MADISON, Wis. -

A developer has proposed a boutique hotel in the 100 block of State Street, according to a release.

The hotel at 118 and 122 State Street will be managed by Provence Hotels, out of Portland, Oregon, and will be built by Ascendant Holdings, a commercial real estate development and investment company out of Madison and Milwaukee, and Central Properties, an owner and developer of student housing, officials said.

“Our mission is to seek out forward-looking cities with a strong creative community where we can craft hotels that engage, reflect and embody the local spirit,” Bashar Wali,president of Provenance Hotels, said in the release. “Madison fits that to a tee and this location, on State Street a block from the Capitol, is ideal for a hotel that will be in the heart of it all.”

Susan Schmitz, the president of Downtown Madison Inc., a downtown business advocacy organization, said she likes the proposal.

"It'll just add more vibrancy to the street, more people, it will be good for the businesses," Schmitz said. "It's another place for people to be."

Schmitz said the developers will custom-design the hotel to fit in with the State Street area.

"It's not just a cookie-cutter hotel. This is something that's going to fit into this landscape, which is exactly what people like on State Street," Schmitz said. "It's got to fit into this landscape, or it's not going to work."

Schmitz said the proposal calls for a locally-owned restaurant, as well as a pedestrian-friendly design.

"The hotel itself will go through the block and there will be an entrance on North Carroll and Dayton Street, which will bring some nice vibrancy, even to that outer ring," Schmitz said.

Deb Archer, president and CEO of the Greater Madison Area Convention and Visitors Bureau, said the hotel would add much needed lodging options to downtown. A spokesperson for Provenance Hotels said the company aims to have 120 rooms.

"When people visit, this is really the critical place where people want to stay," Archer said. "Even with the addition of some of the hotels and renovations we're seeing, this is still an area we could increase capacity, which will help us as we attract larger groups to Madison."

Schmitz said city leaders will need to consider zoning changes before the proposal goes through.

She said current zoning regulations would only allow the new building to be four stories tall, but the developer wants the hotel to be six stories total, like the building it would replace.

News 3 reached out to business owners in the building. One tenant, who did not want to be named, said the hotel proposal took him by surprise.

Another tenant, the owner of Sweet Tea at the Fountain, said she knew about the hotel proposal since opening this year and plans to relocate if the proposal goes through.

No renderings of the proposed hotel have been released.

The hotel will have a ground-floor food and beverage operation, meeting spaces and a rooftop lounge, officials said.

The property is expected to open in 2018.