An investigation is under way after an arson attack on a hotel in Co Donegal that had been earmarked for use as a direct provision centre.

Gardaí say one person, a man in his 50s, was injured in the blaze, which happened at the Caiseal Mara Hotel on Foyle Street in Moville at around 4.30am.

The man was taken to Letterkenny Hospital for treatment.

Inspector Goretti Sheridan from Letterkenny Garda Station has confirmed that it was an arson attack.

The premises was also extensively damaged.

The front and back entrance to the hotel have been cordoned off and gardaí are conducting a technical examination of the building.

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The hotel was due to come into operation as a direct provision centre in the coming days.

On 12 November it was confirmed that the hotel was to be used as a direct provision centre.

They said that the hotel would house approximately 100 people and that they would be arriving in the next 3-4 weeks.

They said that local authorities had been notified of this development.

Gardaí have appealed for anyone who may have seen suspicious activity on Foyle Street around the time of the incident to contact them at Buncrana Garda Station.

Minister for Justice Charlie Flanagan condemned the attack.

"I condemn this attack and those behind it in the strongest possible terms. This was a despicable incident and could have led to very serious tragedy," said Mr Flanagan.