St. John's city council has given its approval in principle for a six-storey hotel that will be built off Kenmount Road and surrounded by an off ramp of the Team Gushue Highway.
The proposal for the Sandman Signature Hotel comes in at 10 metres higher than council's ordinary regulations, although councillors voted to make an exception for the plan.
The plan would see the hotel be built near an existing Tim Hortons franchise.
It would include 200 rooms, two restaurants, a banquet room and parking for 360 vehicles. The developers also plan to later build a separate, free-standing restaurant on the premises.
"This is an excellent project," said Coun. Sandy Hickman, who added that his only concern is that the hotel would effectively be circled by the Team Gushue ramp.
The Newfoundland and Labrador government will need to sign off on the proposal.
If approved, it will become the largest hotel in that area of St. John's, and the fourth largest in the city, behind the Sheraton, Delta and Holiday Inn.
Construction could begin as early as this spring.
The Vancouver-based Sandman Hotel Group owns properties across the country, although this would be the first hotel in its network to be built in Atlantic Canada.