The Lincoln City hotel is being forced to sell its entire property after the city was declared an international city in an attempt to attract investors and help revitalise the city.
The Lincoln City Hotel, which is situated on the former site of the Old State House in Lincoln, will become part of the Lincoln Square development, which includes an apartment block and shops on the premises.
The building will be one of three properties to be re-developed in the city, the other two being the new Lincoln Square apartments and the former state house.
The re-development, which will see the building re-branded as the Lincoln City Apartments, is being funded by the city council, the county council and the state government.
A spokesperson for the Lincolnshire County Council said: “We want to make sure that this area is seen as a city and the development will ensure this continues to happen.”
The development will also provide the opportunity for local residents to come to the area to see their own businesses and attractions.
“It will also be a great boost to the local economy.”
The Lincoln city’s historic Old State house was demolished in the 1960s and was converted into the hotel in 2005.
It was also used as a police station until 2015.
In the 1980s, the building was used as an orphanage and the town’s first police station, where detectives worked under the watchful eye of former police commissioner Lord Strathclyde.
The Old State Building is believed to be worth around £1.3 million.
The city has been trying to attract investment for years, and is currently trying to lure a major hotel and entertainment venue to the city from a group of private investors.
The group has made a bid for the project, which has been put on hold, according to the Independent.