James Packer’s Crown Resorts will build a five-star hotel across the road from its Melbourne casino.

The company will build the project in a 50-50 joint venture with construction firm Schiavello Group, and has so far paid $50 million on four pieces of land on Queensbridge Street at Southbank.

“It is not intended that any gaming operations will be conducted in the new building,” Crown said in a statement on Friday.

Mr Packer said occupancy at Crown’s existing hotels is consistently over 90 per cent, demonstrating the urgent need for more hotel capacity.