McNally was a founding executive of Dalata and has held his current position since 2007.
He will remain in his executive position as the group completes a succession process and will step down from the board in early 2022.
John Hennessy, group chairman, said: “Stephen has played a central role in the success of Dalata, joining the business as a founding executive in 2007 and acting as a key figure in our leadership team for 14 years. He has been instrumental in the development of Dalata across Ireland and the UK and ensuring the business’s effective operation during its growth to a portfolio of over 9,500 rooms at 45 hotels.
“He has also been essential to developing and maintaining the strong culture we see in the Company today. Stephen has been a tremendous contributor as a senior executive and a director, and he will be missed by colleagues in Dalata and across our Clayton, Maldron and partner hotels.”
He added: “On behalf of the board, I would like to acknowledge our deep and sincere appreciation for his dedication and commitment to the Group and wish him well for the future.”
Pat McCann, group CEO added: “I have worked with Stephen for over thirty years initially in Jurys and later in Dalata where Stephen became one of the founding directors. Not alone has he been a colleague over all those years, he is also my friend. His passion and commitment to Dalata and its people has played a big part in the success of the Group. Without him, Dalata would be a much poorer place.
“I would like to say a big thank you to Stephen for all the support he has given me over the many years and wish him well in whatever direction life takes him over the coming years. He still has a lot to offer. I am sure his wife, Edel, his daughter, Roisin and son, Luke, are looking forward to seeing much more of him.”
Dermot Crowley, group CEO designate, said: “I would like to sincerely thank Stephen for the huge contribution that he has made to Dalata since he joined Pat to launch the company back in 2007. It has been a pleasure to work with Stephen over the last nine years.
“He leaves behind a very strong operations team, for which I am very grateful. I wish Stephen and his family the very best for the future.’’
McNally concluded: “After much careful thought and consideration, I have decided to retire from Dalata. It has been a privilege to have been part of this wonderful organisation for 14 years, as a founding executive and Board member. I have had an extremely fulfilling career with Dalata and I am immensely proud of what we have built and the culture we have created.
“I would like to take this opportunity to thank the Board, past and present, for their support over the years and in particular, I would like to wish Dermot Crowley the best of luck in his new role as CEO.”