Antoinette Hotel will likely be demolished after the hotel group submitted a planning application to Kingston Council requesting to replace the hotel with residential homes.
The application proposes the demolition of the existing hotel in Beaufort and Fassett Road and the construction of 19 houses and 60 flats.
The plan requires a significant building project which is estimated to take two years to complete.
A spokeswoman for the Antoinette Hotel Kingston said: “We would like to re-assure all of our guests that there are no immediate plans to re-develop the site.
“We already have a great number of weddings and events booked for 2015, 2016 and many for 2017, which will not be affected.”
The hotel, which has been operating for the past 50 years, offers 96 budget bedrooms, restaurant, conference rooms, and associated parking, together with 47 flats, including staff accommodation.
The new plan proposes 19 houses with four or more bedrooms, 60 flats, 108 on-site parking spaces, 19 disability spaces, and 114 cycle spaces.
The construction expenditure is anticipated to be £25 million and will include site clearance, basement works, site infrastructure costs, refurbishment of existing buildings and the cost of constructing the new residential units.
According to the supporting documents submitted to Kingston Council, “the building has undergone significant internal and external alterations that prevent the conversion to residential use.
“Due to a number of large hotel chains coming to Kingston it will be increasingly difficult for the family owned and run Antoinette Hotel to compete in the long term with this modern accommodation.”
The documents also suggest that young and aspiring professionals from the area can take part in the reconstruction.
It read: “There is scope to provide opportunities for local young people to gain NVQ Level 2 and Level 3 training and practical experience in a range of different construction and engineering trades.
“Initiatives of this sort are typically run by a training provider in partnership with the main contractor for the construction programme.”
A range of measures will be set in cooperation with Kingston Council to minimise the impact of dust, noise and vibration on residents of the surrounding area.
Also, a total of 50 new trees will be planted, including multi-stemmed cherry trees, birches, and Japanese flowering trees and Zelkova serrate.