The Government is in advanced negotiations to use the largest hotel in the State - Citywest in Saggart, Co Dublin - to house Ukrainian refugees for up to two years.
Part of the wider Citywest campus, the Citywest Convention Centre, is already in use as an overflow facility for processing refugees at times when Dublin Airport comes under too much pressure.
However, the broader deal is similar to one struck for the Citywest facility at the start of the Covid-19 pandemic, ministers were told on Tuesday.
The Cabinet was briefed that the Department of Equality is now in negotiations with the owners of the 750 bedroom Citywest Hotel in Dublin to use the entire complex.
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An indemnity, which would cover lost revenue for the hotel arising from the deal, was sought and agreed at Cabinet today. It is seen as a key part of finalising the agreement.
With up to 32,000 refugees now expected to be in the country by Easter, the pressure is coming on to secure housing, including hotels, for those arriving.
Ministers were told detailed negotiations are underway with a view to using the entire facility, potentially giving access to over 750 bedrooms from May.
Cabinet also heard the main reception centre for the arrival of refugees is to be transferred to Citywest, with people arriving by bus from Dublin Airport rather than being processed there on arrival.
Ministers were told that the Citywest conference facility could deal efficiently with the high volumes of arrivals, and while the existing reception facility continues to process temporary permissions under the EU directive, issue PPS numbers and arrange suitable accommodation, arrangements are being finalised to transfer the entire reception operation to Citywest.
The owners of Citywest, Tetrarch Capital, acquired the hotel out of receivership in 2014 for around €30 million. Irish firm Tetrarch later bought out its joint venture partner, Pimco, in 2017. Citywest was originally developed by the late businessman Jim Mansfield.
The firm did not respond to a request for comment before publication.
The State ran Covid-19 testing and vaccination from Citywest Convention Centre and the hotel was used as an isolation and rest centre for exhausted HSE staff at the height of the pandemic.
It is estimated that the cost of welcoming 100,000 refugees to Ireland will be between €1.4 billion and €1.7 billion.