Currently, there are around around 32,000 asylum seekers accommodated in hotels. In September 2023, under the Tories, it was 56,000. 32,000 is a tiny fraction of the 70 million population - 0.00045% to be precise.
In the UK we have:
12 Core Cities: twelve major population and economic centres (e.g. London, Glasgow, Sheffield)
24 Other Cities: other settlements with a population of more than 175,000 (e.g. Leicester, Portsmouth, Aberdeen)
119 Large Towns: settlements with a population between 60,000 and 174,999 (e.g. Warrington, Hemel Hempstead, Farnborough)
270 Medium Towns: settlements with a population between 25,000 and 59,999 (e.g. Gravesend, Jarrow, Exmouth)
674 Small Towns: settlements with a population between 7,500 and 24,999 (e.g. Falmouth, New Romney, Holbeach)
If every city and every large and medium sized town accommodated just 30 people (fewer than can be accommodated on a single decker bus) then people would barely notice. Most (all?) cities and towns have long term empty commercial premises which could be converted into decent temporary accommodation or even permanent social housing.
We know the key to all this is faster processing of applications and that is happening. We know that processing virtually ground to a halt under the Tories, deliberately so as they knew they would lose the election and the Rwanda scheme was a dead duck. They left a problem for Labour to solve and they are making progress.
Of course, there are more people awaitng decisions than those accommodated in hotels but we do have space if they are given leave to stay - up to a million long-term empty homes that could be brought back into use as residences - plus a huge labour shortage that migrants could fill.