The new hotel, located on Liberton Road, aims to revitalise the centre by repurposing a former car park and introducing a new pedestrian link that will improve access and encourage greater use of public transport. The project, designed by 3DReid, incorporates sustainability and street-level activation measures praised by the planning committee, which described the revised scheme as “a sustainable and well-designed development”.

Approval was granted on the condition that the design be revised to reduce overlooking of the neighbouring Dunedin School, an issue that the developer, Hunter REIM, has committed to addressing.

Andrew Moffat, managing director of Hunter REIM, welcomed the decision: “We’re obviously delighted that the proposals were approved. I’d like to thank the committee and the council for the quality of the very considered debate and the time taken to carefully consider all the issues. We’ll happily accept the condition to reduce the oversight of our neighbour Dunedin School and will continue to work in partnership with them and others to minimise any negative impacts during construction.”

He added: “This is a very clear vote of confidence in Cameron Toll and its future. These proposals represent the first step in a wider vision for the centre, which has a much brighter future because of today’s decision.”

Hunter REIM plans to launch a broader public consultation on the long-term future of Cameron Toll, working with local partners including Dunedin School.

Construction on the hotel is expected to begin in 2026, with completion targeted for 2027.