Developers will now need the approval of the design review board to move forward with construction.
The 172 room hotel is planned where the Wendy's stood on Cannon Street.
The developers asked the board of zoning appeals for a special exemption to build the hotel.
Some residents we spoke with said they aren't happy about the prospect of another hotel on the peninsula.
"You put in a lot down there downtown, you're building something over there, I think it's a lot," Anthony Pendergass said.
"I'm a little confused about all the hotels. I'm just not in favor of this many at the same time because I think it's gonna create a traffic problem," John Gregory said.
City officials disagree. City planner Jacob Lindsey said the hotel would be in the right place, in the middle of everything.
Lindsey said the mixed use Westedge project will be located in the same area.
He said developers of the hotel will have to provide parking, most likely a parking deck.
Lindsey said any traffic problems will be addressed by extending Hagood Avenue through Spring Street to Cannon Street.
Still some people say the old restaurant is not a good spot for a hotel.
"Meeting Street area around here, then you get a hotel here, over here same thing," Samuel White said.
"I feel it's kind of a detriment to the neighborhood quality that we have in downtown Charleston right now," Ian Atwood said.
Lindsey said it will be several months before the developers find out if they will get the green light to build the hotel.
He said they will have to get approval of the design from the design review board.
Last year Mayor John Tecklenburg called for a moratorium on new hotels on the peninsula but the proposal was voted down by city council.
Copyright 2017 WCSC. All rights reserved.