The Wilshire Grand hotel in Los Angeles, USA, will cease operations to make way for a 560-room luxury hotel and 65-storey office tower on the site.
The proposed $1bn redevelopment is still under review by the city, and no date has been set yet.
Korean Air owns the property, which spans 3.2 acres.
Korean Air chairman Yang-Ho Cho said the project will give the downtown area its first new class-A office building in more than 20 years and would create 12,000 jobs.
Originally part of a nationwide hotel chain Los Angeles Statler, the Wilshire Grand later became the Statler Hilton and then the Omni before taking on its current name.