Home Secretary Shabana Mahmood said: “This government inherited asylum hotel contracts that were not delivering good value for taxpayers’ money.
“We have already saved £700m in hotel costs. Now we are recouping millions more in excess profits. And by the end of this parliament, we will have closed every asylum hotel.”
Last month, the Home Office was strongly criticised by the home affairs committee for its handling of asylum accommodation.
MPs on the committee said the government had “squandered” billions of pounds of taxpayer money.
They also accused the Home Office of under-utilising mechanisms to reclaim excess profits made by accommodation providers.
There are break clauses in some contracts that would allow ministers to end use of some accommodation in 2026.
The home secretary told the BBC last week that all options were on the table – and that she would study the legal arrangements “carefully”.
Conservative Shadow Home Secretary Chris Philp said: “The only way to end this crisis is to end the use of hotels altogether.
“The Home office is spending £5.77m per day on asylum hotels, meaning these savings will disappear in just 12 days.
“The truth is the Labour government is accommodating more illegal immigrants in hotels than at the election, and the first nine months of this year have been the worst in history for illegal immigrants crossing the Channel.
“Only the Conservative Party has a serious, hard-edged plan to take control of our borders.”