The building, which the City of Greater Bendigo put back on the market in May this year, will be refurbished to house amenities including a restuarant , function centre and gym.

“The developers want to provide Bendigo with a premium quality hotel with a level of luxury previously not available in regional Victoria," mayor Alec Sandner said.

“The new owners intend to transform the entire site into a five-star boutique hotel complete with a five-star restaurant, 60 hotel suites, function centre, gym and other amenities.  

"This will be completed in two stages with development of the existing Pall Mall building being stage one.  

"The second stage will see the Hargreaves Street site having 40 hotel suites and will be a new structure.” 

The old Addy building has been vacant since 2005 and is currently the temporary home for the Bendigo Library until early 2014 when its major redevelopment works finish.

Cr Sandner said developers would use the time to design plans and get the necessary approvals.

The project is expected to create up to 30 jobs with stage one to be completed and operating by May 2014. 

“The city is confident that with existing planning controls there is sufficient guidance for the developers’ plans to align with the Central Business District Plan and a good quality result for the entire city will be achieved,” Cr Sandner said.