Chalk Lane Hotel could be turned into homes, if Epsom and Ewell Council approves a new planning application.
The hotel, in Chalk Lane, Epsom, currently has 21 rooms, and the plans include 21 flats, with between one and four bedrooms, as well as space for cars and bicycles, and a communal garden at the rear.
Hotel owner Steven McGregor, who has run the hotel since December 1997, said: "It's purely a business opportunity. If the application is approved, we will sell and plan to retire."
The roadside front of the building would remain unchanged by the proposals.
There are listed buildings on the site, which the applicant – Burlington Developments London – has said would be protected.
Chalk Lane Hotel has two conjoined buildings, Woodcote Cottage and Heathcote House.
A cottage, possibly Woodcote Cottage, is recorded on the site as early as 1711, and Heathcote House dates from the late nineteenth century.
The council is expected to make a decision on the application by February 20, 2018.
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