The Home Office is stopping the use of hotels run by one of the largest providers of asylum accommodation.

Stay Belvedere Hotels (SBHL) is responsible for providing around a quarter of asylum accommodation operated by the Home Office.

The accommodation chain has responsibility for 51 hotels across England and Wales as well as Napier Barracks, a facility in Kent housing people waiting for asylum decisions which is due to close in September.

Its provider contract was signed by the previous Conservative government in 2019, and is worth around £2 billion a year.

BBC News has approached SBHL for comment.

The chain’s website boasts of offering a range of pastoral and welfare services that exceed the requirements of its contracts, ensuring guests are treated with dignity.

But an audit by the Home Office has uncovered unspecified concerns about its performance and behaviour as a government supplier.

Border security and asylum minister Angela Eagle said the decision had been taken because of 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.

The earliest point which the Home Office can exit the contract with SBHL without payment of break cost is in September of next year.

It is unclear where those they are housing will go when it does end.

The latest published immigration statistics from December 2024 show there were 38,079 asylum seekers in hotel accommodation, lower than the peak of 56,042 at the end of September 2023.

Ministry of Justice data also shows that almost 42,000 asylum seekers are waiting for an appeal hearing after their initial claims were rejected by the Home Office.

The government is looking at plans for failed asylum seekers whose appeals have been exhausted to possibly be sent to the Balkans.

More than 5,000 migrants have arrived in the UK after crossing the Channel on small boats so far this year, according to latest figures.

In 2024 as a whole, 36,816 were detected making the dangerous crossing in small boats.