Around 100 people turned up to discuss the detailed proposals by developer Mountgrange for a £300 million transformation of the area.

The majority at the Augustine United Church, on George IV Bridge, were city centre residents opposed to the scheme, which was described as "hideous" and vandalism on a grand scale. The meeting was organised by the Old Town Community Council, who provided copies of the plans for people to view beforehand.

Among those present were the area's three newly elected councillors, David Beckett, Joanna Mowat and Charles Dundas, as well as Moira Tasker of the Cockburn Association, and Julie Logan of Save Our Old Town. Representatives of Mountgrange and city planning officials were asked to attend but declined.

The plans involve the creation of a five-star, 211 bedroom hotel in the Canongate, artist's studios, gallery space, workshops and shops, more than 170 flats, and a landmark space for offices, cafes and a nightclub created by architect Malcolm Fraser.

It will also see several listed buildings in the area such as the Canongate Venture and the Ark demolished.

At the meeting it was asked exactly what the economic case for building offices was, when there was already empty office space in the area. Other people wanted to know about plans for a public square, which would be surrounded by high buildings and would apparently get little or no sunlight. There were also concerns about the demolition of so many listed buildings.

Mountgrange has submitted 11 applications to the council for the project, and many people at the meeting felt that the complicated nature of the planning system made it almost impossible for them to influence the outcome.

Tim Porteus, a 44-year-old community worker from Broughton, said he felt angry at the way these plans were being handled. "I think there is a real sense of powerlessness amongst people," he said. "I grew up in this area and suddenly I look around and it has become a playground for rich developers who don't want to listen to the people who actually live there. I will not accept that.

"I actually feel rage at these plans – when I read about gravestones in a historic cemetery being vandalised I feel angry, but this is the same thing, only it is being done by a developer and it is being done legally. These plans are akin to someone suggesting they tear down the main square in Prague to build a Tesco."

And retired translator Denis Cachia, 59, who stays on the Canongate, likened the plans to those of the former Lothian Regional Council headquarters, which were considered an eyesore and have recently been demolished.

"When the council put up that monstrosity opposite Deacon Brodie's in the 60s I thought people might have learned their lesson, but it seems they have not," she said.

"There has to be development, but not this hotel – are tourists going to come to Edinburgh to look at a hotel? If this goes on we will lose our world heritage status and the whole of the area will become one big mass of concrete, glass and steel."

There were others who felt that, while the current plans were not acceptable, there should be more of a dialogue with Mountgrange to improve upon them, rather than opposing the development entirely.

Catriona Grant, chair of the Old Town Community Council, said: "I was very pleased that so many people came along. These plans do not just affect people in this area but the whole of Edinburgh."

Caltongate development