The food and beverage offering at Hargreaves Mall's planned Mantra Hotel was a lynchpin of the $14.4 million project, its owner said.
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Hotel owner Dale Bainbridge outlined his hospitality vision when he met with council's planning department this week.
"We want to deliver something for everyone in Bendigo to enjoy," Mr Bainbridge said.
Activating an area of the Mall with lights and greenery would help draw people to the location, Mr Bainbridge said.
"Council is keen to see the spirit in the Mall grow and we want to provide something people would expect to see in a big capital city."
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The decor, theme and cuisine offering remains under consideration, but Mr Bainbridge said the venue would offer all-day dining.
"It will feature food that can be eaten at any time of the day and act as a meeting place for a beer, wine or a cup of coffee," he said.
The 4.5-star, 110-room hotel received planning approval from council in July.
In addition to accommodation, the venue would include function room facilities, a restaurant and cafe.
A traffic engineering assessment undertaken in March estimated the hotel would create demand for 101 car parks during the evening and 34 car parks during the day.
The hotel's application included no provision for its own car park.
"Any hotel in a mall around the world won't have car parking underneath and it's not uncommon to see parking up the road from where a property is located," Mr Bainbridge said.
Hotel guests would likely park their vehicles in one of the CBD's existing multi-storey car parks, including the Edwards Street car park.
The developer, Bendigo Hotel Investments, will also be required to make a monetary contribution towards future parking facilities in the city centre.
In March, council's parking strategy coordinator Jock Schofield said council would work with the hotel to ensure a car parking arrangement that met the needs of its users.
A lack of quality accommodation in the CBD attracted Mr Bainbridge to invest in Bendigo.
"It's very rare to have a town as big as Bendigo, with not much accommodation in the centre of town, so there was a definite gap there."
Current and planned developments in the CBD, including the Bendigo GovHub, Bendigo Law Courts and the Beehive Building cemented the choice of location, Mr Bainbridge said.
"You can walk anywhere from the hotel location and visit tourist attractions and I think it will help increase business in the area," he said.
Bendigo has become hotspot for hotel developments in recent months, with Mr Bainbridge and Bendigo Hotel Investments' project not the only hotel in the works.
In early September, Spring Developments submitted an amended planning application to council for a 200-room hotel on Mollison Street, with public advertising and community consultation to follow.
The hotel hopes to feature function and event spaces, pool, spa, wine bar, a cafe and restaurant.
Amber Property Group also lodged a planning application for a 108-room hotel at the intersection of Williamson and Mollison streets in May.
Construction of Bendigo's Mantra Hotel is set to begin in early 2021.
The developers hope that it can open in 2022.