The Gorge Hotel has had several setbacks but will soon face the Launceston Planning Authority with the development application being put on public notice late August.

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The nine-storey hotel will reside on 123 Paterson Street, as well as along Brisbane Street, with developers calling it "an opportunity for Launceston to showcase a state of the art development which builds upon the city's growing reputation for being a key tourist attraction."

The Gorge Hotel was proposed and approved by City of Launceston council back in 2019 but that decision was overturned on tribunal on grounds brought by neighbours.

The refusal by the Resource Management and Planning Appeal Tribunal was on the grounds the planned hotel exceeded acceptable height limits for the surrounding area.

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This was addressed by Tasmanian Planning Authority in March 2022, which did not consider the visual impact will be out of character with other tall buildings as they are dispersed in the wider city area and the development of a significant visitor accommodation use on the site, will support the economic and tourism objectives for the City of Launceston and the region, without compromising the built heritage of the city.

The hotel will boast 145 suites, multiple bars, function/conference room and a 154 multi-storey car park.

The hotel will feature two main components, a "podium" which will stand at 12.4 metres tall and the tower which will stand at 39 metres.

The latest planning report by Commercial Project Delivery report stated The Silo Hotel which is of similar height was an "excellent example of the difference that the ultimate finish and colour of a building can make to how perceptible it is within the landscape."

The building facade for The Gorge Hotel was designed to reflect the natural beauty of the location, there will be a tessellated glass facade on the tower to reflect the rippling water and rock like features to reflect the cliff faces in the Cataract Gorge.

Recent figures from the Tasmanian Government found hotel occupancy rates in North Tasmania for April 2022 was 88 per cent.

However, in the July occupancy report from Tasmanian Hospitality Association, the number of rooms booked dropped below 70 per cent mid-winter.

In a report by BDA Marketing Planning from 2017, it was found there was strong demand for four to five star hotels in Launceston. Developers are hoping to attract international standard operators for the Gorge Hotel.

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THA chief officer Steve Old said the hotel would be a welcomes new establishment in Tasmania.

"Like any major development there will be rigorous markers which need to be adhered to through the planning process, but we firmly believe the JAC Group has the runs on the board and the best intentions for the region," he said.

"With the title of Australia's best town from travel website Wotif in February, and one of just 49 cities worldwide named as a designated UNESCO Creative City of Gastronomy, Launceston continues to grow as a tourist hotspot and with that requires quality infrastructure to encourage people to spend more time in the city.

"If this development is approved, it will only help elevate the standing of Tasmania's accommodation offerings on both the national and international stage, much like hotels like the Tasman and MACq01 have done in Hobart."

The proposed development could generate up to 930 vehicle trips per day, the report found the additional car movements would not result in any safety issues or impact the efficiency of the road.

The second stage of the development would include the demolition of a service station on Paterson street near the traffic lights, which would decrease traffic.

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One of the concerns raised by representatives in the previous application was regarding the character of the surrounding areas.

In the planning report, a streetscape analysis has found the character "eclectic" without a single style or pattern.

Other concerns included natural hazards, scale and site suitability, precedent setting, amenity to surrounding areas, visual impact on Cataract Gorge entrance and West Launceston, and inconsistency with the Land Use Strategy and Launceston Strategic Plan.

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