Neighbours of Cardiff's Coal Exchange have complained about the new owners' plan to sell alcohol late at night.
The hotel's future was in doubt after its previous owners, Signature Living, went into administration in May.
Eden Grove, which took over the premises in August, say a 03:00 alcohol licence is "crucial" to its reopening.
Several local residents on Mount Stuart Square have told Cardiff Council they have already suffered from years of prolonged building work on the site.
One resident said they had "not opened my bedroom blinds in years because of the builders being at eye-level".
Another resident complained about noise, litter and dirt during building work and called for an earlier closing time "more appropriate for what is now a residential area".
"The late hours applied for seem more relevant to a nightclub than a hotel in an important, historically significant building," they said.
A third resident added: "The relaxation of Covid-19 lockdown has brought its own difficulties and led to more disturbances in this area recently. These licensing proposals are just asking for more trouble."
Ashley Govier, a former Cardiff councillor behind Eden Grove, said they were simply replacing the licence held by the former owners, and as it was a hotel it had an interest in keeping noise to "sensible" levels.
He said getting the licence was "crucial" for plans to open the hotel by the end of September.
"It's a fantastic building and a great hotel, with great staff," Mr Govier told the Local Democracy Reporting Service.
"We have to get it going. People living near here want this building finished, for their own benefit."
Cardiff Council's licensing committee will consider the application on 18 September.