Devonport Council has revealed the winning developer for a $40 million waterfront hotel site in the city's CBD.
Devonport-based construction firm Fairbrother will finance and build the hotel, and appoint an operator.
The firm also has the option to develop a marina as part of the agreement.
The four-star hotel on the 3,500 square metre parcel of land will be made up of between 150 and 200 rooms.
Devonport Mayor Steve Martin said the decision to award the contract to a local firm was good news for regional employment.
"With the advent of the waterfront hotel, we are very much sure it will attract more tourists into our area to enjoy what the city has to offer and what the north-west coast has to offer … and it will have a ripple effect right throughout our region."
Council aims to reshape Devonport
The hotel is part of the council's Living City redevelopment of Devonport to a more service and tourism-based economy
Councillor Martin said the council had projected an extra $112 million a year and 800 full-time jobs would result from the Living City program from 2021.
He also said about 50 apprentices were already working on Living City projects.
Fairbrother is also developing a $25 million, multi-purpose civic building near the hotel site paid for by federal, state and local governments.
Mr Martin said it was not unusual to have one developer manage each aspect of the development, and on more than one site.
"It's one of the normal practises around the world ... and it depends on how many people are involved, and what companies want to be involved in."
Fairbrother CEO Craig Edmunds said the hotel would attract visitors.
"The link to the conference centre that is currently under construction will be a major drawcard for any potential hotel operators," he said.
Construction on the hotel site is set to start in 2019.
The $40 million in funding will come from private investment.
