Hotels in chaos as UK asylum seekers face eviction risk
Hundreds of asylum seekers in the United Kingdom may lose their accommodation. Hotels, mainly in London, are threatening eviction due to non-payment from Stay Belvedere Hotels (SBHL), with which the British Home Office has ended its cooperation. The financial crisis is growing, and the government blames its predecessors for poorly drafted agreements.
What do you need to know?
- Crisis in hotels: Hundreds of asylum seekers in the UK may be evicted from hotels, mainly in London, due to non-payment from Stay Belvedere Hotels (SBHL).
- Contract termination: The British Home Office has ended its cooperation with SBHL, accusing the company of improper actions and poor performance.
- Rising costs: Maintaining asylum seekers in hotels costs the government £5.5 (€6.5) million per day, posing a significant financial burden.
What is the Home Office and why did it terminate the contract with SBHL?
According to "The Telegraph", hotels in the UK are threatening to evict hundreds of asylum seekers because they have not received due payments from Stay Belvedere Hotels (SBHL), responsible for organising accommodations. The Home Office, which is the British department responsible for immigration policy and asylum procedures, terminated the contract with SBHL last month. The reason? Accusations of improper actions and poor company performance. Hotels, mainly in the London area, claim the lack of funds from SBHL has prevented them from paying insurance premiums, putting them at risk of breaching agreements. - We are saying that if there is no payment, there is no option. We will have to evict the asylum seekers - said a hotel group owner anonymously in an interview with "The Telegraph".
How much does it cost to accommodate asylum seekers in the UK?
Currently, about 38,000 asylum seekers are staying in British hotels. Cost? £5.5 (€6.5) million per day. Government expenditure on this purpose is growing rapidly:
- 2012: £567,9 (€667) million
- 2016: £500,2 (€588) million
- 2020: £474,3 (€557) million
- 2024: £5.4 (€6.35) billion
SBHL, which managed over 50 hotels for migrants, was a subcontractor of Clearsprings Ready Homes - a company with a 10-year contract with the Home Office. Now, Mears, Serco, and CTM are taking on SBHL's duties.
Why didn't hotels get paid?
Hotels typically invoiced SBHL on the 20th of the previous month, receiving money on the 28th or 29th. After the Home Office terminated the contract with SBHL, payments stopped. - The insurance premium is taken monthly. If you don’t pay your insurance you are going to be in breach, so we have no option but to evict them - explained a source quoted by "The Telegraph". The government claims the Home Office has settled its invoices, and the issue lies with SBHL and Clearsprings. - We are progressing with the transition away from SBHL and Clearsprings. They are co-operating but if they breach their terms at any time and stop co-operating, we will act accordingly - said a government source in an interview with "The Telegraph".
Who will pay for the chaos in migrant hotels?
According to "The Telegraph", hotels received 90 days' notice from SBHL, but they don't know who will cover the accommodation costs during the transition period. Companies Serco, Mears, and CTM offer new contracts, but withdrawing from agreements with SBHL complicates the situation. One hotelier mentioned a confidentiality agreement that might block negotiations for five years. SBHL accounted for 25% of asylum accommodation within the Home Office and achieved a record profit of £50 (€58.8) million. The company believes the crisis can be solved.
Record number of migrants in the English Channel in 2025
Meanwhile, the number of migrants crossing the English Channel is setting records. In the first three months of 2025, over 6,600 people were detected in small boats - 30% more than the previous year (just under 5,000). The Home Office, under the Labour Party, is reviewing all contracts inherited from the Tories, blaming them for the current chaos.
