The deluxe hotel in the empty Thomas Jewellers building could bring tourists willing to spend $4.8 million at nearby businesses each year, an application to the City of Greater Bendigo's planning department states.

The hotel would boast 110 rooms, a restaurant for up to 100 patrons and a function area. It would also employ 57 staff members.

But the proposal does not include any new car parks.

Applicants Bendigo Hotel Investments use a traffic study they commissioned to argue there is enough on-street parking in the area to meet demand.

The hotel would also rely on pick up/drop off parking in Mitchell Lane, bicycle parking in the Mall and proximity to the train station and the airport, traffic engineers who did the survey said.

"The guests would likely be transferred to the hotel by bus/taxi," they said.

"We also understand that the hotel operator anticipates that some guests will arrive as part of tour groups travelling via coaches, smaller buses, mini-vans, etc."

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The heritage-listed site would need to be altered.

It was once part of the Beehive Building but a heritage assessment lodged with the planning application notes it is arguably not as historically significant as other parts of the complex.

It was build later than the Pall Mall side of the Beehive and is "arguably of less historical importance than the original 1872 building", the assessment noted.

"In Hargreaves Street little remains of the 19th century storefronts and varandas," it added.

If council approves the plan parts of the site will need to be demolished. However, they are of "limited cultural heritage significance", according to the heritage assessment.

A heritage-listed brick wall in Mitchell Lane would remain standing.

The finished six storey hotel would overshadow the Mall during the winter solstice, which could breach a strict interpretation of planning rules.

BHI urged the council to weigh that against the prospect of an "enhanced Hargreaves Mall, less vacancies and improved vibrancy".

The hotel would cost an estimated $14.4 million to build, BHI said.