One of Donegal’s landmark hotels is to close with the loss of 20 jobs.

Gleneany House Hotel in Letterkenny, which was a 25 bedroom family-run hotel, has been open for the past 20 years.

Increased competition and a down-turn in the economy has been blamed for the hotel’s closure.

President of the Letterkenny Chamber of Commerce Patrick McGinley said the hotel closure was another blow for the town: