Suggestions that a hotel in Rottingdean was to be used to house asylum seekers have been denied.
The three Rottingdean ward councillors on Brighton and Hove City Council - Lynda Hyde, Brian Hunt and David Smith - have been flooded with calls from constituents.
They held a meeting with Marco Pasquale, chief executive of the Grand Ocean Hotel Group in Saltdean.
Coun Smith said: "We were given a categorical assurance by Mr Pasquale that his hotel group had made no approaches to the Home Office for a licence to house asylum seekers.
"He also denied rumours that his hotel would be sold and in fact he said the group was looking to expand."
The councillors are asking the city council to confirm the Ocean Hotel is not one of the companies to have put in a bid to provide emergency accommodation for asylum seekers.
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