The Grade II-listed property at 1-2 Portland Street and 67 Above Bar Street had previously operated as student flats.
During Covid it pivoted its use into short-term serviced accommodation without securing the required permission from Southampton City Council.
Following a planning enforcement enquiry by the local authority in April last year, 1 Portland Street Ltd tabled a retrospective application to regularise the accommodation.
The existing apart-hotel use features 15 units across the first, second, third and fourth floors, with the proposal adding a further room in the basement.
A design and access statement prepared by RS Studio on behalf of the applicant said since being converted into student apartments in 2015, there had been a significant number of purpose-built student accommodation schemes built which have drawn people away from older stock.
The statement said: “The nature of the apart-hotel use would not be out of keeping with the character of the local area and will not adversely affect the amenity of nearby occupiers.”
The application attracted no comments from residents and ward councillors during a public consultation.
A report by planning officers, who approved the scheme under delegated powers, said overall the proposal was considered acceptable.
The report said: “While the development would result in the loss of 15 student studio units, the impact on the city’s housing position is limited given the small scale of the loss, the transient nature of student accommodation, and the absence of policy safeguards for this type of housing.
“The minor negative effect on student bedspace provision is outweighed by the benefits of introducing sustainably located short‑term visitor accommodation within the city centre.
“The scheme would support economic activity associated with visitor spending and represents an efficient and productive use of an existing building, including a listed asset, in a highly accessible location.”