Rough sleepers are currently seeking shelter in the doorway of the Chesterfield Hotel building.
Many residents have voiced concern about the situation at the prominent premises on Malkin Street.
Last spring, the Derbyshire Times revealed that Chesterfield Borough Council had applied to the D2N2 organisation for a grant to buy and demolish the building and then redevelop the site as part of HS2 plans.
The property had been due to go under the hammer in an online auction towards the end of last year.
A spokesperson for Lambert Smith Hampton, which is marketing it, said in November: "It's being looked at by multiple developers for uses including student accommodation, other accommodation, a hotel and office space."
However, the spokesperson subsequently confirmed that the site had been withdrawn from auction - but couldn't publicly explain why - and said they would provide Derbyshire Times' readers with an update when one is available.
The building is currently owned by Prestige Hotels (Midlands) Ltd, which bought it for £900,000 in 2017 and is understood to have spent up to £300,000 on repair and refurbishment work.
Several members of the public rented rooms at the 73-room property, which is now vacant.
Chesterfield Hotel, formerly the Station Hotel, opened in 1877 and closed in 2015 after the previous company which owned it went bust.
It was one of the town's longest-running businesses, a major employer and a venue for thousands of occasions over the years.