A man has been charged over the alleged bashing of a transgender woman at Newtown's Town Hall Hotel on the weekend.

Police said a 23-year-old man was arrested at Newtown police station on Tuesday afternoon and charged with affray following the incident at the King Street venue in the early hours of Saturday morning.

Stephanie McCarthy was left with numerous injuries including a fractured eye socket after the assault.

Musician Stephanie McCarthy, 43, told police she was preparing to perform with her band at the hotel about 11.30pm on Friday when a group of men began menacing her.

"There was four or five of them following me around, yelling 'faggot' at me," she told Fairfax Media.