The hotel on what was Wakefield Westgate rail station will "meet growing demand", the council says.
The move by Wakefield Council comes after Featherstone Rovers went into administration in December.
Councillors are set to vote on the proposal less than a year after the grace period was introduced.
Over 100 public assets could be sold by Wakefield Council over the next two years, a report states.
Wakefield Council planners said the proposed communication unit would "introduce visual clutter".
The owner of Wragby Grange is banned from using land at the site to exercise dogs.
Jacob Padget quits Wakefield Council's adult services and health overview and scrutiny committee.
New leader has already repainted road markings - but will he be able to lower council taxes?
