The Theatre Royal in Halifax town centre has a guide price of £300,000 to £350,000 at auction on February 20.
The former nightclub and theatre building is going under the hammer at the Eddisons sale at Leeds Utd football club.
It is offered with planning permission for the demolition of the rear section of the property and the construction of a 103 bedroom hotel with associated gym, restaurant and meeting rooms, arranged over six floors.
The foundation stone was laid in 1789 and the building was built by voluntary subscription at a cost of £1,300.
It opened in October 1790 and the first production was Cymbeline.
Gas lighting replaced candles in 1824 and upper galleries were added in 1853 when it was judged by many to be the best theatre in the region.
The old theatre was closed and demolished in 1904 and the new Theatre Royal with room for nearly 2,000 people opened in 1905.
The last theatre production was in 1932, in 1933 the building became a cinema, in 1966 a bingo hall, in 1999 a nightclub and it shut in 2005.
Also up for auction is a convenience store at Victoria Road, Elland, (£100,000 to £120,000); 5.3 acres of grazing land off Back Lane in Ogden, (£20,000 plus); Martin’s Mill, a former textile mill on Pellon Lane, Halifax (£150,000 plus).
Separately, The Old Golf House Hotel, at Outlane, is up for sale with Walker Singleton.
The 52-bedroomed hotel has extensive gardens and grounds.