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Hotel ProfileClosed (2008)Historic siteUpdated April 2026

Nayland Rock Hotel, Margate

The Nayland Rock Hotel sits on Royal Crescent on the Margate seafront in Thanet, Kent. The Victorian hotel, which has hosted guests including Mick Jagger and T S Eliot, was used as government asylum accommodation from 2000 onwards as tourist trade collapsed. A 2007 Home Office plan to convert the site into a deportation holding centre was fought off by Thanet North MP Sir Roger Gale, and the hotel closed as a commercial business in 2008[1]Press[2]Press.

4 min readUpdated April 2026Share:XWhatsApp
Closed asylum hotel (2008)

Capacity

130

rooms (historic)

Per night

£170

per resident

Annual

£8.1m

estimated

Background

The Nayland Rock is a Victorian hotel that opened in 1885 on Royal Crescent in Margate, on a stretch of the Kent seafront opposite the Nayland Rock Promenade Shelter. KentOnline records that it counts music legend Mick Jagger and the poet T S Eliot among its former guests[1]Press.

Asylum use, 2000 to 2008

From 2000 the Nayland Rock was used as government accommodation for asylum seekers as tourist numbers fell. KentOnline reports that the hotel provided initial accommodation for newly arrived asylum seekers under contracts running through Migrant Helpline[3]GOV.UK.

The hotel ceased operating as a fully commercial business in 2008 and has since been used variously for worker and student accommodation and as a film location, with redevelopment proposals more recently bringing forward plans for around 50 flats and 16 short-stay apartments[1]Press.

2007 deportation centre plan

In 2007 KentOnline reported on a leaked Home Office plan to convert the Nayland Rock into a holding centre for asylum seekers awaiting deportation. The proposal was opposed by Thanet North MP Sir Roger Gale and Thanet Council leadership, who argued that an open prison on a stretch of regeneration seafront yards from a railway station was the wrong use for the site[2]Press[3]GOV.UK.

Cost analysis

The Nayland Rock's asylum use predates the modern hotel contract regime, so there is no published per night cost attributable to this site. The Migration Observatory £170 per person per night benchmark[4]and the May 2025 NAO contract review average of about £5.84 million per hotel per year[5]NAO are useful only as a reference against today's portfolio. For Nayland Rock specifically the significant numbers are historic and contextual rather than ongoing.

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

Nayland Rock (historic)

£170

modern benchmark

UK asylum hotel avg

£170

NAO

Margate budget hotel

£60

commercial

Hostel bed

£30

commercial

Timeline

Timeline

  1. 1885

    Hotel opens

    The Nayland Rock opens as a Victorian seafront hotel on Royal Crescent, Margate.

  2. 2000

    Asylum use begins

    Hotel used as government accommodation for newly arrived asylum seekers as tourist trade collapses.

  3. 2007

    Deportation centre plan leaked

    KentOnline reports a Home Office plan to convert the hotel into a deportation holding centre. MP Sir Roger Gale and Thanet Council leadership oppose the proposal.

  4. 2008

    Closes as commercial hotel

    Hotel ceases to operate as a fully commercial hotel.

  5. Post-2008

    Worker / student / film use

    Site used at various points for worker and student accommodation and as a filming location.

  6. 2024

    Redevelopment plans

    Developers put forward plans for around 50 flats, 16 short-stay apartments and a two-storey commercial unit.

Sources

  1. Former Nayland Rock Hotel in Royal Crescent, Margate, where Mick Jagger stayed set to be developed into flats KentOnline, 2024

    KentOnline records the Nayland Rock's use as government accommodation for asylum seekers from 2000 onwards, prior to closure as a commercial hotel in 2008 and subsequent redevelopment proposals.

  2. Outrage after deportation centre plan is leaked KentOnline, 2007

    KentOnline reports a leaked Home Office plan to convert the Nayland Rock Hotel on Margate seafront into a deportation holding centre, opposed by Thanet North MP Roger Gale and the council leader.

  3. The Nayland Rock Hotel Sir Roger Gale MP, 2007

    North Thanet MP Sir Roger Gale documents his opposition to the Home Office initiative converting the Nayland Rock into an open prison and deportation holding centre, noting the site's prior use as initial accommodation for newly arrived asylum seekers.

  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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