The proposed development, designed by Associated Architects of Birmingham, will mean that business conferences could create revenue for the institution.
The plans form part of a £200m redevelopment, which will be carried out over the next four years.
University of Leicester’s deputy director of estates Grant Charman said: "The hall has been closed since 2005 and presents a difficult issue for the University in terms of how best to use the asset.
"Redevelopment is not straight forward due to the listed building status, and we will work closely with the planners and English Heritage to bring the building back into use in a sympathetic way."
College Hall was formerly a 180-bed student accommodation.