Developer Khalbros has submitted plans to convert the Jubilee Hotel on The Headrow, which was built opposite Leeds Town Hall in 1904.
It was home to lapdancing club Red Leopard until 2014 - but was previously a commercial hotel with a middle-class clientele who would drink spirits in the bar, known as a 'gin palace'.
If approved, the aparthotel would have 38 rooms, a bar on the ground floor and a gym.
A new six-storey building with retail units would also be constructed at 19-20 East Parade as part of the proposals, requiring the demolition of an existing building on the site.
The Jubilee Hotel was purchased at auction for £1.9million in 2017. More than 200 parties expressed interest in buying it.
The plans will go before Leeds City Council on May 9.
Aparthotels - where apartment-style suites are marketed to groups such as stag and hen parties - have become increasingly popular in Leeds. Town Centre Securities want to build one with over 100 rooms on George Street, close to Kirkgate Market, as part of plans to rejuvenate the Victoria Quarter.