The plan, initially rejected by Camden Council, would see a 166-bedroom hotel built on the site of a converted former NCP car park underneath St Giles Hotel in Great Russell Street.
Concerns for guest safety sleeping below ground level as well as the air quality in the window-less bedrooms have now been dispelled.
The proposed hotel, a stone’s throw from Tottenham Court Road tube station, will be designed as budget accommodation for short-term stays for tourists and business travellers.