Malaysia’s Tune Hotels, part of the Tune Group, will operate an upcoming hotel at 3-19 Castle Street, in Liverpool.
A new ground-floor entrance opening out onto the street will be developed as part of the plans, which have been agreed.
However, committee members said Tune Hotels’ red and white signage ran the risk of degrading the listed building.
“We have a real historic building and we don’t want to degrade it by having that dreadful brand which would look more suitable for a McDonald’s," Cllr Steve Radford was quoted.
The developer’s agents said appropriate adjustments would be made, but planning officers agreed they could not change a company’s logo.
Tune Hotels currently manages hotels globally, including five properties in the UK – four of which are in London and one in Edinburgh.