Carisbrook Hotel former owner Drysdale Ltd has been given approval to subdivide land at the South Rd, Dunedin, site into three lots to allow residential development.
The hotel itself is being sold, and new owner Tom Smith yesterday said he was preparing to reopen the hotel, which closed last year, on Monday.
A Dunedin City Council resource consent committee has granted an application for a lot containing the hotel, and future use of two lots for residential development, which would be created from the hotel's car park.
Consent was required for the continued operation of the hotel with fewer car parks, and for one of the lots to go ahead without frontage to a road.
The application attracted three opposing submitters, who were concerned removing the parking would increase parking demand in the area.
The hearings committee of Crs Colin Weatherall, Andrew Noone and Richard Walls ruled that such a parking problem was unlikely.
Drysdale's legal counsel Sam Guest said the company would retain the two residential lots for development, though land use consents were not yet in place.
Mr Smith said the hotel would keep its old name.
