Hotels in London are considering the eviction of numerous asylum seekers following non-payment from Stay Belvedere Hotels (SBHL), a provider recently dismissed by the Home Office.
The establishments assert that they were due payments last month from SBHL for accommodating the asylum seekers, a situation that has left them unable to meet their insurance premium obligations and at risk of contract breaches.
A hotel owner, who chose to remain anonymous, told The Telegraph, “Without the payment, we have no choice but to evict the asylum seekers.”
SBHL, which operated over 50 migrant hotels, saw its contract terminated by the Home Office due to allegations of poor performance and misconduct. Currently, approximately 38,000 asylum seekers are housed in hotels, costing the Home Office around £5.5 million daily.
Previously, SBHL was a subcontractor to Clearsprings Ready Homes, which is one of the three main providers holding a decade-long contract with the Home Office to furnish asylum seekers with accommodation while their claims are processed.
Last year, Clearsprings reported a tripling of profits to £91 million.
The responsibility for SBHL’s hotel management is transitioning to firms Mears, Serco, and CTM. This includes several properties outside of London, in locations such as Bournemouth, Eastbourne, and Folkestone.
Government sources have clarified that all due payments by the Home Office have been settled, and it is the responsibility of SBHL and Clearsprings to honour their financial commitments.
A government insider noted, “We are moving away from SBHL and Clearsprings. They are cooperative at this stage, but should they breach their agreement or cease cooperation, immediate action will be taken.”
The issue of delayed payments and transitioning responsibilities to new providers like Mears, Serco, and CTM is complicated by the convoluted contracts established by the previous Conservative government, which have been criticised for exposing taxpayers to significant risks.
Hotel operators explained that the normal billing cycle involved invoicing SBHL by the 20th, with payments typically processed by the end of the month. However, following the Home Office’s decision to sever ties with SBHL, the payments have not been forthcoming.
“The insurance premiums are due monthly. Failing to pay these puts us in breach of contract, leaving us no choice but to consider eviction,” one hotel source stated.
Furthermore, the hotels have been notified by SBHL that their contracts will conclude in 90 days, though it remains uncertain who will cover the accommodation costs during this interim period.
While negotiations with Mears, Serco, and CTM are ongoing, the hotels are hindered by a non-disclosure agreement with SBHL that restricts renegotiating asylum accommodation contracts for five years post-termination.
SBHL, previously responsible for about a quarter of the Home Office‘s asylum accommodation, is reportedly working towards resolving these issues.
An audit last month led to the contract termination after revealing concerns over the value provided to taxpayers. SBHL’s latest financial statements showed a record profit exceeding £50 million.
Amid these contract reviews and transitions, the Home Office is also facing an increase in migrants crossing the English Channel, with over 6,600 detections in the first quarter of 2025, a significant rise from the previous year.
