The 144-room hotel on Roseville Street is owned by the Modern Hotels Group, which has done a deal to sell the site to a developer who wants to build flats.
They say that the money will be put into upgrading the Mayfair Hotel in St Saviour’s Road, which they also own.
Managing director Jonathan Segal said that only a small number of permanent jobs were at risk.
He said: “We have spoken to all of our permanent and seasonal staff before making this news public as each and every one of them is highly valued and have each played an important part in delivering an excellent service to all of our guests.
“Fortunately there are only a very small number of permanent roles which are at risk and we will be liaising closely with staff over the coming weeks although, as both hotels will be operating as normal in 2015, no changes will happen until late next year. Our hope is that by letting our team know now, those affected have plenty of time to find alternative employment and we will assist them in any way we can.”