A Lambton hotel could be converted into short-term rental accommodation after suffering a decline in patronage.
Plans have been lodged with Newcastle council to remodel the Mark Hotel to house 28 accommodation suites.
Documents lodged with the application state the hotel owners have "witnessed a steady decline in patronage in recent years, while conversely demand for short term rental accommodation has steadily increased over the same time".
The proposal involves removing the existing public bar and dining areas on the ground floor of the hotel and installing 12 accommodation suites in their place.
Existing bathroom facilities would be renovated and repurposed as en suites and a new communal laundry built for hotel guests.
An existing laundry and storage area at the rear of the hotel would be partially demolished and a new communal lounge, dining and kitchen area installed for hotel guests with two additional accommodation suites above.
A portion of the hotel previously infilled will also be removed to provide light, ventilation and an open outdoor courtyard.
There will be no access to the hotel or communal facilities for the general public other than registered guests of the hotel.
The development proposes to include seven parking spaces, which would be nine spaces short of the number required by the city's development control plan.
The applicant said the five car spaces were included in the existing development - a deficiency of 35 spaces.
"Considering the historic deficiency of 35 parking spaces for the existing development, the proposed development will result in a greatly reduced demand for on-street parking (24 spaces less) than is currently experienced, thus improving amenity for neighbouring development," planning documents state.
Parking was raised as a concern in the three submissions lodged objecting to the proposal. Other issues raised were about crime, safety and traffic.
