Government to End £2bn Asylum Hotel Contract With Stay Belvedere Hotels
The UK government is set to terminate a major asylum accommodation contract worth £2 billion per year with Stay Belvedere Hotels (SBHL), one of the country’s largest providers of hotel housing for asylum seekers.
According to the Home Office, a recent audit uncovered concerns over SBHL’s performance, though no specific incidents have yet been made public. The company currently manages 51 hotels across England and Wales and operates Napier Barracks in Kent, a temporary housing site due to close in September.
The decision marks a significant shift in the government’s approach to handling asylum accommodation, as it faces ongoing pressure to reduce reliance on hotels and manage the rising number of migrants crossing the English Channel.
Government Signals Tougher Oversight
Angela Eagle, Minister for Border Security and Asylum, confirmed the move, saying, “We have made the decision to remove Stay Belvedere Hotels from the Home Office supply chain and will not hesitate to take further action to ensure contracts deliver for the UK.”
The earliest the government can exit the contract without financial penalties is September 2025, raising questions about where the tens of thousands currently housed by SBHL will go once the agreement ends.
Asylum Accommodation Pressures Continue
The latest immigration data (as of December 2024) shows that 38,079 asylum seekers are still being housed in hotel accommodations—down from a peak of over 56,000 in September 2023. Meanwhile, nearly 42,000 asylum seekers are awaiting appeal hearings after being initially rejected by the Home Office.
Despite a promise to end hotel use, Housing Minister Matthew Pennycook told Times Radio that he couldn’t provide a timeline for when this goal would be achieved.
To alleviate the growing burden, the government is reportedly considering deporting failed asylum seekers—whose claims and appeals have been exhausted—to the Balkans.
So far in 2025, over 5,000 migrants have made the dangerous journey across the English Channel in small boats, with 36,816 crossings recorded in 2024 alone.
What’s Next for Asylum Seekers in Hotels?
As the government moves to cut ties with SBHL, uncertainty remains about where current residents will be relocated. Critics warn that the system is already under pressure, with ongoing legal challenges, funding concerns, and humanitarian criticisms surrounding existing asylum housing conditions.
SBHL has yet to comment publicly on the contract termination. According to its website, the company claims to offer pastoral and welfare services that go beyond contract requirements, emphasizing the dignity of those in their care
