Camden Lakeside Golf Club could soon be home to a 130-room hotel.
Camden Council has approved a change to the Local Environment Plan which will allow for a five to seven-storey hotel to be built.
The height limit on the site has been changed to 22 metres from 9.5 metres.
Councillor Lara Symkowiak said the hotel would be beneficial to the entire region.
"I am supportive of the draft planning proposal for the site," she said.
"Obviously we need to look at each submission on its merits, on a case-by-case basis and I support amending the building height to accommodate this hotel.
"There are so many sporting facilities in the area attracting people from across the state and they need places to stay.
"A hotel would be a positive move - especially with the employment opportunities it will provide."
The hotel will be built alongside the existing clubhouse facing Raby Road and Camden Valley Way with views overlooking the golf course.
Councillor Eva Campbell said she could not support the height limit change as she feared it would affect the heritage vistas from Gledswood Homestead.
"I have a problem with this because 9.5 metres to 22 metres is a huge leap," she said.
"I was supportive of this idea when it was submitted in 2011 to be surrounded by four golf courses but now it is a largely residential area.
"While development in Liverpool and city are rushing out to meet us along Camden Valley Way, to allow this kind of development in a rural, heritage precinct sets a precedent."
Wests Group Macarthur, owners of the golf club, chief executive Tony Mathew told the Advertiser last year the hotel was something the community wants.
“We have had feedback that there is a demand for hotels in the area – not a lot of people build hotels these days because it is such a large investment," he said.
Mr Mathew said after three years of planning, the group was relieved to have Camden Council’s support.
“It will still be some time before the doors are open as there is a lot of work to be done but we are excited about this project,” he said.
“We think this will be a wonderful facility for the community. With the growing population there is a need for accommodation out here.”
The rooms at the new hotel site would feature affordable and premier options to cater for all budgets, Mr Mathew said.
“There will be rooms to cater for everyone – our premier rooms will be larger and overlook the golf course and there will be smaller rooms as well,” he said.
“We know there are a lot of sporting events out here so we want to cater for travelling families as well.”