Stage two of the Manuka Hotel, on the site of the old Capitol Theatre, was approved with conditions in 2021 to include five cinemas, a ballroom and meeting spaces, a restaurant and 122 hotel rooms across the upper levels.
In May 2025, the president of the GNCA, John Edquist wrote to the Territory Planning Department about the two amendments to the development application. He particularly asked if cinemas would still be included and later received a response indicating they would be.
However it appears, from speaking to tradespeople on the building site, that cinemas are not being built. In an interview with the Canberra Times in August, an ACT government spokesperson said the Territory Plan does not require cinemas on the site, although the Crown lease permits them. Also that changes to the plans for the site can be made without changes to the development application under 2023 regulations.