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Hotel ProfileClosedCouncil Stop NoticeUpdated April 2026

Allesley Hotel, Coventry

The Allesley Hotel on Birmingham Road in Allesley, on the western edge of Coventry, was a 113 room three star hotel used as Home Office contingency asylum accommodation under contract with Serco from 2020. In August 2021 Coventry City Council served the hotel with a formal temporary stop notice ordering it to remove all asylum seekers by 3 September 2021 on planning control grounds[1]Press[3]Press.

3 min readUpdated April 2026Share:XWhatsApp
Closed; building damaged beyond repair

Capacity

113

rooms

Per night

£170

per resident

Annual

£7.0m

estimated

Background

The Allesley Hotel sat on Birmingham Road on the western edge of Coventry, with about 113 bedrooms across the main building. From 2020 the site was contracted into the Home Office asylum estate under the Asylum Accommodation and Support Services contract held in the West Midlands by Serco, alongside the larger nearby Coventry Hill Hotel. The hotel stopped taking commercial bookings while it continued to house asylum seekers[2]Press.

Coventry City Council temporary stop notice

In August 2021 Coventry City Council issued the Allesley Hotel with a six page temporary stop notice ordering it to remove all asylum seekers from the premises by midday on Friday 3 September 2021. The council argued that the hotel was operating as a hostel without planning approval and that the change of use breached planning control, having gone ahead despite earlier assurances from the Home Office[1]Press.

At the time Coventry was housing more than 500 asylum seekers in temporary hotels in addition to over 1,000 in dispersal accommodation, a number the council described as overly and disproportionately high compared with the UK average. The Allesley Hotel manager said the notice came without prior warning and indicated the hotel would seek legal advice to challenge it[3]Press. The case sat alongside a wider judicial review challenge by Coventry and six other West Midlands authorities over the Home Office dispersal policy[4]Press.

Closure and the two fires

The Allesley Hotel ceased trading in 2022. Since closure the building has suffered two large fires, leading West Midlands Fire Service and the council to treat the structure as unsafe and beyond repair[5]Press. The site is now marketed for redevelopment as land at the former Allesley Hotel rather than as a hotel reopening.

Cost analysis

At the £170 per person per night Migration Observatory benchmark[6], a 113 room hotel run at full asylum occupancy would imply headline taxpayer exposure of about £19,210 per night and roughly £7.0 million per year. The May 2025 NAO contract review put the average per hotel run rate across the wider portfolio at about £5.84 million per year[7]NAO.

Per-person per-day cost stack (benchmark)

£170
  • Hotel rate (room + three meals)£10059%
  • Weekly cash allowance£74%
  • Legal aid & casework£127%
  • NHS / interpreter / utilities£1911%
  • Contractor / security overhead£3219%

Cost in context

Allesley Hotel (closed)

£170

closed-period benchmark

UK asylum hotel avg

£170

NAO

Coventry budget hotel

£55

commercial

Hostel bed

£30

commercial

Timeline

Timeline

  1. Pre-2020

    Operates as a commercial three star hotel on Birmingham Road, Allesley

  2. 2020

    Hotel stops taking paying guests

    Switched to Home Office asylum accommodation under Serco contract.

  3. Aug 2021

    Council temporary stop notice

    Coventry City Council orders removal of all asylum seekers by 3 September 2021 on planning control grounds.

  4. 2022

    Hotel ceases trading

  5. 2023

    Significant fires at the closed building

    Investigations launched after two large fires; building deemed unsafe and beyond repair.

  6. 2024-2026

    Site marketed as land at the former Allesley Hotel for redevelopment

Sources

  1. Allesley Hotel ordered to remove asylum seekers after planning breach CoventryLive (Coventry Telegraph), Aug 2021

    Reports that Coventry City Council issued the Allesley Hotel on Birmingham Road with a temporary stop notice ordering it to remove all asylum seekers by midday on Friday 3 September 2021 on the grounds that asylum use breached planning control. Coventry was housing more than 500 asylum seekers in temporary hotels at the time, plus 1,000 in dispersal accommodation, which the council described as overly and disproportionately high compared to the UK average.

  2. Coventry hotel stops booking for paying guests as it continues to house asylum seekers CoventryLive (Coventry Telegraph), 2020

    Reports that the Allesley Hotel on Birmingham Road, Allesley, stopped taking bookings from paying guests while it continued to be used as Home Office contingency asylum accommodation under contract with Serco.

  3. The Allesley Hotel issued notice to stop housing asylum seekers Hotel Owner, Aug 2021

    Trade press coverage of Coventry City Council's temporary stop notice against the Allesley Hotel on Birmingham Road, ordering it to remove asylum seekers on planning grounds, with hotel manager Naushad Busawon stating the hotel would seek legal advice to challenge the notice.

  4. City council mulls fresh legal action over asylum seeker hotel Local Government Lawyer, 2021

    Coventry City Council confirmed it was considering further enforcement action against the Allesley Hotel after a temporary stop notice issued in August 2021 in connection with the use of the Birmingham Road site for asylum dispersal accommodation.

  5. Allesley Hotel investigation launched after significant fire CoventryLive (Coventry Telegraph), 2023

    Reports an investigation after a significant fire at the closed Allesley Hotel on Birmingham Road, the second large fire at the building since it ceased trading; the building was deemed unsafe and beyond repair.

  6. Asylum accommodation in the UK Migration Observatory, University of Oxford, Aug 2025

    £170 per person per day in hotels (2024/25 average); used for per-hotel estimates and food/utilities breakdowns.

  7. The Home Office's asylum accommodation contracts National Audit Office, May 2025

    222 hotels in use; £1.296 billion annual (2024/25); per-hotel approximately £5.84 million.

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