Under the plans, which are currently open for public comment ahead of their consideration by the City of Launceston council later this year, the overflow carpark to the west of the Olde Tudor Hotel block would be transformed into a BP service station and convenience store.

This would add to the bottle shop, IGA, accommodation, restaurant and bar already available on the site, which services drivers on the busy Westbury road.

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Commercial Project Development have put forward the plans on behalf of site owners Patel Group.

Currently, the nearest BP service station to the Olde Tudor Hotel is an eight-minute drive away in Youngtown. Two Caltex stations and one Shell service station are within about a five-minute drive of the Olde Tudor complex.

The site's location could prove fruitful to a prospective service station as it would be placed a stone's throw from Prospect's busy Westbury road roundabout which connects to Bass Highway south of Launceston.

The extensive 96-page development application also includes two project reports, including one from engineering firm Rare.

Rare's infrastructure report examined the stormwater, waste water, road access and parking needs of the proposed site and deemed them all adequate under the current plans.

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Likewise, a transport impact assessment from technical professional services firm GHD concluded that the site would generate only "minimal operational impacts" to the existing road network. The report also noted that the service station could draw a further 80 cars during the peak-hour evening period.

Cars driving west on Westbury road would enter via the existing Olde Tudor Hotel entry road, but a new exit road back on to Westbury road would need to be constructed.

Consequently, the development application noted that a bus stop located next to the site would need to be moved further along the road to allow access from the service station's exit ramp to the road.

The Olde Tudor Hotel was one of several notable Tasmanian hotels to be purchased in 2019 by Pentagon Group.

The Olde Tudor Hotel, Bayside Inn at St Helens and Lauderdale's The Foreshore were collectively bought out in a $35 million deal spearheaded by the Melbourne property development and investment firm.

The development application will remain open for public comment until February 21.