The flourishing Victorian city of Geelong is set to welcome its biggest new hotel in almost 20 years.

The $150 million development is barrelling toward a 2020 opening, having been approved by the state’s Department of Environment and Planning.

Just a few minutes’ drive from the Geelong foreshore, the site at 44 Ryrie street combines a 180-bed hotel, with ten levels of office space, 24 apartments and retail space.

Geelong is set to receive its biggest hotel in two decades. Picture: 9NEWS (9NEWS)

The space, which includes a hotel and retail area, is due to open in 2020. Picture: Supplied (9NEWS)

The development has a $150 million price tag. Picture: Supplied (9NEWS)

Paul Franzé, Founder and Managing Director of Franzé Developments, told 9NEWS it’s “a coup for the city of Geelong.”

“Our vision for the Ryrie Street site is to deliver a truly mixed-use project that responds to the Central Geelong Action Plan which will see Geelong evolve from its manufacturing roots to a city of culture and innovation,” he said.

“Geelong is now one of Australia’s fastest growing regional cities, with population expected to grow by more than 150,000 people in the next 20 years, and the urban environment and amenity needs to respond accordingly.”

Inspired by the design of Geelong's old wools stores, the precinct is positioned across from the $38 million dollar redevelopment of Geelong's Arts Centre.

Matthew Smith of Architectus, who designed the towers, said, “The project stiches seamlessly into the adjacent cultural precinct and builds on the investment in the area to become a gateway to Geelong's city centre.”

The four-and-a-half star hotel, which will be known as the Holiday Inn and Suites Geelong, will be run by InterContinental Hotels.

Geelong's population is booming. Picture: 9NEWS (9NEWS)

Construction on the project is expected to begin later this year. Picture: Supplied. (9NEWS)

Local tourism operators believe its arrival will be critical to enticing day trippers to stay overnight.

Roger Grant of Tourism Geelong said the Geelong’s hotel industry is about “1800 beds below where it needs to be.”

Demolition is already underway, with construction to start later this year.