The plans, and the objections, are to be debated at Hepburn Shire Council's May meeting.

The council's director of infrastructure and development, Rod Conway, said the sheer number of objections should not be taken as a likely indicator the multi-million dollar proposal would not proceed.

"It comes back to the grounds raised for submissions and planning applications," Mr Conway said.

Ammache Architects lodged the application on behalf of Sudscorp Pty Ltd earlier this year.

Sudscorp, located at 641 to 653 North Rd, Ormond, Victoria, is a car-wash and cleaning service.

Attempts to contact Sudscorp were unsuccessful.

The application proposes that 18 accommodation rooms and five treatment rooms, a formal lounge room and function area, an outdoor spa area and 20 on-site car parking spaces be built at the rear of the manse at 19 Camp St.

Objector David Smith of Camp St said Wombat Hill was the most dominant feature in Daylesford.

"The planned development will be right in the middle of five churches eroding a wonderful feature of Daylesford," Mr Smith said.

"I don't want to see this historical feature taken away."

Mr Smith said he had travelled around Europe and older towns preserved their features.

"I'm not against development but I think it has to be done in a balanced manner," he said.

Joy Nunn of Camp St considered Wombat Hill special and feared the development could lead to other high-density developments.

"The plans are completely out of character with what's at Wombat Hill. It will affect Daylesford's charm and character," she said.

Ms Nunn said peak traffic and congestion would interfere with people's time in Daylesford.

"It's in the hands of developers so do it cleverly," she said.

Mr Conway said the intense development would be assessed by a heritage adviser and planning staff before being presented at the council meeting.

He said there was a distinct number of people familiar with the proposal compared with other applications.

Mr Conway also said there would not be a meeting to address any issues people may have with the development because there were 130 objectors.

Plans can be viewed at the council's customer service building, corner of Duke and Albert streets, Daylesford.