A proposal to knock down the historic Bentley buildings in Grafton and replace them with a six-storey hotel complex has been rejected by the Auckland City Council.
Residents opposed the development, saying the area would lose a character building and a precedent for development on the street would be set.
The hotel, at 11-23 Park Rd, required resource consent as it breached the maximum height, had more than 100 car parks and required the removal of a protected bunya pine tree.
Plans also included an aluminium screen which architect Nicholas Stevens said would make the building look like a "giant, glowing decorative lantern" at night.
The Samson Corporation applied for resource consent in 2007 but commissioners said this week - after hearings in July - that the proposal "does not meet the more relevant objectives and policies of the district plan".
Grafton resident Christiane Pracht said it was an unexpected result.
"Let's just be happy that we've managed to do the impossible and fight back the developers.
"This is not just a great result for Grafton but it shows that being at hearings, making submissions, speaking out against a development can make a difference."
The Bentley buildings, built in 1931, had been turned down for protection.
The Samson Corporation can appeal against the decision in the Environment Court.
