Under the new plans, the six-storey building at the junction of Crichton Street and Whitehall Crescent is to be transformed into 27 serviced apartments with a rooftop terrace.
Assurance Developments Ltd had previously drawn up plans for the site to host a rooftop restaurant and an 18-bedroom hotel with a further 15 holiday apartments.
The developers insist the new plans by RDA Architects will “help draw people into the city”.
The group’s planning statement said: “The proposal is to rejuvenate this prominent building which now forms the north-west corner of the proposed Caird Hall civic space and the Slessor Gardens development which make it highly visible from the Tay Bridge and the Waterfront.
“The applicant is looking to modernise the building to give it a new exciting and contemporary look, while ensuring that it is respectful to its surroundings.
“The proposal consists of six storeys of serviced holiday apartments, including a rooftop extension which will take advantage of the views that are available, offering panoramic views over the River Tay right round to City Square but also creating a focal point within the city centre.
“The ground floor of the proposal will retain its existing use.
“First floor to fifth floor will be converted into serviced holiday apartments.
“The serviced apartments on the first floor shall consist of six one-bedroom apartments and one two-bedroom apartment with the second to fifth floors each consisting of four one-bed apartments and two two-bedroom apartments.
“The new sixth floor will consist of three one-bedroom apartments and one two-bedroom apartment.
“The apartments would all be equipped with a small kitchen area and en-suite facilities.
“The proposals also include the addition of a rooftop extension forming a sixth floor.
“The new storey will have full height glazing from the Whitehall Crescent elevation to the Crichton Street elevation offering a panoramic view over the River Tay round to City Square.”