Independent commissioners have approved resource consents to build the five-star, 130-room hotel and carry out preparatory earthworks on a vacant site in Thompson St.
The seven-storey building is being developed by Singapore-based Well Smart Investment Holding, which bought the 5145sqm site in 2016.
It lodged resource consent applications for the as yet unnamed hotel - which will have two restaurants and a bar - the following year.
During last month's resource consent hearing, Well Smart director Jack Jia said it would be a ''luxury'' hotel with room charges of more than $500 a night.
The site is on the opposite side of Thompson St from two hotels owned by Event Hotels (NZ) - QT Queenstown and Rydges Lakeland Resort.
Event Hotels and the owners of a neighbouring property at 7 Glasgow St made submissions last year opposing the development.
Event Hotels did not withdraw its submission but accepted a revised set of conditions for both applications after discussions with Well Smart. The owners of 7 Glasgow St gave written approval before the hearing.
At the hearing, Well Smart's lawyer, James Gardner-Hopkins, asked independent commissioners Jan Caunter and Lee Beattie to give separate decisions on the two applications.
He argued that would allow earthworks to get under way even if Well Smart decided to appeal conditions imposed by the council on the hotel consent.
The commissioners said the earthworks and hotel consents were '' inextricably linked'' and should be decided together.
Conditions of consent include an approved construction noise and vibration management plan.
