The Inn Hotel on Queens Road could be turned into staff accommodation for fellow hotel The Royal Yacht.
A 'change of use' application has been lodged which, if approved, will see the three-star facility housing 73 staff members.
Plans show four single occupancy rooms, 26 two-bed, two four-bed and three three-bed rooms across three floors.
In the application, The Yacht LTD says no building work is expected to take place at the site.
However, the current signage will be removed and a bike shelter will be installed, as well as an electric vehicle charging point.
The hospitality company says it has purchased two other properties which will house another 70 staff members.
The hotel provides accommodation for over 240 of its workforce.
Islanders can comment on the application until 3 October, which can be found here.