Brecon Street Partnership Ltd applied for land use consent for the development, which would also contain 12 ground-floor commercial tenancies, mooted for land on which an outdoor mini golf course is at present, beside the Queenstown cemetery.
The company initially applied for consent last year for a larger development, which would have resulted in 468 rooms in the buildings each up to nine storeys high - or 27.7m.
The new application proposed a reduced scale and maximum building heights of up to seven storeys, or between about 19.8m and 23m.
The three-star and five-star hotel would have a central piazza with pedestrian access from two laneways from Brecon St, and one each from Lakeview Lane and the Lakeview Holiday Park.
A basement car park would have capacity for 73 spaces, including four mobility parks, and internal access to the buildings - access to the car park would be from a realigned Cemetery Rd, which involved a land swap with the Queenstown Lakes District Council.
Nine submissions on the plan were received and only the Queenstown Childcare Centre, which operates the Queenstown Preschool & Nursery opposite the site, was against it.
The centre, a community activity under the district plan, was established about 1995 and held a license for 70 children - 20 of those were babies, some only three months old.
Centre manager Joanna Gibson said they were concerned the Brecon St application contained no assessment of the potential effects of the hotel on the centre, including traffic, parking, vibration and noise effects.
"We are concerned that these effects may impact our children's wellbeing, health and safety, parents' and emergency services' ability to readily access the centre, and the centre's ability to continue to operate efficiently and effectively."
Children had naps during the day and the centre regularly used a large outdoor area for play and teaching.
"The noise effects, particularly construction noise, have the potential to have significant adverse effects on [the centre in] this regard."
The application did not propose any mitigation of noise effects, despite a construction period "for up to 24 months", Ms Gibson's submission said.
Other submitters, all in support of the proposal, included iFLY Indoor Skydiving Ltd, the Queenstown and District Historical Society, Skyline Enterprises and Ziptrek Ecotours.
