Planners have rejected a proposal by the owners of Belfast's Wellington Park Hotel to demolish it and a build a larger hotel and an apartment block.
The Mooney Group first announced their plans for the Malone Road site in 2005.
They were rejected by planners in 2008, a decision which has now been backed by the Planning Appeals Commission (PAC).
The PAC said the development would have failed to create a quality residential environment and damaged the character of the Malone Conservation area.
The Wellington Park is a 75 bedroom hotel which varies between two and five storeys high.
The redevelopment proposals would have involved building a seven storey 112 bedroom hotel and 95 apartments with underground parking.
The plan received more than 155 objections, although it was backed by Belfast city councillors.
The PAC said it would have resulted in overdevelopment of the site which would harm the character and appearance of the Malone Conservation Area through inappropriate scale, form, massing and design.
It would also have harmed the amenity of adjacent residents through overlooking and overshadowing and have adversely affected the setting of the listed buildings on Wellington Park, the commission added.