The Clayton-le-Woods hotel, a popular venue for weddings, parties and school proms over the years, closed down in February last year.
Since then the 35-bedroom hotel has been sitting empty.
Now developer McCarthy and Stone has announced plans to use the site for a retirement village.
Ian Wilkins, Regional Managing Director for McCarthy & Stone North West Region, said: “We are very keen to redevelop the site into something the community can be proud of. By offering our specialised retirement living apartments along with a new Lidl store, the development will have something to offer for everyone in the area.”
Further to this, Lidl Head of Property, Stuart Jardine added: “We look forward to working with local people and involving them in the planning process, these proposals will help regenerate the site and provide much needed housing and shopping choice for local residents.”