The property on the corner of Baylis Street and Edward Street has stood empty for more than 20 years after formerly being used as a petrol station and was named Wagga's number one eyesore in 2015.

Last year, a new future was secured for the site when a $15.5 million hotel development was approved by Wagga City Council. This February, the site and approved development was listed for sale and sold at the end of July, three years after it last changed hands for $1.5 million in 2018.

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The buyer is a foreign investor, and HTL Property's Nic Simarro who managed the sale said it is likely the hotel development will be put into action.

If so, the $15.5 million hotel development would see the site transformed into a 104 room four-star boutique hotel with 10 commercial spaces on the ground floor and 74 car spaces provided.

An illustration of the proposed design shows a six-story building with driveway access onto Edward Street.

The sale has been touted as a sign of the value of Wagga's tourism market which boomed following the March 2020 lockdown but has ground to a halt since the latest outbreak.

Wagga Council's visitor economy and event coordinator Fiona Hamilton said the industry has been growing steadily until recent months and will benefit from more high-end accommodation options like the one planned for the site.

"If you look at our spread of commercial properties at the moment we would be heavily weighted to the mid-scale offering under four-stars," Ms Hamilton said.

"So I think ... anything that was unique and gave a higher quality offering would see demand from business travellers and high-end travellers."

She added however that since June, formerly record-high visitation rates have plummeted with accommodation occupancy rates that climbed to an average of around 75 per cent earlier this year, now sitting around 30 per cent.

"We would hope once the vaccination rates are higher and people are free to travel there would be higher demand," she said.

"We would expect to see more people from the leisure travel market particularly people from Sydney who have been locked down for some time."

In a press release Mr Simarro said areas like Wagga remain extremely attractive to potential buyers looking for tourism opportunities.

"Regional centres in growth corridors and those which can generate diversified revenue inputs such as Wagga Wagga, are continuing to attract significant domestic and international investor interest" he said.

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