Beach Hotel Downings said that it is open to residents of the hotel and up to 15 non-residents outside. The "one time only offer" is available this weekend.
In a Facebook post, the hotel explained that the offer is "aimed to local people in the area".
The hotel explained: "No one will be using the rooms it is merely a method to allow people to become a resident for a maximum period of 1 hour 45 minutes so they can avail of our dining and beverage services. The government allows residents to be served inside and 15 non-residents outside. The hotel will be closed from Monday until further notice. This was merely a way to recoup our costs from stock ordered for the full house of residents that cancelled on Friday evening. The usual controlled Covid-19 social distancing restrictions apply."
Since midnight Donegal has moved into Level Three Covid-19 restrictions in response to rising case numbers.
It came after the county overtook Dublin as the area with the highest infection rate per 100,000 people at 148.2. Dublin currently stands at 145 cases per 100,000 of population.
Donegal is the fifth county to face temporary localised restrictions and the second, after Dublin, to enter Level Three.
Under the new rules, residents will not be allowed leave the county unless absolutely necessary.
Under Operation Fanacht Garda checkpoints are in place across the county and gardaí will cooperate with the PSNI at certain cross-border locations.
Gardaí will also be on patrol in key areas of neighbouring Sligo and Leitrim.
There is also a ban on indoor dining, further limits on the number of spectators allowed at sporting events and strict limits on the numbers that can gather indoors and outdoors.
The numbers allowed at weddings and funerals will be reduced to 25, however, that won't take effect until Monday.
