An Bord Pleanála has overruled its inspector's recommendation by granting planning permission for the demolition of the Park Lodge Hotel on the North Circular Road, Dublin 7 and its replacement with a €40 million apartment development.

Neil Burke Kennedy and Dominic Kelly's KBK Properties will build 58 apartments with basement car-parking for 60 cars in a five-storey development with an eight-storey element.

The duo, who are more known for their retail and office developments, bought the hotel, which is situated 30 metres from the entrance to the Phoenix Park, for €6 million in 2004.

They declined to comment on whether they intend to develop the site themselves or to sell it on.

The scheme was appealed to An Bord Pleanála by North Circular Road and Area Residents Group and by Infirmary Road and District Community and Environmental Group.

However, in its decision An Bord Pleanála said it didn't consider the development would be visually obtrusive or out of character in this conservation area. It said an adequate number of the apartments - 84 per cent - are dual aspect and the scheme wouldn't unduly overlook or overshadow property in the area.

Neil Burke Kennedy, head of NBK design, says the development will accommodate families with large two-bedroom apartments of around 79sq m (850sq ft) on average. In addition, each apartment will have a laundry room and substantial storage space and there will be recycling facilities and a children's playground. The apartment complex has been designed around a courtyard.

KBK Properties was also behind the landmark redevelopment of the former Workman's Club in Dún Laoghaire, Co Dublin.