The developers behind the project to transform the former Royal High School in Edinburgh into a "world-class" luxury hotel are to appeal against the decision to reject the plans.
Last month members of the City of Edinburgh's development sub-committee turned down a revised application from Urbanist Hotels and Duddingston House Properties (DHP) to develop the historic A-listed property into a 127-bedroom hotel.
A previous planning application for a 147-bedroom property was rejected by the council in December 2015.
Opponents of the scheme said that the hotel plans were unsuitable for a Unesco World Heritage Site.
The revised plans submitted by Urbanist Hotels and DHP had retained the key elements of the original scheme designed by Hoskins Architects, but substantially reduced the size of the new bedroom wings and the alterations to the listed centrepiece building, designed by Thomas Hamilton in 1826.
David Orr, co-founder of Urbanist Hotels, said that he and the development team remained "wholly committed to delivering an outstanding scheme for the old Royal High School, reviving a building which has been allowed to slip into a state of disrepair and neglect for nearly 50 years".
DHP and Urbanist Hotels were awarded the opportunity by City of Edinburgh Council to develop the site by 2022, seven years ago.
"We fully recognise the importance of Hamilton's old Royal High School building on a national level and our revised proposals guarantee the future of Hamilton's masterpiece, both architecturally and financially.
"As such, we have advised the Planning and Environmental Appeals Division of the Scottish Government that it is our intention to appeal the council's committee decision."
Rosewood Hotels and Resorts has been appointed to operate the hotel, if the development is given the go-ahead.
Rosewood appointed to operate hotel at Edinburgh's Royal High School >>
Videos from The Caterer archives