After almost two years of deliberation, An Bord Pleanala has refused permission for a 186-bed hotel at Briarhill.
The project, led by Parosi Developments Ltd, was originally given the green light by city planners in early 2022.
The 186-bed hotel would have been located at Briarhill Business Park, overlooking the junction of Bothar na dTreabh and Monivea Road.
The plans for the eight-story project were lodged in late 2020, and were approved by city planners in February 2022.
But appeals were lodged with an Bord Pleanala - one from a local resident, and another from a local business.
A core argument was the design and scale of the development being allegedly out of character with the area, and how that would impact on nearby businesses, services, and homes.
Initially, a planning inspector at An Bord Pleanala recommended approval of the project - but was over-ruled by a split decision from the board.
They held that the development would seriously injure the visual amenities of the area due to its density and height.
There is a policy that allows for greater height of scale outside areas identified in the 2021 Galway City Urban Density and Building Height Study.
But that demands exceptional design quality -a test the board felt the project would not meet, due to its scale, mass and form, and relationship to the surrounding area.