An Bord Pleanala has given the green light for a boutique hotel at Nun's Island in the city.
The plans by Hanoview Ltd were originally approved by county planners early last year, but local residents lodged an appeal.
The project would involve the demolition of derelict buildings that face Mill Street across the water.
In their place would be a three-story, 34-bed boutique hotel.
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An Bord Pleanala has now granted permission with revised conditions.
