MOTEL owners fear a hit to bookings from 417 new hotel rooms approved for Bendigo's centre within the past 12 months.
But Bendigo's tourism board has welcomed the move, saying it will bring a new demographic of visitors to the city.
Three major hotel proposed for Bendigo's centre have received planning permission since July 2020.
Together they will add 417 hotel rooms to the city's accommodation offerings, if all builds proceed as planned.
Bendigo Tourism board chair Finn Vedelsby said the hotels' star rating meant they would be a huge drawcard for a different demographic of tourists, such as corporate clients running high end conferences.
Greater Bendigo's City Centre Plan, adopted in 2020, identified that large scale conference facilities, and hotel accommodation were missing from tourism offerings.
Mr Vedelsby said 417 rooms would create more competition for existing accommodation providers, but the hotels' star rating meant they were aimed at a demographic unserved by most current offerings.
He believed the spate of developers keen to build hotels was testament to Bendigo's upward trajectory.
But Bendigo Motels Association vice president Brent Curran said the volume of new rooms would hit occupancy levels, making it harder for existing accommodation to run viably.
He said the city was booked out during big events, but these only came a few times a year.
Mr Curran said if all three hotels went ahead, they would compete heavily against each other on price while new, affecting all accommodation providers.
He said the motel association had 26 properties, with 768 rooms between them, so an extra 400 rooms would make a massive difference to occupancy levels.
Mr Curran said he hoped the council would help existing operaters by continuing to promote Bendigo well, attracting attract events, shows and tourists.
Mantra in Hargreaves Mall was the first major city centre hotel approved in Bendigo's centre, on the site of the former Thomas Jewellers store in Hargreaves Mall.
As proposed, the 4.5 star hotel contains 110 rooms over six stories, with a restaurant, cafe and function facilities.
In April council approved a six-storey, 105-room hotel, next to the former Bush's Produce Store on Williamson Street, proposed by Amber Property Group. As planned it would have a restaurant, bar and function centre.
The site was last occupied by a Kebab vendor.
On Monday council approved another hotel proposal, directly opposite. The 202-room venue is planned for the block between Williamson, Mollison and McLaren streets.
Mr Vedelsby said he expected the hotels to make Bendigo an even more vibrant city to visit.
"Adding these 400 odd rooms to the CBD within just a few walking blocks will add a dynamic injection to the activities that happen in the city." Mr Vedelsby said.
"It'll bring whole new demographics and vibe to the city centre."
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