Hoteliers say limiting safe places for people to stay and dine over Christmas will force them to congregate in houses.
This comes as pubs and restaurants are expected to be told to close their doors from December 30th.
The restrictions follow a recommendation from the National Public Health Emergency Team (Nphet) who believe the two-week relaxation of measures around Christmas will give the virus too much time to spread out of control.
It is thought the Government will push back the restrictions until December 30th, but the recommendations will be discussed at a Cabinet meeting on Tuesday, with an announcement expected afterwards.
After 764 new cases of the virus were confirmed this evening, Chief Medical Officer Dr Tony Holohan urged the public to limit their social contacts and reconsider their Christmas plans.
Ireland's 14-day incidence rate has now risen to 112.2 cases per 100,000, but iNua Collection hotel group CEO, Sean O'Driscoll says the restrictions for the New Year should be reconsidered as hotels are controlled settings where public health measures can be properly implemented.
"There has been 12 Covid clusters in the hotel industry out of over 10,000 clusters that have occurred in the country.
"We have very thorough cleaning procedures if you compare that to the potential of a gathering in a house where I don't believe people will be as stringent."
"We have seen that 76 per cent of all Covid clusters in the country have occurred in the home," Mr O'Driscoll added.
