A run-down old Salvation Army hall in Lurline Street would be transformed into a 20-room boutique hotel under a $3 million redevelopment plan now before council.
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The building was originally built to be used as a meeting room and second-hand goods depot by the Salvos but it has been unused for about 25 years.
The DA proposes to retain the building as part of the redevelopment.
It is in the name of the Escarpment Group, which ran some of the Mountains' most prestigious hotels for nearly 20 years. Last May it sold the Hydro Majestic at Medlow Bath, Lilianfels and Echoes at Katoomba and Parklands at Blackheath.
The small-scale four-star hotel planned would repurpose the existing building and add new buildings in the form of "pavilions" which would minimise bulk and scale. There would be 20 parking spaces, in part utilising an existing basement area.
There would be 12 rooms on the ground floor, including two fully accessible, reception and refreshment area. The first floor which would be located in the roof void of the existing building would consist of eight rooms.
Landscaping would keep existing cypresses along the rear boundary and the DA emphasises that the proposal "seeks to retain the existing character of the site".
The DA is on exhibition until May 10 here.