Newry and Mourne District Council endorsed the proposal for a 120-bed hotel, over 22 000 sq feet office development, landscaping and car parking.
The project – estimated to cost in the region of £12million - is to be located at the former ATS Garage at Downshire Road Newry.
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Mr Durkan said: "This is good news for Newry. It's a significant development scheme which will provide a real boost for the City and the surrounding area for many years. It will create jobs during the development and construction phases, with more local jobs in the long term.
"The new hotel will benefit tourism potential, providing accommodation in an area that is the gateway to the Mourne Mountains. The additional office accommodation will also offer more choice for the business community.
"What I and DOE are about is creating a better environment and a stronger economy. The decision to approve this hotel will help do that."
DOE Planning consulted with Newry and Mourne District Council on 8th August who raised no objections to the proposal.
(CD/MH)
