The proposed hotels are to be developed on the site of the existing Clarion Hotel and Alfred Harrap and Sons Warehouse on Tamar Street.

The development of the 5725 m2 space has been estimated to cost $50 million.

The group had privately submitted development application documents in late 2019 to the City of Launceston Council for assessment.

The council then sought further clarification from Fragrance Group's designated planning firm Ireneinc on a number of factors.

The report does cite there may be contamination on the site due to its former uses relating to metal and foundry, electrical and wool works.

The report stated that an Environmental Site Assessment would be prepared in regards to the contamination.

The Alfred Harrap Warehouse, along with the adjacent warehouses and buildings along Cimitiere Street, will become what is being dubbed as the 'Warehouse Hotel'.

A bar and restaurant will be installed inside on the ground floor. The first floor of the warehouse will be re-purposed into function rooms.

While the Alfred Harrap Warehouse will be retained due to its heritage status, the neighbouring warehouse will be demolished.

The Brass Founders building on Cimitiere Street will be re-purposed into a shop, cafe and meeting rooms.

A driveway drop-off point will run through the Cimitiere Street side of the hotel - it will also lead into the hotel's 126-lot customer car park located at the rear of the site.

The 230-room, 11-floor hotel will include a day spa, gym and 25m pool.

The Clarion Hotel, referred to as the 'Boutique Hotel' in the application, will remain largely unchanged given its historic standing.

The Boutique Hotel's entrance will be built between the Clarion and Alfred Harrap buildings.

The Clarion's car park area will undergo an upgrade to a turning circle-style entryway, as well as 12 parking spaces.

The application will be available for public comment until March 30.