A bid to build a controversial five-star underground hotel has been thrown out by a planning inspector.

Elmbridge Council rejected Claudel Venture Holding’s plans for the 198-room hotel complex at Hersham Golf Club in July last year.

At a four-day hearing in March, the authority defended its decision, which it said was based on concerns over-development on greenbelt land. The written response from the inspector has now been received.

Claudel Venture Holdings had argued the underground five-star hotel would put Hersham on the map, boost the area’s economy and enhance the openness of the site.

But speaking at the appeal, Hersham North Councillor Ian Donaldson defended the authority’s decision, saying the application was “fundamentally flawed”.

He said it would create pollution, cause flooding problems and contribute to an unsustainable urban sprawl.

In his report, dismissing the appeal, planning inspector David Prentis said: “The scheme would result in a very considerable loss of openness. Moreover, it would cause significant hardship to the purpose of greenbelt by extending the built-up area of Hersham, eroding the narrow gap between Hersham and Esher and encroaching on the countryside.”

Reacting to the decision, Coun Donaldson said it was good news for Hersham residents.

He said: “I thoroughly endorse the inspector’s verdict.”

Roy Green, chairman of the Hersham Village Society, congratulated the community for coming together to fight the application.

He said: “This is a good result for the community and we’re very happy with the decision. It’s also a good result for the whole south east of England, because a decision in favour of the developers would have opened the door for others to build on greenbelt land.”