PLANS to turn a popular hotel and restaurant into student accommodation have been dismissed on appeal.

Barbara Murphy, from the Kingslodge, wanted to turn the 21-bedroom hotel, on Waddington Street, Durham City into rooms for 57 university students – plans that would have meant the closure of the Michelin Guide-listed Finbarr’s restaurant, which shares its premises.

The scheme met with opposition from nearby residents, Gentoo Homes – developers of the neighbouring Shaw Wood Gate and James O’Leary, co-owner of Finbarr’s, who only learned of the proposals from a customer at his till.

Critics said it would put too many students in the area and damage its character, including through the loss of the hotel and 100-cover restaurant.

Mrs Murphy appealed the council’s decision to a Planning Inspector, Peter Diggers, who visited the site last month.

The hotelier questioned the “studentification” argument, highlighting recent decisions to grant planning permission on other similar projects, such as for Neville’s Cross Social Club.

But Mr Diggers has dismissed the challenge, stating the “cumulative harm the further concentration of student accommodation would bring to the character of this area of the city and to living conditions for neighbouring residents”.

Responding, Finbarr’s tweeted: “To those who have been asking, we have finally had confirmation that the planning application appeal has been dismissed... And as such, we will not be moving in the near future. Thank you to everyone who has offered support and help these past six months.”

Elvet and Gilesgate county councillor David Freeman added: “It’s great news that the Planning Inspector has accepted the cumulative harm the further concentration of student accommodation would bring to the character of this part of our city and to living conditions for neighbouring residents and has therefore rejected the appeal.”

Planning permission is already in place to expand the hotel, which opened in 2000, from 21 to 50 bedrooms.

Concerns are growing over the growth of student accommodation in the city centre. Planning permission has been granted for more than 2,000 new student beds and several hundred more are in the pipeline, including for 56 in a six-storey block off Durham Market Place. However, Durham University plans to expand by just 359 students by 2019-20.

The council has promised to consult this summer on new student accommodation policies, including Articles 4 and 7 directions, forcing landlords to apply for planning permission to turn a home into a house in multiple occupation (HMO) and to erect a To Let board.