Blackpool Council had said it had been advised by the Home Office that about 220 people would be moved into temporary accommodation at the seafront hotel, which later rose to 324.
This formed part of the government’s response to the growing number of migrants crossing the channel, it said.
However the outlet reported that the decision drew criticism from MPs and the council leader. Refugee Action also questioned the move, and said that hotels were “never appropriate to house people seeking asylum for long periods of time”.
Blackpool council leader Lynn Williams told the BBC that the Home Office had “refused to give out information about the conditions asylum seekers would be living in”.
She said: “We gave notice to the Metropole and its owners that using the Metropole to house asylum seekers constitutes a material change of use and planning permission is required before they proceed.
“If they do proceed we will issue a temporary stop notice immediately, which means if they continue to provide accommodation that is unlawful.”
Williams later said that the relocation had been “paused”, though it is reported that the Home Office are still pursuing the placement.
Hotel Owner has contacted the hotel for comment.