He said old hotels in the southern Wairarapa towns of Martinborough, Greytown, Featherston and Carterton were an inspiration of how a more than 100-year-old building could be saved and reinvented as a restaurant and pub.
"It was just too far gone," Mr Yule said of the Albert Hotel. "Nobody could could make it work."
He said what Mr Whittaker planned for the site is an "innovative way of filling the space".
The site is expected to be cleared by the middle of next month. Once it is cleared, a two-level container development will be built on the site with up to 16 spaces for lease, modelled on Christchurch's successful Re:START container mall.
The Albert Hotel, built in 1882 by William Dennett, an Australian immigrant who became mayor of Hastings, was the city's oldest central building.
The two-storey wooden structure withstood the 1931 Hawke's Bay earthquake and was given category two protection by Heritage New Zealand because of its cultural and aesthetic value.
It is understood the oldest building in Hastings city now is St Matthew's church, built originally in 1886