
Hotels, predominantly in London, are threatening to evict hundreds of asylum seekers as they have not received payment from Stay Belvedere Hotels (SBHL), an accommodation company recently dropped by the Home Office. The hotels claim they were supposed to receive payments from SBHL last month for housing the asylum seekers.
Not receiving the money has left them unable to cover their insurance premiums, potentially breaching their contracts and leaving them without coverage. An anonymous hotel owner told : "We are saying that if there is no payment, there is no option. We will have to evict the asylum seekers." SBHL, believed to operate over 50 migrant hotels, lost its contract with the Home Office last month due to alleged misconduct and poor performance.
Currently, approximately 38,000 asylum seekers are housed in hotels, costing the Home Office £5.5 million daily.
SBHL was a subcontractor for Clearsprings Ready Homes, one of three main providers with decade-long contracts with the Home Office to accommodate asylum seekers awaiting claim decisions. Clearsprings tripled its profits to £91 million last year.
The contract to manage SBHL's hotels is being transferred to Mears, Serco and CTM. While most hotels are in London, properties also exist in Bournemouth, Eastbourne and Folkestone.
Government insiders informed the outlet that all invoices due for payment by the Home Office had been settled, and it was now the responsibility of SBHL and Clearsprings to honour their contracts and pay the outstanding amounts.
A source added: "We are progressing with the transition away from SBHL and Clearsprings. They are co-operating but if they breach their terms at any time and stop co-operating, we will act accordingly."
Hotel insiders told the outlet that the process of untangling these contracts seemed to have not only delayed their payments for housing asylum seekers but also complicated the transfer of responsibility to Mears, Serco and CTM.
The sources explained that the standard procedure for receiving payments required hotels to invoice SBHL on the 20th day of the preceding month, with the funds then transferred on the 28th or 29th.
However, following the Home Office's decision to sever ties with SBHL, the sources claimed they had yet to receive any payments.
The hotel groups have also received a 90-day notice from SBHL indicating the termination of their contract with the company, but it remains uncertain who will bear the costs of accommodating the asylum seekers during this transitional period.
While Serco, Mears and CTM have reportedly approached them for new contracts, disentangling themselves from the agreements with SBHL is proving to be a complex task.
The Express has contacted the Home Office, Clearsprings Ready Homes and SBHL for comment.
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