Mr Lazarus and his architect spoke in front of councillors this week at a public voice committee meeting, along with a representative of concerned local residents.

The pub overhaul plans attracted 114 submissions last year, majority of which came from nearby residents concerned about noise and parking impacts, increased anti-social behaviour and the hours of operation.

Mr Lazarus, an industry veteran who bought the hotel in 2019, pointed to the "dining-focused business model" of his other recently renovated Hunter venues, The Exchange Hotel in Hamilton and Shoal Bay Country Club, as an example of what he was "applying to the most iconic venue in Newcastle".

Under the plans, the upper floor would be renovated to house dining and live music, which is currently held on the ground floor.

A new eastern terrace would be built over the ground-floor outdoor dining area.

Dennis Courtney, who spoke on behalf of a residents' group, said locals were concerned the hotel would become a "large open-space nightclub-like venue that will open until 3am".

"This, we believe, will lead to increased associated anti-social activities," he said.

"Currently patrons are a family-community type ... after this 3am slot is introduced, we believe it will change to a nightclub-type patron."

Mr Courtney said residents had ordered their own acoustic assessment, which was in contrast to the one provided.

He said "parking was already pushed to a crisis point" and the additional patronage "would only increase parking pressure".

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In response, Mr Lazarus said there had been "misconceptions" about the plans and the hotel was "not applying for any change in hours".

Its ground floor is already licensed to open until 3am Monday to Saturday, and 10pm Sunday.

Its advertised hours are currently until midnight weekdays, and 1am Friday and Saturday.

Mr Lazarus' architect said the "proposal was not a nightclub", "no changes were proposed" to the music offerings, the upper level would close at midnight and a southern upstairs terrace at 10pm.

He compared the venue to the Beach Hotel in Byron Bay or the Coogee Bay Hotel and said the "modest and respectful" changes were needed to ensure the pub matched its "iconic" status.

The venue's capacity will decrease from 1500 to 1230.

Mr Lazarus shot down "rumours" the venue was for sale, suggesting they had stemmed from the pub market being "red hot".

There have been some big coastal sales," he said.

"Yes I've had approaches to buy the hotel, but it is not for sale."

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