The refugees have been living around Greenmarket Square since October, saying they feel unsafe living among South African communities.
The General Manager at 40 on Burg Hotel says their presence has become a safety risk for her guests.
She says some groups have settled right outside the hotel's entrance and she's had to escort guests in and out of the building as a result.
Garth Kent from the Mandela Rhodes Place Hotel and Spa said, "business has really dropped terribly."
He related some business owners have been threatened and hygiene has become an issue in the area.