Over the past weekend, the Anger Management star was staying with ex-wife Denise Richards and their two children at the Ritz in New York City. After being moved to a separate room, he is alleged to have partied with escorts and destroyed his suite.
"He totally trashed the hotel room," a insider claimed to Us Weekly.
"Escorts were seen coming and leaving. In the end, Charlie was told that he wasn't welcome at another Ritz property ever again."
The former Two and a Half Men star previously damaged a hotel suite in 2010, when he caused a rumoured $7,000 (£4,477) of damage during what was described as an "intoxicated" rage.
However, a spokesperson for Sheen has since claimed that the actor merely hosted a dinner in his suite over the weekend.
"Charlie enjoyed quality time with his family this weekend including the Yankee/Met baseball game on Friday night," the rep said. "He hosted a dinner [on] Monday night for family and friends in his hotel suite with food delivered by Da Tommaso on 8th Avenue."
Sheen recently claimed that he does not believe in rehab.
Watch a trailer for Charlie Sheen's new sitcom Anger Management below: