About 70 people attended a Save the Hotel Australasia rally on Saturday morning.
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Many who attended added their names to a petition calling on Bega Valley Shire Council to negotiate with the developer to buy and preserve the historic part of the building.
The preamble to the petition said it was not in the public’s interest to allow the developer to modify the current DA, splitting the project into stages.
"We do not want to risk being left with a vacant site in the heart of Eden," the petition stated.
"The petition gained 50 new signatures, it was a good result," Save the Hotel Australasia campaigner Amanda Midlam said.
Ms Midlam said hotel owner Rodney Thompson's proposal to modify the DA was "interesting".
"The developer claims he is concerned about safety and security," Ms Midlam said.
"However, he has owned the site for two years and has only recently put up security fencing.
"The broken window at the front of the building has become a permanent feature.
"Anyone seriously interested in people's safety would have done something about that window.
"It is ridiculous to suggest that the building has to be demolished to make the site secure," she said.
Another rally will take place outside the hotel on Saturday morning.