In a statement shared to social media, the venue's operators confirmed the Cambridge Hotel will be closing in June 2023 to make way for student accommodation.

On their Facebook page, the venue said "we have plans to make sure the live music scene is still supported in this city and we are currently looking at all options".

But long-time Cambridge Hotel booking agent and music promoter Marcus Wright said it is unknown what the future holds for live music in Newcastle as there are no other venues in the CBD like the Cambridge Hotel.

"There wouldn't really be anywhere else to fit the same capacity, with the same foot traffic, and without noise complaints than where it is," he said.

"The Cambridge room and the space, there is nothing like it in the CBD. If it is not the CBD there is not the collection of other venues and food around so you are naturally not going to get the same foot traffic.

"Where it is now is perfect and it shouldn't go for residential property because I believe that both can exist in one where which would be good for Newcastle and what Newcastle really deserves."

The news has brought another blow for musicians after they have suffered continued cancellations due to COVID-19.

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"I am still in a bit of shock because I am one of the founders of the Newcastle Music Taskforce working with council and we are trying to get the city happening again and it is very hard when you are selling buildings to people who don't want to continue the legacy," Mr Wright said.

"I am working with a couple of people to push a petition out to try and save the venue. We still think there is a chance for us to save it and I am hoping to get that through to council.

"The numbers are a lot less at other venues because they don't have the capacity so without the Cambridge a lot of touring acts would just miss Newcastle and go straight to the Gold Coast or Byron."

The pub has been the principal mid-size performance venue for Australian and international touring acts and is a key player in the local live music scene.

Newcastle band The Appointments have performed at the Cambridge Hotel multiple times. The Appointments' singer Rhys Love said he fears live music in Newcastle will never be the same again if the venue closes.

"There is heaps of awesome music being played by artists in Newcastle. There is artists playing at the Cambridge all the time so there is not a lack of music but there is becoming a lack of venues," he said.

"There is not going to be enough places to bring high-level acts and when you do that you start to have a serious impact on the perception of Newcastle as a place of creativity. It gets left off the tour and left off the map.

"The Cambridge gave the ability for my band to cut our teeth into the industry and also the opportunity to support bigger touring acts and that has become more and more scarce.

"In the long run it will damage the industry. Less support slots for local bands will equal less exposure to an audience that may never go out to gigs.

"For a local band, that support slot with a touring band could be a huge exposure moment for them and that is just another stage now that has been taken away from local artists to play on."

Under the plan the existing Cambridge Hotel would be integrated as a food and beverage venue.

However, the developers say they want to create "a safe sanctuary for young people that may be living away from home for the first time", and a licensed venue does not align with that goal.

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