The Donegal hotel ear-marked to welcome more than 100 asylum seekers shortly has been set on fire.
Gardai have cordoned off the Caiseal Mara Hotel in the seaside town of Moville after a blaze broke out in the building at around 4am.
It is understood the fire was started deliberately.
It is understood that there has been substantial damage caused to the building.
Two people, understood to be the owner of the hotel and his daughter, had to be evacuated from the building as the fire took hold.
A full investigation has been launched into the cause of the fire.
A large meeting of local residents concerned about the lack of information on plans to bring the asylum seekers to the town was held last week.
The vast majority of people welcomed the move but some expressed reservations about infrastructure and the lack of information surrounding the plan.
Moville has a population of around 1,300 people and many were concerned about the arrival of another 100 people into the town.
Local county councillor Martin Farren, who lives in Moville, said he was aware of the incident and condemned it outright.
“It is early days but I understand there was a fire and the reception area was badly damaged and there was also a lot of smoke damage.
“If this was an arson attack then I would condemn it outright. People are shocked by what has happened here and everyone simply cannot believe it,” he said.
The local community has called a meeting for 3pm today to discuss the situation.
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