Powerhouse Hotel Group hotelier Greg Maguire has partnered with Rydges Hotels and Resorts in a half-a-million dollar brand change and $12 million renovation that's earned him an extra half-a-star.

For the last two years Mr Maguire has looked to partner with a chain and on Monday the Powerhouse Hotel by Rydges sign went up in lights.

"In the last 18 months the hotel has undergone a $12 million upgrade that takes it from four-and-a-half to five stars," he said.

"Now we want to take this to a different level."

As part of the Rydges brand, the Tamworth and Armidale hotels can be marketed nationally and internationally while remaining locally owned and operated.

Event Hospitality and Entertainment Limited owns more than 60 hotels, operates Thredbo ski resort and the largest cinema circuit in Australia, New Zealand and Germany under a number of brands.

It plans to bring some extra fire power in the promotion of the New England North West region, EVENT Hotels and Resorts director Norman Arundel said.

"As good as this hotel is people don't come to a location for a hotel, they come for the destination," he said.

"We love hotels with soul and character and that's where we like to think we stand out from the competition."

In an unusual move the hotels will keep their namesake and be called The Powerhouse Hotels by Rydges, in a nod to the historical significance of the old power station site the hotel sits on.

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The five-star offering is an asset to the community, Tamworth Regional Council mayor Col Murray said.

"As a regional centre we haven't had a five-star hotel opportunity for our guests and tourists, even if you look at the major events held at AELEC there's a lot of five-star customers," he said.

"This is a strong statement for our city, I think a lot of the corporate world and their loyalty to Rydges will bring tangible benefits to Tamworth."

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