It was demolition day for Manuka's Capitol Theatre on Friday, as an excavator tore down the old cinema building on Canberra Avenue.
The demolition paves the way for the second stage of owner Sotiria Liangis' long-awaited Manuka Hotel project.
Demolition began in early November, when the building's interior was stripped out.
More fencing has since been installed around the building to allow the major demolition work to begin.
Once the structure has been removed, work is expected to begin on a six-storey building in its place.
Mrs Liangis' luxury hotel plans were approved with conditions in mid-2021.
Plans for the Manuka Hotel include 122 hotel rooms as well as five cinemas, a ballroom, meeting spaces and a restaurant.
Stage two will be integrated with stage one, the Parisian-style building that now stands on the corner of Flinders Way and Canberra Avenue.
Under the ACT planning authority's conditions, development approval will not take effect until variations to the Crown leases are made.
An ACT government spokesperson confirmed in November demolition could begin, however main building works could only take place following the registration of the lease variation with the land titles office.
They confirmed Mrs Liangis had entered into a lease variation charge deferred payment scheme, which is available for charges that exceed $50,000.
"The lessee is now in the process of lodgement with the land titles office," the spokesperson said at the time.
Years of disputes, including a long-running stoush over a tree, have marred the development, which local businesses believe will revive the area.
The original Capitol Theatre opened in 1927 but was demolished in 1980. It was later rebuilt and was purchased by the Liangis family in the late 1980s.
