The proposed hotel-letters would be about twice the size of the current 45-foot tall sign. The proposed hotel-letters would be about twice the size of the current 45-foot tall sign.

The land behind the iconic Hollywood Sign in Hollywood, California is in the middle of a battle to save the area from developers.

Private investors and real estate developers want to build mansions on the site of the famous white letters, but the plans have met resistance from many in Los Angeles who are trying to save the peak.

They are reportedly US $1.5 million away from their goal of raising enough to buy back the land from developers, but Danish architect has come up with a novel way of placating both parties.

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Architect Christian Bay-Jorgensen has developed a plan to turn the sign into a hotel, with each letter boasting rooms and views across Los Angeles.

The proposed hotel-letters would be about twice the size of the current 45-foot tall sign, and include observation decks and restaurants.

Bay-Jorgensen said it would be a way of preserving history and generating much-needed funds for the city.