The High Court has heard that four of the five homeless families living in Lynam's Hotel in Dublin are moving to new accommodation after a ruling that the hotel must close next week.
Mr Justice Paul Gilligan refused an application to allow the hotel to remain open for a further three months after hearing four of the families had accepted new offers of accommodation.
Counsel for Dublin City Council said the fifth family has refused three different offers of new accommodation and has been unwilling to engage with the council in relation to a fourth offer.
The council's barrister said "while the accommodation is not ideal in any circumstances we are in the middle of a housing crisis" and this is the best the council can do.
In April, the hotel's owner Theresa Andreucetti gave a number of undertakings to the court to avoid a receiver taking possession of it until August, which included not taking any new bookings or payments for the period after 1 August.
Her barrister told the court today that at that time she was not aware of the enormous cost of closing on that date.
In an affidavit, Ms Andreucetti said the hotel is heavily booked until October with some bookings for November and December which were made through her trade partners before she gave the undertaking.
She said she will have to bear the costs of accommodating people in alternative hotels, which along with compensation, could cost her €278,000.
She asked that the hotel be allowed trade until the end of December.
Mr Justice Gilligan said when the matter came before the courts this week his first concern were the five homeless families but he is satisfied that four have accepted alternative accommodation and will be re-housed.
He said the commercial side of things now needs to be looked at and the hotel must be sold.
Lawyers for the receiver said the hotel will go on the market in September.
Members of the Irish Housing Network protested outside the court while the case was being heard.
Rosie Leonard from the Dublin Central Housing Association said the alternative accommodation being offered to one of the families involved is not suitable.
She called for a meeting with Dublin City Council to discuss satisfactory standards for emergency accommodation.
