The KPAT project is on a site on the corner of Brisbane Road and First Avenue and will have a 180-room 4.5 star hotel as well as a conference centre and entertainment facilities including four restaurants and a roof-top bar.

Plans were lodged for the project two years ago but the overhaul of the site has been long anticipated by retailers in the area. The site is currently a car park.

Councillor Joe Natoli said the project would be transformational for Mooloolaba.

“This new 4.5-star hotel is a key initiative that will help revitalise Mooloolaba and help cater for the growing number of visitors to our region, as well as providing experiences for local residents,’’ Natoli said.

“As with all major projects, there will be adjustments including a temporary council outdoor car park fronting Brisbane Road and First Avenue, which will need to be closed.

KPAT managing director Kenneth Wagner said his company was thrilled to be starting construction on the hotel in the coming weeks.

“We have been working towards this project for a number of years and between ourselves, Minor Hotels and Sunshine Coast Council we are looking forward to delivering a project of local significance for the Sunshine Coast,” Wagner said.

“We hope the AVANI brand and quality of hotel products will contribute and support an already thriving holiday destination in Mooloolaba, as well as offer the community something they can enjoy and be proud of.”

There has been another development application for a $200 million project from Aria to develop a site on the Esplanade.