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Hotel ProfileClosed April 2026Serco ContractUpdated April 2026

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The Banbury House Hotel on Oxford Road in Banbury, Oxfordshire, is a 50-bedroom Georgian property that was withdrawn from public booking and used as Home Office asylum dispersal accommodation under Serco from 2022. It was named on 19 April 2026 as one of eleven hotels in the latest GOV.UK closure batch[1]GOV.UK[2]Press.

3 min readUpdated April 2026Share:XWhatsApp
Closed April 2026; named in GOV.UK closure batch

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 From around September 2022 the site was withdrawn from public booking and used as contingency asylum accommodation under the Asylum Accommodation and Support Services (AASC) contract held in the Midlands by Serco[2]Press.

Local reporting from the Banbury Guardian and Banbury FM tracked the hotel through its asylum-use period, including community engagement with neighbours and Cherwell District Council briefings on local impacts.

April 2026 closure

On 19 April 2026 the Home Office announced eleven hotels would close as part of its plan to end the use of asylum hotels. Banbury House was named on the list, alongside other Midlands and Yorkshire sites[1]GOV.UK.

Banbury MP Sean Woodcock issued a statement welcoming the confirmed end of asylum use at the hotel and saying he had pressed Home Office ministers and Serco for the closure throughout the previous year[3]Press.

Cost analysis

At the £170 per person per night Migration Observatory benchmark[4], 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 that puts cumulative spend at around £10 million, although 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[5]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

  1. Pre-2022

    Operates as a 50-bedroom Georgian commercial hotel on Oxford Road

  2. Sept 2022

    Asylum use begins

    Hotel withdrawn from public booking and contracted to Serco under the Midlands AASC.

  3. 2022 to 2025

    Continuous Serco asylum dispersal use

  4. 19 Apr 2026

    GOV.UK closure announcement

    Banbury House named in the eleven hotel closure batch.

  5. Apr 2026

    Sean Woodcock MP welcomes confirmed end of asylum use

Sources

  1. Eleven asylum hotels to close as Government delivers on plan to end the use of asylum hotels GOV.UK Home Office, Apr 2026

    GOV.UK announcement of eleven asylum hotels closing in April 2026, including the Banbury House Hotel in Oxfordshire and the Rock Hotel in Halifax, as part of the wider plan to end asylum hotel use.

  2. Banbury House Hotel to close as asylum accommodation in latest Home Office wind-down Banbury Guardian, Apr 2026

    Banbury Guardian reports that the 50-bedroom Georgian Banbury House Hotel, used by Serco as Home Office asylum dispersal accommodation since 2022, is among the eleven hotels named for closure in the April 2026 wind-down.

  3. Sean Woodcock MP welcomes confirmed end of asylum use at Banbury House Hotel Sean Woodcock MP, Apr 2026

    Statement by Banbury MP Sean Woodcock welcoming the Home Office confirmation that the Banbury House Hotel will end its use as asylum accommodation as part of the April 2026 closure batch.

  4. 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.

  5. 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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