Old Palace Lodge - Dunstable hotel had refused Home Office plans to house asylum seekers before financial pressures forced it to accept 'with a heavy heart'

The Old Palace Lodge had already turned down Home Office plans to house asylum seekers before financial pressures forced it to accept ‘with a heavy heart’.

Old Palace Lodge head of PR and marketing Viv Vayssieres told a public meeting on Thursday (February 16): “The hotel income was driven from corporate visitors and private events. Then in 2020 Covid struck. Since the pandemic, the bedroom demand is no longer there.

“The hotel had lost its main source of revenue. By the end of 2021, the management was approached by a broker working on behalf of the Home Office, who was sent away.

“But with energy bills up from £4,600 to just under £27,000 per month in 2022, interest rates rising and borrowing becoming more expensive, the cost of servicing loans increased massively.

“The company’s expenses were greater than its revenue. It was operating at a loss. When the Home Office contract was offered again, it was with a heavy heart the management had to accept.

“It totally appreciates the devastating effect on the community. But this temporary arrangement will provide much-needed investment into the hotel.”

South West Bedfordshire MP Andrew Selous said: “I really miss the hotel. It’s the venue of choice for so many people locally.

“There’s a global refugee crisis. I want a properly planned asylum system. What’s happening at present isn’t good public administration.

“Hotels are having a hard time. Two four star hotels closed in Harpenden.”

Mr Selous criticised leafleting around the town, which he labelled “inflammatory and unwelcome”, adding: “Dunstable is a kind town, one of many cultures.”

Asked how the hotel became a house in multiple occupation, Mr Selous replied: “The government agrees hotels shouldn’t be used for asylum seekers.

“In preference, we’re considering using spare holiday camp accommodation, disused student premises or surplus military land around the country.

“Hotels are needed in their communities. The government wants people to come through safe and legal routes. We’re bound by international convention.

“On arrival, biometrics are taken, fingerprints and facial recognition. Home Office staff examine national and international criminal databases, and there are health checks.

“The contractors have security and support staff there 24/7.”

Resident Chris Bourne suggested prompt action in early January could have avoided reaching the current situation.

Another resident Louise Wright advised him to go back to Parliament and “shout from the rooftops that we can’t accept people”.

She said: “Those biometrics are only as good as the country from which they’re arriving, if it submits details into a national database.”

The hotel is a Grade II listed building, which “with its profound history isn’t the place to house asylum seekers”, warned resident Richard Atwell.

“It’s an absolute disgrace. It has historic panellings, and things which can’t be replaced and are priceless.”

Mr Selous explained every room has been photographed and the Home Office has an obligation to return it as received.

Ms Vayssieres added: “We shouldn’t assume these people are going to damage the hotel.”

> A video of the meeting is included in this article