The Mitchell family, which owns the hotel, has applied for permission to turn the hotel into 16 flats and create eight townhouses in the grounds.
The owners, who have had Ellenbank since the 1980s, were unable to comment this week.
However, their agent, Tim Wilson, of Planning Branch Ltd, in Penrith, said that they were aware of the hotel’s historical importance in the area.
It is not a listed building but is a Victorian country house set within three acres of garden.
Mr Wilson said the design would allow the facade of the hotel to remain and the dwelling would be sympathetic to their surroundings.
The owners are looking for permission to build one one-bedroom flat, 12 with two bedrooms and three with three bedrooms.
The eight townhouses would each have three bedrooms.
The agents, in their application, said the conversion would have little impact on others as there are so few residences in the area.
Ellenbank is on the border of Maryport and Birkby.
As well as being known for its appearance, the hotel has also been a meeting place for organists from all over Cumbria who play there on a regular basis.
A consultation period opened on Tuesday and people have until Friday, August 26, to comment.
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