The plans to turn the four Category A-listed townhouses at 14-17 Atholl Crescent, into a hotel with “capsule pods” received over 280 objections. 

But the Scottish Government planning reporter has now given it the go-ahead. 

Campaigners who were against the proposal said the move paves the way for a harmful standard for the future of Edinburgh and also risked paving the way for big corporate-endorsed developers to use planning loop holes to bring in major tourist accommodation into the most sensitive sites of the city. 

Prior to the application reaching Edinburgh’s planning committee, applicants Atholl Crescent Propco Ltd appealed to the Scottish Government.

In response to the outcome, Philip Flockhart, conservation architect and spokesperson for the campaigners, said: “This decision will heighten concern among communities across Edinburgh who are already worried about over-tourism and the loss of residential character within the city.

“Residents resisted inappropriate high-density tourist accommodation becoming their neighbour within an important part of the World Heritage Site, but their voices have not been heard.”

Flockhart also said the outcome would be reviewed by residents carefully and they will look into what options they can pursue.

The Cockburn Association had said the development would bring “substantial and irreversible harm” to the buildings. 

The Architectural Heritage Society of Scotland more than once expressed worries about the “scale and intensity” of the proposed use.

Edinburgh South West MP Scott Arthur said: “I am disappointed by the decision to approve, despite the significant and sustained concerns raised.

“I believe this decision will be difficult for many in the community to accept given the scale of the proposal and its location in a sensitive residential setting.”