In the heart of Salamanca Place in Hobart lies a building with a colourful past, and if the walls could talk, they'd have plenty of stories to tell.

Key points: The building at Salamanca Place was built in 1834

The building at Salamanca Place was built in 1834 It's been a hotel, a brothel and most recently a nightclub

It's been a hotel, a brothel and most recently a nightclub It's now been transformed into a boutique hotel, but retains tell-tale signs of its interesting former life

"They'd never stop talking, there have been murders, mystery, intrigue," Hobart historian and author Colin Dennison said.

Number 39 Salamanca Place has been a watering hole, a brothel and a popular nightclub.

The three-storey sandstone building is now set for a new chapter as a boutique hotel, but retains plenty of tell-tale signs of its interesting former life.

Built in 1834, 39 Salamanca Place started life as a hotel known as the Whalers' Return, popular amongst sailors and fisherman at the height of the penal colony's whaling industry.

It changed names several times in the late 1800s; from the Nautilus Hotel to the Lord Nelson.

So did the pub on the bottom floor, known for many years as Knopwood's Retreat, named after the notorious Reverend Robert Knopwood who once owned the land and operated the brothel.

Historian Colin Dennison said the building had entertained a lot of shady characters. ( ABC News: Drew Hill )

Mr Dennison has written a book about the history of Hobart's pubs and said it was an interesting establishment that entertained plenty of shady characters.

"It was described by one policeman in the late 1890s as a place where they could get more police information [than there are] leaves falling of the trees in autumn," he said.

In the 1940s, the building went through an Art Deco phase with the sandstone facade covered with ceramic tiles which were later peeled off.

"It was the material they used to stick those on, that cause the brick to look the way it does nowadays," Mr Dennison said.

Apart from the brief deco phase, the facade has barely changed in 185 years, but inside things are very different.

The building went through an art deco stage in the 1940s. Ceramic tiles were stuck to the sandstone facade. ( Supplied: Colin Dennison )

This 1834 building is now a 20-room boutique hotel that spans next door to the upper levels of the Salamanca Fruit Market.

Architect Robert Morris-Nunn said it was an exciting development that celebrated Tasmania's rich history.

"It's a unique opportunity, these types of buildings don't come up very often," he said.

Moss Hotel Manager Rod Black said layer upon layer of plaster had been peeled back to reveal the original convict-cut bricks.

The original 1834 timber beams and tin roof are also proudly on display.

"Immediately you feel the history, so it's convict cut, so the pain that went into these stones … it's goosebump-material stuff", Mr Black said.

The original timber beams and convict cut sandstone feature throughout the hotel. ( Supplied: Rod Black )

Syrup Nightclub memorabilia preserved

One of Hobart's long-time late-night haunts, Syrup nightclub, most recently occupied the building's upper levels, it closed in January 2016 after 25 years.

Mr Black said there was a big clean-up to do when work began on the new development.

"When we came in here we found stainless steel bars, a DJ box, pretty old carpet [and] some leftover drinks from the last night at the nightclub," he said.

One level dubbed "Tackyland" played 70s and 80s hits, while the second level attracted big-name DJs from around the world.

Mr Black said given the nightclub was a Hobart institution, some of the old DJ posters and graffiti have been retained and are a feature of the hotel rooms.

"There are some great walls in the accommodation rooms which will have Ministry of Sound posters next to DJs and a little bit of graffiti leftover from some of the patrons of the old nightclub."

Syrup Nightclub operated for 25 years and closed in January 2016. ( ABC News: Annah Fromberg )

Renovation an alternatives to high-rises: architect

Architect Robert Morris-Nunn said he was passionate about preserving Tasmania's history and has restored a number of Hobart's historic buildings, including the old waterfront warehouses on Hunter Street.

"The idea of actually telling stories and those stories go back to the 1830s and 1840s and they come right through to today, this is in fact what Tasmania should be all about," he said.

With Hobart in the midst of a heated debate about building heights, Mr Morris-Nunn said the new Moss Hotel highlights the alternatives to high-rises.

"This should be what we're doing — this is our culture and this is our future," he said.

"The anonymity of the others [high-rises] is going to actually subtract from the real asset. These buildings properly recycled can actually give us as a future for this state."

"This is our inheritance, the other isn't, the other is just trashing our inheritance."

The Moss Hotel is due to open in early June.