Banbury House Hotel, Oxfordshire
The Banbury House Hotel on Oxford Road in Banbury, Oxfordshire, is a 50-bedroom Georgian property that was withdrawn from public booking and used as Home Office asylum dispersal accommodation from 2022. Asylum seekers were moved out on 18 February 2026[2]Press, and the hotel was later named among the eleven asylum hotels the Home Office reported closed in its 15 April 2026 announcement[1]GOV.UK.
Capacity
50
bedrooms
Per night
£170
per resident
Annual
£3.1m
estimated
Background
The Banbury House Hotel is a 50-bedroom Georgian property on Oxford Road in Banbury, Oxfordshire. From around September 2022 the site was withdrawn from public booking and used as Home Office contingency asylum accommodation, housing small-boat migrants awaiting decisions on their claims[2]Press. The accommodation provider was not named in the closure coverage. Local reporting from the Banbury Guardian and Banbury FM tracked the hotel through its asylum-use period[3]Press.
2026 closure
Asylum use at Banbury House ended in February 2026: GB News reported that residents were observed leaving on 18 February 2026 and that the hotel had “ceased operating as asylum seeker accommodation”[2]Press.
On 15 April 2026 the Home Office announced that eleven asylum hotels had closed and been returned to their communities, naming Banbury House alongside the 15 Citrus Hotel in Cheltenham, the Crewe Arms Hotel, a Holiday Inn near Heathrow, the Britannia Hotel in Wolverhampton, Madeley Court near Telford, OYO Lakeside in St Helens, the Marine Court Hotel in Bangor, a Sure Hotel in Aberdeen, and both the Rock Hotel and Wool Merchant Hotel in Halifax. The Home Office said the round of closures saves around £65 million a year[1]GOV.UK.
Banbury MP Sean Woodcock welcomed the closure, describing it as a positive step toward ending excessive spending on asylum hotels[4]Press.
Cost analysis
At the £170 per person per night Migration Observatory benchmark[5], a 50 bedroom hotel run at full asylum occupancy implies headline taxpayer exposure of about £8,500 per night and roughly £3.1 million per year. Across the roughly three and a half years of asylum use (2022 to early 2026) that puts cumulative spend at around £10 million, although the actual run rate varied with occupancy. The May 2025 NAO contract review put the average per hotel run rate across the wider portfolio at about £5.84 million per year[6]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
Banbury House Hotel (closed)
£170
closed-period benchmark
UK asylum hotel avg
£170
NAO
Oxfordshire budget hotel
£60
commercial
Hostel bed
£30
commercial
Timeline
Timeline
Pre-2022
Operates as a 50-bedroom Georgian commercial hotel on Oxford Road
Sept 2022
Asylum use begins
Hotel withdrawn from public booking and used as Home Office contingency asylum accommodation for small-boat migrants.
2022 to 2026
Continuous asylum dispersal use
18 Feb 2026
Asylum seekers moved out
GB News reports residents observed leaving; the hotel ceases operating as asylum seeker accommodation.
15 Apr 2026
Named in GOV.UK eleven-hotel closure announcement
Home Office lists Banbury House among eleven asylum hotels closed and returned to communities, a round it says saves ~£65m a year.
Sources
- Asylum hotels close as government scales up use of large sites — GOV.UK Home Office, 15 Apr 2026
Home Office announcement (15 April 2026) that eleven asylum hotels have closed and been returned to their communities - the Banbury House Hotel (Banbury), 15 Citrus Hotel (Cheltenham), Crewe Arms Hotel (Crewe), Holiday Inn Heathrow (Hillingdon), Britannia Hotel (Wolverhampton), Madeley Court Hotel (Telford), OYO Lakeside (St Helens), Marine Court Hotel (Bangor), Sure Hotel by Best Western (Aberdeen), and the Rock Hotel and Wool Merchant Hotel (Halifax) - as part of the plan to end asylum hotel use, saving around £65m a year.
- Asylum seekers moved out of Banbury House Hotel, Oxfordshire — GB News, Feb 2026
GB News reported that the Banbury House Hotel in Oxfordshire "has ceased operating as asylum seeker accommodation this week", with residents moved out on 18 February 2026; the Georgian hotel had housed small-boat migrants awaiting decisions on their claims since 2022.
- Hotel in Banbury will stop hosting asylum seekers — Banbury Guardian, 2026
Banbury Guardian reports that the 50-bedroom Georgian Banbury House Hotel on Oxford Road will stop being used as Home Office asylum accommodation, ending an asylum-dispersal use that had run since 2022.
- Closure of asylum seekers' hotel marks a positive step forward in ending excessive spending, says Banbury MP — Banbury Guardian, 2026
Banbury MP Sean Woodcock welcomed the closure of the Banbury House Hotel asylum accommodation, calling it a positive step toward ending excessive Home Office spending on asylum hotels.
- 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.
- 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.