A hotel tycoon, whose business secured profitable contracts to accommodate migrants who arrived in the UK via small boats, has witnessed record profits in the past year. Britannia Hotels,
which reportedly houses approximately one in 10 asylum seekers in the country, has reportedly earned nearly £100,000 in pre-tax profit per day. The company's owner, Alex Langsam, established Britannia Hotels in the 1970s, and their recent financial success marks their highest return to date.
As the UK government struggles to fulfill its commitment to tackle illegal immigration and halt the influx of migrants, more than 10,000 people have crossed the English Channel in small boats this year, with a recent surge in arrivals. Britannia Hotels, which operates 60 hotels, including 17 that have been block-booked by the government, received a lucrative contract to accommodate migrants.
Despite being consistently ranked as the worst hotel chain for the past decade according to a consumer group survey conducted by Which, Britannia Hotels generated a turnover of £118 million for the fiscal year ending in March 2022. The company's pre-tax profit of £33.4 million surpasses its previous record of £33.3 million in 2016.
Britannia Hotels' financial success comes to light as Home Secretary Suella Braverman met with French Interior Minister Gerald Darmanin to discuss joint efforts in combatting illegal immigration. While Darmanin has been critical of the UK's approach, Braverman emphasized that the two countries are working closely together to address counter-terrorism, state threats, and shared security concerns.
The government's target to reduce the asylum backlog is unlikely to be met at the current rate, according to the Home Secretary. Chancellor Rishi Sunak had pledged to eliminate 92,000 "legacy" asylum claims lodged before June 28, 2022, by the end of 2023. The number of migrant crossings via small boats has recently increased, with 2,529 arrivals reported between June 10 and 17.
The financial success of Britannia Hotels raises questions about the efficacy of the government's strategy in curbing illegal immigration. The hotel chain's profitable contracts, coupled with the ongoing challenges faced by the government, have led to criticism from opposition figures, highlighting the need for a comprehensive and effective approach to address the issue. Photo by Cnbrb, Wikimedia commons.