A historic hotel which is said to have welcomed royalty and a literary great could be converted into student housing.

Southampton’s Dolphin Hotel has most recently been used to provide temporary accommodation for asylum seekers.

The Home Office’s use of the Grade II-listed building in High Street is set to come to an end next month.

Dolphin Hotel Property Ltd has submitted a change of use application for the site, which is believed to be Southampton’s oldest hotel dating back more than 500 years.

Famous guests in the hotel’s past reportedly include Queen Victoria and Admiral Lord Nelson.

The hotel’s ballroom is considered to be where novelist Jane Austen celebrated her 18th birthday and she is said to have returned to the Dolphin on multiple occasions.

A letter submitted on behalf of the applicant by Savills said the proposal will “enable a long-term viable use of this important and prominent building”.

The current hotel operator secured the temporary use of the building by the Government after a significant drop in demand and occupancy of the site as a hotel.

It adds: “The contract with the Home Office is due to end in May 2024 and unfortunately, local market indicators are that the demand for and occupancy of the hotel will remain low if it were to return to hotel use following the vacation of asylum seekers in May this year.”

The plans would see all of the 99 hotel rooms used as student bedrooms, with en-suite facilities.

Existing communal hotel facilities would be available for the students, including a large dining hall, kitchen, function rooms as recreation spaces and a communal lounge.

A heritage statement said student accommodation was considered the most suitable alternative option due to the minimal changes required to the listed building, with a demand for this housing in the city.

“The proposed conversion of the listed building to student accommodation will provide the opportunity for the Dolphin Hotel to be revitalised as a key historic building within the city centre, and for its unique heritage and historic hotel use to be celebrated as part of the scheme,” the heritage statement said.

The application is currently being considered by Southampton City Council’s planning department.