An application to transform the undeveloped portion of the former Royal Newcastle Hospital site into a 100-room hotel and 150 new apartments has been lodged with Newcastle City Council.
Developer Keith Stronach confirmed yesterday he was planning a 15-storey tower, including a seven-floor hotel and eight levels of apartments, and a separate eight-storey residential building.
Both buildings would have underground car parking.
The new development would complete the landmark beachfront site bought by the the Mirvac Group in 2007.
Mirvac sold the undeveloped stages, including the adjoining David Maddison Building, to a consortium led by Stronach Property earlier this year.
The site has an existing development application for an 18-storey tower, but Mr Stronach said his plans would improve on the design from the initial Royal site masterplan.
"It will look really good," he said.
The main building will have a foyer, restaurant, bar, and function area offering views to Newcastle beach.
The apartments offered would be a mix of one- and two-bedroom.
"Off-the-plan" buyers will be given the option to combine two apartments to create a three-bedroom apartment with a media room.
The application was lodged last month but has only recently been placed on public exhibition, after the council's urban design consultative group requested additional information about the plans.
Mr Stronach said he hoped to begin construction in early 2013.
Newcastle City Council approved a revamp of the David Maddison Building earlier this month. It will be used mostly for A-grade office space.