A plan to demolish a former Leicestershire hospital and convert it into student flats has been rejected by a government inspector.
It follows a three-day inquiry into the proposals from Domain Baxtergate, which wanted to build on the former Loughborough General Hospital site.
The inspector decided the plan did not fit in with the character of the Churchgate conservation area.
Charnwood Borough Council had opposed the plan for the site.
Loughborough University and Storer and Ashby Area Residents Group had also opposed the plan.
Councillor Hillary Friar said the council wanted a mixed development with a variety of uses and not simply blocks of student flats.
She said the development needed to be more accessible with shops and other amenities for residents of the entire town.
The hospital was built in 1862, but the building has been empty since 2003.
Domain Baxtergate was not available for comment.