A prime slice of inner-Brisbane has sold for $6.27 million and could soon house a "five and a half star" boutique hotel.
Kenlynn Projects intends to develop the Lawrence Hotel on the site currently occupied by Jucy Campervan Rentals on the corner of Ann and Chester streets in Fortitude Valley.
Kenlynn Projects chairman Peter Flynn said a boutique hotel was well suited to the "vibrant commercial hub" of Fortitude Valley.
"We chose the Valley because it is the gateway to Brisbane, close to the entertainment district, yet is a three minute drive to the CBD, where a site of this exposure would have cost three times the price," he said.
If it is approved the hotel will stand directly opposite the existing Emporium Hotel and its adjacent retail and dining hub.
Mr Flynn hopes construction will begin in the first quarter of 2014.
The hotel, featuring about 150 rooms, including 16 suites, will arguably be Brisbane's best quality hotel, according to Mr Flynn.
"It will be five and a half star," he said.
Mr Flynn's family-run company developed the Novotel Brisbane Airport and has previously built apartments in Kelvin Grove, Teneriffe and Banyo.
The Marriott Brisbane, which opened 15 years ago, was the last major five-star hotel developed in Brisbane.
Queensland Tourism Industry Council chief executive Daniel Gschwind said a new luxury hotel would be very welcome.
"The industry has been calling for new accommodation infrastructure for Brisbane for some time now," Mr Gschwind said.
He said the city did not have enough luxury hotels for travellers attending events and conferences in particular.
"It's been identified as one of the areas where we lack ... we do need some additional stock in that bracket," he said.