In his Facebook post, which was removed on Wednesday morning, Madgwick said: “I visited the manager and the hotel explained it was the Pakistani cricket team staying.
“The cricket team coach came to speak to me personally and I saw proof (hotel were happy to provide).”
Speaking to the BBC, he said: “Someone online saw a group of what looked like foreign nationals leaving the coach and put a photo of it online and that’s where it spurred from.
“It was mere speculation rather than based on truth or fact.
“In this case they have made a grave error, a grave mistake.”
Responding to criticism and comments on his Facebook post, Madgwick denied the reaction to the cricketers’ arrival had been racist.
He said: “I think one person made the assumption and everybody else followed that assumption.
“It isn’t a good reflection on our city.
“It’s not something I want our city to be known for.”