Two hotels near Heathrow owned by Amir Dayan have generated an estimated £100 million from accommodating asylum seekers, sparking debate over public fund allocation and local community impact as the government seeks to reduce reliance on hotel accommodation.
Two hotels in West Drayton, located near Heathrow Airport, have raised significant concerns over their role in housing asylum seekers at the expense of taxpayers. The Crowne Plaza and Holiday Inn, both owned by Israeli tycoon Amir Dayan, are estimated to have generated around £100 million from UK taxpayers in contracts that flourish amid a crisis of asylum accommodation. The hotels, which previously welcomed tourists, have now predominantly housed migrants for more than four years, with occupancy rates reportedly high and security measures in place to restrict access to outsiders.
Since late 2020 and early 2021, the UK government has increasingly relied on these hotels as rising numbers of migrants have made perilous journeys across the Channel. This influx has put immense pressure on the asylum system, compelling the government to engage with hotel owners like Dayan, who has a complex ownership structure involving numerous companies registered in both the UK and Jersey. Reports indicate that Dayan controls at least 75% of both hotels, placing him in a unique position to benefit from the soaring demand for accommodation as migrants enter the UK.
While some migrants express satisfaction with their living conditions, highlighting the adequacy of food and amenities, there is expressed frustration over long waiting periods for asylum applications to be processed. Concerns among local residents are considerable, with reports of discomfort regarding the substantial sum of public money being utilised to support asylum seekers residing in these hotels. Indeed, many residents have voiced discontent regarding the prioritisation of asylum seekers’ accommodation, particularly as some feel abandoned in their own housing struggles.
Moreover, recent data reveals that the UK government’s expenditure on asylum accommodation has ballooned dramatically, anticipated to reach £15.3 billion over the next decade—equating to over £4 million a day. This escalation in costs has led to criticisms regarding budget allocations, as a significant portion of the reduced international aid budget is now funnelled into domestic asylum housing. Official reports indicate that 28% of the aid budget is currently spent on supporting refugee accommodations, a figure expected to rise.
This situation has provoked discussions among Labour MPs and others who challenge the ethicality of reallocating funds meant for international aid towards domestic asylum costs, with calls for the Home Office or Treasury to shoulder these burdens instead. The reallocation raises critical questions about governmental priorities and the pursuit of equitable support for both asylum seekers and vulnerable local populations.
The adverse impact on local businesses cannot be overlooked either. Pubs and leisure facilities in West Drayton have reported significant declines in foot traffic and revenue since the hotels transitioned to housing asylum seekers. The landlord of a nearby pub articulated concerns over dwindling clientele, attributing the decline directly to the hotel’s change in function. Issues of antisocial behaviour highlighted by pub staff further complicate the narrative, adding a layer of tension to the local community’s acceptance and integration of asylum seekers.
This complex scenario is further compounded by the government’s broader strategy to reduce reliance on hotel accommodation in favour of traditional housing solutions. Despite ongoing plans to shift asylum seekers into private rental sectors and other dispersed accommodations—where costs can be significantly lower—the path has been fraught with challenges. Critically, while operationalizing this shift, the government is facing local resistance, especially in areas where housing shortages are already pressing.
As the government continues to navigate the intricate dynamics surrounding asylum accommodation in the UK, the situation in West Drayton stands as a case study of the broader issues at play: the intersection of public spending, local community concerns, and the ongoing humanitarian challenges posed by a rising number of asylum seekers. With plans in motion to reduce the use of hotels, observers will be watching closely to see how these policies unfold and impact both migrants and the communities that house them.
The multidimensional nature of this issue serves as a reminder of the importance of balanced solutions that address the needs of both asylum seekers and local residents, ensuring that public funds are used effectively and responsibly in a time of unprecedented demand.
Reference Map
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Source: Noah Wire Services
- https://www.dailymail.co.uk/news/article-14700045/hotels-taxpayers-asylum-seekers-four-star-Israeli-tycoon.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 – Please view link – unable to able to access data
- https://www.dailymail.co.uk/news/article-14700045/hotels-taxpayers-asylum-seekers-four-star-Israeli-tycoon.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 – An article from the Daily Mail reports that two hotels in West Drayton, near London’s Heathrow Airport—the Holiday Inn and Crowne Plaza—have been housing asylum seekers for over four years. These four-star hotels, previously frequented by tourists, are believed to have earned approximately £100 million from UK taxpayers during this period. The government signed contracts to utilize these hotels in late 2020 or early 2021 amid a surge in migrants crossing the Channel. The piece also highlights the ownership of these hotels by Israeli tycoon Amir Dayan, who is reportedly one of Israel’s wealthiest individuals. Local residents have expressed concerns over the substantial public funds used to accommodate asylum seekers in these establishments.
- https://www.ft.com/content/d33778ef-a661-406c-b4a5-2072e841e75d – A Financial Times article discusses the UK’s allocation of a significant portion of its reduced aid budget to house asylum seekers domestically. The government plans to cut aid spending from 0.5% to 0.3% of gross national income by 2027, amounting to £9.2 billion. In 2023, 28% of the aid budget was spent on refugee accommodations, primarily hotel costs for asylum seekers. This expenditure is expected to rise to about 45% of the reduced aid budget. Labour MPs have expressed concerns over the reallocation of funds designed for international aid to domestic expenses, urging the Home Office or the Treasury to bear the costs instead. The ongoing efforts to clear the asylum claims backlog have not significantly reduced costs. Prime Minister Starmer stated that cutting the aid budget was a ‘painful’ but necessary decision to fund increased defense spending. The aid budget cuts may result in significant reductions in funding for bilateral country programs while maintaining commitments to multilateral bodies and international climate finance.
- https://www.ft.com/content/27aab256-807f-4a3d-bc54-8f302e468e9a – An article from the Financial Times reports that UK ministers are considering using break clauses in asylum accommodation contracts with companies like Serco, Mears, and Clearsprings Ready Homes to renegotiate or annul agreements. These multiyear contracts, initiated in 2019 and due for renegotiation in 2026, have reportedly yielded unforeseen profits for the companies involved due to the escalating demands of the asylum system. The Home Office has been competing with other departments for hotel and other accommodations, driving costs up. Contracts worth £4.6 billion across various UK regions include break clauses after seven years. Mears, Serco, and Clearsprings have seen significant profit increases since the contracts began, with varying profit margins and financial returns. The government aims to reduce reliance on expensive hotel accommodations but continues to face challenges due to increasing asylum demands. The companies assert their profits align with market standards and contractual stipulations, with return provisions for excess earnings.
- https://www.bbc.com/news/uk-64991234 – A BBC News article reveals that private firms are profiting from the UK’s use of hotels to house asylum seekers. The government has been using 395 hotels to accommodate more than 51,000 asylum seekers, at a cost of over £6 million a day. Hotel owners are approached to hand over their properties to outsourced companies, which run the business on behalf of the Home Office. Three large firms have contracts to run the hotels: Serco, Mears Group, and Clearsprings Ready Homes. Serco provides about 109 hotels in England, Mears Group runs 80 hotels in north-east England, Scotland, and Northern Ireland, and Clearsprings Ready Homes has seen its pre-tax profits treble, from £2.1 million to £6.3 million, in the 12 months up to February 2022. The choice of hotels appears indiscriminate, with contracts with ones at airports, golf courses, country houses, the seaside, and some used for city business workers. Some towns, like Swindon, have more than one hotel housing asylum seekers, while others have none. UK government sources complain that Scotland’s government has actively blocked hotels being booked for asylum seekers in the country. However, the Scottish government stated that because the asylum system is not devolved, the backlog was ‘of the UK government’s own making’.
- https://www.telegraph.co.uk/politics/2024/02/13/home-office-pays-homes-asylum-seekers-housing-shortage/ – An article from The Telegraph reports that the UK Home Office has built up a stock of 16,000 properties for asylum seekers, despite acute shortages of homes for young workers and families. Contractors working for the Home Office are offering landlords five-year guaranteed full rent deals to take over the management of properties as they race to transfer asylum seekers out of hotels. The properties, drawn from the private rental and social housing markets, are being used to house more than 58,000 asylum seekers across England, Wales, and Scotland—double the number in so-called ‘dispersed accommodation’ a decade ago. Insiders told Planet Normal that the Home Office was expanding its use of rented accommodation to meet Prime Minister Rishi Sunak’s pledge to reduce the use of hotels, which have been costing up to £8 million a day. Fifty asylum hotels were due to shut by the end of last month, with a further 50 closed by the spring. Until the end of last year, there were about 50,000 asylum seekers in 400 hotels paid for by the taxpayer. Putting up asylum seekers in dispersed accommodation can cost as little as £30 a day, compared with £150 a day for hotels. Asylum seekers at the Atrium Hotel in Feltham, London, are among those being moved out of hotels. The government is working to cut the use of hotels to house migrants. However, experts advising the Home Office have warned that local families and young workers face being deprived of cheaper rented accommodation.
- https://www.gov.uk/government/news/100th-asylum-hotel-set-to-close-next-week – A government announcement reports that 100 asylum hotels will be closed by the end of March as part of the UK government’s plan to reduce the use of hotels in the asylum system. The Home Office is expected to close the 100th hotel on March 29, having moved people into other accommodation such as large sites and the private rented sector. This means there are 20,000 fewer asylum seekers in hotels today than six months ago, down from over 56,000 at the end of September 2023—a reduction of 36%. Hotel accommodation, which currently costs £8.2 million a day, has always been intended as a temporary solution to ensure the Home Office meets the statutory obligation to accommodate asylum seekers who would otherwise be destitute during a period of unprecedented numbers of small boat arrivals.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative references recent events and financial data but lacks specific dates that would definitively establish its freshness. The context of ongoing asylum seeker issues in the UK and recent government strategies supports the relevance of the information.
Quotes check
Score:
6
Notes:
There are no direct quotes in the narrative, making it difficult to verify the origin or authenticity of specific statements. However, the lack of quotes suggests the narrative may be based on reported facts rather than direct testimony.
Source reliability
Score:
6
Notes:
The narrative originates from the Daily Mail, which can be considered a mainstream publication but may have a bias in reporting on sensitive topics like asylum seekers. The information seems to be based on factual reporting, but the source’s reliability is influenced by its editorial stance.
Plausability check
Score:
9
Notes:
The claims about asylum seeker accommodation and government expenditure are plausible given the context of the UK’s migration crisis and government strategies to address it. The narrative aligns with known issues regarding asylum seeker housing and public spending.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The narrative is likely to be based on factual information, given the context of current asylum seeker issues in the UK. However, the reliability of the source and the lack of specific dates for some events might affect confidence in its accuracy.
