THE UK government will end its £2bn-a-year contract with Stay Belvedere Hotels (SBHL), one of the largest providers of hotel accommodation for asylum seekers, following a Home Office audit that raised concerns about the company's performance, BBC reported.
SBHL manages accommodation across 51 hotels in England and Wales and operates Napier Barracks in Kent, which is set to close in September.
The Home Office review found issues with SBHL’s role as a supplier, though specific details were not disclosed. SBHL states on its website that it offers services exceeding contractual requirements and ensures the welfare of those housed in its facilities.
Border security and asylum minister Angela Eagle said the decision was part of increased oversight of asylum accommodation.
"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 Home Office contracts deliver for the UK," she told the BBC.
The earliest the Home Office can exit the contract without break costs is September 2025. It remains unclear where current residents will be housed once the contract ends.
As of December 2024, 38,079 asylum seekers were in hotel accommodation, down from a peak of 56,042 in September 2023.
Ministry of Justice data shows nearly 42,000 asylum seekers are awaiting appeal hearings after initial rejections.
The government has reiterated its aim to end the use of hotels for asylum seekers, but housing minister Matthew Pennycook told Times Radio he would not provide a timeline.
Officials are also considering plans to send failed asylum seekers to the Balkans. Over 5,000 migrants have arrived in the UK via small boats this year, with 36,816 detected in 2024.
Damian Talbot