"The proposed modifications also provide more certainty for the neighbouring residents that noise is managed better within the site," Mr Green said.
"'The size of the guest rooms has changed to provide flexibility given the changing nature of the travel industry forced by the devastating impact of the global pandemic.
The interior recreation area of the Bounce Hostel in Noosaville.
"The smaller rooms also limit guest numbers to manage noise and use within the rooms."
Another changes includes moving an onsite cafe to adjoin the southern hostel reception area.
The new layout would also increase the floor area by 22 sqm to 1106 sqm to meet strict fire standard requirements.