A Sheraton hotel is set to become an important part of the redevelopment of the vacant Le Cornu site in North Adelaide.

The long-running saga involving the vacant land looks to be nearing an end with the Starwood Hotels and Resorts, the company that operates Sheraton hotels, announcing plans to build its first local hotel as part of a mixed-use development by the Makris Group.

The O'Connell Street site has been empty for more than 25 years, with several proposals put up without going ahead.

The land has been vacant for 25 years and was once occupied by furniture business Le Cornu.

The site's owner Con Makris said the global financial crisis was to blame for a previous proposal not going ahead.

"Now there's no question because now we've got the Sheraton, we've got the biggest hotel group in the world, that's why I'm so excited and I'm so happy," he said.

Late last year the Makris Group unveiled plans worth about $200 million to makeover the area which included a hotel, apartments, office space, retail area and car parking.

The Sheraton is slated to open in mid-2019.

The plans include 160 guest rooms, dining venues, and a range of facilities for guests.

The project is expected to create 400 construction jobs and another 100 jobs when the hotel opens.

Makris Group chief executive John Blunt said the Sheraton was a standout among nine other international hotels bidding for the contract.

Business SA chief executive Nigel McBride said the Sheraton Adelaide announcement was a boost for the local economy.

"This is great news," Mr McBride said.

"It really is another reflection that Adelaide's being seen as a vibrant global, boutique city, another reflection that people are investing in our Adelaide's future and South Australia's future, really good news for you know the amenity of the economy of the North Adelaide precinct."

Adelaide City councillor Anne Moran said she was not convinced the project would go ahead because previous projects on the site had failed.

An artist's impression of the Sheraton hotel planned for North Adelaide. ( Supplied )

She said the fact construction was not scheduled to start on the project until late next year left her concerned.

"I think that North Adelaide will be cautiously optimistic but not convinced that it will happen," Ms Moran said.

"I'm still puzzled why the first sod will be turned at the end of the next year. That seems like a very long lead time."

Ms Moran said it would be a case of "enough is enough" if this project fell through as well.

"If there isn't the first sod turned over next year I think the Government should compulsory acquire it [the site]," she said.

But David Johnson from the North Adelaide Precinct Association said he was confident the project would be delivered.

"The fact that it's locked in gives me enormous confidence," he said.

"Up until now I thought the whole site was up for sale with the development approvals but obviously development will happen now that Sheraton have committed to the hotel."

Adelaide Casino plans with commissioner

Meanwhile, SkyCity announced it had lodged exterior design plans for the proposed $300 million expansion of the Adelaide Casino.

Chief executive Nigel Morrison said the company was finalising the design for the casino's expansion and some plans had been lodged with the Development Assessment Commissioner.

The proposal includes an 80-room luxury hotel overlooking the Torrens River, restaurants and premium gaming areas.

The company said the timing of the project would be dependent on the finalisation of the site lease with the State Government and its plans for the Riverbank Precinct.

"This development will help transform Station Road into a true entertainment precinct and SkyCity's investment will create much needed jobs and economic growth for South Australia," Mr Morrison said.