Construction on Adelaide's $140 million luxury Sofitel hotel will begin in 2017 and it will be first international five-star hotel to be built in the city in almost 30 years.

The Currie Street hotel will be the tallest mixed-use development in South Australia, featuring 80 apartments over the top eight levels with 250 rooms and suites spread over the remaining floors.

It will also include extensive leisure and business facilities, a restaurant, four bars, ballroom, swimming pool and a health and fitness centre.

Construction is expected to create hundreds of jobs with the hotel to provide 150 ongoing positions once it opens in 2018.

Premier Jay Weatherill said building a five-star branded hotel in Adelaide was one of the government’s economic priorities outlined last year.

“Having a luxury branded five-star hotel in Adelaide will be a further boost to our $5.1 billion tourism industry which employs more than 33,000 people,” Mr Weatherill said on Tuesday.

“As a valuable industry to the state’s economy it is important we support new and refreshed tourism developments, further develop accommodation in the city and continue to invest in South Australia’s tourism assets and experiences.”

Accor Pacific, which manages the Sofitel chain in Australia, said the development would help further elevate Adelaide’s international profile.

“It has been nearly 30 years since a hotel development of this status and quality has been announced in Adelaide’s CBD and it will help attract significant increases in tourism, business travel and conferences to the city,” Accor Pacific chief Simon McGrath said.