Dunstable hotel closes to guests for government contract

The signs have been taken down at the Old Palace Lodge after it closed for a government contract

A hotel hit by the impact of Covid and rising energy costs said it had closed to paying guests after taking on a contract with central government.

The four star Old Palace Lodge in Dunstable said it hoped the closure would be "short-lived" but insisted it was "necessary" to secure its survival.

People who had planned celebrations there spoke of their disappointment.

The Home Office did not comment on the hotel's use but said the UK's asylum system was "under incredible strain".

Andrew Selous, the Conservative MP for South West Bedfordshire, said it was "regrettable" the hotel would not be available to guests.

He said he had been told by the Home Office that it was looking at the Old Palace Lodge a few weeks ago.

He said he told them it was a "terrible" idea and urged officials: "Please do not do this."

Mr Selous said the arrangement was made between the hotel owners and the Home Office, and the owners had been put in a "difficult" position due to the economic climate.

In a statement, Old Palace Lodge said it had not fully recovered from the negative impact of Covid and its bills had increased "fivefold".

"With their current financial commitments, the owners have found it impossible to carry on; to preserve the hotel for the future they have decided to work for central government.

"They appreciate the devastating effect this will have on the local community. However, in the current financial climate, they had no option but to seek this alternative," the statement said.

The owners said the decision to close was "necessary to secure the survival of this much loved business"

Maggie Beckett, whose wedding was due to be held there in June, said she was "beyond upset".

She had booked it last year and had planned to have the whole wedding, including the ceremony, at the venue.

"You want to get married in a certain place and it's taken the shine off," said the nurse, who added she had been ringing around to find an alternative solution after being told on Sunday.

Michael told BBC Three Counties Radio his booking for a golden anniversary celebration, due to be held in April, had been cancelled.

He said he was "absolutely gutted".

The Home Office said the number of people arriving in the UK who required accommodation had reached "record levels".

It said it did not comment on operational arrangements for individual sites used for asylum accommodation but the use of hotels was a temporary solution.