The Grand Hotel on Plymouth Hoe, which was destroyed by fire nearly five years ago, is to be converted into luxury flats, according to the BBC.
The hotel has been vacant since the blaze in September 2003, and will now be converted into 24 luxury two- and three-bedroom flats with a restaurant open to non-residents as part of an £8m project.
Building is scheduled to begin at the end of summer and will take 18 months to complete.
Falmouth-based developer Devington Homes will be in charge of the development.
Its managing director Lawrence Butler said converting the Grand was the best way to preserve the Grade II-listed building.
Butler told the BBC that "we'd all like to see a five-star hotel in Plymouth, but unfortunately on that particular site it wouldn't work financially".
The sale comes after a long-running campaign to preserve the Grand as a hotel. The planning permission was initially refused having received almost 500 objections from locals.
The fire had been caused by faulty electrical wiring and no one was hurt.
By Gemma Sharkey
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