The centenarian Grange & Links hotel in Sandilands, Lincolnshire, will be knocked down to make way for a £4.5m hotel, restaurant and spa development if plans are approved by the local council.
East Lindsey District Council is considering plans to demolish the old building, which co-owner Tim Cross described as past its sell-by date, and replace it with a new-build housing 20 rooms, nine holiday apartments, a bistro, bar, swimming pool and spa facilities.
Car parking would be expanded from the current 20 spaces to 74, and the plans include underground function rooms to minimise noise disturbance to neighbours.
In addition, there would an adjacent retail development with 12 further holiday apartments above it, and a separate development of 20 three-storey homes.
If approved, work will start in September and Cross anticipates the new venue would be up and running within 18 months.
Cross and co-owner Deborah Brown are trying to put Sandliands back on the map and make it a destination resort like North Norfolk.
The Grange & Links hotel has been in business for more than 100 years, during which time it has become run down and is now expensive to run and suffering from low occupancy, according to the owners.