The controversial plans to redevelop parts of the Cobblestone pub in Smithfield have been refused.
Locals and staff had complained that the proposed hotel on the site would have meant the loss of other cultural spaces such as music classrooms.
Two protests took place in the city last month against the plans by Marron Estates.
Green Party TD Neasa Hourigan has welcomed the decision, and says it's down to the power of the campaigners who got involved.
Do I dare to hope for the future of cultural space in Dublin? #Cobblestone hotel application has been refused. 👏 Down to the people power of everyone who got involved! pic.twitter.com/DXp6QPA4vu
— Neasa Hourigan TD (@neasa_neasa) November 29, 2021