The Victorian-style Grosvenor Hotel on Port Erin promenade can be demolished and replaced with a block of flats.
A number of hotels on the promenade have already been demolished - including Ocean Castle, Hydro, Snaefell and the Eagle.
Now, Redmayne Investments Limited has been given approval (14/00100/B) to replace the 42-bedroom hotel with a block of 15 flats, all for either residential or tourist use.
The building would comprise 14 two-bedroom flats and one three-bedroom maisonette over four floors, lower ground floor and a further two floors set back in the roof terrace.
There would be 18 parking spaces.
The flats may not be occupied until the basement parking and undercroft parking are available.
And before work starts on the site, the planning authority needs to approve the external facing materials to be used.
Redmayne Investments first received planning approval to demolish the hotel in January 2013.
At that time, the plan was for a block of flats – seven for residential and seven for tourist use.
The footprint of the building will be smaller than both the current building, and the one approved in 2013.
The latest application was submitted in June 2014.
Before 2012 the main use was by coach parties and school groups.
In the application, it stated that the hotel was on ‘borrowed time and not fit for purpose’ despite have a turnover of £200,000 to £250,000 per season.
It continued: ‘It is understood that when the coach company pulled their pre-booked business for the 2012 season, citing unacceptable conditions and customer complaints, the Grosvenor was no longer viable.’