Wicklow County Council have refused planning permission for the development of a Boutique hotel, Holiday Resort and Surf School at Magheramore.
The Oakmount company, led by Paddy McKillen Jnr and Matt Ryan, purchased the land in 2021 for €700,000.
Wicklow County County were unsuccessful in their attempt to purchase the land at the time.
Councillors, T.D’s and the Save Magheramore group have welcomed the news.
Almost 13,000 people had signed a petition against the development.