Conditional planning approval has been granted for a four-storey hotel at the former Banner hardware premises in Mount Gambier.


The 82-bed facility will be built on the former car park fronting Sturt Street.


The Limestone Coast Southern Regional Assessment Panel considered the proposal at its meeting in Mount Gambier on Thursday. The plans were lodged by Beachport-based firm Frank Brennan Consulting Services.


Mr Brennan addressed the panel and the members also considered a written staff report of more than 100 pages.


The planning documents were lodged last November and public comment was invited.


They indicate there will be no bar or restaurant facilities.


There will a mixture of studio, one-bedroom and two-bedroom apartments as well as a gymnasium, alfresco barbecue area, 65 car parks and conference facilities.


As part of the proposed development, some ancillary structures will need to be demolished and provision made for car parking and landscaping.


The masterplan for the site includes eight town houses facing Heriot Street as well as three other buildings.


The site is heritage-listed as some external walls of dolomite stone date back to its construction as a flour mill in 1882.


However, the hotel is located well away from the heritage structure.