She added: "I would not encourage people to use a venue like that, that's for sure."
The Sheridan Suite advertises its banqueting facilities for Jewish weddings and has in the past hosted a number of Jewish charity events.
It has not explained its decision and declined to provide a comment when contacted this week.
Raphi Bloom, co-chair of the North West Friends of Israel (NWFOI) group which was organising the rally, said a new venue had not yet been found.
To avoid a repeat of last week's controversy, organisers plan to announce the location of the re-arranged event only on the day before it is due to take place on March 13.
NWFOI hopes that withholding details of the new site will stop anti-Israel boycott activists from arranging a protest or challenging the hosts, as happened on the Sheridan Suite's Facebook page last week.
Mr Bloom said: "All the speakers have reconfirmed from the last one, as well as a few extra ones whose names we'll be releasing shortly. It'll be bigger and better than the first one would have been."
Around 2,000 people had been expected to attend the "Say No To Terror: Stand With Israel" rally, which had been due to take place on Sunday.
The event had the support of the Chief Rabbi, Board of Deputies, Jewish Leadership Council, Zionist Federation, the Israeli embassy and grassroots groups.