### Government to End Contract with Asylum Hotel Provider
*Rescued migrants landing on a beach in Kent (file image)*
The UK government has announced it will terminate a £2 billion per year contract with Stay Belvedere Hotels (SBHL), one of the largest providers of asylum accommodation, following concerns raised by a Home Office audit regarding the company’s performance.
SBHL currently manages around a quarter of the Home Office’s asylum accommodation, operating 51 hotels across England and Wales. The company also runs Napier Barracks in Kent, which houses asylum seekers awaiting decisions on their claims. The barracks are scheduled to close in September.
A Home Office review of SBHL, which signed its contract under the previous government in 2019, identified concerns about the company’s conduct as a supplier. However, specific details regarding these concerns have not been disclosed.
BBC News has contacted SBHL for a response.
According to its website, SBHL provides pastoral and welfare services that go beyond contractual requirements, ensuring asylum seekers are treated with dignity.
Border Security and Asylum Minister Angela Eagle stated that the decision to drop SBHL was part of increased scrutiny of asylum accommodation providers.
“We have decided to remove Stay Belvedere Hotels from the Home Office supply chain and will not hesitate to take further action to ensure government contracts serve the UK effectively,” she said.
The earliest the Home Office can exit the contract without incurring break costs is September 2025. It remains unclear where the asylum seekers currently housed by SBHL will be relocated once the contract ends.
### Asylum Accommodation and Immigration Statistics
According to the latest immigration figures from December 2024, 38,079 asylum seekers were living in hotel accommodation, a decrease from the peak of 56,042 in September 2023.
Ministry of Justice data also reveals that nearly 42,000 asylum seekers are awaiting appeal hearings after their initial claims were rejected by the Home Office.
The government has reiterated its commitment to ending the use of hotels for asylum seekers. However, Housing Minister Matthew Pennycook told *Times Radio* on Tuesday that he could not provide a specific timeline for achieving this goal.
Additionally, the government is considering plans to relocate failed asylum seekers—whose appeals have been exhausted—to the Balkans.
So far this year, more than 5,000 migrants have crossed the Channel in small boats to reach the UK. In 2024, a total of 36,816 people were detected making the dangerous journey.
Source: bbc.com