Plans for a four-star InterContinental hotel in Edinburgh's Haymarket are under threat after the Scottish Government ordered a review of the proposals.
Property developer Tiger Developments had signed up IHG for a four-star hotel at the heart of a £200m re-development of the Morrison Street Goods Yard site and it was expected that the plans would be approved.
But while local councillors backed the project, the Scottish Government had to be asked to approve it because the council previously owned the site.
Ministers said the project has been called in to examine concerns that the scale of the building will damage the city's skyline.
The review was ordered as Unesco inspectors visited Holyrood, the Scottish Parliament, to investigate the capital's World Heritage status and view prominent development sites. Edinburgh was awarded its world heritage title in 1995.
By Daniel Thomas
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