Wingecarribee Shire Council has refused an application from the Scottish Arms at East Bowral for a change of use from bistro to hotel.
Council voted unanimously to refuse the application in the face of protests from 100 residents, many of whom packed into the council chambers for Wednesday's debate.
Speaking on behalf of the objectors, resident Alison Cooper said the hotel would not fit into a residential area where most of the residents were families or retirees.
The hotel would exacerbate parking, noise and traffic problems in the area and devalue surrounding properties, she said.
Full story SHN Friday, March 7.
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