Hurley Hotel Group’s plans to build a $35m hotel on part of the former TAFE site in Panorama have been given the green light by the local council.

Mitcham Council approved the project at a council meeting on Thursday night, and the first stages of construction are expected to start later this year.

The first stage of the project, on Goodwood Rd, will comprise of a Hurley Cellars/Sip’n Save bottle shop, with a separate tasting room designed for small masterclasses and tastings.

A five-storey hotel will be built as part of a second stage, offering 77 rooms over three levels, including 26 serviced apartments, and a rooftop bar with function spaces on the fifth level.

The ground floor will include a casual cafe and bar and restaurant, gaming room and sports bar.

The entire project is expected to take about two years to build, creating 80 jobs during construction and 150 ongoing hospitality and tourism jobs.

Hurley Hotel Group general manager Sam McInnes said the hotel would attract a wide range of tourists to the area, and support visitors to the nearby Flinders Hospital, Repat Health Precinct, Flinders University, Tonsley Innovation District and South Australian Aquatic and Leisure Centre.

“We are aware of the acute need for accommodation in this area and the importance of catering to visitors to key educational, healthcare and sporting facilities in this vibrant part of Adelaide,” he said.

“We are thrilled to have approval and commence construction.”

Hurley Hotel Group’s development will replace its nearby venue, the Tonsley Hotel, which is being acquired by the state government as part of the North-South Corridor project.

The Panorama hotel takes up most of the space set aside for commercial development under a master plan for the former TAFE site drawn up by local developer Landmark Homes and Properties last year.

There are plans for an X-Convenience petrol station, car wash and PETstock outlet, immediately to the north of the proposed hotel, and Landmark is also hoping to build apartments and more than 60 townhouses on the eastern half of the 3.4ha site.

Cox Architecture has designed the hotel, while local firm Evo Arc has designed the bottle shop.

The Hurley Hotel Group is one of South Australia’s largest family-owned hotel groups, operating nine venues across the state including the Arkaba Hotel, Marion Hotel, Tonsley Hotel and Kensington Hotel.