Business groups have welcomed a proposal for a new hotel on Boland Street.
A development application has now been lodged with City of Launceston Council for the 130-bed facility which would include a restaurant, courtyard, gym and 17-space carpark.
"I'd like to think it will [be approved]. There's obviously a lot happening down there around Inveresk. It's a support to the Albert Hall refurbishment. So I'd like to see it," Launceston Chamber of Commerce Executive Officer David Peach said.
The Tasmanian Hospitality Assocation has also expressed support for the project, which is still subject to planning approval.
The six storey building is slated to be 23.7 metres high but the site only has a permit for a 17.65 metres, meaning the proponent will need an additional permit.
Two Gregorian heritage cottages were demolished in 2018 after falling into a state of disrepair, leaving the site vacated.
"Hotels are great. They create so many economic inputs. During the construction phase you've got all the engineering types doing drawing and planning. Then you've got construction. Then you've got incredible demand for fit-outs. If there's 135 rooms, there's 135 beds, 135 TVs, 135 showers. Lots of carpets, furnishings. And then when they open, they employ people," Mr Peach said.