A plan for a new hospitality school on Hobart's eastern shore will go ahead.
"The University of Tasmania will proceed with a hospitality school as part of a new hotel development at Kangaroo Bay," a UTAS statement said.
"The University has carried out due diligence on a tenancy for the school alongside a planned hotel by developer Chambroad"
UTAS signed a Memorandum of Understanding with Chinese company Chambroad in July.
The Kangaroo Bay project at one stage looked as if it may not get off the ground due to a lack of education providers coming on board.
100 jobs are expected to be created during the construction phase of the $85 million development.
“The hospitality school will be an important learning institution for the growing tourism industry of Tasmania, helping young Tasmanians and students from other states into careers within the industry," Chambroad Director and Deputy-General Manager Finely Zhang said.
"The development will deliver a globally leading hospitality management college linked to a boutique hotel, restaurants and conference facilities," Infrastructure Minister Michael Ferguson said.
Image: Proposed Kangaroo Bay hotel development - Hunter Developments (Robert Morris-Nunn)