Hannah Torkington was left furious when managers refused to let the woman stay at the Holiday Inn Express even though she tried to pay the £65 room fee.
Good Samaritan Hannah, 23, was on her way to work when she struck up a conversation with the woman in Stockport, the Manchester Evening News reports.
After spending time talking to the woman she says she was moved by her tragic story and wanted to try and help.
Hotel managers said they refused to let the woman stay because of safety fears to staff and colleagues
But when she approached the Holiday Inn Express to pay the £65 room fee she was shocked to be turned away after explaining what she was doing.
Managers of the hotel say they refused the booking because they believed the woman was responsible for anti-social behaviour.
But Hannah, 23, a retail worker who lives in Whaley Bridge, Derbyshire, said they should have given her a chance.
"I could tell she was so genuine and had a heart of gold," she said.
Hannah said homelessness would continue to be an issue unless attitudes changed (file pic)
"I've spoken to countless homeless people and can tell the difference between people who are after money for drugs and she definitely wasn't one. I could feel the genuine hurt when she was talking to me."
During their conversation she learned the woman had children and hadn't been able to see them since ending up on the streets.
Hannah added: "I tried to book her into the hotel so she could have a shower and freshen up so she could have a chance at seeing her children and the receptionist refused to let me book the room.
"I spoke to the general manager who basically told me to go away.
"Homelessness is going to continue when big companies like Holiday Inn kick them straight back to the kerb without a single chance. I understand people have bad experiences and it's a difficult situation to deal with but the staff showing no sympathy is appalling."
General manager Carl Butterworth apologised but said it was a question of security.
He said: "We welcome all guests to our hotel as long as their activities do not constitute a risk to other guests and colleagues.
"The individual in question was known to hotel staff in relation to anti-social behaviour in the area.
"As the safety and security of our guests and colleagues is our highest priority, in this instance the requested booking was declined.
"We apologise for any distress caused."