The hotel is a key component of CAD's $100 million development, The Sapphire Of Eden, to be built on Imlay Street in Eden on the former site of the Eden Fishermen's Recreation Club.

CAD has secured development approval for the hotel, which will revitalise Eden as a major tourism centre in NSW.

"We are delighted to have attracted internationally renowned hotel operator in Radisson to operate our 78 room, luxury five-star hotel, which will feature a 300-person function and wedding centre, restaurants, bars and wellness centre," Managing director of CAD Mark Toma said.

"We are excited by this hotel component in our development as it will give the Far South Coast tourism industry a much-needed shot in the arm. Over the last year Merimbula Airport has seen a significant lift in flight traffic and we expect it to surge again following the current lockdowns," he added.

Eden Chamber president Eric Wolske previously said they had seen some of the early design plans and was optimistic for the development. "It is most definitely very, very positive for the future of Eden," he said. "In some respects this development will help with the housing shortage in the area."

Bega Valley Shire mayor Russell Fitzpatrick said investment in the new cruise terminal and tourism infrastructure would build interest in the area as a tourist destination.

"Important tourist infrastructure like the Sapphire Hotel @ Eden and the new cruise terminal will set the shire on a rapid growth path, with workers and tourists moving into or visiting the area as it has excellent access to the ski fields, Canberra and the Victorian coast," Cr Fitzpatrick said.

The five storey hotel forms one of four towers to be built on the 10,000 square metre site, with the other three to feature one bedroom, two, three and four-bedroom apartments, a heated pool, gym and barbecue areas in a fully secured precinct.

Construction is expected to start soon following the DA approvals.