Justice Minister Jim O’Callaghan has indicated that a Government-appointed contractor to operate Citywest Hotel and Convention Centre for International Protection (IP) applicants will not be in place until 2027.
The Government last August paid the Tetrarch Capital firm, Cape Wrath UC, €148.25 million for Citywest Hotel and Convention Centre, which has a capacity of approximately 2,300, with a mix of International Protection (IP) and Ukrainian accommodation provided.
The Government made the purchase in order to reduce its reliance on commercial firms in the sector and develop more State-owned IP accommodation.
The Government entered into a 12-month transitional arrangement with Cape Wrath UC to continue to manage the hotel on behalf of the State.
Department of Justice, Migration and Home Affairs quarterly purchase orders show that in two full quarters since the purchase from the start of September to the end of March, Cape Wrath UC has received €33.56 million from the Department of Justice for IP accommodation and related costs.
The Department figures show Cape Wrath UC received €22.4 million in the final quarter of 2025 and €11.16 million for the first three months of this year.
In a written Dáil reply to Deputy Carol Nolan TD on the matter, O’Callaghan stated that “a 12-month transitional service agreement was put in place with the existing provider to ensure operational continuity”.
He said: “The transitional service agreement includes an optional six month extension and it is anticipated that it will be necessary to utilise the six month extension to allow adequate time to complete a compliant procurement process.”
"While the department treats details of contracts and rate as commercially sensitive, the nightly contracted cost for accommodation post-purchase represents improved value for money for the State."
O’Callaghan said that the €148.25 million Citywest purchase “represents significant value for the State”.
He said that the purchase “will significantly reduce the current expenditure on State accommodation at this site over the coming years and increase the value for public money now and for the future”.
“The payback period on the purchase price is approximately 4 years, due to the reduced running costs of a State-owned facility compared to the previous leasing model.”
O’Callaghan stated that the Citywest purchase has increased State-owned beds to 4,000 in 2025, compared to 900 in early 2024.
He said: “The Citywest facility is a key component in the State's implementation of the EU Migration Pact this year, acting as a screening centre and border procedure location as required under the Pact.”
O’Callaghan added that the purchase of Citywest and overall expenditure on accommodation “will form part of the 2025 Appropriation Account in due course, which will be subject to audit by the Office of the Comptroller and Auditor General (C&AG)”.
Citywest has been successfully used as a processing centre and accommodation centre since 2022, with registration services provided to both people applying for Temporary Protection due to war in Ukraine, and to people applying for international protection.
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