The Irish State will not appoint a permanent operator for the Citywest Hotel and Convention Centre until 2027, according to Justice Minister Jim O’Callaghan. The Government, which purchased the facility for €148.25 million in August 2023, is currently utilizing a 12-month transitional service agreement with the previous owner, Cape Wrath UC, to manage the site.
Why is the procurement process delayed until 2027?
The Department of Justice requires additional time to complete a “compliant procurement process” for the long-term management of the Citywest facility, Minister O’Callaghan stated in a written Dáil reply to Deputy Carol Nolan. The current transitional agreement includes an optional six-month extension, which the Department anticipates it will need to trigger to ensure operational continuity during the transition to a new contractor.
The Citywest facility has significantly increased the State’s accommodation capacity, rising from 900 beds in early 2024 to 4,000 beds by 2025.
What has the State paid for the site since purchase?
Government expenditure on the facility remains substantial. Quarterly purchase orders from the Department of Justice indicate that Cape Wrath UC received €33.56 million between September 2023 and March 2025 for accommodation and related services. Specifically, the firm was paid €22.4 million in the final quarter of 2025 and €11.16 million during the first three months of this year.
How does the State justify the €148.25 million purchase?
Minister O’Callaghan maintains that the purchase represents “significant value for the State.” He claims the move reduces reliance on commercial providers and expects the facility to pay for itself within four years. By owning the site, the Department of Justice reports lower running costs compared to the previous leasing model. The facility also serves as a critical hub for the EU Migration Pact, functioning as a designated screening and border procedure center.
Future roles of State-owned accommodation
The shift toward State-owned assets reflects a broader policy goal to move away from the private sector leasing model. Future expenditures regarding the site will be included in the 2025 Appropriation Account, which is subject to independent audit by the Office of the Comptroller and Auditor General (C&AG). This oversight is intended to ensure that the transition from a private hotel to a public service center meets financial transparency standards.
Frequently Asked Questions
Who currently manages Citywest?
Cape Wrath UC, the firm that sold the property to the State, continues to manage the hotel under a transitional service agreement.
When will a new operator be selected?
The Government expects to have a new, competitively procured operator in place by 2027.
Why did the Government buy the hotel?
The purchase was intended to reduce reliance on commercial firms and provide a stable, State-owned location for International Protection and Ukrainian accommodation.
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