The building in York Street, which comprises of 134 self-contained flats, has stood vacant since 2020.
Plans to turn the building into 118 units to “alleviate some of the short-term homeless need” in Leicester were approved by the city council on Wednesday.
A report said the flats would offer temporary accommodation for single people and a limited number of couples who are homeless or at risk of homelessness.
All referrals will be made by the authority, and, according to the report, occupants will be offered tailored support to meet their needs and to help them move towards permanent housing.
Chris Burgin, Leicester City Council’s director of housing, previously said: “We don’t want people to be in unsuitable B&B accommodation for any length of time, but with increasing numbers of people facing homelessness we have few options available to us.
“This building will provide good quality units with cooking and washing facilities which are not available in hotels and B&Bs, and will house people for between three and 18 months before they move on to permanent accommodation.”