Hotels threaten to evict hundreds of asylum seekers

Hotels in London are warning that they may have to evict hundreds of asylum seekers after failing to receive contracted payments from Stay Belvedere Hotels (SBHL), a company recently dropped by the Home Office. The hotels, which primarily accommodate asylum seekers, claim they have not been paid for the previous month, leaving them unable to cover critical expenses such as insurance premiums. This has put them in breach of contract and potentially without coverage.

A hotel group housing hundreds of asylum seekers stated that eviction would be the only option if payments were not received. SBHL, which reportedly managed over 50 migrant hotels, lost its contract with the Home Office last month due to concerns about its performance and financial management. Currently, approximately 38,000 asylum seekers remain in hotels at a daily cost of £5.5 million to the Home Office.

SBHL was subcontracted by Clearsprings Ready Homes, one of three main providers that hold long-term contracts with the Home Office for asylum accommodation. Clearsprings saw its profits triple over two years, reaching £91 million last year. Responsibility for managing SBHL’s hotels is now being transferred to Mears, Serco, and CTM. While most affected hotels are in London, others are located in Bournemouth, Eastbourne, and Folkestone.

Government officials insist that the Home Office has fulfilled all payment obligations, meaning SBHL and Clearsprings must now honor their contracts and settle outstanding payments. A government source stated that while the transition away from SBHL and Clearsprings is ongoing, any breach of terms would prompt further action. Ministers have blamed the previous Conservative administration for drafting poor contracts that left taxpayers vulnerable.

Hotel sources have expressed frustration over payment delays and the complexity of transferring responsibility to new providers. Typically, hotels invoice SBHL on the 20th of each month, with payments due by the 28th or 29th. However, since SBHL lost its contract, no payments have been received. One hotelier explained that without insurance premium payments, they risk breaching contractual obligations and have no choice but to consider eviction.

Adding to the uncertainty, SBHL has issued 90-day termination notices to hotel groups, but it remains unclear who will cover accommodation costs during the transition period. While Mears, Serco, and CTM have approached some hotels to negotiate new contracts, complications have arisen in exiting agreements with SBHL. Some hotels are reportedly bound by non-disclosure agreements that prevent them from renegotiating asylum accommodation contracts for five years after termination.

SBHL was responsible for nearly a quarter of the Home Office’s asylum accommodations. The company claims it is working to resolve the situation. Government sources previously stated that SBHL’s contract was terminated after an audit raised concerns about its financial practices. SBHL’s most recent financial statements show it made record profits exceeding £50 million.

Meanwhile, the Home Office is reviewing all contracts inherited from the previous Conservative government, including Clearsprings’ agreement, which allowed SBHL to run migrant hotels. The crisis comes amid a rise in migrant crossings, with over 6,600 people detected in small boats across the English Channel in the first three months of 2025—more than 30% higher than the previous year’s record of nearly 5,000.

The Home Office, Clearsprings, and SBHL have been contacted for comment.