IT was launched as the plan that would breathe new life into the derelict neocolassical masterpiece that commands some of the best views in the Scottish capital.
A trust set up to protect the historic structure has also put in a £25m rival plan to move St Mary's Music School into the building.
Advisers from international heritage watchdog Unesco were called in recommended an investigation into how Edinburgh handles its historic properties as concerns grow for the World Heritage Site status of the Old and New Towns.
Backers and opponents have already clashed over the worth of both plans.
The six-star hotel, pictured above, could create 640 jobs and contribute on average £27m to the economy a year, while a 300-seat concert hall is one benefit that would come with the music school proposal, below.
The hotel developer, Urbanist Hotels and Duddingston House Properties, say they stuck to the design principles that won them a contest to take over a the school on a 125 year lease, which is currently said by the council to be "conditional".
Now council planners have recommended the hotel plan, which would also involve the high-end Rosewood Hotels group, be rejected.
The report to be debated this week said: "Cumulatively, the interventions outlined in the current proposals, represent a significant negative impact, failing to respect the architectural integrity and composition of the building, damaging not only the historic fabric but failing to respect the huge cultural significance of the building, an essential element of its special interest."
William Gray Muir, chairman of the Royal High School Preservation Trust, said: "Much time, effort and expertise has been spent addressing the question, but the 11 clearly stated policy grounds for refusal of the application demonstrate with total finality that this is not an acceptable answer to the question which was posed.
"Five years ago the competition-winning proposal had two storey wings, even then acknowledged as very challenging.
"Over the following five years, once the accountants got their hands on the scheme, they have tripled in height to six storeys.
Now council planners have recommended the hotel plan, which would also involve the high-end Rosewood Hotels group, be rejected.
The report to be debated this week said: "Cumulatively, the interventions outlined in the current proposals, represent a significant negative impact, failing to respect the architectural integrity and composition of the building, damaging not only the historic fabric but failing to respect the huge cultural significance of the building, an essential element of its special interest."
Mr Gray Muir said: "Much time, effort and expertise has been spent addressing the question, but the 11 clearly stated policy grounds for refusal of the application demonstrate with total finality that this is not an acceptable answer to the question which was posed.
"Five years ago the competition-winning proposal had two storey wings, even then acknowledged as very challenging.
"Over the following five years, once the accountants got their hands on the scheme, they have tripled in height to six storeys.
"What was difficult at the outset is now judged by planning experts to be impossible.
"And what has also changed the situation beyond all measure is the emergence of a clear, and very popular, alternative."
However, supporters said the hotel would bring a huge boost for Edinburgh.
Gordon Dewar, chief executive Edinburgh Airport and board member of VisitScotland, said: "A Rosewood hotel in Edinburgh would be a game-changer for Scotland’s tourism market and will allow us to market Edinburgh around the globe.
"We are constantly competing with many other European airports to attract investment into Edinburgh as both a market and a destination.
"A world-class hotel will attract a new level of interest and economic activity that will benefit everyone with a stake in the visitor economy.”
Taco van Heusden, of Urbanist Hotels, said: "We are confident the application is very much in line with the brief from the City of Edinburgh Council to restore the former Royal High School building for use as a world-class hotel and to create hundreds of quality jobs in the heart of the capital.
"Indeed, the planners recognise the creation of such a hotel as the only viable option.
"We appreciate this is a significant judgement for councillors and feel it is one they can make with the reassurance of what the hotel operator, Rosewood, has achieved internationally in equally sensitive World Heritage sites.
“We are glad the planning department has acknowledged the many positive benefits to the city within the proposal and that the architectural design is a sophisticated response to the site's sensitive context."
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