Construction of an adjacent $25 million hotel fronting Summer Street will also start soon with both expected to be completed by mid-next year.

Property owner and developer Paul Saunders said the Village on Summer Street shopping centre would remain open throughout the redevelopment process.

He said the renovation of existing shops would be completed by October with new shops to open in time for Christmas.

The shopping centre works will be completed in March.

The 98-room, multi-storey hotel development was approved by Orange City Council last November with councillors stating it would bring jobs and an economic boost to the city.

Mr Saunders said some shops would be moved temporarily to allow for the upgrade work.

The Thar Restaurant has already moved temporarily to Sale Street.

He said the finished works would reinvigorate the western end of the Summer Street CBD area.

"The Village on Summer Street promises to shake off the tired look of the Summer Centre and introduce a new, fresh shopping experience," he said.

"With retail shops, convenience stores, alfresco dining and a light, airy feel, it will extend the Orange CBD and connect nearby signature bespoke businesses and, no doubt, provide confidence to new high-end, bespoke local businesses to open nearby.

"Bringing a Melbourne laneway vibe with a hint of Italian piazzas, and a little bit of Double Bay, this precinct will fit perfectly with Orange's new residents working in the health, agricultural and education industries and tourists enjoying the nearby Airbnb and boutique hotel accommodation, cellar doors and natural attractions."

He said the work would provide a fresh facade, major bathroom renovation an internal and external walkway and the carpark would have extra green spaces.

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