Outdoor photo of the Peppers Silo Hotel.

Peppers Silo Hotel officially opened its doors in Launceston, Tasmania, on June 1.

The establishment sits on the Kings Wharf Grain Silos, which had been left unused for over two decades until construction on the hotel began two years ago.

The site has been converted into a ten-level hotel with 108 guest rooms, including 52 rooms inside the barrels of the former silos.

The hotel also boasts a restaurant and bar called Grain of the Silos, undercover car parking, and conference facilities capable of hosting up to 500 people.

Located on the edge of the River Tamar and close to the Cataract Gorge, the silo barrels have been converted into a $25 million luxury-by-design redevelopment including one and two-bedroom apartments.

Peppers Silo Hotel is the first hotel development to open in Launceston since 2010.