Liverpool-based Elliot Group has scrapped plans for a residential tower in favour of a hotel and apartments.
The scheme is lined up for Gateshead, with the original application being for a 20-storey tower comprising 317 flats.
However, in response to the opportunities presented by the Gateshead Quays project – which will include a new arena, convention centre and associated leisure offer – Elliot Group has instead drawn up proposals for a 202-bed, four-star hotel, 244 apartments and a rooftop garden with views over Newcastle city centre.
The new scheme is valued at £60m and could create up to 50 jobs when fully operational. Discussions have already been held with planning officers at Gateshead Council and the proposals will be presented to the planning committee on 26 June for comment.
A planning application will then be submitted following feedback.
Director Elliot Lawless said: "Gateshead Quays will draw 300,000 new visitors to Gateshead each year. Our plans will provide them with a choice of top quality accommodation whilst creating dozens of new jobs and regenerating a derelict site.
"We're still assessing the market to decide whether to provide serviced apartments or ones available for long-term rental, but either way we expect they'll be in great demand given the location. The hotel will have a broader market but we expect it to be popular with people attending conferences and exhibitions at the new convention centre."
The revised plans have been drawn up by Falconer Chester Hall and have been designed to adapt previous permissions granted for residential and student schemes on the site.
Architect Martin Haymes said: "The scheme is stepped at ten, 16 and 21 storeys and will provide stunning views across the river. We see the Gateshead river bank regenerating very much like Porto's south bank. Locking visitors' spending power into the immediate area will make a key contribution to job creation and future regeneration."
The planning consultant for the project is Zerum.