The amended £20 million project on Skelhorne Street, by Irish developer Chieftain Construction, is a much-reduced version of FCH's original £26 million plan, which had boasted a 32-storey tower.
The new, approved version will include two towers of 12 and 13 storeys. The towers will house a 151-bedroom hotel, 88 flats and various leisure facilities.
Falconer Chester Hall managing director Adam Hall said he was always 'realistic' about the constraints of the site.
He added: 'It will be a fine scheme, but it is best to forget what could have been. It is water under the bridge.'