Plans have been lodged for a four storey hotel at the former Banner hardware premises in Mount Gambier.
Planning documents were lodged on Thursday and indicate there will be no bar or restaurant facilities.
The proposed hotel will be located on the south eastern corner of the intersection of Sturt Street, Bay Road and Helen Street.
Mac’s Hotel, Christ Church Anglican Church and the RSL are nearby.
As part of the proposed development, some ancillary structures will need to be demolished and provision made for car parking and landscaping.
The plans were lodged by Beachport-based firm Frank Brennan Consulting Services.
The site is heritage-listed as some external walls of dolomite stone date back to its construction as a flour mill in 1882.
The public consultation process commences tomorrow (Wednesday).