A developer has announced plans to transform the area previously occupied by the Pärnu hotel and nearby properties into a new residential quarter that will include apartments, commercial spaces, and a hotel complete with a spa. Optimistically, construction could begin as early as 2028. The new mixed-use development is slated for two plots of land in Pärnu's city center, where a vocational school once stood and which is currently home to the Pärnu hotel, set for demolition as part of the project.

The existing structures will see significant changes; while the vocational school's buildings have already been demolished, the plan includes the demolition of the current Pärnu hotel due to regulatory issues pertaining to infrastructural requirements and space limitations for modern hotel amenities. Vallo Palm, a member of the board at Pärnu Kesklinna Arendus, emphasized that maintaining the existing hotel would not meet the necessary standards for communication infrastructure and room setup, thus making the construction of a new facility more feasible and advantageous.

This redevelopment project reflects the ongoing evolution of urban landscapes in Estonia, particularly as cities like Pärnu seek to adapt to modern residential and tourist demands. By integrating residential living with commercial and hospitality options, the plan aims to enhance the economic and social vibrancy of the Pärnu city center while preserving the heritage of the remaining historic structures, such as the two-story brick vocational school that will remain protected under heritage conservation laws.