Hilton's Dublin investment hangs on top-floor decision

Hilton International is likely to hear within six weeks whether it has won an appeal to develop a six-storey hotel in the centre of Dublin - its first in the Irish Republic.

The hotel group was granted planning permission for the £35m project in May, on condition that the height of the building - opposite Trinity College - be reduced by one floor.

The decision by Dublin Corporation was backed by the Irish National Trust on the grounds that the planned six-storey height would "dwarf" neighbouring buildings.

But at an appeal hearing in Dublin last week, Hilton threatened to walk away from the project, saying the revised plan would reduce the number of bedrooms from 169 to 122 and make it unprofitable.

Hilton International UK vice-president Rudi Jagersbacher said: "It is important to remember we have to make a profit and that we will invest heavily in this hotel. We will give you new spenders and we will give you high spenders, but we won't come if it is not commercially viable."

Hilton International's vice-president of corporate development, Clive Hillier, added: "If we are turned down in this appeal we would be back to square one after five years."