Buying Citywest Hotel at a cost of €148 million is a “sensible decision” that will save taxpayers money in the long-term, Jim O’Callaghan has predicted. 

Yesterday, the Department of Justice announced the Cabinet has approved the purchase of the building, along with the Convention Centre. 

In total, the two buildings can accommodate 2,300 people and will continue to be used to house Ukrainians and international protection applicants. 

On Newstalk Breakfast, the Minister for Justice said buying Citywest is better value for money than continuing to rent it. 

“Since 2020, we’ve been using it in the first instance for vaccination,” he said. 

“More recently, for beneficiaries of international protection from Ukraine and international protection applicants. 

“We've been spending a lot of money by paying out to the commercial centres when we’re renting premises. 

“So, it makes a lot more sense for us to own our own centres, our own properties - which is going to be cheaper in the long-term.” 

Citywest Hotel. Picture by: Colin Keegan, Collins Dublin.

Minister O’Callaghan continued that he hopes the purchase of property will also avoid the “tension” of civil servants travelling around the country, looking for hotels to rent out. 

He also added that Citywest has “worked very well” as a place to accommodate asylum seekers. 

“We haven’t seen any of the contentious or very negative campaigning against it that we may have seen in some other areas,” he said. 

“I want to acknowledge and commend the people of the area for the way they have responded to date in respect of what’s going on there.” 

Citywest Hotel in Saggart, Co. Dublin. Picture by: Colin Keegan, Collins Dublin.

In the Programme for Government, Fianna Fáil and Fine Gael promised to “move away from the emergency use of hotels for housing” asylum seekers and house them on State land instead. 

The purchase of Citywest, Minister O’Callaghan added, is an important step towards fulfilling that promise. 

“In the long-term, it’s a valuable asset, no matter what happens in the future,” he said. 

“If the international protection numbers decline considerably, it’s a very valuable asset for the State to own.

“I don’t think it’s going to lose its value.” 

Community reaction

Minister O’Callaghan said he had already briefed local TDs on the purchase and promised there would be “considerable engagement” with the community in the coming days. 

“It’s always difficult in advance to engage before a decision is made,” he said. 

“I’m sure many of the people who would be consulted would simply say, ‘We don’t want you to buy it.’ 

“But listen, it has been purchased and now it’s the duty of the State to engage with people, to see what can we do to facilitate their needs in the area.” 

In the first nine months of 2024, the Government spent €1.43 billion on accommodation for asylum seekers and Ukrainians.

Main image: Justice Minister Jim O'Callaghan. Picture by: Alamy.