Derry City and Strabane District Council has approved the expansion and roof-top extension of the Walled City Hotel, going against a recommendation from planning officials to refuse permission.

The approved works cover the redevelopment of vacant units at 11 and 13 Strand Road, adjoining the listed former Bank of Ireland building. The hotel, a four-star boutique property, opened in summer 2025.

Planning officers told councillors that a previously permitted rooftop extension of 5.7 metres had been built to a height of 8.7 metres. They described the extra height as visually obtrusive and harmful to the grade B1 listed building and its immediate area.

The Historic Environment Division had also advised refusal. It said the scheme would not respect the intrinsic value, character and setting of the listed building, and would erode the historic street-scape and compromise the special character of an adjoining conservation area.

Five letters of support, including one from Visit Derry, were submitted. Three objections raised concerns about loss of light, loss of privacy and the use of inaccurate plans during a retrospective consent process.

A spokesperson for the applicant said the project represents a £12 million investment in a city-centre heritage asset, generating 74 temporary construction jobs and 24 full-time posts once completed. The scheme adds 32 bedrooms to the original 40-room design, which the applicant said had significant layout deficiencies.

Contractors for the extension said the new height remains lower than five nearby buildings and argued that the design retains all attributes that contribute to the listed building’s character.

The council’s planning committee made its decision during a June meeting.

Tourism in Derry has been growing. Figures from the Northern Ireland Statistics and Research Agency show 399,478 overnight trips to the Derry and Strabane area in 2025, spending £93.5 million. The number of trips rose 35 per cent on 2024, with overnight stays up 28 per cent to 1,206,934.