Heritage groups had objected to the change to the plans, which will now see the entire building demolished to link to the existing Premier Inn in Falconers Road.
Original plans approved by the council allowed for the front of the building to be retained, with the roof actually being taken off to allow an extra storey to be created.
The application allows the hotel to create an extra 89 bedrooms, bringing the total to more than 200,
Scarborough Civic Society objected to the change to the plans, saying as the building fell within the town’s conservation area it should be retained.
Developer Gary Ledden said that cost to keep the front was Â£500,000, meaning the scheme would not be viable. Cllr Eric Broadbent said the council “does not want another Futurist on its hands”, saying that if they refused this application the building could sit empty for years.
Letters of support were written from business leaders and shop owners in Huntriss Row, who told the council that investment was much needed.’.John Nock claimed Huntriss Row had been hit by the rise of Amazon, blaming online shopping for the dozen empty units in the once thriving area.
The committee approved the plan, with four votes against.