Deirdre and Tara McEniff were quizzed and released by cops with a caution after the incident outside their Skylon Hotel in Dublin.
But the Bundoran businesswomen insist they were merely protecting their business which has been attacked in recent months.
Tara says more than €6,000 worth of damage has been done to the curtains and fabric of items at the North Dublin hotel since December.
She revealed “On Wednesday night we finished work at 6.30pm and went across the road for something to eat and a few drinks.
“My husband called shortly after nine and said there was a smell of gas in the hotel, so we went over to check it out.
“There was no gas problem but when I went to the toilet, Deirdre spotted a woman acting suspiciously outside.
“She saw the woman with a knife, she had her hands behind her back and she seemed to be cutting a black and white sofa near the toilets. Deirdre rushed over to speak tot he woman.
“She began screaming at Deirdre to get away from her and seemed extremely paranoid and kept creaming,” revealed Tara.
The women called the Gardai at Whitehall but the phone rang out and they then attempted to stop her.
Someone else called the Gardai after seeing the two McEniff women chasing the woman out of the hotel.
The Gardai arrived and arrested both Tara and Deirdre.
A Garda spokesman confirmed there was an incident at the Skylon Hotel after they an emergency 999 call.
“There was a scuffle involving three women, the two arrested were intoxicated. We have no furher comment on the matter,” he said.