The UK government has announced the closure of 11 hotels previously used to house asylum seekers, reducing the total number of such facilities to 185. This marks a significant decline from a peak of approximately 400 hotels during the height of the asylum accommodation crisis.
Home Office Minister Alex Norris stated that the reduction is a result of increased removals of individuals without legal status and the relocation of others to alternative sites, including military barracks. He emphasized that asylum hotels have been a source of frustration for local communities and have acted as a pull factor, encouraging illegal migration to the UK.
The use of hotels for asylum accommodation surged in 2020 due to processing backlogs and a shortage of long-term housing. This approach has sparked controversy, leading to local protests, legal challenges from councils, and concerns over escalating costs. In the 2024-2025 fiscal year, hotel expenditures reached £2.1 billion, following a previous year's total of £3 billion, equating to about £8.3 million daily.
According to December 2025 figures, there were 103,426 people in asylum accommodation, with 30,657 housed in hotels. The remaining two-thirds reside in dispersal accommodation, typically community-based housing. Norris projected that hotel occupancy would drop below 29,585 by May, the level when the Labour government took office. Hotel usage peaked at over 56,000 individuals in 2023 under the Conservative administration.
The Labour government has committed to phasing out hotel use for asylum seekers by July 2029. Closing the 11 hotels is expected to save nearly £65 million annually, with more closures anticipated in the coming weeks. Norris linked the move to efforts to deter Channel crossings, stating, "We know the traffickers say 'come to the UK, live in a hotel, work illegally.' We're changing that reality, we're trying to reduce that pull factor."
Despite pledges to curb small boat arrivals after the July 2024 election, numbers remained high, with 100,625 recorded in 2025. The government plans to expand the use of large, basic accommodation sites to permanently transition people out of hotels.
The hotels no longer housing asylum seekers are:
- Banbury House Hotel – Banbury, Oxfordshire
- Marine Court Hotel – Bangor, Ards and North Down
- 15 Citrus Hotel – Cheltenham, Gloucestershire
- Holiday Inn Heathrow – Hillingdon, London
- Britannia Hotel – Wolverhampton
- Madeley Court Hotel – Madeley, Telford & Wrekin
- OYO Lakeside – St Helens, Merseyside
- Crewe Arms Hotel – Crewe, Cheshire East
- Sure Hotel by Best Western – Aberdeen
- The Rock Hotel – Halifax, Calderdale
- Wool Merchant Hotel – Halifax, Calderdale