Bosses of Vendacre Ltd, based at the Blackdown Hotel,
wanted to convert the existing hotel into four flats and build 30 more at the rear of the
building.
But opponents of the controversial scheme said it would make one of the countys
worst accident blackspots even more dangerous.
The company already has permission to build a two or three storey 99-room extension on
the existing hotel.
Families living nearby joined parish councillors to oppose the proposals, arguing that
the development would more than double the number of households in the green belt area.
They also feared an increase in peak hour traffic at the crossroads at Sandy Lane and
Stoneleigh Road, an accident blackspot.
But the application was turned down at a planning committee meeting at Warwick District
Council this week.
Planning officer John Beaumont said:
"We felt the proposed development was inappropriate in green belt land and would
have been out of character in this rural area.
"Planning permission to extend the hotel was granted some time ago, but this was
seen to be a development of an establishment which has been there for years.
"The latest application was to build local housing, contrary to the Councils
control and development of green belt areas."