The Liangis Family have proposed the 120 room "Capitol Hotel" for the site of the Capitol Theatre as the second stage of the long-running development, with construction already under way next door.

Liangis Developments Pty Ltd lodged a development application in October last year to consolidate five blocks on Franklin Street which were under two crown leases.

The latest consultation will determine the development application lodged to redevelop the cinema on blocks 1, 2 and 5. The plan for the hotel on the site of the former post office, on blocks 3 and 4, has already been approved.

Demolition at the site of the former post office began in May. The developers said, should the next stage be approved, the site would operate as one development.

The proposed five-storey hotel includes the hotel lobby, five cinemas, commercial tenancy sites and a restaurant opening onto Franklin Street.

On the first floor, meeting spaces are planned next to the 'Liangis Ballroom' and a dinning area and bar.

The 120 guest rooms would reside on the floors above, alongside a swimming pool on the second floor.

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The Liangis Family plan to submit the application in December following community consultation which closes on December 2.

In the project overview, they state the development "has been designed in accordance with the Territory Plan and National Capital Authority planning controls applicable to the site" and "acknowledges the architectural character of early Manuka".

"The proposal includes streetscape upgrades that will improve the public realm along Manuka Circle including soft landscaping and pavement upgrades," The Liangis Family said.

There will be an online information session open to the public on November 18.

Manuka traders have welcomed the long-running plan for the development, as a way to bring new life to the precinct.