BIG READ: Dundrum House Hotel, the Spanish company and the multi-million euro IPAS contract

A contract has been signed to house over 250 asylum seekers in Dundrum House Hotel.

The hotel has been used as a centre for refugees since early 2022, when Ukrainian refugees began to take up residency in the hotel following the Russian invasion of Ukraine.

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The hotel made national news last summer, when roughly 80 international protection applicants were relocated onto the grounds of the hotel, sparking outrage amongst many locals, who have been protesting outside the gates of the hotel since May of last year.

Speaking on the signing of the new contract, Cllr Liam Browne posted on his social media, saying: "I'm extremely disappointed to have to pass on this news, but I've just been informed that the DCEDIY have signed a contract for 277 IPAS applicants to be accommodated at Dundrum House.

"We've not yet been told when people will be moving into Dundrum House, but expect it to be relatively soon.

"Since this was first mooted last year, I've said this is the wrong decision. Moving such numbers into a small rural area, without first addressing the lack of services in the area, causes problems both for local residents and for those being accommodated.

"There are also serious issues around the ownership and planning status of Dundrum House, which are currently being investigated in the courts.

"The Government have been at fault in regards of communicating with local residents from day one, countrywide, and are now leaving down the vast majority of residents in Dundrum and West Tipperary again.

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"I've said from the beginning, in my opinion, this is a money racket, and once again, we're seeing millions of euro of taxpayers money being paid out, with only the barest of accountability.

"Whoever made this decision, made the wrong one," he concluded.

Fresh concerns emerged over the multi-million-euro Government contract, following revelations about the company awarded the deal.

The contract, estimated to be worth "between €16 million and €20 million" according to one local representative, has been granted to a little-known company called Utmasta.

However, scrutiny is mounting after it was revealed that Utmasta did not exist prior to January 9, 2025, according to claims by one Tipperary councillor.

Cllr Liam Browne says the company was incorporated in Spain just three months ago, with a declared capital of only €120 and a single listed director, Ms Ana Maria Fernandez Sanchez.

Utmasta also has a listed address in Sandyford Business Park, Dublin.

He said: "So basically, the Irish Government have signed a contract, worth tens of millions, to a woman living in Spain, running a three month old company valued at €120, who has no track record of ever running a hotel or direct provision centre.

"That is your tax money, going offshore."

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Cllr Annemarie Ryan also provided an update saying: "Councillors received an email on Monday from the Community Engagement Team, informing us that a contract has been signed for the use of Dundrum House Hotel as an IPAS Centre.

Here are some of the details so far:

277 people (in total) will be accommodated in Dundrum House, 114 bedrooms have been approved, the accommodation is for families, the contract is for two years, a valid fire cert is in place and has been provided to the Department, the property is operated by Utmasta Limited, who have a 20-year lease on the site, security staff will be present on a 24-hour basis with CCTV in place, and the Department will manage the arrival of families to Dundrum.

"I asked for some further clarification:

"The Ukrainians still living in Dundrum are staying there until the Government make a decision on their future accommodation.

"Families will start arriving in the next 2/3 weeks, in small numbers."

The Department of Children, Equality, Disability, Integration and Youth responded to claims made about the proposed IPAS centre.

When asked about the concerns put forward by both locals and the local representatives of the area, the Department stated that all business undertaken was entirely legitimate and legal, and was confirmed via their extensive background checks.

In a statement issued by a spokesperson for the Department, they said: “The Department carries out due diligence on accommodation being contracted including checks via the Companies Registration Office to ensure compliance with Companies Registration Office (CRO) requirements and tax compliance checks by way of a valid Tax Clearance Certificate.

“Offers of accommodation can be made by a property owner, or another person who has authority do so, such as a leaseholder. As part of our appraisal process, we confirm if an offer has come from someone with the appropriate authority.

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“In all instances where the Department enters into a contract with an accommodation provider, the onus is on the provider to ensure all activities are within legal limits. Furthermore, all statutory requirements relating to the establishment and management of accommodation are met by the service provider, including health and safety, fire, building regulations and other requirements.

“Contractual arrangements for IPAS centres are confidential and commercially sensitive.”

The Department also commented on their commitment to engaging with the local community, stating: "Our Community Engagement Team (CET) have engaged extensively with the local community about this property since May 2024.

"On 15 April 2025 the CET sent information on the property and type of accommodation to be provided directly to elected representatives, the Local Authority and other relevant groups in advance of the arrival of people seeking international protection in an area.

"These measures improve the flow of information regarding arrivals into an area. They also help the local community understand the current situation and to assist with the welcome and integration process for new arrivals. The Department also works closely with a number of other government Departments and Non-Governmental Organisations to provide a wide range of supports to help new arrivals to integrate into an area as quickly as possible.

"Further information on our community engagement process is available online at gov.ie/communityengagement."

Tipperary Live contacted the hotel with regards to this story, however no comment has been attained at the time of publication.