HTZ Investments' development application seeks to transform the abandoned bakery and office at 81-83 Forsyth Street into an urban-style, 20 room hotel.

The application was tabled at Wagga City Council's meeting on Monday night following 14 objections from community members, many of which centred around the plans to only include 18 parking spaces.

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Despite the concerns, councillors were unanimously in support of the proposal and praised the developers for their decision to not demolish the building.

"We've all seen the building and it's not the most attractive architectural building you'll find but some adaptive re-uses can completely change the appearance of the building," Cr Rod Kendall said.

"It will be a vast improvement to the current streetscape ... and I'm really happy that we're not just destroying a building that has been in Wagga since the 1960s."

Councillors said they found it unlikely parking would be a major issue at the site and travellers could easily book elsewhere if they desperately needed a hotel with available car parks.

"That hotel is really going to serve people who do want to stay in the centre of the city and those who are travelling with families and in cars have plenty of other options where they can have that parking," Cr Tim Koschel said.

"Currently we've got a building that is a bit of an eyesore on one of the busiest streets in Wagga ... but this hotel is going to serve local restaurants, it's going to serve clubs and it will bring people into our CBD."

HTZ Investments director Joel Berrigan was pleased to receive the approval and be able to move on with the project.

"I think it's a credit to council that they saw through the rubbish and we look forward to getting under way and offering travellers another alternative option to stay in the CBD of Wagga," he said.

Mr Berrigan said he is working closely with council to obtain a construction certificate and expects he will be receiving one imminently.

All nine of Wagga's councillors approved the development application.

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