Lancashire County Council is to sell off the landmark Park Hotel on East Cliff, as part of major local authority budget cuts.
The building, which was first built in 1882, currently houses offices for the local council, but it is hoped that an enterprising developer will snap it up and take advantage of its prime location, with sweeping views over Avenham and Miller Parks.
The 504 staff currently based in the building will be moved to other council offices. The building has the potential to be turned back into a hotel or to be converted into a unique housing development.
Lancashire Council leader, Geoff Driver, said that the sale of the hotel was essential for their budget, but would also create the opportunity for a new landmark project for the town.
"It is part of our efficiency measures to only use property we need. We have got nearly twice as many people (at County Hall) as we had before," he explained. "We said we would do what we can to protect the front line services and the rationalisation of property is one of these measures."
During the peak of its time as a hotel, the building boasted 33 double bedrooms, 29 single, six drawing rooms, eight bathrooms and central heating on the ground floor.
Fr Timothy Lipscomb, vicar of Preston and a member of the Friends of Avenham and Miller parks, said, "It is an iconic Walt Disney fairytale castle. It has a commanding view of the park and is near to the station. It would make a magnificent boutique hotel."
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