A three-bedroom suite to service "high-end clients" could be built on the top of the Novotel Northbeach.
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Wollongong City Council is considering a development application for the suite, which would be on the north-eastern rooftop.
The addition will feature three bedrooms - all with an ensuite bathroom - as well as a "winter garden" and lounge and dining rooms with ocean views.
"The proposal will increase the provision of tourist accommodation in an area that is zoned for and encourages tourist uses and importantly provides a luxury hotel room capable of servicing 'high-end' clients, including dignitaries," the Statement of Environmental Effects said.
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The Wollongong Local Environment Plan states buildings in the area should be no higher than 24 metres.
At 31.55 metres, the Novotel Northbeach is 7.55 metres above that limit.
The statement of environmental effects states the new suite would only be 45 centimetres higher than the rooms and structures already on the roof.
"The existing adjacent hotel rooms are not found to cause any aural or visual privacy impacts, therefore there is no reason to suspect that the proposed additional room will have any negative aural and visual privacy impacts," it stated.