An Bord Pleanala has granted planning permission to Pat Crean's Marlet Group to demolish the Bailey Court Hotel in Howth and replace it with 177 apartments.
The contentious apartments plan involves blocks ranging from three to five storeys on three parcels of land.
The appeals board granted planning permission despite widespread local opposition to the plan.
This opposition was supported by Labour Party TD Aodhan O Riordain and Fianna Fail TD Sean Haughey, as well as Independents Finian McGrath and Tommy Broughan, who were TDs at the time of making objections.
Fine Gael senator Catherine Noone also expressed concerns over the plan.
The appeals board acknowledged that a grant of permission would materially contravene the allocation of 498 new homes for Howth, with the application exceeding that amount when combined with other planning applications.
However, the board has said that the material contravention was justified in regard to the Government's policy to ramp up the delivery of new housing.
It also cited six other policy objectives, "all of which support higher density residential development consisting of apartments on public transport corridors within the built-up area of Dublin city and its suburbs, as proposed in this case".
The appeals board concluded that the proposal "would not seriously injure the amenities of the area or of property in the vicinity".
The appeals board also found that the proposal would not damage natural heritage.
Marlet also has a separate application for 512 units on the former Techrete site at Howth that is currently before the appeals board.
Consultants for Marlet, Tom Phillips and Co, said that the Bailey proposal was well designed and complements the existing use within Howth village.
In response to the 177-unit application, the appeals board received more than 85 objections, including those from public representatives.
Labour Party leadership contender Mr O Riordain told the appeals board that "this proposal would introduce a scale of development that is entirely alien to the existing pattern of development, which has been sensitively followed by additions to the village over the years".