The municipality has about 4500 registered beds but will need more of what it says is going to be a "critical component" of a successful Games.

The shortages appear unlikely to be solved if multiple hotels proposed for the city centre aren't finished fast enough, a developer says.

Peter Irons and his team researched Bendigo's market in detail before it lodged plans for one of two Mollison Street hotels, giving him a unique perspective on demand across the city.

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"We are just hoping to have ours ready in time," he said.

"That three or four years until the Games starts will go very quickly. It's very exciting that the Games are coming but, like in Ballarat and Geelong, there are issues that will need to be dealt with."

Shadow sports minister Cindy McLeish also had questions about accommodation as talks between the council and organisers continued.

"Yes, it's pretty easy to travel an hour when you are in the bush but there are going to be people who want to stay and enjoy Bendigo, because it's a great city," she said.

The council agreed the hotels proposed for Bendigo were unlikely to prevent Games shortages, Commonwealth Games director Andrew Cooney said.

"We are keen to see construction underway soon, but a variety of accommodation options will be needed," he said.

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The council wants to talk with the state government about more train services to nearby towns like Kyneton, Castlemaine, Echuca and Kerang, Mr Cooney said.

It also wants to explore how the city's bus services might help.

Mr Cooney said spreading hosting duties between Bendigo, Ballarat, Geelong and Gippsland would lighten the accommodation load.

"People will also have the option of staying in Melbourne if they are looking to get to different regional cities for different sports," he said.

Still, the council and the government are keen to hear from anyone with ideas to come forward so that they can plan out developments, and the latter has launched an expressions of interest process.

In the meantime, plans progress on a number of the proposed city centre hotels.

Mr Irons said the council was yet to sign off on his hotel's plans but positive discussions continued.

"We've made some minor amendments we've had to go back with," he said.

"We are waiting for town planning to come back to us."

Assuming the plans get approved, there will still be plenty of decisions for developers to make and other opportunities for the hotel, Mr Irons said.

"From our point of view, the Commonwealth Games will be fantastic for the two weeks it is on, but we are planning for 52 weeks every year," he said.

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