The owners of a prominent hotel in the heart of the Newcastle East heritage precinct have lodged plans for a $6.7 million makeover.
The proposed renovation of Newcastle Beach Hotel in Parnell Place, formerly known as Novocastrian Motor Inn, includes a ground-floor day spa and cafe and first-floor bar and restaurant.
The second and third floors will remain as hotel rooms and the top floor converted into two penthouses, possibly for sale as residences.
Prominent Hunter businessman Will Creedon's hotel and short-stay accommodation company, Alloggio, holds a commercial lease over the property.
Mr Creedon said the syndicate which bought the 47-room hotel late last year was keen to "dramatically upgrade" the building.
He said the size of the hotel would not change, but the upgrades would be designed to attract more "high-end" tourism.
"It's very exciting for the east end of Newcastle because it's an iconic location," he said.
"We can now realise the future potential of the site through this development.
"We want it to become an iconic destination in an iconic part of Newcastle."
The hotel looks over the Newcastle Supercars track, has views of the ocean and harbour and is 200 metres from Newcastle Ocean Baths.
Architectural impressions of the makeover show the building with a new white exterior and first-floor terraces.
Mr Creedon said the hotel's name would change, as would its internal and external appearance.
"Once renovated, it will take on its own unique identity," he said.
"It will be a very sophisticated, casual building.
"Outside and in, there'll be considerable renovation.
"The bones of the building, the envelope, will absolutely remain."
Meanwhile, City of Newcastle has received plans for a new medical centre on the corner of Union and Parry streets, across the road from No.1 Sportsground.
The proponent plans to spend $1.3 million converting a single-storey commercial building into medical rooms.
