A restaurant that was forced to close because of a migrant hotel next door is now being used by homeless people who are squatting there to highlight the government’s perceived ‘double standard’ of helping asylum seekers but not Brits in need.

Ceno Bar and Restaurant announced this week it was shutting down for good, with its owners blaming Highfield House Hotel that adjoins it for a decline in customers. 

Now, just days later, the empty restaurant in Southampton, Hampshire, has been taken over by homeless people who would otherwise be forced to sleep rough in freezing temperatures.

A local support worker, who helped set up the makeshift shelter, has claimed it shows the flaws in the government’s asylum seeker hotel scheme.

Volunteer Russ Kitching, 64, said it ‘highlights the double standard of government funding for migrants instead of our own local homeless’.

He explained there are now three homeless people living inside Ceno Bar and Restaurant and more are being vetted so they can move in.

Mr Kitching has released demands that the restaurant be compensated and the space be officially allowed to be used as a night shelter for the city’s homeless population.

Mr Kitching said Highfield House was ‘a very nice hotel and a restaurant that had been in business for twenty years’ until the asylum seekers were housed there.

However, in the last two years Ceno’s turnover has reportedly halved as customers deserted the once-popular restaurant due to problems with migrants.

The closure has cost four full-time staff members their jobs as well as numerous casual and part time staff.

Highfield House has also been the site of weekly anti-immigration protests in recent months, causing further disruption.

The demonstrations are regularly met with counter protests from anti-racism groups and there is often a heavy police presence at the scene.

Mr Kitching has coordinated with Southampton City Council’s rough sleeping department to discuss vetting the homeless people who use the site. 

He has also said that he doesn’t know the freeholder’s position on the squatting but that he hopes to ‘pressure’ them to allow the occupation to continue.

Mr Kitching said: ‘The mission is to secure the Portswood homeless people accommodation and hopefully bring awareness about homelessness.

‘There’s a double standard of government funding for migrants instead of our own local homeless.

He continued: ‘I spent Christmas volunteering with Crisis in London but then I saw the opportunity here.

‘People are falling through the gaps all the time and local people are being left behind.

‘We’re hoping to put pressure on the council and the freeholder to allow homeless people to take shelter here.’

He added: ‘Our demands are: compensation for the hospitality business forced out after 20 years of trading due to private landlord profiteering enabled by successive government policies.

‘And we demand a peppercorn rent agreement with the landlord, Southampton Council, and the Home Office to convert the premises into a night shelter and affordable food pantry for Southampton’s most vulnerable residents.

‘We formally invite the landlord, Southampton Council, and the Home Office to come together around the table to resolve this matter fairly, transparently, and in the public interest.’

Online, Mr Kitching also said: ‘I have no problem with cultures and integrating with society but these people are illegal and our government is doing nothing about it. It has to stop.

‘Migrant hotel owners must now take civil action to evict genuine homeless.’

A spokesperson for Ceno, the restaurant, said earlier this week: ‘It is with great sadness that we announce that Ceno Restaurant closed its doors on 1 January 2026.

‘Despite every effort to continue trading, it has become frustratingly impossible to operate due to ongoing issues connected with the Highfield Hotel in which we are located, which has now become home to over 100 illegal immigrants.

‘The hotel owners have ignored our communication, help to assist with ongoing damage caused by the hotel residents and have locked the car park for many months, meaning our customers have been unable to park and access the restaurant.’

Although the council is assisting in giving advice to the people using the building, Councillor Andy Frampton, Cabinet Member for Housing Operations at Southampton City Council, has said that the site is ‘unauthorised’.

He said: ‘Southampton City Council is aware of reports relating to the use of a vacant building adjoining Highfield House.

‘We have not authorised or endorsed the use of the building as a homeless shelter. Any contact by council officers has been limited to responding to enquiries and understanding the situation.

‘We have not approved the operation of the site. Responsibility for the lawful use and safety of the building rests with the property owner.

‘Southampton City Council continues to support people who are at risk of homelessness or homeless through established housing pathways.’

Addressing the earlier closure of the restaurant and the adjoining hotel, a Home Office spokesperson said: ‘We are furious at the level of illegal migrants and asylum hotels.

‘This government will close every asylum hotel. Work is well underway, with more suitable sites being brought forward to ease pressure on communities and cut asylum costs.

‘We are working closely with local authorities, property partners and across-government so that we can accelerate delivery.’

A spokesperson for Hampshire Constabulary added: ‘Our local neighbourhood policing team have regular contact with businesses in the area, and have made near weekly visits to Cenos in recent months to try and engage with them and understand if there are any issues they want to raise or discuss with us.

‘However, no concerns have been raised with our team on these visits.

‘We are also not aware of any incidents of criminal damage.’