Bord Pleanála has rejected planning permission for an eight-storey, 278-bedroom hotel at Powerscourt House, near Enniskerry, Co Wicklow.
The board found the proposed hotel located in The Killing Hollow, immediately to the east of the stately home, would seriously injure the amenity of Powerscourt as a "nationally significant, protected structure".
The board also found the size and bulk of the proposed hotel would be visible from within and around Powerscourt House, impinging on protected views and vistas.
Earlier this week, Wicklow County Council decided to grant planning permission to the Slazenger family, owners of Powerscourt, for 108 holiday homes, shops and offices in the western environs of the house.
The board's rejection of the hotel development will strengthen the resolve of local protesters, members of the Enniskerry Traffic Action Committee and the Enniskerry Community Alliance, who have already voiced their anger at the council's approval of the holiday homes in advance of a traffic management plan for the village.
The local Green Party councillor, Ms Deirdre De Búrca, also claimed there was "bad feeling in the village because the Slazenger family by-passed local opinion and privately lobbied local councillors on the holiday homes issue". She added that she had no doubt yesterday's announcement by Bord Pleanála "would impact on the holiday homes decision".
As with the holiday homes proposal, the plan for an eight-storey hotel was a variation of earlier schemes for a range of developments on the estate which the Slazenger family maintained were justified and necessary to finance restoration of the main house, which was gutted by fire in 1974.
Yesterday's announcement by Bord Pleanála was welcomed by An Taisce, the National Trust for Ireland, which has expressed disappointment with the level and quality of the restoration work already carried out at Powerscourt.
An Taisce has also accused Wicklow County Council of "not protecting this property of national heritage significance" or having "adequate regard" to the national architectural heritage provisions in the 2000 Planning Act.
An Taisce is now recommending a complete reconsideration of all development affecting the Powerscourt estate "in view of the extent and quality of what has already been accommodated and the combination of inappropriate proposals which are still being put forward.
"Powerscourt, because of its combined landscape and architectural significance, needs to be treated to highest international standard for heritage properties," said a spokesman.
The Slazenger family were unavailable for comment yesterday but a spokeswoman issued a statement welcoming Wicklow County Council's decision to approve the holiday homes. The statement noted the majority, 19 out of 24 councillors, had supported the holiday homes.