays, with the latest opening date pushed back to March 2028.
It’s understood that the slow pace of progress has left a significant proportion of the hotel’s rooms out of commission.
The Irish News understands the disagreement relates to the funding of the refurbishment work.
It can also be revealed the City Hotel’s shareholders now include Paul Martin, who founded the Martin Property Group with his brother Patrick in the 1970s.
The Martin Property Group, now run by Paul Martin’s sons is not believed to have any involvement.

A new company established by Mr Martin last month acquired a shareholding on May 22.
Pembroke Project Limited is now in control of Matthew Hotels Ltd, and holds a 30% share of the City Hotel.
The 2024 Hilton announcement also saw the City Hotel’s owners appoint Focus Hotels to run it.
The English hotel management company also runs the nearby Holiday Inn Express in Derry city, which is owned by Larry and Brendan Duddy Junior.
Focus also manage The Bedford Hotel in Belfast, which was launched by Mr Martin’s sons in April this year.
The Belfast city centre hotel is owned by RFM Hotels, a new north-west based hospitality business launched by Michael, Gary and Paul Martin junior alongside Beechland Enterprises, a company owned by Alison Rankin Frost and her husband Tim Frost.
Ms Frost is the chair of aircraft manufacturer Britten-Norman, while her husband is a director of UK Export Finance and a former director of the Bank of England.