The $29 million development will include a lodge building with 360-degree views of the wine region, a restaurant and conference room, 50 apartments, a day spa, gym, pool and events pavilion.

It will be known as Ben Ean Luxury Lodge, and is expected to create about 120 jobs on completion.

Ben Ean owners Brian McGuigan and Colin Peterson lodged the plans with Cessnock City Council in September last year and received approval this month.

Mr McGuigan said it was exciting news that the development would proceed.

"We're delighted - we set a target that we would receive approval by June 30," he said.

"The next step is deciding to find a partner who will operate the hotel - we need to have the right people in place so it exudes quality."

Mr McGuigan said the development will provide another option for luxury accommodation in the Hunter Valley.

"We want to create an exciting venue to complement the existing facilities in the region," he said.

"We haven't had a new hotel here in over 15 years, since Crowne Plaza Hunter Valley (which opened in 2006).

"The refurbished Peppers (now known as Spicers Guesthouse) is very well-attended, and Tower, which is also being refurbished, will be another upmarket facility.

"The more accommodation there is, the better it is for the whole community."

Mr McGuigan said the development would be incorporated into the natural landform of the Ben Ean property, with buildings on both sides of the ridge north of the existing cellar door and restaurant.

"It's a beautiful natural ridge, and we're using that landform to provide for the visitor a view all around," he said.

The developers engaged with the Wonnarua traditional owners to draw inspiration for the lodge, with the site's Indigenous cultural history to be incorporated into the design.

Ben Ean Luxury Lodge is the second major development in the vineyards to receive approval this year, after Roche Group's plan for a $30 million resort next to Harrigan's Irish Pub on Broke Road was signed off in January.

Meanwhile, Winarch Capital's plan for a $107 million project in Pokolbin has been lodged with the NSW Department of Planning as a State Significant Development.

The project, known as Cedar Mill Hunter Valley, is located on the corner of Broke and McDonalds Road, and includes a wine museum, convention facilities, accommodation, a splash park, winery, brewery, distillery, restaurants, cafes and artesian produce outlets.

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