The Integration Minister Roderic O'Gorman has described a fire at the former hotel Ross Lake House as "deeply disturbing".
The location had been earmarked for 70 asylum seekers to be moved in this week, with the plans facing some local opposition.
Protestors - who claim the location is inappropriate for refugees - had formed a blockade at the entrance of the site yesterday.
Emergency services were called to the scene shortly after 11.30 last night and brought the fire under control.
No one was inside the building at the time the blaze occurred, with Gardaí now investigating a case of criminal damage.
Minister O'Gorman has called for politicians across the board to "condemn this disgraceful act and the fear mongering that led to it."
Meanwhile, Green Party councillor for Connemara South Alastair McKinstry has condemned the act.
Create your
podcast in
minutes
It is Free