A campaign to prevent the development of Pier Field in Skegness is being backed by the town council.
Councillors are supporting an application to register the seafront site as a community asset.
The move by campaigners delayed a decision by East Lindsey District Council whether to sell the site, which could be the location of a Premier Inn.
The district council has up eight weeks to consider the application lodged by the Save the Foreshore Group.
A meeting of Skegness Town Council on Wednesday voted to supported a motion put forward by Coun Maggie Gray.
The motion states that: “The main use of Pier Field in the past has been to further the social, cultural and economic well-being of the community and it is realistic to think that it can continue to do so in the future.”
Speaking after the meeting Coun Gray said: “It is absolutely brilliant I am so proud of my fellow councillors for taking this stand and supporting the application for Pier Field to be a community asset.
“Losing it would have a big impact on events in the summer like the Skegness Carnival and SO Festival. We do not want the foreshore built up, if this goes ahead where will it stop?” She added: “I want to be optimistic and really hope and pray that East Lindsey District Council will have a change of heart.”
Documents due to go in front of the district council’s executive board on January 13 had recommended the sale of the site to KCS developments Ltd.
Plans put forward include an 80 bedroom hotel with ground floor restaurant and parking and KFC restaurant.
Chairman of Skegness and District Chamber of Commerce Tony Tye said: “I think it is good news for the community there is a bit of thought going in to this, instead of just selling the site off.
“I am all in favour of Premier Inn coming to Skegness we need investment, but that is not the right place for it.”