The head of the Rose of Tralee international festival, Anthony O'Gara, has revealed the festival will enter the bidding process to buy Fels Point Hotel in Tralee, Co Kerry.
The premises on Dan Spring Road in the town has been the home to the festival since 2007.
The festival says backing for the project has been secured to enable a cash purchase.
Mr O'Gara said: "Such a move would be key to the long-term development and viability of the festival in Tralee."
"Ownership of the hotel would be a pre-requisite for the development of a permanent dome on the adjacent Fels Point site. If the bid is successful, it would allow us to unlock the full potential of the festival," he added.
A new Rose of Tralee festival trust is being established, with a view to eventually managing the overall project.
The festival adds that the hotel may be rebranded as the 'Rose of Tralee Hotel'.
Mr O'Gara added that he is confident the bid will have the support of the people and business community in Tralee.