The demolition and subsequent rebuild of the Clarence Hotel could contravene local guidelines and Government legislation, An Bord Pleanála have been told at a hearing into the controversial redevelopment.

Dublin City Council has granted permission for the plan last November for a 148 bedroom and 28 suite hotel, on the grounds that existing legislation allows for the demolition of protected structures in exceptional circumstances.

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However, the Department of the Environment, Local Government and Heritage criticised the council's interpretation of the legislation and said it did not believe the scheme was of such "architectural merit" as to meet the exceptional circumstances laid out in the legislation.

The hotel's owners, U2'S Bono and the Edge have said the redevelopment was necessary as it had been experiencing financial difficulty in recent years. The Edge said there is no "plan b" if planning permission is overturned.

The proposals would see the hotel and surrounding buildings, purchased for the €150 million redevelopment, demolished with only their front facades retained. But, the buildings are listed as protected structures.

The hearing continues.

(VB/JM)