The cases were detected at Alloggio Newcastle Beach and have been moved into isolation at Alloggio hotel at Thornton, which is being used as a quarantine facility.

Forty-six residents were tested on-site on Monday and directed to isolate for 14 days at the Newcastle East hotel, which will now be used as a close contact facility.

Alloggio managing director Will Creedon referred inquiries onto Hunter New England Health, which is handling the situation.

The health service said the original source of the infection was still under investigation and contact tracing is underway to identify all close and casual contacts of the confirmed cases, as well as any exposure sites that would pose a potential risk to the broader community.

Hunter New England Local Health District said it was working closely with building management and residents, supported by NSW Police, to implement measures to safeguard the health and welfare of residents.

A NSW Police spokesperson said officers have been assisting after a request from NSW Health.

"In all residential lockdown locations, NSW Police are there to ensure compliance with the Public Health Orders," the spokesperson said.

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