More than 100 people attended a public meeting to discuss possible plans to provide temporary accommodation for asylum seekers in Saltdean.
The Grand Ocean Hotel in Longridge Avenue already provides rooms for a small number of asylum seekers for a few days while their cases are being assessed.
The Home Office, through the National Asylum Seekers Service (NASS), is in the middle of a tendering process for hotels and businesses to continue providing such emergency accommodation.
NASS has received bids from an undisclosed number of private companies, wishing to provide more such facilities in the Brighton and Hove area.
Yesterday residents attended a meeting of Saltdean Residents' Association to express their views. The meeting was attended by city councillors and Brighton Kemp Town MP Des Turner.
He said: "I would be very surprised if any more asylum seekers are allowed to stay in this area, as the Government has already recognised it is not the best place for them to be."
One Saltdean Vale resident, who did not wish to be named, described the meeting as "well-ordered with no animosity."
He added: "There are fears that what few facilities we have here will be overwhelmed if more asylum seekers are allowed to live here."
The Home Office confirmed it had received bids from property owners in the area but refused to give details. A spokeswoman said the bids could be for just a couple of families.
Marco Pasquale, group chief executive of the Grand Hotel Group, has said there are no plans to house large numbers of asylum seekers at the hotel.
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