Police say they are stretched to their limit dealing with late-night trouble in one of Brighton's busiest entertainments areas.
Officers told a licensing meeting that any more pressure would create a focal point for crime and disorder.
Police showed a video to Brighton and Hove city councillors during a meeting at Hove Town Hall as they objected to a licence application by the Quality Hotel in West Street, Brighton.
The hotel wants to raise its capacity of 90 people in the restaurant and 60 in its Henry J Bean bar to a total of 200 for both venues. The bar would be extended.
Police licensing officer Kareen Plympton said 2,500 people left licensed premises in the area at 11pm and a further 4,000 at 2am.
She said there was a link between drink and disorder and West Street was a hotspot for crime.
There was no criticism of the management but she said: "It would be a pub within a hotel."
Chief Inspector Stuart Harrison said on a recent visit to West Street in the early hours, he saw ten officers who had to cope with the huge crowds of revellers.
They made 12 arrests for violent offences.
Richard Ogden, for the applicants, said consent had already been issued by magistrates for increasing the size of the bar.
He said many people who went to the bar would be those staying at the hotel and they would not go out into the street afterwards.
Councillors refused the application.
Committee chairman Jeane Lepper said: "We have to take into account the effect it would have on the area."
She said if the bar was for hotel guests a public entertainments licence was unnecessary.
The refusal comes after Burger King in North Street, Brighton, was ordered to shut at 1am rather than 3am because of early morning trouble from drunks.
The fast food restaurant applied to the city council to renew its night cafe registration until 3am but councillors imposed the earlier curfew.
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