Plans for 10 holiday homes in an Area of Outstanding Natural Beauty (AONB) in Cornwall have been rejected following a protest.
The Kingfisher Resorts Group had wanted to build the units, along with a 66ft (20m) "infinity" swimming pool and other facilities at Meudon Hotel, Maenporth, but the application was refused unanimously by Cornwall Council on Monday.
Protestors said the development, proposed for near Falmouth, was "fundamentally wrong".
The Kingfisher Resorts Group said it "would carefully consider next steps".
Proposals that went before before the west sub-area planning committee also included a restaurant, gym and fitness suite, with landscaping and infrastructure.
Campaigner Charlotte Bradley said: "There are many ways that that hotel could make some money and the community are behind it, but not 10 very large houses in an AONB - it's fundamentally wrong."
Anthony Hornidge added: "This is not a bunch of hoteliers trying to make the next 50 years of Hotel Meudon successful; this is about trying to exploit this undeveloped and beautiful bit of coastline."
The development was recommended for approval but there were more than 150 objections to the application.
The Kingfisher Group said the development would have led to investment in its deteriorating gardens and sent a positive message to investors about tourism in Cornwall.
Group chairman Nigel Chapman said: “We did everything we were asked to amend in our plans from the first refusal and worked closely with officers to revise areas of original concern.
“We are committed to Hotel Meudon for the long-term."
He added: "We will now review our options and carefully consider next steps."