UK terminates contract with major refugee housing provider

The British government has announced the termination of its partnership with Stay Belvedere Hotels (SBHL), a company that manages 51 hotels for accommodating migrants in England and Wales. According to media reports, the contract is worth approximately £2 billion (around €2.3 billion).

The UK Home Office stated that the decision was made following a review of all contracts related to asylum accommodation. The department identified “issues with SBHL’s performance and behavior” as a government contractor.

Previously, the Home Office had announced the closure of Napier Barracks in Kent by September 2024. However, the complete termination of the contract with SBHL will only be possible in September 2026, as the company is a subcontractor of Clearsprings, which signed an agreement with the government in 2019.

The UK government aims to phase out the use of hotels for refugee accommodation entirely, though it has not yet set a specific timeline. Minister for Borders and Asylum Angela Eagle stated that since the new government took office in July 2024, oversight of contractors has been strengthened.

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