The Cuisle centre in Donamon, Co Roscommon is to close at the end of this month.
The centre is operated by the Irish Wheelchair Association, and provides accessible holidays and respite breaks for people with physical disabilities.
However, staff were informed on Friday evening that the centre is to close at the end of this month and will not reopen in 2020.
The Irish Wheelchair Association says more hotels are now offering accessible facilities for people with disabilities, and they have decided - given the upgrades needed at the Cuisle Centre - to provide accessible hotel holidays into the future, rather than at its centre in Donamon, where the lease is due to expire in 2026.
The building is leased to the Irish Wheelchair Association by the Divine Word Missionaries.
The association says work needed on wiring the building alone would cost over €1 million, and the decision has been taken now to close the centre at the end of November.
It's understood over 40 people are employed there.
Tony Cunningham, Director of Service with the Irish Wheelchair Association, told Midwest News this afternoon that the staff will be offered redeployment or redundancy.
He acknowledged that the news has come as a major blow to the staff, and he paid tribute to their work at the centre over the years.