The Newcastle Herald has been given a sneak peek inside what will be the $14.5 million boutique Lee Wharf Hotel in Honeysuckle.

The bar will hold 800 people and open until midnight on Fridays and Saturdays.

Owners successfully transferred the former Empire Hotel's liquor licence to the premises in 2008.

The Herald reported recently that the Casino, Liquor and Gaming Control Authority rejected the transfer of the Jolly Roger liquor licence to the proposed Kensington nightclub because of complaints and opposition from police and the authority.

The situation has prompted Newcastle City councillor Aaron Buman to call for a "nightclub precinct" in Newcastle West.

He said that blocking the transfer was a bad idea because it meant the Jolly Roger, despite being closed, could still operate in its isolated location without restriction.

During transfers, authorities had a means of imposing modern restrictions, he said.

He said authorities should encourage transfers of licences including the old Star Hotel's to create a nightclub precinct at Honeysuckle.

"Then you can co-locate the police, security and taxis," Cr Buman said.

The Lee Wharf Hotel is a circa-1910 storage shed, and will include a boutique pub, restaurant, outdoor deck, public forecourt and 15 gaming machines.

Proponent Craig Laundy said it would add diversity to town and would be reminiscent of venues in Sydney's King Street Wharf.

"This will be an offering Newcastle hasn't seen before," he said.

"It's a hotel licence but it's going to be a bit more up-market."