A majority of Wagga councillors backed the need for central accommodation and providing foot traffic to CBD businesses over parking space numbers and delivery truck access concerns.

Prior to the start of debate the owner of the development application, Joel Berrigan, told councillors they would be "crazy to pass up" the hotel, which he said would cater to emerging customer bases.

Mr Berrigan said he had worked as a hotelier, including at Wagga's International Hotel, for six years.

"Car movements in the CBD are not an issue, as people are coming to my hotel as they don't want to hire a car, they are looking for location," he said.

"If you put people where they want to be, they will not move."

The 42-room building was designed to cater for up to 90 guests and would be located opposite the Union Club Hotel and bottle shop.

Mr Berrigan said the "number one complaint is lack of foot traffic" among traders in the CBD.

"Unless you put feet on the pavement of your main street, you are going to lose it," he said.

Council staff had recommended exemptions to the Development Control Plan (DCP) requirements for vehicles to enter and exit the site in a forwards direction.

Cr Paul Funnell, who along with Cr Yvonne Braid voted against the application, said he welcomed new investment and had previously raised issues with the lack of central hotel beds.

"We've had to have all sorts of meeting over a coffee shop because the traffic committee said having cars reverse out was too dangerous," he said.

"And yet here we have flaw after flaw in the DCP and it is pleasing that we have said 'let's find a way to do this', but meanwhile three blocks away we are hammering a business over the DCP.

"Our inconsistencies are sickening."

Cr Tim Koschel said it was up to the open market to decide if the hotel had enough car parks.

Cr Kerry Pascoe said he had a potential interest in the matter and vacated the chamber.

All other councillors declared they had previously spoken with either proponents or objectors.

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