UK Government Closes Three Hotels Housing Asylum Seekers, Citing Cost Savings
The UK government has closed three hotels housing asylum seekers as part of an effort to reduce costs and move individuals to alternative accommodation. The closures are expected to save millions in taxpayer money.
Key takeaways
- The UK government has closed three hotels accommodating asylum seekers as part of a cost-saving measure.
- These closures are projected to save approximately £51 million, with a larger annual saving target of £224 million.
- The government plans to transition asylum seekers from hotels to alternative accommodations, including former military sites.
- The use of hotels for asylum seekers has significantly decreased since its peak in 2023.

What Happened
Three hotels previously used to accommodate asylum seekers have been closed down by the UK government. The Metropole Hotel in Blackpool, the Britannia Ashley Hotel in Hale, and the Chimney House in Sandbach have been returned to their owners. According to the Home Office, these closures are part of a broader strategy to end the use of hotels for asylum seeker accommodation by 2029, with the aim of saving public funds.
An additional two hotels in the West Midlands, the Goldthorn hotel in Wolverhampton and the Grosvenor Hotel in Stratford-upon-Avon, were also among 13 hotels recently handed back. These closures follow earlier shutdowns in April and June, reducing the number of hotels in use to fewer than 160.
Why It Matters
The government stated that these closures will save approximately £51 million, contributing to a larger projected annual saving of £224 million. The use of hotels for asylum seekers reached a peak in 2023, with 400 properties in use at a daily cost of £9 million. The Border Security and Asylum minister indicated that these measures are intended to overhaul the immigration system and restore border control, with plans to utilize former military sites for accommodation instead.
Background
The Metropole and Britannia Ashley Hotels were designated as asylum accommodation under the previous Conservative government. Local MPs had previously raised concerns about the suitability of these locations, citing safety issues for vulnerable families, strain on local services, and inappropriate settings. The government has committed to phasing out hotel usage, with a target to cease such arrangements by 2029.
Key Facts
- Three hotels housing asylum seekers, the Metropole Hotel, Britannia Ashley Hotel, and Chimney House, have been closed.
- Two additional hotels in the West Midlands, the Goldthorn and Grosvenor Hotels, were also closed.
- The closures are part of a government initiative to move asylum seekers to alternative accommodation and reduce costs.
- These 13 hotel closures are expected to save approximately £51 million.
- In 2023, up to 400 hotels were used to house asylum seekers at a cost of £9 million per day.
- The government aims to end the use of hotels for asylum seeker accommodation by 2029.
Sources reviewed
Project Chintan independently synthesized and analyzed information cross-checked across the sources listed above.
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