The hotel was due to be built on Car Park C across the road from the Sky Blues current home but initial plans have been rejected meaning that Sandringham Investments Pension Fund who are the developers will have to appeal or submit new plans or give up.
One Councillor described the plans for a hotel which would be taller than the Arena as "a Lego brick whilst another said that the current design was not good enough to meet the high standards of Coventry.
Local residents have expressed concerns that television reception would be blocked by the hotel as well as the noise and distruption caused by another new building being put up.