The Devereux Hotel in Rosslare Harbour which had been bought by the State to accommodate refugees has been sold at a loss of €500,000.
The hotel, which was at the centre of month-long pickets and controversy following its purchase by the Government for €2½ million, has been sold to a Wexford-based Chinese businessman.
The hotel was bought by the Office of Public Works in April 2000 for conversion into a refugee reception centre.
Mr Adrian Haythornwaithe, the Wexford-based auctioneer who sold the hotel on behalf of the Office of Public Works, said it was the subject of a contractually binding commitment, but he would not disclose the name of the purchaser.
Mr Haythornwaithe said the new purchaser intended to return the Devereux Hotel to its previous business as a hotel.
He said there had been huge interest in the hotel from all over Ireland but that a local person had won.