Brady Property Group is proposing to build the apartment tower on the site adjacent to the Queen Victoria Market car park. The hotel, which is reported to be more than 150 years old, was bought by Brady after a hotly contested auction last year.
Brady paid $11.8 million for the 1030-square metre site, against a reserve of $6.5 million.
Nearby, rival builder Grocon is proposing a major residential-based redevelopment of the former Carlton & United Brewery site on the corner of Swanston and Victoria streets. Grocon bought the 1.6-hectare site from RMIT University in 2006 for $39 million.
Post script: this project was approved by council, and will proceed.