A look at Global Premium's approved hotels on Cimitiere Street

The hotel will be valued about $80 million and create 470 jobs.

There will be two different hotels on the site - the large Warehouse Hotel will be built on the site of the Alfred Harrap and Sons warehouse.

The Boutique Hotel will be based on the site of the existing Clarion Hotel.

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As well as 230 rooms and 126 car spaces, the Warehouse Hotel will include a bar and restaurant as well as a 590-occupant conference facility.

The adjacent Rankin and Bond Brass Founders' shop also sits on the site; it will be used for retail space.

The Boutique Hotel will include 55 rooms and 12 car spaces.

Both hotels will have built-in driveways for each entrance.

Launceston businessman as well as Silo and Seaport hotels developer Errol Stewart is no stranger to the building of accommodation in developing parts of the city.

He said, however, that given the COVID-19 pandemic, breaking ground in the industry is a different ball game.

"That's [COVID-19] a challenge for the industry now, everything's going to need to get up and running again," he said.

Mr Stewart said it would take a number of years before the hospitality and tourism industries recovered.

He said Global Premium Hotels building the accommodation in this timeframe would also allow for a healthy pace of competition between similar hotels in Launceston.

"We opened [Silo Hotel] in 2018, the Verge is going to open two years later ... getting another one open in 2022 or 2023 I think it's probably okay," Mr Stewart said.

"It will take three or four years to get some normality into the tourism sector by the time the international markets get the courage to get cracking again.

"It will be three or four years before that hotel gets out of the ground, that's my view."

A Global Premium Hotel spokesperson said they anticipate to begin construction in 2021.

Mr Stewart said the hotel, combined with the Verge Hotel, would be good for the area around City Park.

"Do I think people would be excited about the development? I think they would if they [Global Premium] are courageous enough to build it," he said

"It will revitalise the area near the park."