Essex Police officers were called to High Road on July 15 with reports of a man shouting racial abuse directed to The Bell Hotel.
At the scene, the man was arrested on suspicion of a racially aggravated public order offence.
He was also arrested on suspicion of criminal damage after the property was damaged.
He has been released on bail pending further enquiries.
It is the latest incident in High Road, coming just days after two men were injured in what is being treated as a racially aggravated assault.
Two male security guards suffered significant injuries in High Road on the evening of July 13 after an incident involving a group of men at a bus stop.
Close by, protestors had gathered out front of The Bell Hotel to take part in a planned demonstration.
A second group attended in counter protest.
The protest is understood to be linked to The Bell Hotel’s use in accommodating asylum seekers, which has been the subject of debate .
Local politicians, including council leader Cllr Chris Whitbread, have been vocal in their beliefs that the use of the hotel to house asylum seekers should be stopped.
The injured security staff were able to make their way through the protest and into the hotel in search of emergency service aid.
They were taken to hospital where they were treated for serious but not life-threatening or changing injuries.
According to Essex Police, there were no offences reported between the two groups of people at the protest site.
On July 8, Essex Police were alerted to an incident in High Road at 5.20pm.
Officers received reports of a man “acting inappropriately” towards a number of people and arrested a man at the scene.
Hadush Gerberslasie Kebatu, 38, of High Road has been charged with three counts of sexual assault, a count of inciting a girl to engage in sexual activity, and a count of harassment without violence.
Appearing at Colchester Magistrates’ Court on July 10, Kebatu denied all offences.
He was denied bail and remanded into custody ahead of his next court date.
Supt Tim Tubbs said: “I am acutely aware of the strength of feeling locally, specifically on an ongoing police investigation which at this stage has seen one man charged with a number of sexual offences.
“That case is continuing to progress through court and the suspect was remanded into custody after a hearing last week.
“We know there is significant discussion about this ongoing case within the community and indeed further afield. As the police, must be limited in what we say whilst a criminal investigation is progressing through the courts and the last thing we want is for any public discussion to hinder an ongoing prosecution.”
He added: “We understand people’s right to make their voices heard on issues which matter to them. We don’t seek to stifle this.
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“People who do this peacefully, lawfully and responsibly cause us – and the wider public – no concern.
“However, we can never and will never tolerate criminal violence of any sort and anyone identified as committing crime will be dealt with robustly.
“There will continue to be a very visible policing presence in Epping in the coming days to ensure the safety of our community. If you’ve got concerns or information you feel we need to know, please do not hesitate to contact those officers.”