The Fragrance Group is investing £100m in its four-strong Devon portfolio, which includes the Palace, Corbyn Head, Park and Lighthouse venues.
The Singapore-based property firm acquired the four-AA-star, 141-bedroom Palace hotel in Torquay in 2017 off a guide price of more than £10m.
The hotel closed shortly after, making all staff redundant, and now the group plans to demolish the building and build a 248-bedroom, five-star hotel in its place (pictured).
In documents submitted to Torbay Council, the existing hotel is described as "tired" and "does not meet the expectations of visitors". It says there is no viable option other than to redevelop the site with a new hotel, which would include spa, conference, leisure and events facilities, a restaurant and a rooftop bar. The application is expected to be validated this week.
The property was first built as a private residence in 1841 for the then Lord Bishop of Exeter and opened as the Palace hotel in 1921. Bomb damage during the second world war led to further refurbishments during the 1940s.
The 46-bedroom Park hotel in Paignton, which the group also acquired in 2017, has been demolished, with construction due to start in September to redevelop it as a three-star, 161-bedroom hotel.
The group is drawing up plans to redevelop the adjacent former Lighthouse bar and nightclub into a 115-bedroom hotel.
The Fragrance Group has also submitted a revised scheme to the council to redevelop the 50-bedroom Corbyn Head hotel into a 152-bedroom property, after the original planning application was rejected in June, despite a recommendation from officers that it should be approved.
Martin Rogers of Global Hotels & Leisure Consultancy, representing the Fragrance Group in the UK, said: "The Fragrance Group is investing over £100m in four brand new hotels for Torbay. This is a significant private investment which will provide a catalyst for the much needed regeneration of the area, both in terms of brand new accommodation and facilities for visitors as well as employment for local people."
The Fragrance Group also plans to transform Bath's Grade II*-listed Royal Mineral Water Hospital into a luxury hotel following refurbishment and owns the St Chads hotel in Blackpool and the Townhouse hotel in Manchester.