The Windmill Hotel in the Market Place has applied to East Lindsey District Council to use the old Lloyds Bank, which closed in 2018.
Owners want to turn the reception into a seating and table area connected to the hotel’s bar, while the rear of the ground floor would be turned into storage and a games room.
The first floor would be turned into four new bedrooms, while the former canteen would become a new kitchen and staff lounge for the hotel.
Planning documents from the applicant state: “The main changes are in the reuse of the space, not the reconstruction.
“This way the proposed avoids making any harm to the historic value of the building.
“Rather than harming, it will revive the empty bank building, create more value and ergonomic space for the hotel, bar and restaurant.”
The bank was built around 1892 and is Grade II listed.
A listed building application alongside the main one outlines how the majority of changes will be to the interior, while the exterior which is said to offer more historic value will remain unchanged.