Planning for development of the Pall Mall site started in 2006 when the City of Greater Bendigo began an expression of interest process.

The Advertiser reported in September 2008 that the council had selected OMNI Property Group as its preferred developer for the site.

OMNI had proposed a $25 million hotel, including five stories of accommodation, shops, a restaurant and conference rooms.

The accommodation was to consist of 120 apartments and motel-style units on the upper levels.

In November last year city strategy director Stan Liacos said the working relationship with the proposed developer was productive.

However, the market had shown little interest in funding the project.

Mr Liacos recommended that the sale of the property be put on hold.

Mr Liacos said yesterday the city was reviewing its options on the property.

“It is an important strategic site for us.

“We’ll discuss our options with the council in the near future.”

The land running through to Hargreaves Street is considered prime real estate and

is understood to be valued between $1 million and $2 million.

In May last year The Advertiser reported that the hotel plan was in doubt because of the global financial crisis.

The building has been vacant for almost five years.

OMNI had hoped to have the hotel completed by early this year.