How the proposed new hotel will look in Perth's CBD.

How the proposed new hotel will look in Perth's CBD.

FESA's former head office is to make way for a new hotel aimed at easing the accommodation squeeze in the CBD.

Tourism minister Liza Harvey said a 350-room, five-star hotel will be built on the Hay Street site where FESA House currently stands.

"The hotel will deliver a massive boost for tourism, providing much-needed rooms in Perth's CBD for leisure and corporate visitors to Western Australia," Mrs Harvey said.

How the proposed new hotel will look in Perth's CBD.

How the proposed new hotel will look in Perth's CBD.

Mrs Harvey said the hotel, which will be built by BGC and opened under the Starwood Group's Westin brand, was the first in Perth to be developed under the state government's new incentive policy for hotels.

Perth has the highest hotel occupancy rate in the country, at 83 per cent.

The mixed-use development will also feature shops and more than 30,000 square metres of office space, and is set to open in 2017.

The five-star hotel will be built on the Hay Street.

The five-star hotel will be built on the Hay Street.

FESA House was left empty when the rebranded Department of Fire and Emergency Services moved into its Cockburn headquarters last year.

The imposing brutalist building was considered for state heritage listing, but was deemed to be below the threshold for preservation.

Its demise will sadden fans of the much-maligned brutalist style, which features towering expanses of stark, raw concrete.

FESA House has been previously described as the best-preserved example of the style in Perth.