Residents have lodged objections with Dublin City Council over plans by developer Harry Crosbie to turn his quayside home into a four-star, 19- bedroom hotel.
As part of the plan for the "iconic building for the docklands", called Number Nine, the application is seeking to add two floors to the existing two-storey property.
The development also includes a bar-restaurant and a gallery and performance space. Each of the bedrooms will have a balcony overlooking the water.
In a consultation, planners from the city council told consultants for Basin Holdings they had no objection in principle to a revised extension scheme.
The consultants said the multi-use facility would create "an iconic building for the Dublin Docklands and Hanover Quay" and would contribute significantly to the city as an enhanced tourist destination and "place to meet".
They said the 9 Hanover Quay development "will be a considerable planning gain for Grand Canal Dock providing services, public amenities and a cultural hub".
However, it is facing opposition from a number of local residents.
Three living in Longboat Quay spoke out.
Phil Costelloe told the council that he and his wife have enjoyed living in their south- facing and light-filled home.
However, he said if the plan proceeded, "we will be trapped in darkness, negative equity with lack of privacy. We would also suffer from noise pollution from the hotel and bar".
Mr Costelloe, who bought his one-bedroom home in 2007, said the proposal "would absolutely decimate the value of my home".
Graeme Roche said that "if additional floors are added, our apartment would become almost entirely boxed in" and it would "remove all remaining natural light and privacy".
He said that the area was already extremely well served by the many hotels nearby.
"The addition of 19 rooms would create little value when compared to the detriment of the homeowners and residents who live there," he added.
Resident Jessica Lee told the council: "At present, Airbnb lists 'over 300-plus' places to rent in the Grand Canal Dock area. I see no reason why another hotel directly beside The Marker and hundreds of Airbnb rentals is required."
A decision is due on the application next month.