Redevelopment of the ageing Seabreeze Hotel, which was purchased by Marcus and Vanessa Levy from Bruce Sanders in 2013, is expected to be completed by November this year.

"We truly believe that this development will revitalise the Nelson Bay area and bring a great deal of new business to shops and restaurants along the CBD and the marina," Mrs Levy said.

"In addition, there will be numerous job opportunities for locals from casuals to full time positions."

The interior renovations are expected to transform the Seabreeze into a four-star boutique hotel.

There will be two food offerings - a bistro and a more sophisticated Mediterranean-style outdoor restaurant with wine and cocktail bar.

Mrs Levy said the new venue would offer a more relaxed atmosphere for those who have spent an enjoyable day at the beach or marina.

"The drive-through bottle shop has been upgraded and the accommodation, once completed, will feature high-quality furnishings and luxury amenities."