The UK government has decided to terminate its contract with Stay Belvedere Hotels (SBHL), a significant provider of hotel accommodation for asylum seekers, amid serious concerns regarding the company's performance and overall behavior.
This decision, announced on March 25, 2025, highlights ongoing scrutiny over the management of asylum accommodations in the UK. Stay Belvedere Hotels has operated around a quarter of the hotel accommodations for the Home Office across 51 sites in England and Wales, as well as the notorious Napier Barracks in Kent, which is slated for closure in September 2025.
Angela Eagle, the minister for border security and asylum, stated, "Since July, we have improved contract management and added more oversight of our suppliers 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." Eagle's comments underline the government's commitment to ensuring that asylum seekers are treated with dignity and respect while staying in temporary accommodations.
This termination follows an internal review conducted by the Home Office, which reportedly raised various concerns about Stay Belvedere's operations, although specific details have not been disclosed. The review indicated that safety and security for individuals in temporary housing was a government priority and deemed necessary for future contracts.
The contract for Stay Belvedere Hotels was initially signed under the Conservative government in 2019, valued at approximately £2 billion annually. This large-scale accommodation measure aims to address the increasing number of asylum claims in the UK, which, according to recent statistics, has seen more than 38,000 asylum seekers currently housed in hotel accommodations, as of the end of 2024. This figure is down from a peak of 56,042 in September 2023.
The issue of asylum accommodation has become increasingly contentious, highlighted by the large number of people arriving in the UK via small boats across the English Channel. In 2025 alone, over 5,000 migrants have made this perilous journey seeking asylum, a significant increase compared to previous years.
Angela Eagle further emphasized the importance of accountability in government spending, remarking on the heightened oversight measures implemented since last year. "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 reiterated.
Notably, the Napier Barracks, which has been criticized for its alleged inhumane conditions since housing asylum seekers, is also due to be closed. This facility has faced scrutiny for its management, with a notable incident in 2021 when nearly 200 residents contracted COVID-19 during an outbreak. Asylum seekers have previously described living at Napier, stating that conditions left them feeling “scared, depressed and traumatized.”
The Home Office's decision to end its ties with Stay Belvedere Hotels is part of a broader strategy to address the asylum process more efficiently. The latest exit clause from SBHL allows the Home Office to terminate the contract without incurring break costs as of September 2026. However, the Home Office is currently working on a transition plan to minimize the impact on asylum seekers affected by this decision.
Following the cancellation of Stay Belvedere’s contract, management of the accommodation sites will now be handed over to established government contractors, including the firm behind the Bibby Stockholm barge that faced significant criticism for its management, particularly in light of health concerns that led to the evacuation of residents. This decision has raised eyebrows, as Corporate Travel Management, responsible for the Bibby barge, will now oversee the newly opened Stay Belvedere accommodations, aiming to improve the overall quality of asylum housing in the UK.
Recent reports from the Treasury’s Office for Value for Money have scrutinized the financial practices of contractors involved in providing accommodation for asylum seekers, noting that these companies have reaped extraordinary profits amidst rising operational costs. Comparing costs, the National Audit Office revealed that housing migrants in hotels costs around £145 per night, whereas dispersal accommodation can cost significantly less at around £14 per night.
This financial discrepancy and inconsistency in service quality have led to rising concerns from taxpayers, policymakers, and advocacy groups. Current statistics also indicate that the average cost per asylum seeker to taxpayers has jumped considerably, from £17,000 to £41,000 per year from 2020 to 2024.
The termination of SBHL's contract is seen as a crucial step towards reforming the asylum accommodation system in the UK, with more potential changes expected in the future, including possible alternatives for asylum seekers whose claims have been rejected.
As the government continues to navigate the complexities of asylum management, Minister Angela Eagle has reassured the public that significant oversight measures remain a priority to ensure that contracts fulfill the needs of the UK, its citizens, and those seeking refuge.
Despite these developments, uncertainty looms over the future of thousands of asylum seekers currently housed within the questionable environments of hotels and barracks as the government embarks on its path to reform.
