The long awaited announcement over the construction of a top class central city hotel could be made later this week.

Hamilton-based Tainui Group Holdings took its thoughts on a joint venture four-star Tauranga hotel development on Durham Street to its board on yesterday, but any decision will not immediately be made public says chief executive Mike Pohio.

Tainui Group Holdings is expected to make a decision about a four star hotel on Durham Street this week.

'This is something that is a major development, and it requires due care attention and integrity in terms of process,' says Mike.

'So we are accountable to our board and we are accountable to the relationship we have with Tauranga City Council, so on that basis there's no comment we can or will make without having that necessary exchange directly with the council.”

Tainui will consider the proposal to develop a $40million 4.5-5 star rated hotel in Durham Street under the Novotel brand in association with the Accor hotel group and the Tauranga City Council.

It's the second time Tainui has looked at the Tauranga hotel proposal. It first looked at the development in 2008, but that was crushed by the Global Financial Crisis. Following that, TCC went ahead with another prospective developer, but that also folded.

Tainui then responded to another call from the council for expressions of interests and won preferred status to progress to a feasibility study for the development last year.

The proposal has reached the point of detailed design, but shareholdings and ownership of the land have yet to be finalised.

If the current proposal for the car park site on the corner of Durham and Hamilton Streets goes ahead, it could be completed by the end of 2015.

Tainui also has interests in Hamilton central city hotels Novotel Tainui and Ibis Tainui, and Novotel Tainui at Auckland International Airport.

Tauranga City Council CEO Garry Poole expects to hear from Tainui later this week.