Doma says it will lodge a development application for expanded plans for the Little National Hotel site on Honeysuckle Drive, with extra rooms and an office building now set to be included.
The developer announced the move on Wednesday morning, attributing it to "confidence" in the future of tourism and employment growth in Newcastle.
"Doma has a long-term commitment to Newcastle, reflected by the fact we have seven projects either underway or completed to date," managing director Jure Domazet said in a statement.
"We believe an opportunity exists to help draw more visitors and jobs to the region.
"The outlook for local tourism and the economy are positive and it is important to us to ensure our plans move with the times to provide the infrastructure that will best position the city for the future."
An application for the expanded plan has not yet been lodged, but the company said it would be submitted soon.
The company conceded the change meant completion of the project at 42 Honeysuckle Drive - next to the Hunter Water building - would likely be delayed.
Additions include 29 extra rooms at the hotel and a 4700 square-metre office block on the eastern side of the property, containing 181 rooms.
The office block will have access to the Little National Hotel's facilities, including a co-working lounge and library area, gym and access to the north-facing upper terrace and rooftop bar.
"This is part of a global move where hotels start offering services that will also be enjoyed by office occupiers," Mr Domazet said.
"The public spaces of hotels have always been used as 'third spaces' by businesses and linking our hotel and office buildings optimises this relationship.
"There is a natural blurring of hotel and office spaces that will see hotels providing more of the co-working spaces currently being developed around the world.
"Following the recent sale of 18 Honeysuckle Drive, Doma is pleased to be replacing this commercial investment in the city and asset in its Newcastle portfolio."
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