Boston's Prudential Center (left), Sheraton Boston hotel (center) and One Dalton luxury residential tower (right). Photo by James Sanna | Banker & Tradesman Staff

The owners of the Sheraton Boston Hotel are moving forward with a proposed student housing conversion that’s drawn opposition from elected officials, a labor union and student activists.

Hawkins Way Capital seeks to repurpose the south tower from 428 hotel rooms into dorms for 854 Northeastern University students.

Along with the room conversion, developers seek to convert the ground-floor retail and third floor of the hotel into student amenity space and a new main entry, according to a notification letter from the development team to the Boston Planning and Development Agency, which will review the project.

Hawkins Way Capital and Varde Capital bought the hotel property including two towers and 1,200 rooms for $233 million in 2022.

UNITED HERE Local 26, which represents an estimated 500 hotel workers, protested the plans because of the elimination of approximately 100 jobs. Huskies Organizing With Labor, a pro-union student group, also organized against the proposal, and the Boston City Council approved a resolution last year asking the new owners to reconsider.

The proposal also requires approval of a Zoning Commission amendment to the existing planned development area for a change from hotel to dorm use.