Marysville will get a 100-room, minimum four-star hotel and conference centre — expected to be completed by the end of 2014 — after the recent selection of the consortium to undertake the project.
The $28 million development, to be known as the Vibe Hotel and Conference Centre Marysville, will be in the town's main street and developed by Melbourne Civic City Property, in partnership with Metier3 Architects and Toga Pty Ltd.
The state government will contribute $19 million towards the project, which is seen as an important step in the town's economic recovery after the deadly 2009 Black Saturday bushfires.
Deputy Premier Peter Ryan said the project generated a strong response from interested developers and hotel operators. He said it would "create 85 new full-time jobs over the construction phase and is expected to support 60 full-time jobs in the community within five years".
Mr Ryan said the Vibe Hotel and Conference Centre would be run by Toga Hospitality Group, which is responsible for a range of operations including Travelodge Hotels, Medina Apartment Hotels and Vibe Hotels.
Local MP and government backbencher Cindy McLeish, the member for Seymour, welcomed the announcement.
"Located in the heart of the town, this development will add character, quality and social benefit to Marysville and at the same time provide a tangible economic stimulus to tourism and private sector business investment right across the region," she said. The new centre would include a pub and day spa.