Asylum seekers face eviction as UK hotel crisis deepens

What do you need to know?

• Crisis in hotels: Hundreds of asylum seekers in the UK may be evicted from hotels, primarily in London, due to non-payment from Stay Belvedere Hotels (SBHL).
• Contract termination: The British Home Office has discontinued its partnership with SBHL, accusing the company of improper actions and poor performance.
• Rising costs: Accommodating asylum seekers in hotels costs the government $7.1 million per day, imposing a significant financial burden.

According to "The Telegraph," UK hotels are threatening to evict hundreds of asylum seekers because they have not received payments due from Stay Belvedere Hotels (SBHL), which is responsible for organizing accommodations. The Home Office, the British department responsible for immigration policy and asylum procedures, terminated the contract with SBHL last month. The move was prompted by accusations of improper actions and inadequate company performance. Hotels, especially those in the London area, claim the lack of funds from SBHL has hindered their ability to pay 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."

Currently, about 38,000 asylum seekers are residing in British hotels. The cost? $7.1 million per day. The government's expenditure on this purpose is rapidly increasing:

• 2012: $731 million
• 2016: $644 million
• 2020: $611 million
• 2024: $6.9 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 assuming SBHL's responsibilities.

Hotels typically invoiced SBHL on the 20th of the previous month and received payments on the 28th or 29th. After the Home Office terminated the contract with SBHL, payments ceased. "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 resides 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."

According to "The Telegraph," hotels received 90 days' notice from SBHL, but it's unclear who will cover accommodation costs during the transition. Companies such as Serco, Mears, and CTM are offering 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 recorded a profit of $64 million. The company believes the crisis can be resolved.

Meanwhile, the number of migrants crossing the English Channel is reaching record levels. 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.