Plans by Tiger Developments for a £250m (US$409.2m, 276.7m euro) scheme in the centre of Edinburgh, which would have included a 17-storey, leaf-shaped Intercontinental Hotel and a Travelodge, have been turned down by the Scottish Government.

Although passed by the city council in 2008, a public enquiry into the project - designed by Richard Murphy Architects and also featuring offices and retail space - found that the 17-storey hotel would dominate the area in the city's Haymarket district, impacting on key views of St Mary's Cathedral spires and Edinburgh Castle and be out of keeping with the city's world heritage status.

Graham Birse, of the Edinburgh Chamber of Commerce, said: "With this conclusion ministers have done nothing to encourage sustainable development in our capital city at a time when the longest recession in living memory is making deep and painful inroads into our economy.

"The project was ready to roll, and offered £250m investment, 2,150 jobs and a five-star hotel."

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