Stay Belvedere Hotels (SBHL) is responsible for providing around 51 hotels, around a quarter of asylum accommodation.

The accommodation chain also has responsibility for running Napier Barracks, a Kent facility housing people waiting for asylum decisions. It is due to close in September.

The £2 billion SBHL contract was signed by the previous Conservative government five years ago.

An audit by the Home Office has uncovered unspecified concerns about SBHL's performance as a government supplier.

The accommodation provider's contract, signed by the previous Conservative government in 2019, is worth approximately £2 billion per year.

SBHL's website claims to offer pastoral and welfare services beyond contractual requirements, ensuring guests are treated with dignity.

Despite SBHL's claims, a Home Office audit has revealed unspecified concerns about the company's operations.

The audit highlighted issues with SBHL's performance and conduct as a government supplier.

Border security and asylum minister Angela Eagle said the decision reflected "greater oversight of asylum accommodation".

"We have made the decision to remove Stay Belvedere Hotels from the Home Office supply chain and will not hesitate to take further action to ensure Home Office contracts deliver for the UK," she said.

According to the latest immigration statistics from December 2024, there were 38,079 asylum seekers in hotel accommodation.

This figure represents a decrease from the peak of 56,042 recorded at the end of September 2023.

Ministry of Justice data shows nearly 42,000 asylum seekers are awaiting appeal hearings after their initial claims were rejected.