The Villa Esplanade hotel in Scarborough, North Yorkshire, has been brought to the market for a guide price of £1.25m.
The Grade II listed building dates back to the 19th Century and currently features 31 self-catered apartments and four letting bedrooms.
Space within the ground floor and basement is currently occupied by Mexican restaurant El Gringos and Ink Lounge Bar respectively, generating a combined rental income of £40,000 per annum.
According to international real estate advisor Savills, the former hotel space above the restaurant and bar is not trading and “offers significant development opportunity”, subject to the necessary planning consent.
Tom Cunningham, hotels director at Savills in Manchester, said: “This elegant former hotel offers an excellent investment or development opportunity in a highly desirable and prominent location. As such, we are anticipating strong market interest.”