A Douglas company has applied to turn a block of flats into accommodation for tourists.
Nelson Development, based in Albert Street in Douglas, says it wants to change the use of the Nelson Hotel in Mona Drive.
In its application the company says it already has planning permission to turn the building from a hotel into apartments and work is underway.
However it says current market conditions mean that plan may not be financially viable.
The company says it's had to reconsider its plans for the hotel given the state of the Island's property market.
It now wants to create nine tourist apartments rather than the original eight residential units it had already been given permission for.
And it adds a long-term contract with a hotel operator will mean the building has a brighter financial future.
The block had been trading as a hotel and Nelson Development says it hopes to reopen the building in time for this year's tourist season.
Panic over - Mcdonald's reopens at 11am tomorrow
Police say beat it to cars illegally parked during MJ tribute act
No dedicated prostate cancer screening programme, despite over 1200 referrals
Minister says GP waiting times have improved, but delays still impact A&E
Crash closes section of the Mountain Road
Island's prison nears full capacity
Beach hut owner praises youngsters for owning up to break-in
Questions raised over Cair Vie Windfarm funding