UK Government Ends £2 Billion Asylum Hotel Contract

The UK government is terminating its contract with Stay Belvedere Hotels (SBHL), a major provider of asylum accommodation, due to concerns regarding its performance and behavior. This contract, valued at approximately £2 billion annually, covers 51 hotels across England and Wales, including the Napier Barracks, which is set to close in September. Housing Minister Matthew Pennycook indicated the review aimed to enhance management and ensure taxpayer value, acknowledging the problematic nature of the inherited contracts. Critics, including the Refugee Council and Care4Calais, expressed that the hotel system symbolizes government failure and called for more humane and community-based housing solutions for asylum seekers. While the contract ends in September 2026, the Home Office is attempting to manage the transition and ensure continued asylum services. The government is also facing pressure to improve oversight of private accommodation providers in the asylum system.