Permission's been granted build a nine storey hostel near the Jervis Luas stop.
Abbey Ltd had applied to demolish a vacant building at 35 / 36 Abbey Street Upper, in favour of developing a tourist accommodation centre which could accommodate 560 tourists.
However Dublin City Council refused to give planning permission on the grounds it would be visually obtrusive.
View from the quays demonstrating height of proposed hostel (via DublinCity.ie)
An Bord Pleanala's own inspector agreed the development wouldn't respect the character of the neighbouring buildings.
"The proposed building falls short of the quality of building which would be required to create a new context for the site and the proposed scale, mass and design approach is such that it would have a detrimental impact on the character and setting of this area."
However planning chiefs overruled their inspector's own recommendation saying the proposed hostel "would contribute to the animation of the area".
They've applied conditions including setting back the top two storeys and using frosted glass for windows facing onto the 'Abbey Cottages' laneway.