A proposal was lodged with the council last year for the development of five self-catering holiday homes with parking and an accompanying business manager’s dwelling.
It was submitted by the Michael Hughes Trust.
A letter from the council stated that the design of the proposed development is “unacceptable and if permitted would have an adverse impact on the Antrim Coast and Glens Area of Outstanding Natural Beauty and detract from the landscape quality and character of the surrounding area”.
The former hotel, which was located on a 3.4 acre site, was vacant since the late Nineties and was gutted by a fire in 2009.
Firefighters used sea water to tackle the blaze which left the building extensively damaged. More than 50 fire fighters including crews from Belfast and Coleraine were tasked to the scene.
Originally built as a period property, listed status has been removed.
Planning permission was approved in 2009 to approve 15 holiday units and a subsequent application in 2012 had outline permission for 12 detached dwellings.
Meanwhile, Mid and East Antrim Borough Council is to appoint a consultancy to develop plans for Glenarm seafront following the collapse of a high profile tourism venture for the village after previous plans for a seafront hotel and visitor distillery failed to materialise.
The council was also left out of pocket when the authority failed to get an insurance pay-out after a blaze gutted the former fish factory premises which it owned at the shore front.
It was revealed that when officers lodged a claim with the authority’s insurance company, the company claimed that an exemption applied to the policy and “would not agree to cover the works”.
It was also stated that the council’s insurers required a complete list of all council assets, and at the time, the derelict fish factory premises was not specifically listed.
Michelle Weir, Local Democracy Reporter