A Toronto hotel currently housing some 500 homeless people and asylum seekers is being sold to a private developer, CBC Toronto has learned.

The potential sale from the current owners, Virk Hospitality, to the Sunray Group for $20.5 million, is set to close later this month.

While it’s unclear when those living at the hotel will be moved, it could spell trouble for some of the city’s most vulnerable people, as well as Toronto’s already over-burdened shelter system, according to advocates for the homeless.