Migrant "Hotel Kings": Scooping Up £700m Annually from Taxpayers' Purses

• An asylum accommodations company distributed £45 million to its shareholders within just one year.
• Are you looking for additional information regarding this tale? Please email jon.brady@mailonline.co.uk.

Here are the details about the 'migrant king' hospitality owners who received as much as £700 million annually from taxpayers’ money to manage 'four-star' asylum accommodations. Within one year, these entities distributed more than £45 million in dividends to their shareholders, which included some of the proprietors themselves.

Safwan Adam and Bassam Gilini have profited from the migrant crisis through their company, Stay Belvedere Hotels Limited (SBHL). The firm has had its assets revoked. Home Office The contract was terminated following the Government's concerns about its effectiveness.

MailOnline has uncovered that both individuals, serving as directors of the company, distributed £45 million in dividends among five stakeholders within the same period when their revenue was nearly £705 million—mostly attributed to their government contract for housing asylum seekers.

Each of them owns 17.5 percent of the company through holding firms, as stated in official documents, which means they were entitled to receive at least £7.8 million each.

Between February 2020 and December 2022, the company announced impressive pretax profits totaling £75.7 million, with an overall turnover of £888.2 million during this period. From these earnings, they distributed bonuses amounting to £2.5 million, equating to individual payments of around £430,000 each.

Despite these allegations, the company has been criticized for not fulfilling its financial obligations to the hotels providing accommodations for refugees. Additionally, it faces accusations of underpaying employees below the legal minimum wage.

It appears that both directors had minimal experience with handling immigration accommodations before they were assigned to their roles at the company in April 2021.

Adam holds a degree in aerospace engineering, manages his personal investment company, owns a branch of CeX for used electronic devices, and additionally possesses shares in a home care service franchise.

He was also, for a time, involved in a German Doner Kebab franchise, according to his LinkedIn profile - which fails to mention his dealings in asylum hotels - and worked for Madame Tussauds.

Meanwhile, Gilini proudly claims on his website to be a 'visionary' real estate developer, with past ventures including temporary fireworks stores and a sushi restaurant in East London. London .

Are you looking for additional information regarding this tale? Feel free to drop an email: jon.brady@mailonline.co.uk

Adam is likewise a contributor to the Liberal Democrats, providing support to Sir Ed Davey's party. over £760,000 last year , with almost £500,000 being transferred before last year's general election through his investment company.

Neither are mentioned on the SBHL website, which instead showcases free stock photos alongside a claim that the firm was a 'top supplier... of temporary housing for individuals seeking asylum in the UK.'

Corporate documents indicate that their financial stakes beyond asylum hotels—including various investment firms and real estate businesses—are valued at several million dollars.

SBHL was contracted through ClearSprings Accommodation, an organization receiving approximately £2 billion annually from the Home Office under a pact established by the former administration in 2019, to oversee accommodations for asylum seekers. However, this arrangement has faced criticism due to issues with hotel conditions managed by them.

At one point, it had the ex-MP Crispin Blunt serving as part of its 'supervisory board,' earning him an annual salary of £15,000 for approximately 128 hours of labor per year.

However, the Home Office announced last month that they were discontinuing SBHL. They have yet to provide specific reasons for this decision, only stating that they had reservations regarding its performance and conduct as a governmental contractor.

The extended agreement with Clearsprings needs to stay intact until at least September 2026, which is when it could be terminated prematurely without an early termination fee; the pact is set to conclude in 2029.

Nonetheless, Asylum Minister Angela Eagle stated that the decision was made following enhanced oversight of companies managing asylum hotels by the Home Office, which determined that SBHL was not fit to care for individuals seeking asylum.

"We have decided to exclude Stay Belvedere Hotels from the Home Office supply chain and will not shy away from taking additional steps to guarantee that Home Office contracts benefit the United Kingdom," she stated.

The responsibility for overseeing SBHL's hotels will be handed over to Mears, Serco, and Corporate Travel Management (CTM). The latter entity faced criticism for its management of the Bibby Stockholm barge.

Between April 2021 and September 2021, Adam and Gilini authorised £2.5million in dividends after the firm reported a pre-tax profit of £8.4million against an income of £104.8million, according to accounts filed with Companies House.

In the period up to September 2022, the firm reported a pretax profit of £62.5 million with revenues totaling £704.6 million. During this time, they approved an even more substantial bonus amounting to £44.92 million.

At that point, it was reported that they had compensated their employees below the required minimum wage, paying some workers, many of whom were foreign nationals, as low as £5.60 per hour, which was less than the then-applicable minimum wage of £8.70.

"It's tiring, unlawful, and unjust, but at this stage, I believe most people would consider doing just about anything since if you choose to challenge this situation and start searching for employment, there really isn’t much available," one person stated. ITV in 2021.

'Each person believes they are being exploited due to their current circumstances.'

Belvedere stated at the time that they would carry out an inquiry to guarantee any 'problems or mistakes' would be 'quickly corrected.'

Earlier this month, according to reports from the Daily Telegraph, hotel proprietors informed them that they were pursuingStay Belvedere for outstanding payments related to providing their amenities for use by asylum seekers.

One stated: "The message we're conveying is that without payment, there is no alternative choice. We'll be compelled to remove the asylum seekers."

The company subsequently stated that it would cover this month’s charges in advance while renegotiating contracts following SBHL being removed from the government's list of approved suppliers.

'A spokesperson informed MailOnline that all obligations to landlords were fulfilled for April,' today.

The financial status of the company post-December 2022 remains uncertain. Starting from October, the firm announced its transition to a new agency model involving operations with an associated entity which would assume control of its business activities.

The company did not specify the entity, but they stated that their revenue would significantly decrease in the upcoming period due to this alteration.

Details about their subsequent income are limited as one year later, they submitted 'small company' reports, which do not have mandatory disclosure. To report earnings, gains, or dividend payments.

To qualify as a small company, businesses must satisfy at least two out of these three criteria: having a turnover not exceeding £15 million; possessing net assets worth up to £7.5 million; or employing fewer than 50 people.

A representative from SBHL informed MailOnline that their financial reports were subjected to an external audit to confirm adherence to 'all relevant accounting, auditing, and fiduciary guidelines.'

Regarding dividends, they stated: "The dividends distributed to shareholders were in compliance with regulations, legal standards, and accurately represented company profits."

When asked about the absence of directors and other company representatives on the company’s website, they responded: "Due to the sensitive nature of our operations and previous threats, we refrain from publishing recognizable images of our staff or clients."

'To safeguard the privacy and security of our employees and inhabitants, we use representative stock photos on our site.'

Safwan Adam and Bassam Gilini did not reply to MailOnline’s request for comments. However, refugee organizations have sharply criticized the duo for using public funds to pay themselves and their shareholders.

Tim Naor Hilton, CEO of Refugee Action, stated: "Each pound that goes into the coffers of these businesses is a pound that could otherwise be used within our local communities."

These accommodation agreements have enabled companies to exploit taxpayers, while individuals seeking asylum are compelled to reside in conditions that are detrimental.

It's time we allocate funds to support local councils in managing a publicly-owned housing system, ensuring that every penny designated for refugees goes toward safeguarding individuals and enhancing the services utilized by us all.

Out of the 51 hotels operated by SBHL, the Ibis Budget hotel located near London Stansted Airport in Bishop's Stortford stood out. According to an insider, this two-star establishment was managed akin to a 'four-star all-inclusive' resort. The Sun .

A weekly activity board released by the newspaper featured sessions such as singing, English lessons, and cooking classes, along with a drop-in session hosted by Citizens Advice.

The insider stated: "They receive three freshly prepared meals daily at no extra cost. Fresh fruits are accessible 24/7."

I'm not at all resentful of the children receiving assistance, and the neighbors are typically quite courteous. Still, one can't help but ponder whether they'll ever wish to depart.

'I assume they share photos with their friends using those phones, telling them to come over.'

The Home Office has consistently maintained a policy of not commenting on particular setups at single migrant accommodations.

Nevertheless, sources confirmed that services like a kids' amusement shuttle and musical instruction were offered through external organizations, which included charitable groups.

SBHL informed The Sun that they offered a 'reliable bus service, which has garnered positive feedback from visitors.'

Clearsprings, having recorded a pretax profit of £120 million with an income of £1.74 billion for the period ending January 2024, chose not to comment on the operations of its subcontractor.

Graham King, the founder, generates £4.8 million daily from his business ventures. established roughly when immigration services began to be privatized at the beginning of the millennium. .

This year, he landed a spot on the Sunday Times Rich List as his wealth surged to approximately £750 million due to profits made from exploiting the United Kingdom's migrant situation.

The government spends £5.5 million daily housing asylum seekers in hotels, as reported last month. The Times .

Approximately 38,000 individuals are distributed among 213 hotels; however, this number is expected to decrease to 206 hotels by the end of May.

Although the Labour-led government has pledged to discontinue the utilization of migrant hotels, the influx of small boat arrivals remains at an all-time high and appears unlikely to decrease anytime soon.

Actually, the count of asylum seekers housed in hotels has increased by approximately 8,000 since the previous summer.

So far this year, more than 9,600 individuals have reached the UK by way of small boats. At least 11 people have lost their lives attempting the journey since January.

A month ago, officials at the Home Office were instructed by Treasury leaders to discover more cost-effective methods for accommodating migrants, aiming to prevent companies such as SBLH from 'exploiting' the continuing migration emergency.

Sir Keir Starmer’s newly established Office for Value for Money issued a critical report stating that firms such as Clearsprings, Serco, Mears, and SBLH have "reported unprecedented profit margins in recent times," which has sparked allegations of exploiting public funds for personal gain."

The reference was made to research conducted by the Institute for Public Policy Research, indicating that the expense borne by UK taxpayers per asylum seeker escalated from £17,000 to £41,000 during the period spanning from 2020 to 2024.

A representative from the Home Office stated: "During autumn 2023, over 400 asylum accommodation centers were being utilized throughout the United Kingdom with daily expenses nearing £9 million. Prior to the election period, delays in processing asylum cases surged once more due to the breakdown of decision-making processes, thereby subjecting the whole asylum framework to an unparalleled level of pressure."

That was the state of affairs when the government took over, but we have started to reinstate order through a swift rise in asylum decisions and the deportation of over 24,000 individuals without legal grounds to remain in the UK.

By reinstating order within the system, we can eventually put an end to the reliance on asylum hotels and decrease the total expenses borne by taxpayers for housing asylum seekers.

'Currently, there are fewer operational hotels compared to the period preceding the election, and additional ones are scheduled to shut down by the end of May.'

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