Morecambe's rundown promenade is to be regenerated as part of the Lancashire seaside town's masterplan.
The Grade II listed building is a landmark of the seaside town
Manchester-based property developer Urban Splash is currently regenerating the Grade II listed Midland Hotel.
Now the Royal Institute of British Architects (RIBA) is looking for a designer to breathe new life into the adjacent 12-acre stretch of promenade.
Bill Maynard from Urban Splash said he hoped the competition "will inspire architects from all over the world".
Lancaster City Council has said the landmark art deco-style hotel is central to the town's redevelopment master plan.
The building will become a 46-bedroom hotel with a public cafe-bar, a restaurant and a bath house.
The North West Development Agency (NWDA) has predicted it will bring in an extra £1.2m a year to the local economy.
It is hoped the new hotel will attract investment to the town
Bryan Gray, chairman NWDA chairman, is on the judging panel.
"The site at Morecambe provides a true opportunity to create a very special development, not just for the town itself but for the region as a whole," he said.
John Donellon, director of regeneration at Lancaster City Council, said: "I believe this site offers a fantastic opportunity to lead the regeneration of Morecambe.
"The site adjacent to the Midland Hotel is one that Morecambe people hold dear and I am convinced the competition will generate some high quality proposals."