Multi-million dollar renovation plans have been lodged for the Clarendon Hotel to extend the pub through to Wheeler Place.
Plans have been lodged with City of Newcastle to expand the Hunter Street venue after owners the Stevens Group bought the Fred Ash building and Bennett and Wood building, which previously housed the Blue Door cafe.
"Buying the buildings really gave us the vision to extend through to Wheeler Place," Stevens Group development manager Mackenzie Stevens said.
"It will allow us to put a new cocktail bar and outdoor dining facility there, with outside seating facing Wheeler Place.
"It will be connected all through to the Clarendon."
The Clarendon was built in the 1930s, and the pub was last renovated by previous owners about 10 years ago.
However Mr Stevens said the venue had not undergone a revamp of this magnitude in 25 years.
The Fred Ash building has state level heritage significance, while the whole site is within the Newcastle Heritage Conservation Area.
The Stevens Group bought the Fred Ash building from City of Newcastle in 2020, and acquired the Bennet and Wood building in 2023.
The council sold both buildings in 2020 and used the money to fund the Newcastle Ocean Baths upgrade.
"We're very excited to improve the existing hotel but also to give it new life," he said. "The Fred Ash building we see as a very important building in Newcastle, so to revitalise that and open it back up to the public is very exciting."
There are 21 accommodation rooms in the Clarendon Hotel, which will be renovated and the proposal will also add another 22 rooms to the venue.
"We're keeping the existing art deco look for the Clarendon, and adding finer entertainment and boutique accommodation," Mr Stevens said.
"The Clarendon will see a new commercial kitchen, improvements to the outside beer garden and new entry off Burwood Street.
"The Fred Ash Building is currently approved for office space. We will apply for change of use to a cocktail bar and a boutique hotel on levels two, three and four,
"The Bennett will be an extension of the Fred Ash building, but it will still operate as a cafe/dining and function area."