Kelso Investments Ltd, directed by Queenstown resident Lewis Gdanitz, has applied for non-complying consent to construct the hotel, which would also include a reception, function area and laundry, on the 486sq m site.
It was also intended the premises would hold liquor licences.
It is the third resource consent application lodged for the site in eight years.
The application said consent was granted for a four-storeyed building in February 1997, to be used for commercial premises, with two top-floor resident flats.
However, consent expired.
"Its significance lies in the fact that this building was approved after the hearings panel reached the view that this building would fit into the likely future appearance of this area."
A second application, for a 41 twin-bedroomed visitor accommodation, was later lodged, but had been "on hold" since 2006, pending further information.
"While neither of these consents can be described as being part of a consented environment, they are illustrative of a view of this form of development in this location," the application said.
"With the future maturing of the district plan that view seems all the more relevant and appropriate. The current application is an iteration of those earlier proposals to provide good-quality residential, commercial or visitor accommodation, consistent with the area's zoning."
There were "no possible alternative locations or methods for undertaking such an activity" and all required regulatory measures would be covered by a building consent application, subsequent approved conditions and "by diligent and experienced professional contractors".
"The owner company's principal, Mr Gdanitz, is a long-term highly-skilled registered master builder ... resident of Queenstown, determined to achieve a high-quality, long-term family investment building project."
The site is being used for tenanted residential accommodation.
The development represented a "modest mid-range cost form", which provided high-level amenity through "innovative facilities and design".
"The visitor accommodation will address a segment of the market which seeks high-quality modern facilities including leading-edge technology and other innovations,. while being seen to offer value for money through competitive prices."
However, due to the development environment and uncertainty about future development in the area Kelso Investments was seeking an extended period for construction.
"Considerable uncertainty around the future development of neighbouring sites includes council sites proposed for a performing arts centre; future design and construction of Henry St as an arterial bypass; development of neighbouring sites in the town centre zone; the giving effect to new subzones in the high density residential zone.
"Time and a co-operative environment may well allow all of the owners in this area to achieve better outcomes for the community than operating in isolation against time deadlines.
"For this reason, the applicant seeks a 10-year term in which to give effect to this consent."
The applicant also sought the consent be granted non-notified.
