City Hall is looking to sell off the site of a hotel which is being used to temporarily house refugees.
Best Western, the owner of the Brook Hotel in Bowthorpe, wants to buy the land its hotel sits on from Norwich City Council.
The hotel closed to the public in September last year after the Home Office took over the site as a temporary home for refugees.
Around 400 hotels across the UK are being used to house people seeking asylum.
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The use of such hotels has prompted heavy criticism, with many arguing it is an expensive solution, costing taxpayers around £6m a day.
In an effort to drive down costs and reduce the numbers in hotels, the government is set to house some refugees on barges moored on the coast.
However, this policy has also proved controversial. Refugee groups have called the proposals "completely inadequate", while councillors from the areas concerned have also opposed them.
The Brook Hotel was one of two in Norwich chosen by the Home Office to provide temporary housing. The other is the Holiday Inn Express in Hellesdon.
The City Council granted Best Western a 125-year lease on a piece of bare land for the development of the hotel in 1988.
It was granted at a peppercorn rent – a very low or nominal amount - in exchange for a payment of £409,500.
A report, which will be discussed by City Hall’s cabinet next week, said: “The lease currently has 90 years unexpired with no provision for review of the peppercorn rental.
“The leaseholder has approached the council to acquire the freehold interest of the site.
“Given the asset delivers no income and has no income potential in the short term, it is recommended to dispose of this asset to the leaseholder.”
How much the site will be sold for has not been revealed.
The cabinet is being asked to agree to sell the land at a meeting next Wednesday.
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