A controversial 18-storey, 5-star resort has been approved in regional Queensland, making it the "largest" hotel development north of Brisbane.

Despite fierce opposition from residents and the mayor, the $450 million Sheraton Resort Hervey Bay complex was narrowly approved, with conditions, after fiery debate at a Fraser Coast Council meeting on Wednesday.

The luxury development will include hundreds of hotel rooms and residential units over two towers on the picturesque Hervey Bay esplanade, about 300 kilometres north of Brisbane.

More than 100 people attended the meeting which was moved to the Hervey Bay Golf Club to accommodate the large turnout.

With every seat and standing room occupied, questions were raised over whether the project compromised the "special" beachside essence of the region.

Members of the public erupted in protest and heckled the developer and councillors who supported the plans, forcing Fraser Coast Mayor George Seymour to call for order several times and threaten to close the meeting.

Among the supporters was celebrity Jamie Durie, who has been promoting the project for the developer Sunny Beach Land.

"We made a small compromise and got it over the line today, it's a tremendous outcome for everyone involved," he said.

That compromise was agreeing to lower the height of the proposed twin towers from 21 to 18 storeys plus a rooftop bar, making it three times higher than the tallest building currently on the esplanade.

The Mantra at Mooloolaba on the Sunshine Coast is also 18 storeys.

Cr Seymour, who has been a staunch opponent of the development, told the meeting he didn't believe the project fitted in with the identity of Hervey Bay, which he fell in love with before moving to the city in 2004.

"It was the esplanade, it was the sense of place defined not by large buildings, not by buildings overshadowed and being seen from Point Vernon, but the esplanade and smaller sense of scale," he said.

Fellow councillors voted in favour with the final vote six to five.

Other conditions imposed by the council included a minimum of 5-star rating, construction must be completed within 10 years, and "a best-practice lighting design plan to manage any impacts on sea turtles and shorebirds and to minimise artificial skyglow".

Environmental concerns

The Hervey Bay region is the world's first world heritage whale site.

Whale tourism operators have previously indicated their support for the project.

But as residents spilled out of the venue, one person described the development as the "most contentious" issue facing the community in recent times.

Coral Watch ambassador Zarley Mitchell said she was angry and saddened by the decision, fearing the impact and threat to the marine environment.

"With that comes a lot of negative impacts, light pollution and sediment runoff," she said.

"When one of these developments are approved, it sets a precedent and we cause irreversible change."

Mr Durie said environmental protections were on the forefront of his mind.

He said that included stormwater run-off impact to the foreshore and energy efficiency.

"My role is to protect and police the environmental integrity of this project," he said.

"We've worked very closely with Indigenous communities, the local community and council."

Sunny Beach Land said the resort would be the fifth Sheraton in Australia and "the largest and most luxurious new hotel between Brisbane and Cairns".

Director Dan Cuda welcomed the community's feedback, saying the council's approval conditions would be reviewed and plans put in place for the start of the project.

Mr Durie said about 1,100 jobs would be created during the construction phase which would start "as soon as possible".

The project was expected to create about 350 ongoing jobs once the hotel was built.