RMPAT is expected to publish the decision on Friday. The grounds of the appeal are not yet publicly known, but it is understood height was a factor.

City of Launceston mayor Albert van Zetten said the council was disappointed by the ruling.

"From the City of Launceston's perspective, the project had the support of the council and we believe it was consistent with the planning scheme," Cr van Zetten said.

"As for the future of any proposal on that site going forward, the council is certainly open to meeting with the proponent to understand their future plans for the development."

The $50 million hotel was proposed to be built on the TRC site on the corner of Paterson and Margaret Streets. Josef Chromy's JAC group is behind the plans.

The appeal was lodged by Launceston Heritage Not Highrise on behalf of neighbour Susie Cai.

Ms Cai claimed the proposed 39.5-metre hotel would overshadow her whole house blocking all natural light.

The City of Launceston council approved the hotel at its June 13 meeting. Councillor Tim Walker was the only person to vote against the decision.

RELATED STORIES:

At the meeting, the public gallery was packed to the hilt, with a number of people speaking against the proposal, but also in support.

More than 25 people spoke about the item. Six spoke for the development.

The appeal against the council's approval was lodged at the start of July.

At the appeal in September, the proposed height were discussed on the first day of the tribunal hearing.

The tribunal was scheduled to hand down its decision on the development on last week but asked for an extension until November 8.

The hotel's construction would create up to 200 direct and indirect jobs. The hotel was expected to have 145 rooms, a 500-people conference centre, 200-seat bar and restaurant, function rooms, rooftop cocktail bar, day spa and a gym.

JAC Group and Launceston Heritage Not Highrise were contacted for comment.

HAVE YOUR SAY: