Stockport Council has instructed DTZ to sell the former Ritz cinema site on Piccadilly in the town centre.
The 0.62 acre site, near St Peter's Square, is currently used as a pay and display car park. While the council favours a hotel, it would to consider all proposals consistent with both planning and the Future Stockport vision.
Cllr Kevin Hogg, executive member for regeneration, said: "This site is a great opportunity for a developer to take advantage of the excellent location in the town centre, close to the main shopping area and historic Market and Underbanks area, as well as superb transport links."
A report published in September by TRI Hospitality Consulting found unmet demand for hotel use in the town. There are several sites already with planning consent for hotel use but no developers on site.