Wool Merchant Hotel, Halifax
The Wool Merchant Hotel sits on Mulcture Hall Road in the Woolshops quarter of Halifax town centre, a converted Victorian wool exchange now operating as a three star hotel. Used as Home Office contingency asylum accommodation under the Mears Yorkshire and Humber contract, the property is named in the April 2026 GOV.UK press release as one of eleven asylum hotels closed in a single round[1]GOV.UK.
Capacity
100
rooms
Per night
£170
per resident
Annual
£6.2m
estimated
Background
The Wool Merchant Hotel was built in the 1870s as a landmark wool exchange and trading hall before conversion into a three star hotel in the late twentieth century. The Grade II listed property has roughly one hundred rooms over four floors and is one of the largest town centre hotels in Halifax. Calderdale was assigned to the Mears Group Yorkshire and Humber accommodation contract from 2019, and the Wool Merchant entered Home Office use in 2022 as the contingency hotel programme expanded across West Yorkshire[2]Press.
April 2026 closure
On 16 April 2026 the Home Office announced that the Wool Merchant Hotel would no longer be used to house people forced to flee their homes, naming the site in a press release covering eleven simultaneous closures across England. The press release frames the closures as part of a wider policy to move residents into larger basic accommodation while increasing removals[1]GOV.UK.
The Halifax Courier and Yorkshire Live both confirmed the local detail that the Wool Merchant Hotel and the Rock Hotel in Holywell Green were the two Calderdale sites included in the round, ending Mears asylum placements in both venues[2][3]Press.
Cost analysis
The Home Office estimates the April 2026 closures will save almost £65 million a year across the eleven sites, implying an average annual run rate of about £5.9 million per hotel before closure[1]. That is in line with the May 2025 NAO contract review, which put the portfolio average at about £5.84 million per year per hotel[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
Wool Merchant Hotel
£170
benchmark
UK asylum hotel avg
£170
NAO
Halifax budget hotel
£60
commercial
Hostel bed
£30
commercial
Timeline
Timeline
Pre-2022
Trades commercially as a Grade II listed three-star hotel in Halifax town centre
Sep 2022
Brought into asylum use
Mears Group starts placing asylum seekers at the Wool Merchant under the Yorkshire and Humber contingency contract.
16 Apr 2026
Home Office closure announced
GOV.UK press release names the Wool Merchant Hotel among eleven asylum hotels closing nationwide; Halifax Courier and Yorkshire Live confirm the local detail.
Sources
- Asylum hotels close as government scales up use of large sites — Home Office (GOV.UK), Apr 2026
Official Home Office press release announcing eleven asylum hotel closures including the Wool Merchant Hotel in Halifax and the Rock Hotel in Holywell Green in Calderdale, projected to save the taxpayer almost sixty-five million pounds a year.
- Asylum seekers moved out of two Calderdale hotels — Halifax Courier, Apr 2026
Reports that the Wool Merchant Hotel in Halifax and the Rock Hotel in Holywell Green will no longer be used as asylum accommodation following the Home Office decision to close eleven hotels, ending the use of both Calderdale sites.
- Two West Yorkshire hotels closed to asylum seekers — Yorkshire Live (Examiner), Apr 2026
Confirms the closure of the Wool Merchant Hotel in Halifax and the Rock Hotel in Holywell Green as part of the eleven asylum hotel closures announced by the Home Office, with both sites in Calderdale.
- 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.