THE developers of a new motel proposed for the CBD will have to wait another month for a decision from the Southern Downs Regional Council.

A decision on the future of the new two-storey, 33-bed motel was deferred by the council on Wednesday.

The motel, proposed by the Palace Hotel, would be built behind the bottle shop - on the corner of Acacia Ave and Percy St.

If approved, the motel is expected to generate new employment, including a manager, two permanent employees and four part-time employees.

Despite a recommendation to approve the hotel, councillors were unwilling to make a decision and raised concerns about a few minor details of the development.

Cr Jamie Mackenzie expressed concerns the "modern, sloping roof" would be out of character for the centre of the town.

"The whole of the town centre is of historic value," Cr Mackenzie said.

Deputy Mayor Cr Ross Bartley and Cr Mackenzie also expressed concerns that access to the motel's car park was through land owned by the council.

Despite their concerns, planning and development manager Cecil Barnard said he personally didn't see a problem with the development.

"This development, although it's modern, actually fits in well," he said.

Similar sentiments were expressed in the report to the council.

"At present there is a large variety of building styles, scales and ages along this section of Percy St, no coherent streetscapes exist in the area," it reads.

"A contemporary design such as that proposed can be considered acceptable."

The report also states the motel "has the potential to reinvigorate the CBD of Warwick outside of normal business hours".

Only one submission was received against the motel.

The neighbouring Baptist Church expressed concerns.

"As a church we have no significant objection to this proposed development as we understand it," senior pastor Reverend Darren Muller wrote.

"We ask that any change of use approved under the development application does not negatively impact on our ongoing use of our facilities."

The development will go before the council again at the September General Meeting in Stanthorpe.