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The Executive said the buildings will be renovated to make them more family friendly, calling it "family-hub" accommodation.
Eileen Gleeson, the director of the DRHE, said those living there will get more supports and more facilities compared to being in hotels.
She also said the accommodation will be transitional.
It is understood a five-year lease has been taken out on Lynam's hotel on O'Connell St in Dublin.
Renovation work is to begin in the coming weeks and it is due to be opened at the end of next month.
The DRHE said 40 homeless families will be housed there.
It is believed the Executive is also looking at other hotels and B&Bs where homeless families are currently living with a view to either buy or take leases out on these properties.
Other buildings in the capital are also being considered.
Anthony Flynn from Inner City Helping Homeless has criticised the move and said it was nothing more than a re-branding exercise.
He said it was being done to massage the homeless figures and to ensure that the target of not using hotels for homeless families by July will be met.
He said what is needed is "homes, not hubs".
The Minister for Housing, Simon Coveney, rejected the rebranding claim.
He said significant sums of public money were being invested into turning facilities that currently are not appropriate into much more suitable family friendly places.
He also said most of the buildings being considered are not hotels or B&Bs.
Latest figures show there are over 800 homeless families in Dublin and living in hotels.