An application to transform two historic landmark townhouses in Rabat’s Saqqajja Hill into a luxury boutique hotel has been unexpectedly withdrawn, Times of Malta has learnt.

Developer Keith Grima confirmed that he decided to pull the plug on the controversial project that attracted massive opposition including a petition signed by over 3,000 residents.

Instead, Mr Grima has put the two townhouses up for sale with a price tag of some €1.8 million.

Asked to explain his sudden change of heart over the project, Mr Grima did not wish to give any further details.

The project, submitted to the Planning Authority last year, was intended to transform two Victorian-era townhouses overlooking Saqqajja square and another two at the back, on the road leading to St Augustine’s priory, into a luxury boutique hotel with about 30 rooms.

The proposal, which drew the ire of many NGOs and the Rabat local council, would have also included the addition of two storeys overlooking the square and four on the avenue’s side.

The developer of the proposed hotel in Rabat has now put his property up for sale.

The townhouses were designed by renowned architect Andrea Vassalli in the 19th century, the same person responsible for other masterpieces including the Ta’ Pinu basilica, in Gozo.

Originally, the developer wanted to turn the property at the entrance of Rabat into a much larger hotel, consisting of at least 50 rooms. However, when opposition to the project grew it was significantly scaled down.

Still, objectors were not satisfied, arguing that the project was completely out of place for such an area.

Various NGOs, including Din l-Art Ħelwa, Flimkien għal Ambjent Aħjar and Moviment Graffiti, argued that the project would ruin the aesthetics of the area.

According to a report submitted by architect Elena Borg Costanzi, on behalf of the Rabat local council, which was staunchly against the project, the earmarked site of the project was also within an area of archaeological importance between Saqqajja, which marks the entrance to Mdina, and St Augustine Avenue.

In order to block the proposal, the Rabat council, led by Labour mayor and OPM official Sandro Craus, a formal request was made to the Planning Authority to schedule the whole row of townhouses where the project was based.

This would give the building a bolder level of protection, limiting the possibilities of further development.

Planning and Infrastructure Minister Ian Borg had also expressed his reservations over the proposed development calling it “a non-starter”.

Normally, government ministers shy away from expressing opinions on development applications that are still under scrutiny, citing the ‘autonomy’ of the Planning Authority as a reason for them not to comment. However, Dr Borg adopted a different attitude with regard to this proposed development in the middle of Rabat, the largest town forming part of his constituency.

The withdrawal of this application might also have an impact on another controversial project being proposed just a few metres away.

Developers want to transform the former Tattingers nightclub, further down Saqqaja Hill, into a 110-room hotel spread over five terraced floors. The proposal, still being processed by the Planning Authority, has also found many objectors, including several NGOs.

The Environment and Resources Authority is also objecting to the proposed development.