The Mid-City Motor Lodge in Lords Place is set to be demolished and replaced with a 103-room motel including a restaurant, bar and function room, 53 rooms more than its current offering.

Meanwhile, the former Central Western Daily building in Kite Street would also be demolished to make way for a building with ground floor retail and 44 apartments consisting of one, two and three-bedroom units, giving it a 77-room capacity.

The Kite Street DA, lodged by TPG Urban Planning and Design, lists Quest Serviced Apartments in its preamble.

Although Orange City Council is yet to assess the proposals, employment and economic development committee chair and councillor Jeff Whitton said it was a good day when $23 million-worth of development was announced.

“[It] shows there’s confidence from investors that they’re going to get a return on their investment,” he said.

However, Orange Business Chamber president Mark Madigan said existing accommodation providers averaged 64 per cent capacity and to maintain the same rate, the two developments would have to attract at least 84 additional people a night.

“It doesn’t mean doom and gloom but it highlights, where’s the sustainability coming from?” he said.

Mr Madigan suggested the applicants complete a strategy to bring more people to Orange, while Brand Orange chief executive Rhonda Sear hoped the developments could be staggered to lessen the impact on existing accommodation options.

“I would like to see the businesses make a contribution to make sure Orange keeps profiling high,” she said.

Cr Whitton believed there was clear demand, particularly in October during the Orange Wine Festival, Bathurst 1000 and the Australian National Field Days.

”You need to have the rooms to attract the visitors and I suppose it gives event people the confidence to know that Orange can actually cater for the people they attract,” he said.

“Our role is to look at the DAs on their merit, as long as it’s within the law then council doesn’t really have a role to knock it back based on the fact we already have enough of that type of business.”

Councillors should consider the DAs in November.