Mr Thiel — a Lord of the Rings enthusiast — envisaged a long series of buildings set into a hillside with roofs covered with tussocks and shrubs.
Resource consent was declined by Queenstown Lakes District Council commissioners in 2022 and in May this year the Environment Court declined his appeal against that decision.
The company wanted to develop a four-building, grass-roofed complex, which would accommodate up to 30 guests, on a site overlooking Glendhu Bay about 7km from the Wānaka town centre.
Environment Court Judge Prudence Steven said in the decision although the lodge’s design was "attractive and responsive to its setting", proposed tree planting would not adequately screen the buildings from several public viewpoints on the nearby public track.
She said the landscape values of the area’s outstanding natural landscape would not be protected.
That decision followed a two-day hearing in Queenstown in March.
In 2022 the council panel decided the "large, very long building" would be too visible from a public walking track; the 1165sq m lodge was inappropriately dominant in the outstanding natural landscape (ONL); and design details lacked clarity.
Mr Thiel has not responded to an Otago Daily Times invitation to discuss the project.
The media shy billionaire has been closely involved with the Republican race for the United States presidency.
Although reportedly declining to fund any politician in this election, he has previously funded Donald Trump and vice-president hopeful J.D. Vance.
In a rare interview last year, the German-born IT specialist told The Atlantic he had read Lord of the Rings 10 times.
"More than anything, he longs to live forever", The Atlantic wrote.
Mr Thiel spoke with enthusiasm of elves.
"How are the elves different from the humans in Tolkien?
"And they’re basically — I think the main difference is just, they’re humans that don’t die ...
"Why can’t we be elves?" he said.
