The Royal Victoria Hotel, in Newport, has not hosted guests for nearly six years, and Town Centre Properties UK Ltd won permission to convert it into 12 apartments in 2018.
The company has now applied to build an extension at the rear of the St Marys Street site and redevelop it into 15 homes instead.
A statement by its planning agent says this is “essential” to make the project viable, promising the work will respect the “special architectural and historic qualities” of the listed building.
Newport Town Council will be consulted, and Telford and Wrekin Council’s planning department will make its decision at a later date.
A design statement, by Stuart Thomas, of Shrewsbury-based planning consultants Berrys, says: “The Royal Victoria Hotel is a grade II listed building located in the historic core of Newport, within the Conservation Area.
“However, due to a deterioration in both turnover and profitability, the property has not operated as a hotel since 2014, aside from a short period in the summer of 2015.”
The 12-flat proposal, which “sought to secure the future of this valuable historic asset”, was approved three years ago, Mr Thomas writes, but, since then, “a further review of the proposed development has taken place which found that, for the development to be viable, it is essential that additional units are provided”.
“As a consequence, a sensitive scheme for the extension of the building has been conceived that will provide an additional three apartments,” he adds.
“This scheme will ensure the development is deliverable whilst respecting the special architectural and historic qualities of the Royal Victoria Hotel’s Georgian facade and the character and appearance of the area within which it is sited.”
Blueprints submitted to the borough council show one one-bedroom, 11 two-bed and three three-bedroom apartments across four floors, and application documents say all 14 of the former hotel’s existing car parking spaces would be retained.