The plans for a new six-storey building at the corner of Edward and Baylis streets was unanimously supported by the councillors when plans went before them at Tuesday night's council meeting.

The development, which comprises of 104 hotel rooms, ground floor commercial spaces as well as car parking will make good use of the former service station site that has been empty for many years.

Wagga councillor Tim Koschel said the proposed plan was a good opportunity to revitalise a site that has become one of the city's largest eyesores.

Given that the intersection is the gateway to Wagga's CBD, Cr Koschel said the development should boost the appearance of the area.

"It is important to have some development there because it is the main intersection here in Wagga," he said.

"It joins the highway to our main street and hopefully it makes a cleaner look for people travelling into the city."

Cr Koschel said the new hotel could also bring more people into the city centre that could support local businesses.

He said there were considerations made about the lack of car parking spaces.

However, Cr Koschel said he was not concerned about this due to the hotel's close proximity to public transport options such as the railway station and the airport at Forest Hill, which people staying at the hotel could use taxi services to get to and from.

The hotel plans included a total 70 car parks, which includes four stacked and two disabled parking spaces.

"We have a retail sector down there that is getting quieter and quieter. We need to bring people back into the centre of Wagga and boost the local economy," Cr Koschel said.

"They can walk around and support the shops and restaurants in the centre of town."