A boutique hotel with up to 140 beds could be built in Kerikeri if a plan by the Turner Centre goes ahead.
The proposal was unveiled by Turner Centre chairman John Law at a Far North District Council meeting in Kaikohe on Thursday.
Mr Law said improvements under way at the centre, such as installing a full commercial kitchen and visual communication equipment, would make it suitable for conferences and weddings.
However, its ability to host multi-day events would still be limited because the town's 600 visitor beds were scattered over a large number of small establishments.
Having a hotel next door would allow the centre to host conferences with 200-300 people. The privately funded boutique hotel could have 100-140 beds and be four to five storeys high, he said.
Council-owned company Far North Holdings was carrying out a feasibility study which was due to be completed in February. Only then would a timeline and cost estimates for the project be known.
If the study found a hotel viable the Turner Centre would seek a private investor to build it.
Mr Law said the centre was talking with its neighbours - the RSA, HireCorp and Metlifecare, which owns Oakridge Villas - about possibilities for expansion.
One option was to build the hotel on the current RSA site. The RSA could occupy one floor of the new building with a pedestrian bridge linking the hotel and the Turner Centre.
The idea for a hotel came out of an economic impact study undertaken for the Turner Centre in 2016 and projections that the venue would hit capacity by 2026.
A hotel would allow the centre to keep growing while hosting conferences would help it become financially self-sustaining.
The Turner Centre is owned by a private trust but is on council land and receives council funding. The current year's grant is $57,000; the 2016-17 grant was $138,000.
Recent and planned improvements, including a sprung floor in the Plaza to make it suitable for dance and gymnastics, a commercial kitchen and a new front entrance, have been paid for by $295,000 in grants from funding agencies such as the Lottery Grants Board and Foundation North.