The hotel is located next to Peterborough’s rowing lake and borders Nene Park.
Peterborough City Council’s Labour leader, Dennis Jones, claimed that the local authority was already housing “far more” than its share of asylum seekers, compared with anywhere else in England.
Since the start of 2023, the council has bought at least 40 homes for refugees.
Mr Jones said the hotel location had limited access to amenities and services.
“Peterborough has a proud history of welcoming asylum seekers and others in need to the city, but in a planned and coordinated way. Our resources are already stretched – we are already well above our dispersed accommodation quota.”
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