Fresh plans to convert Falcon Manor Hotel, Settle, into flats are being recommended for refusal - a year after an identical scheme was turned down.
Remove Code Ltd claims that the hotel, which is currently on the market for £700,000, is struggling and that attempts to sell it have failed.
But officers for Craven District Council say the hotel has not been marketed long enough and that realistic offers have been refused by the owners.
The scheme, which would see the grade two listed former private home, converted into ten, one to four bedroom homes, has raised objections from Settle Town Council and the chamber of trade - because of the impact on the area’s trading environment.
Craven District Council refused the original plans for the hotel in September last year and the decision was upheld on appeal to the Planning Inspectorate in the following April.
Now the planning committee - which is due to meet on Monday - is being recommended to refuse the scheme again because of its potential adverse impact on the economic base of the area.
Proposed reasons for refusal also include a belief that the hotel has not been marketed at the right price for an adequate length of time to demonstrate a lack of demand.