A coalition of environmental and community groups lost an appeal today that sought to overturn a zoning variance allowing development of a new hotel tower fronting Waikiki Beach.

The city Zoning Board of Appeals upheld a December 2010 decision by the director of the city Department of Planning and Permitting that gave Kyo-ya Hotels & Resorts permission to replace an eight-story wing of its Moana Surfrider Hotel with a 26-story tower.

Four groups — Hawaii’s Thousand Friends, the Ka Iwi Coalition, the Surfrider Foundation and KAHEA: The Hawaiian-environmental Alliance — had challenged DPP’s variance.

Today’s decision gives Kyo-ya a green light to proceed with the project. However, Linda Paul, an attorney representing the coalition of opponents, vowed to further appeal the case in Circuit Court.