The Government must improve communication around migration and the asylum system in Ireland, Taoiseach Leo Varadkar has said.
The Ross Lake House hotel in Rosscahill had not been in use for a number of years.
A fire broke out at the building on Saturday night and gardaí began an investigation into what they have described as a criminal damage incident.
Mr Varadkar said that he was "deeply concerned" about misinformation in Ireland.
During a press conference, he told reporters that he was concerned about "absolute myths" being spread in relation to refugees - such as that Ireland has an "open borders" policy or that it "rolls out the red carpet" for refugees.
Mr Varadkar said that migration in Ireland is ruled based and that the Government needs to inform people about that.
He insisted that migration has been good for Ireland, adding that while Ireland has accepted a lot of Ukrainians in recent years, it has received a lower number of international protection applicants compared to other European Union countries.
Asked if gardaí were aware of the location of international protection applicants who are sleeping rough, Mr Varadkar said that he could not see how this could be done in practice.
He said that there are around 5.5 million people living in Ireland, "do the gardaí know where they are? No, why would that be the case", he queried, adding that the Government was doing its best to find accommodation.
He did not respond to comments from a Fianna Fáil councillor who said that the "inn is full" in relation to accommodating international protection applicants.
However, he insisted that the "vast, vast majority" of migrants fill "huge skills gaps" in Ireland.
