The UK Home Office has announced that it will cancel its contract with Stay Belvedere Hotels, a company providing accommodation for asylum seekers. The agreement, worth around £2 billion annually, will officially end in September next year, which is the earliest point at which the government can terminate it without additional costs.
The decision follows a review that raised concerns about the company’s performance and conduct. While specific details were not disclosed, the Home Office emphasized that ensuring safety and security for both residents and staff remains a top priority. It also highlighted the importance of getting good value for taxpayer money in handling asylum accommodations.
Stay Belvedere Hotels has been managing 51 hotels across England and Wales since securing the contract in 2019. Additionally, it operates asylum housing at Napier Barracks in Folkestone, Kent, which is set to return to the Ministry of Defence in September. With the contract ending, it remains uncertain where the asylum seekers currently staying in these properties will be relocated.
Border Security Minister Dame Angela Eagle stated that since July, the government has strengthened contract management and increased oversight of asylum accommodation providers. She confirmed that the Home Office has removed Stay Belvedere Hotels from its supply chain and will take further steps if necessary to ensure contracts meet national standards.
The Home Office assured that efforts are underway to minimize disruption as they transition away from hotel-based asylum housing. Labour had previously pledged to end the use of hotels for asylum seekers, but the government has yet to confirm a timeline for achieving this goal.
As of December 2024, official figures showed 38,079 asylum seekers were housed in hotels, a decline from the peak of 56,042 in September 2023. In November, it was reported that 220 hotels were still being used for asylum accommodations. Meanwhile, discussions are in early stages regarding the possibility of relocating failed asylum seekers to overseas processing centers.