Whitsunday Regional Council has given the green light to a 140-room hotel development at Funnel Bay, near Airlie Beach.
The Funnel Bay Resort is being developed by Well Smart Funnel Bay Development.
In addition to 140 suites, it would include an indoor play area, function pavilion, outdoor theatre, cafe and restaurant.
The council said the development was approved because it complied with the relevant provisions of the planning scheme, with the exception of building height.
While the proposal exceeded the acceptable height limit by between one and two storeys, the council was satisfied the design would blend in well with the natural backdrop, a spokeswoman said.
PRD Nationwide Whitsunday chief executive officer Annette Harm said construction was expected to begin later this year or in early 2020.
The new hotel development was expected to create 150 jobs in the construction phase and 100 ongoing jobs once open, she said.