The historic Pines Hotel in Clayton-le-Woods, Chorley, was a popular spot for weddings, cabaret nights and parties in its heyday.
But the building is currently being demolished as part of lengthy plans to redevelop the site.
Workmen are ripping it down brick by brick ready for a new Lidl supermarket and retirement apartments to be constructed in its place.
Chorley Coun Eric Bell, who represents Clayton-le-Woods, said: “I used The Pines for the last 50 years so it’s sad to see it go; we will miss it for the memories over the years.
“[But] it was going nowhere as an empty building. I think [the new development] will be good, certainly the retirement flats.”
Regarding Lidl, Coun Bell added: “It will be an asset for the town and bring competition in with Asda only round the corner.”
Housebuilders McCarthy and Stone are set to bring 40 apartments to the site on the A6 Preston Road.
Residents living off the A6, a busy road between Bamber Bridge and Chorley, had previously voiced their concerns about the impact on traffic but Highways had not raised any objections to the plans.
The 35-bedroom Victorian hotel had been operated by the Duffin family for many years. It was still run by Betty Duffin up to its closure