The Mariners' Club in Tsim Sha Tsui is to be demolished to make way for a residential high-rise because there are too few sailors to make the club's facilities viable.
Plans have been drawn up to pull down the distinctive 35-year-old, 12-storey, building in Middle Road and construct a block of high-rise flats that will generate a stable income for the club.
The club had deficits of $8 million in 2000 and $9 million last year because of low-occupancy rates in its 90 guest rooms and hefty costs incurred in upgrading old fire-safety features.
When it opened in the 1960s, the club building was crowded with sailors from Hong Kong and overseas.
As well as guest rooms, the club has a comfortable bar and restaurant.
But as the shipping industry changed and vessels began to dock in Hong Kong for a short time - sometimes just a few hours - the number of sailors dropped drastically and fewer guest rooms were occupied.
According to the Marine Department, the number of Hong Kong sailors working on long-haul vessels has declined from 60,000 30 years ago to just 518 today.