Community consultation on the nine-storey building proposed for Northbourne Avenue took place in August, ahead of JWLand's development application submission.

The hotel is the fourth stage in the Lyneham precinct, which will also include three residential apartment blocks once complete.

JWLand purchased the entire 25,000-square-metre site from the ACT government in 2017 for $45 million.

The block is home to a series of former public housing buildings, including Owen Flats which have been restored and sold as residential units.

JWLand head of development Michael Prendergast said the fourth stage was always intended to be commercial accommodation.

He said the size of the land, the storm water infrastructure that runs beneath it and a large, heritage-registered tree on the site made it unsuitable for residential.

"Those constraints lend itself to not being a residential building because we're unable to get any car parking underneath," Mr Prendergast said.

The hotel will include entry from Northbourne Avenue and some commercial space on the ground level, earmarked for restaurants and cafes.

The developer has been in talks with some well-known national providers to possibly run the commercial accommodation, however a deal has not yet been struck.

"Our model provides flexibility - if it's something that we need to run ourself, we can set a team up and do it," Mr Prendergast said.

"But we have already had people approach us and we have spoken to a few providers in relation to that site and the proposal."

Stage one of Northbourne Village, the 172-apartment Embark development, was completed in 2020.

Stage two, The Sullivan, is currently under construction and is expected to be ready around July 2023.

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Once complete, it will include 176 units including seven studio apartments located in the heritage Bachelor Flats former public housing building.

Currently awaiting development approval, stage three is proposed to include more than 300 residential apartments in two multi-level buildings.

North Canberra Community Council chairperson Jochen Zeil said he had concerns about the overall lack of social or supportive housing in the precinct.

He said the lack of underground parking in the commercial accommodation block was also a concern.

"As with all such major developments, NCCC is frustrated to be confronted with one solution, rather than with alternatives as they would be generated by proper architectural design competitions," Mr Zeil said.

JWLand is also developing a 602-unit complex in Braddon, located between Northbourne Avenue and Henty Street.

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