The agents say it has 'huge potential' and is in an 'enviable position'.
St Nicholas Lodge, which overlooks Scarborough South bay and is close to the town centre, is on the market for £475,000.
The seafront hotel, which was purpose built in 1793, comprises 11 guest bedrooms, a 20-cover dining area, and spacious commercial kitchen. Three-bedroom owner’s accommodation is also provided on the site.
St Nicholas Lodge has been operated by the current owner, Dorothy Hurrell, for the last 13 years and offers plenty of scope to grow, having only been inviting walk in guests for the past two years. Mrs Hurrell is now looking to sell the freehold to retire and spend more time with family.
Matthew Hendry, business agent at Christie & Co, said: “This hotel has huge potential, due to its location and size, for a new owner either to reopen as a hospitality business or for redevelopment as residential accommodation.
"We have seen the demand for quality guesthouses in North and East Yorkshire significantly increase over the past few years, so we expect a large amount of interest.”