A decision on the licence application for a basement bar and events room - to be called the Nut Bar - at the Keppel's Head at The Hard, Portsmouth, was due at a city council meeting this week.
As part of the licence, hotel managers have asked for permission to operate the bar, which will only be used as a private hire room for parties and events, and play live music from 11am until 2am every day.
But neighbours of the hotel have concerns. In a letter of objection Nigel Powell, who lives directly next door, said: 'There are often evenings when there is a lot of noise generated by people who have gone outside to smoke and drink.
'This isn't an issue as we know that the venues close at 11pm and then things to quieten down. Allowing this to go on later would be invasive.'
Queen Alexandra Hospital doctor Debra Robson, who also lives next to the hotel, agreed. She said: ‘With a licence until 2am the hotel will be the end point of the night for many and focus potential violence and trouble right next to my front door.'
The hotel recently came under scrutiny a 15-year-old test was sold alcohol in its existing bar, Nelson's Bar, in a police test purchase.
But Tring Lim, one of the hotel's managers, said: ‘That happened at a weekend when it was really busy and a member of staff who doesn't usually work on the bars helped out. We put our hands up and admitted mistakes were made.
‘On the most recent test we all passed because we took notice of what happened.’
She also addressed the concerns about noise. ‘The Nut Bar will not be open to the public,’ she said.
‘It will only be hired out for private functions like birthdays and weddings. It has recently been renovated and has had sound protection put in to stop noise.’
A decision on the licence was due at a committee meeting on April 23. However, it is set to be adjourned due to coronavirus.