Hotels Plan to Remove Hundreds of Asylum Seekers from Their Rooms Because of  This Shocking Reason!

Dozens of hotels across the UK are threatening to evict hundreds of asylum seekers after a payment dispute left them struggling to cover basic costs.

The crisis stems from the collapse of a key government contract with accommodation provider Stay Belvedere Hotels (SBHL), which was recently dropped by the Home Office over performance concerns.

With around 38,000 asylum seekers still housed in hotels at a cost of £5.5 million per day to taxpayers, the situation has exposed growing tensions in Britain’s asylum accommodation system.

Hotel owners, mostly in London but also in coastal towns like Bournemouth and Folkestone, say they haven’t received payments owed for housing migrants since SBHL lost its contract last month.

“We have no choice – if the money doesn’t come through, we’ll have to ask the asylum seekers to leave,” one hotelier told reporters, speaking anonymously. The unpaid bills have left many unable to pay insurance premiums, putting them in breach of their operating requirements.

The problem began when SBHL, which managed about a quarter of the UK’s asylum hotels through a subcontract with Clearsprings Ready Homes, had its agreement terminated. Clearsprings itself has seen profits triple to £91 million in recent years while receiving government contracts to house asylum seekers.

While the Home Office insists it has paid all its invoices, the money appears stuck between the various companies involved in the accommodation chain.

Government sources say they’re working to transfer the hotels to new providers Mears, Serco and CTM, but the process has been complicated by contractual issues.

Some hotel owners claim they’re bound by non-disclosure agreements that prevent them making new asylum accommodation deals for five years after leaving SBHL.

Meanwhile, the human cost continues to mount, with hundreds of vulnerable people now facing potential homelessness.

The accommodation crisis comes as Channel crossings hit record levels, with more than 6,600 migrants arriving in small boats during the first three months of 2025 – a 30% increase on last year’s figures. This influx has put additional strain on an already overwhelmed system.

Ministers have blamed poorly designed contracts inherited from the previous government, but critics argue the current administration needs to act faster to resolve the payment issues.

With hotel owners warning they may begin evictions imminently, the clock is ticking to find a solution that protects both businesses and asylum seekers.