The new development, which would be located at 42 Vulcan Street, aims to "ease the housing crisis and improve tourism in Moruya".

Mr Dolphin said the proposed tourism accommodation would front Church Street and be a "boutique tourist accommodation provision".

"The internal layout provides for five self-contained serviced apartments, including provision for an accessible room," he said.

"There is also a reception and cafe area.

"The development seeks to address the need for short-term accommodation for tourists, professionals, and trades people visiting the area.

"With the construction of the new bypass and hospital there will be an even greater pressure on our existing accommodation facilities."

The motel would be just metres away from the Adelaide Hotel, and Mr Dolphin said its central location in Moruya was a "sustainable choice".

"Patrons can walk to nearby shops and cafes, and this will have the knock-on benefit of supporting local business and expanding the evening economy," he said.

The new hotel has elements of design similar to the Bay Pavilions while keeping the character of the Moruya main street.

"We have a rich mix of architecture in the centre of Moruya," Mr Dolphin said.

"There is a large mid-century feel - the Art Deco curves of the Air Raid Tavern - as well as 19^th century influences such as the balcony of the newsagents.

"This design reflects all these influences. The use of timber look battening to the upper floor is a nod to our heritage, but is also similar in style to the award-winning Bay Pavilions, and can really be considered to be part of a local modern vernacular design style which celebrates our Shire."