Around 30 asylum seekers housed in Hoylake were left outside in the cold yesterday evening after a contract dispute.

Since last May, asylum seekers have been staying at a Holiday Inn Express located on King's Gap.

But it is understood that due to a contract dispute between the hotel and Serco, which holds a government contract for housing asylum seekers, yesterday afternoon the hotel sounded the fire alarm and locked the doors once the asylum seekers were outside.

They were reportedly left outside between around 4.30pm and 9.30pm, with many reported to be wearing just shorts and t-shirts.

Once outside, they sought refuge in Hoylake's St Luke's Methodist Church.

It was not until around 9.30pm that the dispute was resolved and the asylum seekers were allowed back into the hotel.

InterContinental Hotels Group, the hotel group Holiday Inn Express belongs to, said the Hoylake hotel is run independently under a franchise agreement, but the company is very concerned by the reports and is reviewing the incident with the hotel operator.

Serco said it was "extremely disappointed" with last night's events, but added that it was able to resolve the situation amicably.

Councillor Andrew Gardner, who represents Hoylake and Meols for the Conservatives, said: "Not a single person in Hoylake condones that action from last night by Holiday Inn Express and Serco.

"These companies had a lucrative contract and to let this squabble develop into a perverse reverse hostage crisis is not a way for a reputable company to settle its disputes."

It is understood that the asylum seekers left this morning, although this was under the terms of the original contract rather than being caused by last night's events.

Jonny Brennan, 33, a pastor at Hope Church in Hoylake, saw the asylum seekers at around 9pm last night.

He said he had been alerted to the fact the asylum seekers had been locked out of their hotel rooms and had gone to St Luke's.

Mr Brennan said the scene had calmed down when he arrived, but there was much confusion.

He said: "When I got there at 9pm it was very calm, we have worked with these guys for nine months.

"It felt secure and they were being looked after with food supplied for them.

"But there was confusion, these guys did not know why this had happened to them."

Mr Brennan said community groups and charities had come together to support the asylum seekers, not just last night but throughout their stay.

A spokesperson for InterContinental Hotels Group said: "This hotel is run independently under a Holiday Inn Express franchise agreement.

"We were very concerned by the reports of the contractual dispute last night, however we are pleased that the situation was promptly resolved and that all guests were safely back in the hotel the same night.

"We are reviewing the incident with the operator of the hotel."

Sarah Burnett, Serco's operations director for immigration, said: "We were extremely disappointed that vulnerable asylum seekers were ejected from the hotel despite them having been there many months.

"However I am pleased to say that we were able to resolve the situation amicably and all the asylum seekers were back in their rooms later in the evening."