Are hallucinations normal with dementia?

Memory care, almost certainly. Yes, hallucinations are common, especially in end stages with almost all dementias. And with some dementias VERY common. Hallucinations can occur in Parkinsons, in frontal temporal, in vascular, and etc. In Lewy's (even in early Lewy's) they can be quite elaborate, like complete stories. It is sounding as though there is progression here that will soon require memory care. So sorry.

Memory Care likely comes next, if her dementia has progressed to where she's having hallucinations. She may just need time to adjust, though, like Ahmijoy said, as new unfamiliar surroundings normally create strange(r) behaviors with dementia. One question I have.... are all the family members she's seeing deceased, or just your 2 sisters?
Best of luck!

Delusions are absolutely common in people who suffer with dementia. My mother lived in a world of hallucinations and delusions. There were times when she became physical if approached.

Your mother could be reacting to the move and the change of scenery. People with dementia don’t adjust well to change. It’s no one’s fault and doesn’t mean you need to bring her out of her facility. She just needs time to adjust.