The former Whitcliffe Hotel could be demolished to make way for 20 new homes in Cleckheaton.
Slaithwaite-based company AKPlanning have applied for permission to build on the historic Prospect Road site. The hotel went into liquidation last January.
But Cleckheaton councillor Baroness Kath Pinnock has expressed sadness that the town could lose one of its landmarks – the hotel’s older part was once used as a trade union headquaters, a Liberal club and had strong links with surrounding mills.
Coun Pinnock, said: “The older part of the hotel has got a connection with Spen Valley history.
“Even if there’s going to be housing, why not retain some of the existing old building and make that into apartments?
“Otherwise we lose another of our stone buildings and before long Cleckheaton becomes like any other town in the country.
“It would be tragic to lose that link with the past which we should retain as part of our heritage.”
Coun Pinnock also feels that extra housing is putting a burden on the town, noting that between 700 to 1,000 new homes have been built over eight years.
Most areas in the district had a three-and-a-half per cent share of housing built over this time, while Cleckheaton, Gomersal, Liversedge and Mirfield each had about seven per cent, she said.
“In the last seven to eight years, Cleckheaton has had 50 per cent more of its share of housing than most other areas in Kirklees.
“Nobody’s suggested that we build a new school and the schools are full, or a new doctor’s surgery and the doctor’s are full.
“Kirklees has got to stop just saying yes to every planning application in Cleckheaton and give some thought to the facilities that are provided here.
“They are reducing our facilities and increasing our housing – that’s not acceptable.”
In the application, AKPlanning propose new or altered vehicle and pedestrian access, with new public roads to be provided.
Public consultation on the plans ends January 9.