Select highlight all items in group and from the layers palette menu choose collect in new layer. This will eliminate the group (since it has no descendants) and make a new sublayer.

Image 1: Collect in new layer

Since this is easily recordable so you can bind it into an action that does this for you. So you could easily make a hotkey for this.

It is also possible to make a script that does this. No need to make a new file.

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@Holmes874

Just Ungroup the grouped object and it will automatically convert all objects in Sub-layers

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: Convert group to sub-layer Is there a way to quickly convert a Group to a Sub-layer in Illustrator?

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