The contract for the D Hotel in Drogheda to continue operating as an IPAS centre for a further year has now been signed.
A Department of Justice source confirmed that the agreement was finalised between the hotel owner and department officials on Tuesday.
The decision has been described as a significant blow for business and tourism in the town. Politicians from across all parties, along with the Drogheda Chamber of Commerce, had been lobbying for the contract not to be renewed.
When the arrangement was first put in place in 2024, assurances were given that the use of the hotel as an IPAS centre would be limited to two years. However, despite local opposition, the contract has now been extended for a further year by Minister Jim O’Callaghan and his department.
The local Fianna Fáil organisation, led by Senator Alison Comyn, has said it hopes the contract will not be extended beyond March 2027, although there has been no commitment or guarantee from the Department or Government on that point.
Both the Mayor of Drogheda Michelle Hall and Labour TD Ged Nash have publicly criticised the decision. They had been seeking clarity from the Department for a number of weeks without success.
It is understood that an unnamed Government minister informed Deputy Nash last week that the contract was being renewed, after which he raised the issue publicly.
Louth County Council notes recent public commentary regarding the future use of the D Hotel in Drogheda. The operation of the facility as an IPAS centre is a matter solely for the Department of Justice and the hotel operator.
Following discussion at the most recent meeting of Louth County Council, the Council will now write to the Department of Justice and to the company to seek clarity on their future plans for the premises. The Council will also seek a meeting with both parties to discuss the ongoing impact on the development of tourism and business activity in the county.
