Lancaster MP quashes rumours that closed-down hotel will be used for asylum seekers

The Lancaster MP says rumours that a renowned city centre hotel which shut down suddenly will be used to house asylum seekers are not true.

Cat Smith spoke out after seeing people "stir up uncertainty or fear based on rumours and not facts" on social media following the closure of the Royal Kings Arms on Monday.

Beyond Radio has been told the 400-year-old hotel closed due to "repossession" and a notice on the door says the building lease has become forfeit and the building secured by the owners.

But our reporters have also seen numerous comments and posts from local people on social media since the closure, claiming the hotel will be used for asylum seekers.

Ms Smith (below) said, in a post on her social media pages: "Royal Kings Arms Hotel: This is NOT closed to turn its use over to home asylum seekers.

"The closure has been done by bailiffs and that is why there has been security on the door, as would be expected in this kind of closure.

"The best thing for the hotel is for a new owner to re-open it to visitors to our historic city, and to showcase our incredible tourism offer of heritage, unique independent businesses, and thriving cultural events.

"Stirring up uncertainty or fear based on rumours and not facts helps absolutely nobody, and this should not be used to divide our community or spread misinformation about asylum seekers - many of whom have fled conflicts and persecution.

"The number of asylum hotels has halved from 400 at its peak to 200 with none across the Lancaster district, faster decisions mean the backlog of initial asylum claims has halved from its peak now to 71,000, and Labour have committed to ending hotel use by the end of the Parliament with the Prime Minister wanting that done faster."

Speaking to BBC Radio Lancashire, Ms Smith said: "I do think it's right that people have questions. It is an iconic building right in the heart of Lancaster.

"But it is very important that we deal in facts and not rumours.

"All we know is that bailiffs closed the Kings Arms on Monday, and on that note, my thoughts are very much with the staff who have lost their jobs overnight, and those people who have big events like weddings planned for the hotel and that's now hanging in the balance.

"Given the circumstances in which the doors have sadly closed I would expect the site to be tied up in legal issues for some time and we wouldn't expect anything to happen quickly here."

Councillor Caroline Jackson, Lancaster City Council leader, also said the claims about the hotel being used for asylum seekers were false.

"Over the past few days there have been a number of claims circulating locally about the King’s Arms Hotel in Lancaster," she said.

"I want to be absolutely clear – these claims are false. There are no asylum seeker hotels in the Lancaster district and decisions of that kind are made by the Home Office, not the city council.

"The Home Office have not notified us of their intention to use these premises and all the indications are that the hotel has closed due to a legal issue. While this is not something the city council is involved in, we hope that this can be resolved soon so that the historic building can reopen and the staff can be re-employed.

"Informed debate is the sign of a healthy democracy; we believe people should be free to express their opinions about the asylum system and I know we will not necessarily agree. However, spreading misinformation or creating rumour can cause real harm. It puts our communities at risk, damages the reputations of local people, and creates unnecessary fear and division.

"I cannot emphasise too much how important it is for everyone to check proper, reliable sources, before sharing information. If you find surprising or disturbing social media posts going round, please check them out. Look to official channels, local news outlets, and trusted community organisations.

"By working with accurate information, we can all make sure that our district remains an attractive place to do business and a welcoming, informed place for people to visit or live in."

Beyond Radio has contacted both the building owners Plantview Limited and hotel operators Castrum Hotel Management Ltd, asking why the hotel had closed.

Landmark Collections Limited, who represent the head leaseholder of the building, replied saying they were unable to provide further detail at this stage.

Castrum Hotel Management had not responded as we went to press.

On Wednesday afternoon, when a Beyond Radio reporter went past the hotel, the doors remained locked with notices on them, see below.

Read more: Sadness as 400-year-old Lancaster hotel closes down - Beyond Radio

*UK hotels have been used as temporary homes for asylum seekers - people who say it's unsafe in their own countries and are asking to stay in the United Kingdom.

Protesters say having asylum seekers nearby makes their communities less safe, while others say the UK should do more to support and welcome them.

Home Office figures, released on August 21, showed a record 111,000 asylum applications were made to the UK during the year to June - an increase of 14 per cent from the previous year, and higher than the peak of 103,000 in 2002 - but that the government was processing them faster.

The figures also showed 71,000 cases, relating to 91,000 people, were awaiting an initial decision, almost half the peak of 134,000 cases at the end of June 2023.

There were 32,059 asylum seekers in UK hotels at the end of June, up eight per cent on the same point 12 months ago. Although higher than a year ago, the total is slightly down on the previous quarter - and well down on the peak of 56,042 in September 2023.

The Home Office’s annual report for 2024/25 said that the number of hotels in use to accommodate asylum seekers peaked at “over 400 in summer 2023”.

The Independent reported in August that by the time Labour came into government in July 2024 there were 213 hotels in use, according to a response to a written parliamentary question provided by border security minister Dame Angela Eagle MP in March 2025.

As of July 2025, the Home Office said 210 hotels were in use.