The owner of the Tower House Hotel opposite Palmer Park has applied to knock it down and replace it with 12 flats.
These would be within two blocks with a similar design to the existing hotel, including a first-floor connection as with the existing building.
The blocks would contain six three-bedroom and six two-bedroom flats.
A plan to replace the hotel with separate blocks containing 14 flats was refused in January last year.
The application can be seen by searching Reading Borough Council’s planning website for reference 240015.