The council on Tuesday announced it would move to the 12 Stewart Avenue premises next month to allow the Roundhouse's new owners, Crystalbrook Collection, to begin converting the landmark building into a five-star hotel.

City of Newcastle will also re-commence efforts to sell or lease the Frederick Ash building, a process halted when the Roundhouse's fate became clear.

The building will be marketed along with the adjacent Bennett building, which houses the Blue Door Cafe, and the Clarendon Hotel.

"For the City of Newcastle, our job is to maximise the value of those buildings for ratepayers as well as create opportunities for the private sector to invest in the civic precinct to further its position as the cultural capital of the region," chief executive Jeremy Bath said.

"This will be a campaign that will again attract interest both domestically and internationally. The opportunity to buy into a precinct that will in 12 months' time be home to Australia's newest five star hotel, will undoubtedly create significant excitement."

"Should we secure offers that deliver value for money to ratepayers, I will take the sale or lease of one, two or possibly all three buildings to the elected Council for consideration in the first quarter of next year."

Mr Bath said fit-out at the council's new headquarters had proceeded as planned and on-site inductions would begin next week.

"Our administrative employees will walk into a modern, collaborative and functional office when they arrive for work at 12 Stewart Avenue on Tuesday 8 October.

"They will leave three buildings, 14 floors and 43 years of memories behind. But we know that the current structure is not allowing our staff to reach their potential, nor is the building in the right location to act as a hub for community and government interaction.

"The fit out of the new office space has been delivered on program, allowing staff to move in just two weeks from now and Crystalbrook to start construction at the Roundhouse shortly after."

Interim Crystalbrook chief executive and group director hotels Geoff York said the company expected to begin construction later this year to open their hotel in late 2020.

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