The Western Sydney Joint Regional Planning Panel granted consent to the proposal with some conditions 13 months after it was lodged on behalf of proprietors George Saad and Huong Nguyen, who also own Lilianfels Resort and Spa, and Echoes Boutique Hotel.

The iconic Medlow Bath establishment, opened in 1904 by Mark Foy, has sat dormant for the past 18 months but will be returned to its former glory when work begins on a major refurbishment.

The good news comes just a week after the Fairmont Resort in Leura was purchased by Schwartz Hotels, who have committed to deliver a $20 million upgrade over the next 18 months.

A team of architects led by Group GSA as well as locally-based heritage landscaping experts and interior decorators are set to reveal the finer points of the multi-million project next week.

The Gazette can confirm it will feature significant restoration of the hotel’s interiors, refurbishment of existing rooms, construction of more than 30 large new rooms of five-star quality, a larger conference centre and enhancement of the European and native gardens.

Blue Mountains Mayor Daniel Myles and Clr Chris Van der Kley were there to hear the panel’s ruling on October 28 and said the decision was great news for the region.

“We look forward to the reopening of the Hydro Majestic Hotel in 2012 and wish the applicants well,” said Clr Van der Kley.

“The upgrade will create a lot of jobs and business in the Upper Mountains and that’s very important.”

Clr Myles said “three members of the panel were extremely complimentary of planning staff from Blue Mountains City Council who assisted with providing information and advice”.

Clr Terri Hamilton, who attended some of the briefings about the proposed redevelopment, described it as breathtaking.

“The upgraded hotel will be a substantial boost to our economy and will significantly enhance the Blue Mountains’ reputation as a major tourism destination,” she said.