Home Office Cancels £2 Billion Asylum Accommodation Contract

The decision to terminate Stay Belvedere Hotels' contract follows a review citing concerns about performance and behavior, with the agreement set to end in September 2026.

The Home Office announced the cancellation of Stay Belvedere Hotels' asylum accommodation contract, effective September 2026, after a performance review raised concerns.
Stay Belvedere Hotels currently manages 51 hotels across England and Wales, as well as Napier Barracks in Kent, which will be returned to the Ministry of Defence in September 2025.
The contract, awarded in 2019 and worth approximately £2 billion annually, was a key part of the government's asylum accommodation system.
Government officials emphasized the importance of safety, security, and value for money in asylum accommodation while working to minimize disruption during the transition.
The Home Office has not disclosed specific reasons for the termination or whether funds will be recovered, and no timeline has been provided for ending the use of hotels for asylum seekers.