Melbourne Airport expects to complete a new 464-room hotel – the first in almost 20 years – by the end of next year, after getting federal government approval for the dual-branded Ibis Styles/Novotel facility on the doorstep of its terminals.

Last week's approval means construction will begin this year on the Fender Katsalidis-designed hotel, the cornerstone of a new precinct called The Hive that will also include 10,000 square metres of new office facilities for the airport's existing Commonwealth government Border Force and Agriculture department clients.