Hoskins Architects’ third attempt to build a luxury hotel around one of Edinburgh’s most significant landmarks has failed after the Scottish government rejected it on appeal.

The high-profile case has seen two of Scotland’s leading practices pitted against each other and yesterday’s decision explicitly reopens the possibility of a speculative, rival – but consented – scheme by Richard Murphy going ahead.

Ministers agreed with their planning inspector’s report which said Hoskins’ proposals would harm important views of the historic old Royal High School on Calton Hill.

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