Drogheda’s tourism plans ‘in limbo’ as d Hotel IPAS contract set for 12-month renewal
Tourism and economic planning in Drogheda, County Louth, has been thrown into uncertainty amid growing expectations that the contract for the use of the d Hotel as an accommodation centre for asylum seekers will be renewed for a further 12 months.
The hotel has been operating as an International Protection Accommodation Service (IPAS) centre since March 2024, and while its contract effectively expired in recent weeks, a renewal process has been underway. It is now widely expected that the contract will be extended for another year, a move that local representatives say could have significant consequences for Drogheda’s tourism sector and wider economy.
Labour TD Ged Nash said he believes the contract is set to be renewed and warned that such a decision would represent a serious setback for the town.
“I had a very direct conversation with a key Minister this week,” he said. “It was made clear to me that as far as they are concerned, the d Hotel contract is to be renewed. I am told that I can expect a formal statement to be made in the coming days.”
Deputy Nash criticised what he described as a lack of transparency and said the Government must provide clarity on its long-term intentions for the site.
“The evasiveness from Fianna Fáil and Fine Gael needs to stop. A clear and unambiguous statement needs to be made by the relevant Ministers and government representatives locally on the status of the facility,” he said.
He added that returning the hotel to its original tourism and hospitality use is vital for Drogheda’s economic future.
“Anything short of the return of our key local hotel to full economic use will represent another major blow delivered by this government to Drogheda’s economic future,” he said.
Fianna Fáil Senator Alison Comyn also confirmed she had engaged extensively with the Department of Justice and had made it clear she did not support any renewal of the contract.
“This is not the outcome I wanted for Drogheda,” she said. “I made strong and consistent representations at the highest levels of Government, including directly to the Taoiseach, and I was clear throughout that this contract should not be renewed.”
She said concerns had been raised about the suitability of the site and that while she had opposed any extension, the decision to limit the renewal to 12 months instead of a longer-term agreement reflected those concerns.
“A significantly longer term renewal had been under consideration, and the decision to limit this extension to 12 months reflects the concerns that were raised,” she said.
Senator Comyn said the priority now must be proper planning and communication with the local community and business sector.
“There must be meaningful engagement with the local community, local representatives and businesses throughout this period,” she said. “It is essential that there is full clarity well in advance of the end of this 12-month timeframe. Drogheda cannot be left facing the same uncertainty again.”
Meanwhile, Independent councillor Paddy McQuillan warned that efforts to grow tourism in Drogheda remain “in limbo” due to the ongoing uncertainty surrounding the hotel.
He pointed to the success of local festivals and events in attracting visitors to the town but said the lack of hotel accommodation means many visitors are unable to stay overnight.
“The festivals we have are great, as people are coming in for the day and then leaving,” he said. “But we are still very, very short of hotel spaces and hotel rooms.”
Councillors were told that a new County Louth tourism plan is at an advanced stage and is expected to come before the council in the coming months. However, the future role of the d Hotel remains a key issue within those tourism and economic discussions.
The Department of Justice confirmed that the hotel continues to operate as a dispersal centre for IPAS, accommodating families for short periods before they are transferred to other centres. A spokesperson said the current contract end date falls in the first quarter of 2026 and that a renewal process has been underway in recent weeks, although it has not yet been formally concluded.
The situation continues to raise concerns among local representatives and businesses, with many now calling for clear timelines and a long-term plan to ensure Drogheda and County Louth can properly plan for tourism development, investment, and economic growth in the years ahead.
