Real-estate magnate Donald Trump will be building a five-star hotel and condominium in the centre of downtown, thanks to a nearly unanimous city council decision.

"This city is ready for a big-name hotel," said John Latimer, head of the project's development corporation. "It's the shot in the arm the downtown needs."

Mr. Latimer said he expects movie stars, sports figures and others from around the world to be attracted to the hotel, which will be Toronto's only five-star establishment and the first big hotel to be built here in almost 12 years.

An almost even mix of hotel rooms and condominiums, the tower will be on the southeast corner of Bay and Adelaide streets, and at 309 metres, it will eclipse First Canadian Place as the city's tallest building.

Mr. Latimer did not know the expected selling price for the luxury-condo units, but said nothing would be sold for less than $700 a square foot, putting the starting price for the smallest unit at $1.4-million.

Sticker shock doesn't seem to be an issue, however; two people have already shown interest in the $15-million penthouse.

Rod Seiling, president of the Greater Toronto Hotel Association, responded to the city council vote, which was 30 to three, by saying the Trump development is "great news for Toronto."

Last year's hotel occupancy rate in Toronto was 66 per cent, but Mr. Seiling said it will be at least two to three years before the tower will be finished and ready to accept guests.