Developer Douglas Rikard-Bell has plans to build "The Grand Mount Earnslaw Hotel" where the original Mount Earnslaw Hotel once stood.
The 8079sqm site has just been bought by his company, Blackthorn Ltd.
He has engaged an architect, heritage architect and interiors firm to work on his vision to recreate the exterior of the original hotel, albeit with a slightly larger footprint.
"If I can get it working well enough smaller, I will, but it's probably got to be a minimum of 40 [rooms] to work for the operators."
It has been on the market with Colliers International for sale by deadline private treaty since May last year - the asking price was $2.945million.
The original hotel, which had 23 rooms, a dining room and the community liquor licence, opened in 1880 and burned down in 1959.
The site was bought by Southmack Properties in 2007, but development by the company never eventuated.
Mr Rikard-Bell, who moved to Glenorchy last year, told the Otago Daily Times the site was "terribly important" for the town, particularly at this stage of "its story".
"It's a pretty special place out there ... I think it's more than a day trip from Queenstown and I think it's very different to all the other great offerings in the region.
"A decent accommodation offering in a relevant sense is part of something that could be really positive, without ... shapeshifting the great things that Glenorchy stands for today," Mr Rikard-Bell said.
"We think it's a lot more Swannies and oilskins than puffer jackets and pearls."
He had spoken to a few people he considered "godparents of the town" about his idea and their reaction was "more than warm".
"It's a good-news story, there's no two ways about that."
He planned to consult with the community and hoped to lodge consent, likely to be publicly notified, within four months.
"I want it to be a positive thing in most people's eyes and that'll take a bit of evolving.
"Depending on how roughly or smoothly it sails through, that's a big dictator on catching build seasons [but] the intention is to roll right on into it and make it happen."
Additionally, Mr Rikard-Bell had also bought other landholdings in Glenorchy which he planned to use to create worker accommodation for local businesses.
"We'll just deal with the businesses that employ, not the travelling seasonals, and we'll work in closely with the businesses to be relevant and make sure that all works for them," he said.
"They're not going to be short-term, revolting, cheap sheds.
"I'll heavily reference the back-country huts that typify the region and fire pits and festoon lighting and an upright piano in the lodge room and all that sort of stuff."
