Government to buy Citywest Hotel for €148.2 million

The Government has signed off on a €148.2 million deal to acquire the Citywest Hotel and Convention Centre in west Dublin, Justice Minister Jim O'Callaghan has announced.
The facility, currently being used as a reception centre for asylum seekers and Ukrainian refugees, will be converted into a permanent State-owned screening centre for processing international protection applications.
Mr O'Callaghan said the move is a more cost-effective long-term solution than continuing to lease facilities from private providers.
'Over a period of four years, we believe we'd be in the position where we would have got our money back in terms of the investment,' he said. Justice Minister Jim O'Callaghan. Pic: Leah Farrell/RollingNews.ie
'Over a longer period of time, if you compare what we're spending in the private sector from the amount of money we'll be spending in terms of a state owned entity, over a period of about 25 years, we'll be looking at a saving of 1.25 billion (euro).'
He added that the purchase supports the Government's programme commitment to secure 14,000 accommodation units for people seeking asylum.
'It would be far cheaper to own the facility in west Dublin instead of paying private providers for the services and accommodation,' he explained.
'It will be used as a screening centre where applications for asylum will be processed.' Pic: Colin Keegan/Collins Dublin
While the Citywest facility will continue operating in its current capacity, O'Callaghan confirmed there are no immediate plans to expand its accommodation capacity.
'There are no 'immediate' plans to expand the number of places at Citywest,' he said.
The announcement has sparked concern among local residents. Protesters from Saggart gathered outside Leinster House last week to oppose the purchase, citing fears over the loss of public access to the hotel complex and increased strain on local services.
Minister of State Colm Brophy addressed the concerns, saying engagement with local representatives would be prioritised to ensure transparency and communication with the community.
'Very importantly, the purchase of Citywest will not result in any immediate increase in numbers,' he said. Pic: Colin Keegan, Collins Dublin
'The plan with Citywest is very simply, to develop the asset and make sure that we have the ability, particularly under the Migration Pact, to have a state-of-the-art processing facility whereby people's applications can be cleared within 13 weeks from when they arrive in the country.'
Brophy said the decision was made on a strong financial rationale.
'The decision was being made on a 'value for money' basis and that if it is directly owned by the State, it can save around 50% of the operating costs.'
He also defended the centre's current operation.
'Citywest has actually been working very effectively in terms of having an Ipas centre there, having Ukrainians also present, and having a range of services and facilities which have been working effectively and successfully for many, many years.
'We are not planning on changing those numbers.'

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