The Department of Children, Equality, Disability, Integration and Youth has signed a contract for the West Tipp hotel to be used.
The property had been home to families fleeing the war in Ukraine since 2022.
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A number of International Protection Applicants were then housed there last summer despite strong local opposition.
Dundrum House is being leased by Spanish registered company Utmasta who have now entered into a multi-million Euro deal with the Government.
