PORTLAND – A Portland development company said Tuesday it is moving forward with plans to build a new 120-room hotel in the city’s Old Port.

Olympia Equity Investors V said it is retooling its original plan to build a six-story hotel at the corner of Franklin Arterial and Commercial Street.

Olympia officials said the company hopes to get the necessary approvals, arrange financing and break ground by June 1. They said construction should take about a year and that they are negotiating for the hotel to become a part of the Hilton Hotel Corp. chain.

The company is touting the hotel as an anchor for the east end of the Old Port and a potential asset to the proposed redevelopment of the former Bath Iron Works dock, known as the Ocean Gateway project.

“It’s our goal to redevelop that corner of the city,” said Kevin Mahaney, a partner in the company.

Olympia originally planned to build two hotels on the site: a luxury, 40-room “boutique” hotel with an entrance on Commercial Street and an 80-room midscale hotel with an entrance on Fore Street.

But that proposal stalled last year when a group of residents proposed a citywide moratorium on large-scale construction projects. The moratorium failed to win voter approval last May.

Mahaney said the new proposal will feature one hotel that would occupy about one-third of the 40,000-square-foot property and have a 75-space parking lot.

The entrance would be on Commercial Street and provide public access to a restaurant and health club at street level. Mahaney declined to say how much the hotel will cost until the project secures financial backing.

The Olympia project would be the second new hotel development in the Old Port.