City Council did not vote on the matter, but four council members indicated their opposition to the hotel plans, including Councilwoman Julie Mayfield, considered by many to be a swing vote on the issue.
The project moves on to Asheville City Council for approval.
The plan is to develop a 70-room hotel in the building, as well as a restaurant and retail space, in the massive building at 95 Roberts St.
The hotel will occupy a total of five buildings - three renovated structures and two new buildings.
Asheville's tallest building, the former BB&T office building, is being remade into luxury condos and a boutique hotel.
Newly elected Asheville City Councilwoman Julie Mayfield on Wednesday announced she had returned a campaign donation from the developer.
The race is on. This tourist town is about to explode with downtown hotel construction.
The suites are 2,300 square feet and fully equipped kitchens, dining rooms and two beds and baths.
Check out drawings shown at a public meeting held by McKibbon Hotel Group officials.