Managing director of Gunnsta P/L and owner of the Hotel Crown, Andrew Gunn, is to lodge a new development plan for the iconic Victor Harbor hotel with the City of Victor Harbor within the next year.

Mr Gunn said the company has been in the process of developing a new upgrade plan for six months and hasn't given up hope of a new development proposal being approved. The original development application for an upgrade of the Hotel Crown was refused by the Development Assessment Panel in September last year.

The nine-storey development was proposed too high and bulky for the Crown site and concerns were also raised that the appearance of the new building would not match the character of nearby heritage places.