Construction on the Ballarat Railway Precinct will begin by mid to late 2017 after the state government unveiled the consortium that will take control of the $44 million project.
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The Pellicano Group will be in charge of building a four-and-a-half-star, 77-room Quest hotel on the Lydiard Street side of the precinct.
The company will also be in charge of the redevelopment of the goods shed, with the Spotless Group winning a 20-year venue management contract under the Epicure brand.
The hotel will be operated by the Quest chain, which already operates a block of apartments on Dawson Street North.
The state government will invest $25 million into the project, with the remaining $19 million to come from the private investors.
Pellicano director Nando Pellicano said the unique location of the site presented an exciting business opportunity to the consortium.
"We think it's a very strategic site near the train station, and the combination of a Quest hotel and a convention centre run by Spotless was an attractive prospect," Mr Pellicano said.
"It made a lot of sense to invest in the project and we've got a long-standing relationship with Quest, so that made us more comfortable."
The state government is yet to outline a proposed completion date for the project.
While the possibility of a hotel in the precinct was flagged in the 2014 Ballarat Station Precinct master plan, no clear business case has been outlined for its need. The master plan highlighted the space as a "development opportunity", rather than a certain hotel.
Mr Pellicano said he was confident a hotel would be successful, despite the government failing to outline a clear financial case.
"We're basing it on our assumptions done via modelling and Quest already have an existing model as they have apartments in Ballarat already."
A number of dining and retail outlets will adjoin the upgraded goods shed, as well as a public plaza between the shed and the hotel. The government anticipates the project will create 140 jobs during construction and about 30 ongoing jobs.
Wendouree MP Sharon Knight described the announcement as a significant milestone for the government.
"The Labor government is cleaning up the site and delivering new investment."
Bus travellers will have to wait for an upgrade to Ballarat's coach infrastructure after the government said it would not be including a new terminal in the development.
Package A of the 2014 master plan put together by the state government and the City of Ballarat highlighted the need for a new bus bay, with plans showing an eight-bay bus interchange.
While architect plans for the precinct show a space adjacent to the train station that may be developed into a bus interchange, it will not be delivered through the government's $25 million investment.
"The government recognises the importance of planning for a bus interchange at this major transport hub and the concept plans released on November 29 show the developer has designed the internal roads with the width and structural capability to handle the buses in the future," a government spokesman said.
"The current arrangements for public transport on Lydiard St will continue until the new interchange is built."
The project will also not offer any upgrades to the station's taxi infrastructure, also earmarked in the master plan.
Architect plans show space for an upgraded taxi drop-off, but no money has been allocated to the upgrade.
Regional Development Minster Jaala Pulford described the investment as "without a doubt ... one of the biggest projects in the history of Ballarat".
"We're proud to deliver this redevelopment and revitalise the heart of the city while protecting its historical heritage and charm."
Mrs Pulford failed to respond to questions surrounding the bus interchange by deadline.
The Ballarat Station Precinct will be almost unrecognisable by the completion of the facelift.
The current car park space will be vacated to provide space around the renovated goods shed, with cafes and restaurants likely to open up onto the block.
The unsealed area behind the goods shed will become a 150-capacity car park to service the convention centre and hotel.
Commuter parking will be shifted further away towards Nolan Street, with a multi-storey, 270-capacity car park to be built at an unspecified date.
