Plans to turn a hotel next to the £107million Forum development into emergency housing for homeless people has been allowed on appeal.

The plans to convert two floors of Station Hotel in Bruton Way into a HMO (house of multiple occupation) were rejected by Gloucester City Council last year.

Critics said London and Wiltshire Ltd's scheme was "utter madness" and "potty" as the 19th century building sits just a few metres from the huge city centre Forum development currently being built by Kier Construction.

Reginald Daldry, managing director at UK Demolition and Construction ltd, said at the time it was not the right location for the housing and approval would be a "kick in the balls to the investors."

The council desperately needs more accommodation for households living in temporary accommodation in Gloucester.

Plans to transform the first and second floors of the hotel were recommended for approval by officers but councillors went against this advice and threw out the plans in November 2023.

They said the proposal would not provide any outdoor amenity space for future occupants and it was an "inappropriate location" owing to its close proximity to Bruton Way.

The developer appealed and said: "The proposed HMO is located in a highly sustainable location. The LPA have put forward no evidence as to why the location would be inappropriate."

The Planning Inspectorate agreed the plans should be allowed.

The public house use on the ground floor will be retained but the first and second floors will be changed to allow an 18 bed HMO.

The inspectors report said: "It is common ground that there is a need for HMO accommodation in Gloucester and clearly the proposed development would ensure that future occupants would be accommodated in a sustainable location with excellent public transport links."

It added: "I have taken account of concerns about the possibility of future residents taking part in anti-social behaviour. However, there is no compelling evidence to suggest that future residents would take part in such behaviour."