Dublin City Council has given the green light for an eight-storey, 273-bedroom hotel on the site of the existing Begley's Fruit Market in Dublin's markets area.
The city council has granted planning permission to Creekvale Ltd for the hotel at Arran Street East and Little Mary Street despite opposition from a rival hotel operator Cathedral Leisure to the plan.
Part of the Northern hotel group Beannchor, Cathedral Leisure told the council that the Creekvale plan would create an overbearing presence because of its height and scale.
Cathedral Leisure's director James Sinton said: "Our key concerns relate to the potential impact the proposed hotel development will have on the hotel development on our lands."
The go-ahead for the Creekvale plan comes three months after Creekvale, along with other third-party objectors, were successful in stopping a 62-bedroom hotel planned by Cathedral Leisure on the site of the former Boland’s bakery at Capel Street and Little Mary Street
This followed An Bord Pleanála refusing planning permission despite its inspector's own recommendation to grant permission.
The council gave the go-ahead to the Creekvale hotel after its planner in the case found that the proposed development would make a notable contribution to the continued rejuvenation of the area and would generate footfall and activity.
The council said that the scale of the development was acceptable and would not seriously injure amenities of neighbouring properties . The council also determined that the proposal would redevelop an existing underused property and enable the provision of high quality, modern hotel accommodation.
Creekvale secured planning permission after lodging revised plans with the council which had expressed concern relating to the overall height and scale of the proposal.
As part of the planning conditions, Creekvale is to pay €914,187 in planning contributions towards public infrastructure and the Luas Cross city line.
As a third-party objector, Cathedral Leisure now has the option of appealing the decision to An Bord Pleanála.
Separately, the city council has granted planning permission to one of the country's largest house builders, Glenveagh Living Ltd for a nine-storey 219-bedroom hotel at Castleforbes Business Park At Sheriff Street Upper and East Road.