Best Western Yew Lodge Hotel, Kegworth
The Best Western Yew Lodge Hotel sits on Packington Hill in Kegworth, a Leicestershire village close to East Midlands Airport and the Nottinghamshire border. From late February 2023 the property was withdrawn from public booking and used by Home Office contractor Serco to house up to 220 asylum seekers, displacing the in house Marco Pierre White restaurant and the Houdini Escape Rooms attraction[1]Broadcast.
Capacity
220
peak residents
Per night
£170
per resident
Annual
£14m
estimated
Background
The Yew Lodge is a Best Western branded conference and leisure hotel set in five acres of grounds on the edge of Kegworth, north west Leicestershire. Before the asylum contract it traded as a full service venue with around 220 bedrooms, a restaurant franchise and an attached escape rooms business. ITV News Central reported in February 2023 that the hotel had cancelled all public reservations and gym memberships ahead of asylum seekers moving in on Monday 27 February 2023, with Serco named as the responsible contractor[1]Broadcast.
Like several other Midlands hotels brought into the asylum estate during the small boats peak, the site was used as contingency accommodation under the Asylum Accommodation and Support Services (AASC) contract held in the East Midlands by Serco. Public booking businesses inside the building, including the Marco Pierre White restaurant and Houdini Escape Rooms, were displaced for the duration of the contract.
Local opposition and 2023 protest
The change of use was sharply contested locally. A petition opposing the plan circulated within days, and a public protest was held outside the hotel in late February 2023. Following that protest Leicestershire Police charged a man with public order offences in connection with the demonstration[2]Broadcast.
Concerns raised by Kegworth residents and the parish council focused on the loss of public amenity at a relatively small village hotel, the lack of advance consultation, and the displacement of established commercial bookings inside the building.
Closure announcement and triumph framing
In July 2024 the government confirmed the asylum contract at the Yew Lodge would end, making it one of the last asylum hotels remaining in Leicestershire. Local MP Craig Smith published a statement welcoming the closure and thanking residents, community leaders, and the District and County Council for their work during what he described as a very difficult and unsettling period[3]Press.
The government attributed the closure to reduced inflow, pointing to a 36 per cent fall in Channel crossings the previous year and progress against trafficking networks. Smith said he wanted the building restored for local employment and community use rather than left vacant.
Cost analysis
At the £170 per person per night Migration Observatory benchmark[4], a peak headcount of 220 residents implies headline taxpayer exposure of around £37,400 per night and roughly £13.7 million per year at full occupancy. Across the 17 month asylum period that puts cumulative spend at around £19 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
Yew Lodge Kegworth (closed)
£170
closed-period benchmark
UK asylum hotel avg
£170
NAO
Leicestershire budget hotel
£55
commercial
Hostel bed
£30
commercial
Timeline
Timeline
Pre-2023
Operates as a 220-bed Best Western conference hotel with attached restaurant and escape rooms in Kegworth
23 Feb 2023
ITV reports asylum takeover
Hotel cancels public reservations and gym memberships ahead of Serco asylum use.
27 Feb 2023
Asylum seekers move in
Up to 220 residents arrive under the East Midlands Serco AASC contract.
Late Feb 2023
Local protest
Demonstration outside the hotel results in a man charged with public order offences.
Jul 2024
Contract end confirmed
MP Craig Smith hails closure as a triumph; site is one of the last asylum hotels in Leicestershire.
2024-2026
Restoration plans
MP signals work to bring the property back into local employment and community use.
Sources
- Leicestershire hotel temporarily closing to help home office house asylum seekers — ITV News Central, Feb 2023
Reports the Best Western Yew Lodge Hotel in Kegworth, Leicestershire was being taken out of public booking from late February 2023 to be used by the Home Office for asylum dispersal under Serco, with up to 220 residents expected. Marco Pierre White restaurant and Houdini Escape Rooms in the building were also closed.
- Man charged following asylum hotel protest in Leicestershire village — ITV News Central, Feb 2023
Reports the late February 2023 protest outside the Yew Lodge Hotel in Kegworth, Leicestershire, after which Leicestershire Police charged a man with public order offences.
- Asylum Hotel to close — Craig Smith MP, Jul 2024
MP Craig Smith confirms the closure of the Yew Tree Lodge in Kegworth, one of the last asylum hotels remaining in Leicestershire, hailing the decision as a triumph after 17 months of asylum use. Smith thanked local residents and community leaders alongside the District and County Council.
- 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.