The UK Home Office has terminated its contract with Stay Belvedere Hotels (SBHL), a company that has been providing accommodation for asylum seekers, due to concerns about poor

performance and behavior.

SBHL currently operates 51 venues across England and Wales, as well as the Napier Barracks in Kent, which is set to close in September and return to Ministry of Defence control. The company’s contract, awarded in 2019, will now end at the earliest opportunity in September 2026 following a full review.

The Home Office said the decision was part of efforts to ensure the safety of both asylum seekers and staff, while also providing value for taxpayers.

The Australian firm Corporate Travel Management (CTM), previously criticized for its management of the Bibby Stockholm barge in Dorset, is expected to take over.

The move comes as small boat crossings across the English Channel continue to rise. Between January 1 and March 23, 5,847 people arrived in the UK from France — a 36% increase compared to the same period last year. Over 1,400 people made the journey in the past five days alone.

By the end of 2024, more than 38,000 asylum seekers were being housed in hotels by the Home Office.

Minister for Border Security and Asylum Angela Eagle stated:
"Since July, we’ve strengthened contract management and oversight of our asylum accommodation providers. We’ve now removed Stay Belvedere Hotels from our supply chain and will take further action when necessary."

Housing Minister Matthew Pennycook declined to give specific reasons for ending the contract, saying only that "operational details are being worked out." He added the aim of reviewing these contracts is to improve management and ensure taxpayers get value for money.

The Home Office emphasized its ongoing commitment to ending the use of hotels for asylum seekers and said it is developing robust plans to minimize disruption during the transition. Photo by Steve Cadman, Wikimedia commons.