The planning authority board has given the go-ahead for Baystreet Hotel in Paceville to add three storeys.
"This extension will allow the hotel's operators to continue to upgrade their tourism product and increase their profitability and competitive edge, especially in the light of the highly volatile international tourism market," Mepa said.
The extension will feature 53 new guest rooms and a multi-purpose hall. The design will follow the style of the existing facade.
The development application was made following the revision of the Hotels Height Limitation Policy. Through this policy, hotels may apply for development permission to increase the height of their building above the height limitation permitted in the Local Plan provided that the resultant design features a high quality product in keeping with the urban context.