Historic Melbourne hotel famed for its Victorian era High Tea and celebrity guests could become a BACKPACKER hostel

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A historic 19th century hotel could be turned into a backpackers hostel by owners if building permits are not extended within the next few months.

Melbourne's Hotel Windsor is famous for celebrity guests, it's award-winning royal suite and delicious afternoon tea, but this could all change. 

The Halim Group, who have owned the city centre hotel for 10 years, is warning the property could shut within two years or be turned into cheap traveller accommodation unless granted an 18-month extension from Victorian Government to carry out a $330 million redevelopment, The Age reports. 

A historic 19th century hotel (pictured) could be turned into a backpackers hostel by owners if building permits are not extended within the next few months

Melbourne's Hotel Windsor is famous for celebrity guests, it's award-winning royal suite and delicious afternoon tea, but this could all change

The Halim Group, who have owned the city centre hotel for 10 years, is warning the property could shut within two years

Built in 1883, the Hotel Windsor is Australia's only surviving 19th Century city hotel and was designed by architect Charles Webb 

Adi Halim, Halim Group's hotel director told the newspaper the company needs extra construction time to be able to put all its plans into place.

'I have sought advice on what I can do without a minister's permit because I can't go for another six years of dealing with successive planning ministers who keep changing their mind,' he said.

'I can create a backpackers lodge without a permit and it would make more money than the present hotel, but I would do that reluctantly.

'I could create apartments with a permit, but Melbourne has enough of those. The only certainty is the Windsor can't remain as a decent hotel.'

The hotel features 180 rooms over five floors with its royal suite offering the very best of elegance and style 

Adi Halim, Halim Group's hotel director told the newspaper the company needs extra construction time to be able to put all its plans into place

The Hotel Windsor predates many of the grand hotels of the Victorian era, including The Savoy, London, The Plaza, New York, The Waldorf Astoria, New York, and the Hotel Ritz, Paris

In 2010, a permit was issued to allow part demolition of the existing hotel and construction of a 26 storey tower and north wing extension

Built in 1883, the Hotel Windsor is Australia's only surviving 19th Century city hotel, it features 180 rooms over five floors and was designed by architect Charles Webbin a Renaissance Revival style.

It was originally name The Grand Hotel until 1920 when it was renamed Windsor Hotel in honour of the Royal Family and was one of the most favoured and luxurious hotels in Melbourne.

The Hotel Windsor pre dates many of the grand hotels of the Victorian era, including The Savoy, London, The Plaza, New York, The Waldorf Astoria, New York, and the Hotel Ritz, Paris.

Over the years the hotel has welcomed prime ministers, Hollywood celebrities such as Katherine Hepburn and Meryl Streep, entertainers and businessmen such as Sir Richard Branson and Mohammad Ali. 

It was originally name The Grand Hotel until 1920 when it was renamed Windsor Hotel in honour of the Royal Family and was one of the most favoured and luxurious hotels in Melbourne. (Pictured left is the dining room in 1910 and right is the first floor in 1900)

The hotel was designed with a Renaissance Revival style in mind and features ornate chandeliers and fireplaces 

Over the years the hotel has welcomed prime ministers, Hollywood celebrities such as Katherine Hepburn and Meryl Streep, entertainers and businessmen such as Sir Richard Branson and Mohammad Ali

In 2012 this permit was extended to January 2017 but will expire if work does not start, casting the future of the well-loved hotel in doubt

In 2010, a permit was issued to allow part demolition of the existing hotel and construction of a 26 storey tower and north wing extension - this would allow the hotel to be renovated to its original glory according to owners.

In 2012 this permit was extended to January 2017 but will expire if work does not start, casting the future of the well-loved hotel in doubt.

A further extension was refused in 2014 and now the matter is due before Victorian Civil and administrative Tribunal in December.