A plan to build a 17-storey apartment tower on Lygon Street has attracted 50 objections from local residents and business owners concerned it will set a precedent for "massive overdevelopment" of the area.

Hospitality giant Zagame Corporation has lodged plans to demolish the four-storey Downtowner Hotel on the corner of Lygon and Queensberry streets in Carlton and replace it with the high rise tower.

An artist's impression of the proposed Zagame development on Lygon Street. Credit:Zagame Corporation.

If approved, the building comprising 218 one and two-bedroom apartments, ground-floor shops and cafes and a gym, will be the tallest on Carlton's famed Italian restaurant strip.

Many of the buildings in the immediate vicinity, including RMIT University, are no more than 10 storeys high.