The Launceston City Council has approved the $16 million Silo Hotel project by developer Errol Stewart.
The 79-room hotel with a café, restaurant, bar and lounge area, gym, two meeting rooms and underground car park, trade show space and a pleasure boat cruise pontoon has been granted the go ahead after years of negotiation.
Mr Stewart first revealed his plans for the disused silos in early 2013 for a $10 million 64-room hotel.
Work on the project is expected to start early next year.