The Farrier has won the prestigious accolade in the 26th annual AA Hotel and Hospitality Services B&B Awards at a virtual ceremony on Tuesday July 5.
Located at Cayton, the establishment is owned and run by mother and daughter duo Suzie and Dani Bushby, who saved the then-Blacksmiths Arms from being demolished for new homes after it underwent a £2m refurbishment in 2019.
The inn has since gained a reputation as one of the best places to eat in the region.
Suzie Bushby, co-owner, told The Scarborough News that the award win was "beyond exciting" due to the prestige and reputation of the AA brand.
The Farrier received a visit from the AA "a little while ago" when the inn was first awarded a Rosette for their food, and they were nominated shortly after.
Suzie said: "The honour is made even greater as some of their award categories are split into regional winners, however, The Farrier won outright for the whole of the UK, which for us is just staggering."
The award win is just the latest accolade for The Farrier after claiming the crown of Channel 4's Four in a Bed in March 2021 and being named the 'Best Licensed Premises in North Yorkshire' at the England Business Awards, just three months after opening in March 2019.
Dani Bushby, co-owner, said: "I am honoured and proud to accept this prestigious award from the AA.
"In 2015 my family and I began a restoration project that would ultimately take three years, but give a new heart to the old soul that was the rather tired, closed down, public house in our village.
"As we approach our fourth year of trading, I can honestly say that back then we would never have dared to dream that we were capable of what we have achieved and receiving this award has really confirmed for us that everyone's hard work and determination to go above and beyond, in every aspect of our business, is truly paying off.
"This is a huge achievement for the whole team at The Farrier and we are all thrilled and excited to be the very grateful recipient of the AA's Inn of the Year Award 2022."
The Farrier boasts a restaurant downstairs, a bar and cocktail lounge above it – where guests can enjoy a pint or exotic cocktails – a function room and four bespoke bedrooms.
Suzie Bushby said: "Our family's three-year project was truly a labour of love, an exceedingly risky at that too as the whole project cost way more than we had ever anticipated, but, it has been nothing short of astonishing, to have had so many people find and support us and so I must sincerely thank each and every guest who has been kind enough to be part of our journey thus far.
"I can hardly believe that from its conception, when our only aim was to be 'a nice place to be, that served nice food' that we are now being recognised at this level, on a national stage.
"The owners and staff at The Farrier are humbled and proud not only to have received this prestigious accolade but also to have the opportunity to represent Scarborough."