More than 300 guests were evacuated from Tracey's Hotel on the Waterford Quay yesterday following a security alert.
Gardai received a call just before 7pm and alerted the manager.
The building was searched and the gardaí declared the alert a hoax at 8.30pm tonight.
John Tracey, the General Manager and owner of the hotel, told WLR FM: "The gardaí got a phone call to say that there was a device in the hotel and it's going to go off within the next half an hour.
I got a phone call from the sergeant that was on duty, he has my personal number, and I started evacuating everybody from the hotel'.