An application to transform 4 Cowpasture Road was submitted to Bradford Council earlier this year, and has now been approved.
It will see the ground floor of the building, a former electronics repair shop, turned into a gin bar. The upper floors would be converted from residential use to a six bed hotel.
The application was for the re-location of The Gin Lounge, a popular town venue reserved for customers aged over 25.
The Gin Lounge has been based on Brooke Street since 2017, and has two guest bedrooms. The company also operates three guest bedrooms on a separate site.
The application said: “The business has now outgrown these premises and the owners are seeking to relocate to enable the expansion of the bar and the consolidation of all letting rooms into one building.”
There had been two objections to the plan, but 27 letters of support.
Planning officers said the scheme would “support the local economy.” They added: “The proposal will bring the building back into use and will improve the appearance of the building which in turn will ensure its long term survival.”