Galway property developer John Lally, of Damesfield Ltd, lodged a planning application with Limerick City Council yesterday.
However, the 49 full-time and 31 part-time hotel staff are being let go and severance talks are in progress with Siptu.
The development will take two years to complete.
Mr Lally said: “It will consist of 4/5 star hotel, incorporating 171 bedrooms, 10 suites, two presidential suites, a 450 seat banqueting/conference hall, a state of the art health and fitness centre and a penthouse business centre, incorporating 10 boardrooms with views of the Shannon.”
The huge development will also include 157 one, two and three bedroom luxury apartments and more than 400 underground car park spaces.
Mr Lally said the hotel will employ about 150 staff when it reopens.
Damesfield Ltd purchased the hotel from the Jury’s Doyle Hotel group earlier this year for €9.75m. It has been renamed the Limerick Strand Hotel.
Mr Lally said: “The development of this very strategic site and landmark project will enhance Limerick’s waterfront image and complement the magnificent projects already in place on the south side of the Shannon.”
Mr Lally has extensive tourism interests, including the Galway Harbour Hotel and Barnacles accommodations centres in Galway and Dublin.
His company is building a 110-room hotel, 210 apartments and 90,000 sq ft of office space at the former Rowntree Mackintosh factory site at Kilmainham in Dublin, and 120 apartments and a marina at the Jolly Mariner site in Athlone.