William Street's Royal Hotel, which overlooks Kings Parade, has a new tenant for the ground floor.

The commercial space was leased by Elders, Nicoll and Ireland real estate and manager David Nicoll said the tenant has indicated the space will become a café and restaurant.

"Lessee works are starting. It's going to be a restaurant-café," Mr Nicoll said.

"New operators from Sydney were attracted to Bathurst specifically. They see it as a really great place to offer their restaurant product."

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He said they are experienced operators in the hospitality industry and intend to have the Bathurst location up and running in a couple of months.

It was important to get this site leased, as it's a commercial premises in a very high-traffic area of Bathurst.

"The Royal Hotel, it would be one of the best, most beautiful buildings around. It's been really nicely refurbished, great location obviously, and it's served as very successful cafés and restaurants over the years long-term," Mr Nicoll said.

"COVID posed a bit of a problem, but we've had significant interest in the landmark building again and a lease has been executed.

"... We're privileged to have the owner of the building as our client and it's always good to be able to deliver a great result for our valued clients."

The space has a long history in the hospitality industry.

For many years it was the home of Elie's Café, and later went on to become the Royal Society Café and most recently was known as The Coach House.

Elders, Nicoll and Ireland is still working to lease other spaces within the Royal Hotel building, and it is hoped that securing one tenant will increase the attractiveness of the remaining vacancies.

"It will bring a vibrancy back to that area, which it has lacked for sometime. We get a good operator in there, and it'll bring a vibrancy back," Mr Nicoll said.

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