The 39-metre, $50 million hotel development application was approved by the City of Launceston council, with Tim Walker the only councillor voting against the item.

However, representors are already planning their appeal.

Discussions about the Margaret Street hotel took nearly two hours, with 26 public speakers taking up half of that time.

Those that spoke included the developer himself, Josef Chromy, JAC Group's managing director Dean Cocker, Launceston Chamber of Commerce's Neil Grose and Hands Off Our Gorge's Lu McGinniss.

Concerned residents raised issues about shadowing, sewerage increases, height, design, traffic, the effect on nearby schools, and the impact it would have on neighbouring properties.

Susie Cai, who lives above the Golden Brumby, said her family would be living like mushrooms once the development was complete because of the shadowing effects.

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Speaking in support of the application, GHD Architect's Alex Brownlie said the building's impact would be "quite minor". Chloe Lynn, from Commercial Project Delivery, said of the representations made to the council, none of them would be a "show stopper" for the proposal.

Mr Cocker said it wasn't just going to put $50m into the city, but also bring confidence, employment, and ticked all of the planning scheme boxes.

Councillor Rob Soward likened the hotel to the Sydney Opera House, saying it had the potential to change the city like the attraction did for Sydney.

In approving the development, three councillors asked the JAC Group to look after Ms Cai and think of the neighbours.

Cr Walker said just because Launceston needed more conference facilities did not mean the hotel was needed.

"I apologise in advance to all those people who made representations against this project ... I believe this project will gain approval today from my fellow councillors. I apologise because ... the community will not be listened to today," he told the meeting.

Councillor Janie Finlay said river health and traffic issues were already existing, with possible solutions already being investigated.

Mr Cocker said he was quietly confident the Gorge Hotel would be approved once the councillors started talking.

He said the developers would be engaging with the neighbours to make sure any works happening on the site would have dilapidation reports in case any damage was caused.

If an appeal was to take place, Mr Cocker said it had the ability to delay the development for a number of months.

"We think that the [council's] decision is very sound and had overwhelming support, and would be very disappointed on that basis that it would be appealed. But people have that right," he said.

Councillor Nick Daking said he was not sure why everyone was so worried about the height.

"I do not see height as an issue at all, in fact I would like to see taller buildings in Launceston, that is my opinion and also an opinion shared by many other people in the community," he said.

"But what the developers have proposed shows restraint, good design and in all a very good balance with the city and the community that suits the zoning and fits well within the current taller buildings of Launceston."

Councillor Hugh McKenzie said the only thing that was certain during the meeting was that someone was going to go home unhappy.

Councillor Alan Harris said he understood neighbour's concerns, and he would not be happy if someone was proposing this next to his house, but supported the development.

Councillors Karina Stojansek and Jim Cox agreed they were not comfortable voting either way, but they had to choose because that's what they were elected for.

Mr Chromy said he was proud the council had supported this vision.

All councillors spoke to the item, except Paul Spencer who was not at the meeting.

The hotel was under fire throughout the application process because the City of Launceston council had to readvertise the proposal three times.

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