Plans have been lodged to turn Blackpool's Grade II-listed former Post Office and Sorting Office into a 148-bedroom Hotel Indigo, IHG Hotels and Resorts' ‘boutique' hotel brand, and Indigo Suites.
Blackpool Council is seeking £7m from the government's Levelling Up fund towards the total investment of £24.8m.
The developer behind the scheme, Ashall Projects, has submitted a planning application and is working with Blackpool Council and IHG.
The plans would retain and restore many of the original features of the Post Office, which opened in 1910, including stained-glass windows, marbled flooring and cornicing. The Post Office and Sorting Office are separated by a large interior courtyard, which will also be transformed.
The hotel would employ around 70 staff and 215 people will work on the construction.
Mark Ashall, director of Ashall Projects, said: "This will be a Hotel Indigo with a difference. It will cater for both short-stay leisure and business visitors and it will also offer extended-stay suites with additional facilities, such as kitchenettes, to provide the space and amenities for guests who want to stay longer.
"There are nearly 150 Indigo Hotels across the globe, but this will be the first time anywhere that Indigo will be offering extended-stay rooms in addition to the classic Indigo rooms. We believe this will allow us to provide a wide range of accommodation options which will meet a variety of customer requirements."
Ashall Projects previously delivered the Aloft in Liverpool, transforming the former Royal Insurance building through a multimillion-pound restoration.
The hotel is being designed by Franklin Ellis Architects, the firm behind the Hotel Indigo in Chester city centre, which was completed in 2019.
Matthew Branton, partner with Franklin Ellis Architects, said the project would "further assist the wider regeneration of the locality and its place at the heart of Blackpool's Town Centre Conservation Area".
Leader of Blackpool Council, councillor Lynn Williams, said: "Blackpool Council fully supports the plans to bring this key historic property back to life. This upscale hotel development will attract extended-stay business and leisure guests to the centre of Blackpool all year round for the benefit of local businesses. We look forward to working with Ashall Projects on this exciting new project."