Council chiefs considered evacuating houses as they feared anti-asylum seeker protests were spiralling out of control, emails seen by the BBC reveal.
One senior member of Epping Forest District Council warned the Home Office that tensions had risen "beyond what is manageable" in July.
Demonstrations were being staged outside The Bell Hotel in Epping, Essex, after a migrant living there was arrested and later jailed for sexual offences.
A council spokeswoman told the BBC that staff were worried about neighbouring properties and "had to think very quickly" about issues and challenges "we had never faced before".
The BBC has obtained a cache of emails sent among councillors and senior staff between Hadush Kebatu's arrest on 8 July and the aftermath of a violent protest on 17 July.
They showed council chief executive Andrew Small was so concerned about the intensifying situation, he pleaded with the Home Office to publicly announce the closure of The Bell Hotel.
"I am now being asked to consider evacuations of neighbouring residents, needing to consider the safety of my staff and needing to cancel long-standing events on the grounds of public safety," he wrote on 16 July.
Small insisted the council's "call for calm" would be undermined if the hotel was not closed.
But Home Office official David Harding responded: "We have to be mindful that we are managing an estate.
"The risk remains that if we decant every hotel where there is an issue, then this may well be a playbook that activists would adopt, which would severely hamper the Home Office's statutory duty to avoid destitution."
In another email, deputy chief executive Jen Gould warned Harding: "Community tensions have risen beyond what is manageable or, indeed, acceptable."
Her message was sent the day after police officers were assaulted and their vans damaged during a protest on 17 July.
Three people were jailed in October for their roles in the violent disorder.
Responding to the BBC's story, the council spokeswoman said the safety of people living by The Bell Hotel was a top priority.
"Had we been asked to provide temporary accommodation, we would have done so," she said.
"Thankfully, it did not prove necessary, but we felt it important to make the Home Office aware of the concerns raised with us."
The emails were obtained via a Freedom of Information request made by the BBC, and also showed how senior staff reacted to Kebatu's arrest.
They were informed of it in an email, headed "Bell Hotel Incident", which was sent by directorate specialist Caroline Wiggins at 08:26 BST on 9 July.
"Obviously, I don't have to say the ramifications of this incident if it is picked up could be very serious," she wrote.
Small replied: "Oh no! Good that he was apprehended quickly, but will justify and support for the view held by some in the community."
Wiggins then indicated she was relieved at the "discreet" wording of a police press release, which did not reveal Kebatu was an asylum seeker.
But Gould said she was "particularly worried" that Reform UK leader Nigel Farage had been tagged in social media commentary about the incident.
"Would guess this could spark national interest now...," she wrote.
Emails were also sent to Essex Police's chief constable, saying there was "potential for significant community impact", and the then-Home Secretary Yvette Cooper, who was told by council leader Chris Whitbread the community was "in a state of fear and distrust".
Discussing a separate Home Office exchange with senior council staff, corporate Epping Forest District Council's communications manager Tom Carne wrote: "As you would expect, our message was not received with pleasure."
He warned it was likely journalists would soon be inquiring about the incident.
Thousands of people attended protests outside The Bell Hotel during the summer.
Kebatu was found guilty of two sexual assaults - against a 14-year-old girl and a woman - in September, as well as harassing the girl, inciting her to engage in sexual activity and an attempted sexual assault.
He was jailed for 12 months at Chelmsford Magistrates' Court and later deported.
Kebatu's offending led to the council taking owner Somani Hotels Ltd to court, accusing it of breaching planning laws by using the building as a hostel for asylum seekers, rather than as a hotel.
The emails showed disagreements about the hotel's use began in April 2025, when Somani Hotels said the Home Office had instructed it not to apply for a change of the building's use.
A council manager replied: "Not helpful. I'm minded to take legal advice as to how we should proceed."
However, the local authority ultimately lost its legal battle at the High Court in November.
It has spent £566,000 on the case, the BBC revealed on Tuesday.
The council was told on Friday that it could not appeal against the High Court ruling.
Court of Appeal judges said there was a public interest in the hotel being used "to meet the continuing need for asylum seeker accommodation".
The BBC also requested similar email correspondence from the Home Office, under the Freedom of Information Act.
However, it responded to say it was exempt from disclosing this information.