Protesters called on an MP to welcome asylum-seekers into Saltdean's Grand Ocean Hotel.
A group of 19 campaigners gathered at Brighton Kemp Town MP Des Turner's advice surgery on Friday, calling on him to make a stand against the "racist hysteria" surrounding asylum seekers.
The Government is considering housing up to 259 asylum-seekers at the hotel, causing concerns among some residents they will put pressure on services.
The protest was led by the Brighton and Hove Committee to Defend Asylum-Seekers.
Committee member Raf Salkie said: "By opposing the plan to use the Ocean Hotel for refugees, Dr Turner is encouraging the people who are spreading fear and racist hysteria in Saltdean.
"Large under-used seaside hotels are an obvious place to run induction courses of asylum-seekers."
Dr Turner reiterated his stance, saying Brighton and Hove was not a suitable location for asylum-seekers, primarily due to the housing shortage.
However, Dr Turner later said: "I do not personally have a problem with the issue but I do not think Brighton is suitable."
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