The site – located in the Stroud area – will be one of 50 hotels to close by the end of January next year, according to government plans.
It is understood asylum seekers currently living in the hotel will be moving to alternative Home Office accommodation such as the Bibby Stockholm barge in Dorset.
Speaking in parliament, Siobhan Baillie MP recently thanked the Immigration Minister Robert Jenrick for listening to her concerns about the hotel.
Ms Baillie previously stated that the hotel should close so that more appropriate and less expensive housing can be found.
She said: “I thank my right honourable friend and the Prime Minister for listening to my Stroud constituents’ concerns about illegal migration and speeding up processing, and for taking seriously my calls to close a migrant hotel in my patch.”
In reply Mr Jenrick said: “I thank my honourable friend for her good work representing her constituents on this issue in her characteristically sensible and calm manner.
“I am pleased that we have come to a good outcome in her case.
“The Home Office will write to all the local authorities and MPs with hotels in the first 50 [hotels to be closed].
“In the weeks ahead, we will consider further tranches as we make further progress on stopping the boats.
“We will put in place the processes and personnel required to support local authorities as we decant individuals from those locations.”
Meanwhile, the Home Office says it will work closely with providers and local authorities to manage the exit process in a way which ‘limits the impact on partners and service users’.
Speaking afterwards Ms Baillie said: “I know residents living near the hotel will be very pleased with this announcement.
“They have shown good faith and generosity towards those who have stayed there but it was not an appropriate location.
“The number of small boats crossing the channel is 30 per cent down on this time last year and that is the background behind the closure of our hotel and the 49 others.
“The passing of the Illegal migration Act is having the desired effect.
“It makes asylum claims of people who come here directly from safe countries inadmissible and establishes safe and legal routes as the only lawful means by which to come to the UK .
“Further cooperation with France on tackling the boats and agreement with Albania to return their migrants has seen a 90 per cent fall in Albanians coming to the UK and that has helped the fall in numbers too.”