Tūwharetoa Limited says an eight storey hotel planned for Taupō would block views of Mt Tauhara and change the future use of its own commercial property in the CBD.

But the proposed hotel developer says views of the mountain should not be a factor in determining whether the project could be approved.

Their concerns were raised during resource consent hearing for a proposed eight storey hotel held in Taupō this week as Taupō's District Plan requires developers seeking to build taller than three storeys to go through one.

Developers from Cypress Capital have applied to transform the empty site neighbouring TL's land on Tūwharetoa St into eight-storey, five-star hotel.

It would have 84 rooms of 4.5-star hotel accommodation, three basement levels, retail stores to lease on the ground floor, and a roof-top restaurant and pool.

Of the 72 submissions to Taupō District Council on the proposal, 49 opposed it, 19 supported it and 4 were neutral.

Tūwharetoa Limited [TL] is a subsidiary of the Tūwharetoa Settlement Trust.

TL purchased a 2050-square-meter block of land in Taupō at 11 Tuwharetoa St in October 2017 for $2.1 million. A taxi stand and the closed-down Vertigo night club currently occupy the site.

Ngahere Wall, who spoke on behalf of TL at the hearing, said the hotel would have an "overbearing" effect on any future use of that site - unless TL decided to build to eight-storeys or taller as well.

"We do not want to be forced to also exceed the District Plan's [three-storey height] standard by such a significant margin," Wall said.

"More concerning for us, is what we would need to do if we are to gain a view of our cultural sites: Tauhara maunga, one of the most prominent land features in the Taupō area, Maunga Namu, another maunga that is culturally significant, and the Kaimanawa [Ranges], our Pae maunga, which lay south-east to the Lake Taupō catchment.

"If Ngāti Tūwharetoa is to build on the site with the intent to view these sites, a building of equal scale or bigger would need to be erected."

Wall said Ngāti Tūwharetoa would feel uneasy at the thought of the amount of iwi money that would need to be invested to build a structure at 11 Tuwharetoa St which can view the taonga via its eastern boundary.

"This is something that Ngati Tuwharetoa had not anticipated at the time when the site was purchased with the understanding that newly constructed buildings in the town centre would be within the regulations pertaining to height, or if they were to exceed that height, they would tie in with existing developments in the area, being four of five storeys at most, and meet all urban design requirements."

-Stuff/Robert Steven