A Wollongong venue enlisted as a "COVID hotel" for close contacts and people suspected of having the virus is operating at full capacity, according to the health authorities.
Health authorities are using the Belmore All-Suite Hotel, on Smith St, as community supported accommodation for people who cannot safely isolate at home.
Illawarra Shoalhaven Local Health District executive director nursing and midwifery and clinical governance Deborah Cameron confirmed there were 25 people now staying in the rooms.
The site has been on standby since August, when the health district booked out the venue to increase its capacity for potential and confirmed cases of the virus, Ms Cameron said.
"The impact of the Delta variant within households has been significant and many people simply cannot safely isolate at home," she said, in a written statement.
"The district established safe, local accommodation for patients who do not need hospital treatment, but who need to be isolated away from other family members or household contacts."
The health district activated the accommodation earlier this month, when local cases of the Delta variant began spiking. There are plans to expand the site's capacity from 25 to 34 residents in coming weeks.
Ms Cameron said there were no confirmed COVID-positive cases currently in residence.
"The CSA [community supported accommodation] provides accommodation for close contacts or those awaiting COVID-19 test results who cannot safely isolate at home," she said.
"The CSA does not currently provide accommodation for COVID-19 positive residents. In the event that someone staying at the CSA becomes a confirmed COVID-19 case, alternative accommodation will be organised.
"From time-to-time the CSA facility may also be used to provide accommodation for those who require additional support to isolate to ensure their safety and that of the wider community.
"In these instances, the support of other agencies, such as the local Police may be required."
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The accommodation is supported by the health district's special health accommodation at Bulli, which is reserved for COVID-positive patients who need some support, but don't require hospital-level care.
Ms Cameron said a second special health accommodation facility was to open in the Shoalhaven this week.
"The district would like to acknowledge the owners and operators of the Belmore All-Suite Hotel for their cooperation and support at this time," she added.