The conditions include a revised noise management plan being approved.

The $70 million project, being developed by Rod Batkovic of the Capital Hotel Group, will be built on the site of the old the old Italo-Australian Club, on the corner of Dominion Circuit and Franklin Street in the leafy, inner-south suburb.

The proposal comprises a 227-room hotel, restaurant, pool, bar and lounge, function room, gym, health spa, hairdressers and three basement levels of parking, with "no reliance on off-site parking".

ACTPLA, within the Environment and Planning Directorate, said the development was approved because it met the relevant codes including the Commercial Zones Development Code, despite the code allowing for buildings only up to two storeys.

ACTPLA said the hotel did, however, comply with the code in that it was consistent with desired commercial buildings in the area.

While local residents have previously protested against the proposed height of the hotel, ACTPLA said it was "compatible with other developments in the area" such as the four-storey Department of Human Services' Doris Blackburn building across the road.

The curved shape of the building and setbacks also "soften the impact of the building".

Mr Batkovic was contacted for comment but declined until he had examined fully the development approval.

The conditions of approval include the lodgement and approval to the Environment Protection Authority of an amended noise management plan with the current plan's internal noise generation levels used for a worse case scenario actually too low for live music and in need of revision.

The developer has to also engage an approved landscape architect or arborist to supervise all work within the tree protection zone.

More information had to be submitted regarding the impact on local traffic, including from "large daytime conferences" in the proposed function facility.

The Capital Hotel Group also owns and operates the Avenue Hotel, Aria Hotel, and Pavilion on Northbourne.