The historic building, which sits in a Conservation Area, had been set for demolition to make way for an extension to the Premier Inn, which is located at the rear in Vernon Road.
A number of heritage groups objected to the plans, including Scarborough Civic Society and The Victorian Society.
Adrian Perry, civic society chairman, told The Scarborough News: “The building was listed as Grade II on Friday January 13, so it wasn’t such a bad Friday for heritage in Scarborough.
“It means the developer can’t knock it down without additional permission, as it’s much more difficult to knock down a listed building than one in a Conservation Area. So really it has been given a stay of execution.”
Mr Perry added: “We were really upset when we heard that our planning committee accepted the arguments for demolition, so I’m very pleased about this latest decision.
“It’s an important part of the street scene in Huntriss Row. You can’t have a Conservation Area and keep knocking bits of it down.”
The building is described in the Grade II listing document as a ‘former gentleman’s club affiliated with the Conservative Party, designed by Henry A Cheers, built 1888 in picturesque mixed Tudor and Baroque style’.
Reasons for designation by the Secretary of State for Culture, Media and Sport include:
• Architecture: for its playfully flamboyant street frontage
• Association: as a good, early example of the work of HA Cheers, pre-figuring his later work of which at least seven buildings are also listed.
• Interior: particularly for the ornate roof structure of the hall on the first floor.