Brisbane City Council has received a proposal to build a 32-storey hotel in the central business district addressing the city's lack of quality hotel rooms compared to Sydney.

The city only had 13,228 hotel and serviced apartments in March while Sydney had 32,892 rooms according to by PRP Valuers and Consultants report.

The project is still pending final approval from the neighborhood planning committee on Tuesday. "The Brisbane CBD has just one third of the number of quality hotel rooms that are available in Sydney, and this needs to be addressed if we're going to continue to attract quality business investment in this city," Brisbane's neighborhood planning chair Amanda Cooper told the Sydney Morning Herald. "This is a vital development for Brisbane's economy on both the jobs and tourism front and will help fill the gap to be left by the demise of the Royal on the Park."

The hotel will be situated at Mary Street in downtown Brisbane with 216 hotel rooms,15 serviced apartments in addition to 53 car parks distributed on three floors. This month, Queensland Tourism Industry Council CEO Daniel Gschwind told brisbanetimes.com.au that the the loss of the Royal on the Park indicated a larger problem in the city."We are actually in desperate need of CBD hotel rooms," he said.

Iconic inner-city luxury hotel, Royal on the Park, is set to be demolished to make way for Brisbane's first underground rail line, the Cross River Rail project.