PPHE Hotel Group - which owns SE1's four existing Park Plaza hotels - bought the empty plot of land at the junction of Westminster Bridge Road and Kennington Road for £12 million in 2019.
In July 2023 Lambeth's planning applications committee rejected PPHE's plans for a 15-storey building - designed by Lifschutz Davidson Sandilands - with 184 hotel bedrooms.
The scheme had been recommended for approval by Lambeth planning officers.
Councillors found that the hotel "would be a discordant addition to the townscape that would be harmful to the prevailing local character, and would cause a moderate level of less than substantial harm to the significance and special interest of the grade II listed Lincoln Tower" and that another hotel so close to others would "cause unacceptable harm to the balance and mix of local land uses".
PPHE has appealed the council's decision and an inquiry is due to open on Tuesday 21 May. Planning inspector David Prentis is expected to hear eight days of evidence before reaching a final decision on the case.
In its appeal documents, PPHE argues that its proposed hotel is "of the highest standard of design and architectural quality, and would "[transform] an underutilised brownfield site through the delivery of a significant quantum of high quality hotel accommodation, office and light industrial floorspace, alongside the provision of a publicly accessible gym and restaurant/cafe uses".
Earlier consultation materials on the scheme claim that the development would offer "well-designed compact lifestyle hotel rooms, filling the gap between the existing 4* and budget hotels in North Lambeth, providing upscale quality at an affordable price".
The site - a former petrol station later used as a yard for London Duck Tours amphibious vehicles - has been unused for many years.