Demonstrators carrying Union flags and placards assembled outside the Britannia Hotel in Canary Wharf on Sunday afternoon.
Around 100 counter-protesters held banners bearing the words “stand up to racism” and “stop the far right”.
The group chanted “say it loud and say it clear, refugees are welcome here”.
Around a dozen anti-immigration demonstrators stood across the road.
It comes after the Education Secretary Bridget Phillipson has said Reform UK is “whipping up anger” about immigration but does not have a plan to tackle the issue.
Speaking on Sunday Morning With Trevor Phillips on Sky News, the minister said: “I understand the frustration that people feel, because I understand when they see, for example, asylum hotels and big numbers of people in their community.
“I understand how that can make people feel.
“But Nigel Farage and Reform, they don’t actually want to sort this problem – interests are served by whipping up anger rather than fixing it.”
Police stand next to people protesting outside the Britannia International Hotel in Canary Wharf (Image: Lucy North)
Asked what the difference is between what the Labour Government says on immigration and what Reform says, Ms Phillipson replied: “The difference is we’ll actually take action.”
The deputy leader of Reform UK has said it is “ridiculous” to suggest his party could encourage people to break into hotels and intimidate asylum seekers.
Asked on Sky News’s Sunday Morning With Trevor Phillips programme if he could be clear there was “no encouragement” from the party to “the sort of person who wants to break into asylum hotels in masks and to intimidate asylum seekers”, Richard Tice said: “Of course, what a ridiculous suggestion.”
“It’s an outrageous suggestion. Of course we’re not suggesting that,” he added.
“We’ve always suggested lawful, peaceful protest, nothing else.”