The recent development of the lattice Boltzmann method enables its widespread application in various industrial areas. However, in the simulation of complicated industrial problems, considerable grid numbers are required to achieve reasonable resolution in the near-wall region due to the lack of a local refinement method on the geometry. In this study, a new hybrid grid refinement method is proposed, which comprises the reconstruction algorithm in refined near wall nodes on the refinement interface and the in-domain interpolation multi-grid method to prevent the local distortion of the pseudo-wall among resolution levels. The proposed method is validated on a two-dimensional flat-plate and NACA0012 airfoil at low and high Reynolds numbers. Furthermore, both aerodynamic and aeroacoustics of a pair of counter rotating propellers are simulated with the proposed lattice Boltzmann method approach and compared with the results obtained using commercial software.