Controversial plans for The Corbyn Head hotel in Hollicombe were last rejected by Torbay Council.
The current 45 room site on Torbay Road was proposed to be replaced with a 152-room hotel instead.
There had been a series of objections from those living nearby about the size of the new building.
Councillors also rejected the plans saying there wasn't adequate parking facilities being offered.
To read more about the proposals click here
It comes as the new leader of Torbay Council is looking at investing 100-million pounds to create jobs in the bay.
In the past the council has been criticised for investing in a pasty factory in Cornwall and the Amazon site near Exeter.
The authority invests money to help generate a return and then uses the proceeds on public services.
Councillor Steve Darling believes the money could be better spent