The NSW Government has approved a $44 million hotel and office development along the Newcastle waterfront in the Honeysuckle Precinct.

The site at 42 Honeysuckle Drive is set to be transformed into a nine storey mixed-use development including an office tower and a 187-room boutique hotel with a café, bar, gym, and car parking.

Minister for Planning and Public Spaces Rob Stokes says the development will meet the demands of the rising popularity of domestic travel.

“The Honeysuckle Precinct has undergone a major facelift in recent years as more than 50 hectares of former industrial and maritime land has been transformed into a centre for entertainment, tourism, employment and recreation,” Mr Stokes said.

The project is also set to create 1,000 new jobs in construction and support 60 ongoing jobs after completion.

Construction will begin later this year and is expected to be completed by 2023.