An Bord Pleanála has ruled against a second hotel at Lyrath Demesne in Co Kilkenny, the 140-acre estate owned by Spectra photo magnate Xavier McAuliffe.

McAuliffe lost his appeal to An Bord Pleanála against Kilkenny County Council's decision to refuse planning permission for the proposed 88-bedroom three-star hotel.

He argued in his appeal that market research had revealed that the newly opened 137-bedroom luxury five-star hotel at Lyrath Demesne could not adequately cater for the conference market.

The appeal said the existing hotel has been chosen for the 2007 Church of Ireland synod with 700 delegates, as well as social events, large weddings and conferences.

However, An Bord Pleanála refused permission, saying the proposed hotel is located outside the development boundary of Kilkenny city on unzoned land and would be in conflict with the local development plan which seeks compact and orderly development outside zoned areas.

The board also said it is the policy of the planning authority to restrict new development requiring access to the national road network and that the proposed hotel would access directly off the N10 national primary route.

It said the setting, scale and layout of the proposed development and its relationship with the Lyrath estate would erode the integrity of the estate as a single entity and diminish the appreciation of its historic character.

Xavier McAuliffe paid €5 million for Lyrath where the existing hotel has a spa, games room and gymnasium.

He also owns the Rivercourt Hotel, Barrow House in Tralee and hotels in South Africa and Mozambique.