Councillors are expected to approve plans for a 63-bedroom hotel and restaurant in Lincoln city centre.
Proposals were submitted by Mike Hayes-Cowley, who currently leases the New Theatre Royal, for the hotel on Clasketgate.
City of Lincoln Council’s planning committee will hear the plans at a meeting on May 23.
The authority’s planning officer recommended the proposals are approved.
The hotel would be situated at 27-29 Clasketgate, which sits between the New Theatre Royal and Danesgate accommodation.
Within the plans, there is also room for a top floor restaurant pitched as a great stop-off for theatre goers to the city.
The proposals would see the demolition of the existing building on Clasketgate which was formerly used as an office block.
Historic England raised concerns about the demolition within a designated conservation area saying the loss would have an impact on the character of the area.
However, the council’s conservation officer said that the building’s contribution to the appearance of the conservation area is low and the loss would not be a reason to refuse the application.
Speaking when the application was submitted, Mike Hayes-Cowley said: “The New Theatre Royal is a struggling venue and and we’re hoping with a property investing the development will serve as a dual purpose.
“The theatre doesn’t receive the public funding that other theatres across the country receive and it will be used to help with an income stream.
“This will help the needs with the city in the needs of tourism and the restaurant can be used as a selling point and a tourist attraction.
“We also hope this will assist the theatre and hope to offer ticket deals for those who could stay in the hotel in an area that needs redevelopment.”
Mr Hayes-Cowley also said he didn’t want to put a timescale on the plans if they were approved, however stated that he would like the hotel to be completed sooner rather than later.
A new six storey building that could be turned into a hotel, apartments of student flats has been approved earlier this year next to this future development as well.