There are more than 700 people living in Direct Provision centres who have already been granted legal status to live in Ireland.
A report by the Dáil's Public Accounts Committee, which is to be published later today, says the system to move those who have been granted asylum into permanent housing is not adequate.
Pressure on the Direct Provision system meant that last year just over €900,000 was spent by the State on hotels for people seeking international protection in Ireland.
There was a big increase in this figure - to €3.7 million - in the first four months of this year alone.
In its periodic report, to be published this afternoon, the PAC says there are almost 7,000 people in Ireland seeking international protection, including 1,000 children.
While the majority are living in direct provision centres, there are 517 people who are in emergency accommodation in hotels.
The report says that his is not only unsuitable, but that hotels do not provide good value for money to the State.
It calls on the Department of Justice to complete its procurement process for new accommodation centres in a timely manner.
The report also finds that 700 people are living in Direct Provision who have been granted legal status to reside in Ireland and says the system to move them into permanent housing is not adequate.