Plans have been drawn up to make changes to the Fleece Hotel to increase the economic potential of the building.
A planning application has been submitted to North Yorkshire Council to make internal changes to the premises to allow private accommodation on the upper floors and make the ground floor space more suitable for a restaurant or bar.
These would include turning nine en-suite hotel rooms on the first and second floors into five one and two-bedroom apartments.
Changes would also be made on the ground floor.
These include partially removing two internal walls in the entrance to make a larger function room for a restaurant.
Supporting documents submitted with the plans state: “Converting an existing hotel into a different type of establishment, providing a restaurant and residential apartments, promotes adaptive reuse of an otherwise empty building.
“It makes efficient use of existing infrastructure and reduces the need for new construction, which has the obvious environmental benefits whilst also helping deliver the housing requirements of the area.”
They add: “Our client has been committed to the sympathetic restoration of this heritage asset within Richmond.
“Having spent years trying to make the hotel run as a viable business it is now apparent that changes must be made to ensure the future of the business and the building can be sustained.
“This application seeks to gain permission to make modest changes to the building to enhance the commercial proposition and to also provide much needed housing in the town.”
The business closed in July with owner Chris Miles blaming “unrelenting chronic staffing issues and ever-increasing costs” for the decision.
Mr Miles took over the property in 2019 after the previous owners, who had renovated the building between 2016 and 2018, went into liquidation with debts of more than £230,000.
The property is currently on the market to buy with an asking price of £1,750,000.