Hotels across London are threatening to evict hundreds of migrants after failing to receive contracted payments from an accommodation firm dumped by the Home Office.
Stay Belvedere Hotels (SBHL) was stripped of its Home Office contract over alleged "poor performance" just days ago - and now, hotel owners claim they cannot pay their insurance premiums due to the missing payments, leaving them in breach of their contracts.
"We are saying that if there is no payment, there is no option. We will have to evict the asylum seekers," one hotel owner told The Telegraph, speaking anonymously.
SBHL was reportedly operating more than 50 migrant hotels before losing its contract with the Home Office in late March.
The company was sub-contracted by Clearsprings Ready Homes, one of three providers with 10-year Home Office contracts - and one which tripled its profits to £91 million last year.
There are currently around 38,000 asylum seekers housed in hotels across the UK, costing taxpayers approximately £5.5 million per day.
While most of the affected properties are in London, the firm also runs hotels across the south coast, including in Bournemouth, Eastbourne and Folkestone.
Government sources told The Telegraph that all the invoices due for payment by the Home Office had been paid out, and it now was up to SBHL and Clearsprings to fulfil their end of the deal.
MORE ON BRITAIN'S MIGRANT CRISIS:
"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," a source said.
Hotel sources explained that they normally invoice SBHL on the 20th of each month, with funds transferred by the 28th or 29th.
However, since SBHL lost its contract, payments have stopped completely.
The hotels have also received 90-day termination notices from SBHL.
The contract for managing the old firm's hotels is now being transferred to Mears, Serco and CTM.
However, some hotel owners have warned that non-disclosure agreements with SBHL prevent them from renegotiating asylum accommodation contracts for as many as five years after termination.
The hotel chaos comes amid record numbers of migrants crossing over to Britain's shores - just one day after SBHL was dropped by the Home Office, GB News revealed that the total number of Channel migrant arrivals since Labour came to power crossed 30,300.
GB News has approached the Home Office for comment.
Find Out More...
Stay Belvedere Hotels (SBHL) was stripped of its Home Office contract over alleged "poor performance" just days ago - and now, hotel owners claim they cannot pay their insurance premiums due to the missing payments, leaving them in breach of their contracts.
"We are saying that if there is no payment, there is no option. We will have to evict the asylum seekers," one hotel owner told The Telegraph, speaking anonymously.
SBHL was reportedly operating more than 50 migrant hotels before losing its contract with the Home Office in late March.
The company was sub-contracted by Clearsprings Ready Homes, one of three providers with 10-year Home Office contracts - and one which tripled its profits to £91 million last year.
There are currently around 38,000 asylum seekers housed in hotels across the UK, costing taxpayers approximately £5.5 million per day.
While most of the affected properties are in London, the firm also runs hotels across the south coast, including in Bournemouth, Eastbourne and Folkestone.
Government sources told The Telegraph that all the invoices due for payment by the Home Office had been paid out, and it now was up to SBHL and Clearsprings to fulfil their end of the deal.
MORE ON BRITAIN'S MIGRANT CRISIS:
- Reform UK sets out grassroots plan to shut £5bn asylum hotels as Labour loses grip on migrant crisis
- Home Office investigate as radio message calling asylum seekers 'n-words' played at migrant centre
- UK's asylum capital begs Starmer to halt migrant arrivals as city's crisis becomes 'unsustainable'
"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," a source said.
Hotel sources explained that they normally invoice SBHL on the 20th of each month, with funds transferred by the 28th or 29th.
However, since SBHL lost its contract, payments have stopped completely.
The hotels have also received 90-day termination notices from SBHL.
The contract for managing the old firm's hotels is now being transferred to Mears, Serco and CTM.
However, some hotel owners have warned that non-disclosure agreements with SBHL prevent them from renegotiating asylum accommodation contracts for as many as five years after termination.
The hotel chaos comes amid record numbers of migrants crossing over to Britain's shores - just one day after SBHL was dropped by the Home Office, GB News revealed that the total number of Channel migrant arrivals since Labour came to power crossed 30,300.
GB News has approached the Home Office for comment.
Find Out More...