The City of Launceston has approved a Development Application for a $50m, 145-room hotel on Paterson Street's TRC site.
The 'Gorge Hotel' proposed by the JAC Group would include a restaurant, bar, conference facilities, and retail space, and would be developed over two stages.
Launceston Mayor Albert van Zetten said the project would be a fantastic asset for Launceston.
"A $50m investment in our city boasting both high quality hotel accommodation and conference facilities is something we know there is increasing demand for," Mayor van Zetten said.
"It's an exciting project, will be great for visitors to Launceston, and is going to take advantage of a location that has arguably been underutilised in the past, with fantastic views of the estuary.
"The design of the building itself is unique, and will offer five star accommodation options in Launceston within walking distance to the Cataract Gorge.
"It will play an important role in Launceston's growing tourism industry going forward, and I'm thrilled the JAC Group has decided to invest right here in Launceston."
Mayor van Zetten said the project had rightly been the subject of community debate, with different views on the project heard in recent weeks.
"This development application has generated much discussion and debate in the community, and Councillors have genuinely and openly listened to those different points of view," he said.
"While many different matters have been raised with the Council over this development application — and while we know some people may be disappointed with the decision — when sitting as a planning authority the Council is required to solely consider the planning merits of the proposal.
"We hope this project will be an asset to our city, will create new jobs and economic activity, and we look forward to construction starting."
