Asylum seekers protested plans that would see them transferred to a barge 130 miles away amidst government pledges to "offer better value for the British taxpayer".
A group of adversaries gathered outside the Holiday Inn on Tuesday, near the Kassam Stadium in Oxford, which houses more than 200 male asylum seekers.
The Home Office had announced its plans last month to move people onto the Bibby Stockholm Barge in Portland to "reduce the use of expensive hotels".
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The director of Oxford-based charity Asylum Welcome, Mark Goldring, said: "We fully understand why residents at the hotel chose to demonstrate earlier this week.
"Life for people seeking asylum is never easy, but the prospect of being transferred to live on a barge, with all that entails, is deeply distressing.
"It is an ugly gesture that achieves nothing."
A volunteer with the Oxford Refugee Health Initiative, Dr Dominik Metz, added: "I am very concerned for the asylum seekers being given these short notices.
"Having fled persecution and violence, many suffer with post-traumatic stress and other medical conditions making some of them very vulnerable.
"I recognise it will be very distressing for them to lose the support they have developed since residing here and have to start again."
The Home Office had explained its rationale for the decision in October, stating: "Accommodation is offered to asylum seekers on a no-choice basis and any asylum seeker who refuses accommodation may have their government support withdrawn.
"All necessary tests including health, fire and water checks have been completed, and are all satisfactory.
“This is part of the government’s pledge to reduce the use of expensive hotels and bring forward alternative accommodation options which provide a more cost effective, sustainable and manageable system for the UK taxpayer and local communities.”
Asylum seekers at the Oxford hotel said: "Even though we are seeking sanctuary due to the persecution we have faced, we have been blamed, treated as a problem, and segregated from the community in an area far from the town.
"Through the help of local charities and good people, we started to build a life and develop a sense of home.
"The decision from the Home Office to take away the life we have started to build has put us in a desperate position.
"We call upon everyone who understands the grim reality of living in uncertainty, far from friends and relatives, and constantly waiting, to amplify our concerns and pay attention to our calls.
"We are tired of living our lives on a 'no choice basis'."
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