An old destination finds its mojo

AUSTRALIA's second-oldest city Newcastle is being reinvented with an eclectic mix of cafes, restaurants and art galleries that surprise sceptical Sydneysider Rosie Squires.

Novotel Newcastle Escape

NEWCASTLE is changing. Sydney's cousin in the north has undergone a refurb, transforming from the industrial "steel city" of the 1990s to a buzzing, vibrant mix of cafes, food and wine, surf, art and fashion.

Known for the closure of the BHP steelworks in 1999, Newcastle is often misrepresented as a sleepy town of retired steel workers living in fibro shacks.

Which is why some of us Sydneysiders were a little surprised to learn Lonely Planet crowned the surfside city one of the hottest in the world, 2011.

"Today's 'new' Newcastle is a unique blend of imagination, sophistication and laid-back surf culture," Catherine Le Nevez writes in Lonely Planet.

"Australia's second-oldest city has Sydney-like assets: surf beaches, a sun-drenched subtropical climate, and diverse dining, nightlife and arts."

What better way to prove it than send two born and bred Sydneysiders on a weekend to Newy to walk, eat and experience the "new" Newcastle.

Two hours north of Sydney, Newcastle is set around one of the world's largest ports.

Without insider knowledge, a visitor could easily miss the best of the city.

Head to Newcastle's east, where a raft of new businesses are rejuvenating this end of town.

Eclectic cafes including the organic One Penny Black in Hunter St have popped up between the discount chemists and clothes stores of the CBD.

One Penny Black  - or OPB as the locals call it  - serves great coffee, gluten-free cakes and moreish toasties, including the $10 favourite: prosciutto, brie and caramelised onion.

The city feels young and vibrant, with groups of hipster-looking Newcastle University students walking the streets.

And many of the drab abandoned buildings have been coloured with bright graffiti art, giving the municipality a touch of that Melbourne-style edge.

One of the newest editions to the CBD is the stylish, 4 1/2-star, 88-room Novotel Newcastle Beach, formerly the Sebel.

The Novotel rooms are contemporary and comfortable and most have views of either the ocean or Newcastle Harbour, Nobbys Lighthouse and Stockton Beach.

The hotel offers a gym, spa and steam room as well as three conference rooms.

The view from our room was spectacular, overlooking some of the old city buildings and the harbour. We were a little too excited each time a giant cargo ship sounded its foghorn, alerting us it would be chugging into the port.

The hotel is steps away from the beach, the harbour and the Hunter Street Mall.

From the hotel, we can walk to the historic Newcastle Ocean Baths, with its restored Art Deco facade and along the beach to Nobbys Lighthouse  - again clapping at the cargo ships.

But it was the culinary delights of some of Sydney's best-trained chefs who have migrated north that really impressed.

My partner and I were sceptical of the so-called burgeoning culinary scene in Newcastle.

We were wrong.

Lunch was at Rustica, launched in August last year. The Mediterranean mecca boasts a $58 slow-cooked lamb that rivals the Matt Moran family offering at Chiswick (Woollahra).

It's a breathtaking view overlooking Newcastle Beach and our waiter, Jason, tells us the restaurant had more than 200 customers the previous Saturday night.

From here we walked to Newcastle Art Gallery to check out its offerings.

After a walk around the CBD we headed to award-winning restaurant Subo for dinner.

Novocastrians have been waxing lyrical about this little gem for a few months now, so we went in with high expectations.

Owners Suzie and Beau Vincent did not disappoint.

The wine list offers some of the Hunter's best-kept secrets and the menu is constantly changing in step with the season.

Beau trained at Tetsuyas in Sydney and landed his first qualified chef's position at Guillaume at Bennelong.

His mix of flavours, technique and presentation are flawless. And the six-course tasting plate  -  $68 a head  - is the best way to experience what the restaurant has to offer.

Another culinary win is Le Petite Deux, a French cafe in King St, just metres from our hotel.

Chef and owner Lesley Taylor only opened the doors a few weeks ago, but the small eatery is overflowing with satisfied customers.

The chic and stylish decor is simple and the food fresh and well presented. Desserts are a must  - when we dined the daily special was a chocolate and espresso mousse served with toffee and strawberries. Yum.

On the drive home we are sad we can't visit Newcastle's gourmet treasures every day.

But, at just two hours up the road, it's the perfect destination for regular weekend escapes.

-- The writer was a guest of Novotel.